Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 01, 2016 | |
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 | 174,665,236 | |
Amendment Flag | false | |
Entity Central Index Key | 1,418,121 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Investment in real estate, net of accumulated depreciation of $456,266 and $423,057, respectively | $ 3,627,296 | $ 3,641,767 |
Restricted cash-furniture, fixtures and other escrows | 20,806 | 22,651 |
Due from third party managers, net | 43,027 | 24,743 |
Other assets, net | 31,945 | 33,614 |
Total Assets | 3,723,074 | 3,722,775 |
Liabilities | ||
Revolving credit facility | 171,900 | 114,800 |
Term loans | 421,647 | 421,444 |
Mortgage debt | 427,495 | 461,859 |
Accounts payable and other liabilities | 73,426 | 77,614 |
Total Liabilities | 1,094,468 | 1,075,717 |
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 174,665,236 and 174,368,340 shares, respectively | 3,506,514 | 3,500,584 |
Accumulated other comprehensive loss | (8,751) | (2,057) |
Distributions greater than net income | (869,157) | (851,469) |
Total Shareholders' Equity | 2,628,606 | 2,647,058 |
Total Liabilities and Shareholders' Equity | $ 3,723,074 | $ 3,722,775 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Investment in real estate accumulated depreciation (in Dollars) | $ 456,266 | $ 423,057 |
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 | 174,665,236 | 174,368,340 |
Common stock, shares outstanding | 174,665,236 | 174,368,340 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Room | $ 206,150 | $ 192,013 |
Other | 18,337 | 18,339 |
Total revenue | 224,487 | 210,352 |
Expenses: | ||
Operating | 56,829 | 54,605 |
Hotel administrative | 18,198 | 17,156 |
Sales and marketing | 18,019 | 17,098 |
Utilities | 7,600 | 8,158 |
Repair and maintenance | 9,084 | 9,169 |
Franchise fees | 9,445 | 8,822 |
Management fees | 8,037 | 7,505 |
Property taxes, insurance and other | 12,452 | 11,561 |
Ground lease | 2,466 | 2,501 |
General and administrative | 4,828 | 5,547 |
Transaction costs | 293 | 1,224 |
Depreciation | 33,484 | 30,719 |
Total expenses | 180,735 | 174,065 |
Operating income | 43,752 | 36,287 |
Interest and other expense, net | (8,803) | (7,737) |
Gain on sale of real estate | 0 | 15,629 |
Income before income taxes | 34,949 | 44,179 |
Income tax expense | (263) | (312) |
Net income | 34,686 | 43,867 |
Other comprehensive income (loss): | ||
Unrealized loss on interest rate derivatives | (6,694) | (274) |
Comprehensive income | $ 27,992 | $ 43,593 |
Basic and diluted net income per common share (in Dollars per share) | $ 0.20 | $ 0.24 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 174,666 | 186,446 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 34,686 | $ 43,867 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 33,484 | 30,719 |
Gain on sale of real estate | 0 | (15,629) |
Other non-cash expenses, net | 1,575 | 2,519 |
Changes in operating assets and liabilities: | ||
Increase in due from third party managers, net | (18,284) | (16,458) |
Decrease (increase) in other assets, net | 1,120 | (2,229) |
Decrease in accounts payable and other liabilities | (1,777) | (6,531) |
Net cash provided by operating activities | 50,804 | 36,258 |
Cash flows from investing activities: | ||
Deposits and other disbursements for potential acquisitions | (139) | 0 |
Capital improvements and development costs | (22,331) | (18,806) |
Decrease in capital improvement reserves | 1,586 | 3,836 |
Net proceeds from sale of real estate | 0 | 201,853 |
Net cash provided by (used in) investing activities | (20,884) | 186,883 |
Cash flows from financing activities: | ||
Repurchases of common shares under share repurchase programs | (361) | (10,827) |
Repurchases of common shares to satisfy employee withholding requirements | (459) | 0 |
Distributions paid to common shareholders | (52,360) | (63,417) |
Net proceeds from (payments on) credit facility | 57,100 | (91,600) |
Proceeds from mortgage debt | 0 | 10,000 |
Payments of mortgage debt | (33,840) | (19,899) |
Financing costs | 0 | (493) |
Net cash used in financing activities | (29,920) | (176,236) |
Increase in cash and cash equivalents | 0 | 46,905 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 46,905 |
Supplemental cash flow information: | ||
Interest paid | 9,802 | 8,063 |
Supplemental disclosure of noncash investing and financing activities: | ||
Accrued distribution to common shareholders | $ 17,451 | $ 0 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of these entities, and therefore does not consolidate the entities. As of March 31, 2016, the Company owned 179 hotels with an aggregate of 22,961 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. All common shares and per share amounts for all periods presented have been adjusted to reflect the reverse share split. See Note 7 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 2015 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2016. 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, shareholders’ equity or cash flows. Comprehensive Income Comprehensive income includes net income and other comprehensive income (loss), which is comprised of unrealized losses resulting from hedging activity. Net Income Per Common Share Basic net income per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for the three months ended March 31, 2016 and 2015. As a result, basic and dilutive net income per common share were the same. Accounting Standards Recently Issued In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting, |
Investment in Real Estate
Investment in Real Estate | 3 Months Ended |
Mar. 31, 2016 | |
Real Estate [Abstract] | |
Real Estate Disclosure [Text Block] | 2. Investment in Real Estate The Company’s total investment in real estate consisted of the following (in thousands): March 31, December 31, 2016 2015 Land $ 561,630 $ 561,630 Building and Improvements 3,213,007 3,200,918 Furniture, Fixtures and Equipment 300,093 293,444 Franchise Fees 8,832 8,832 4,083,562 4,064,824 Less Accumulated Depreciation (456,266 ) (423,057 ) Investment in Real Estate, net $ 3,627,296 $ 3,641,767 There were no acquisitions during the three month periods ended March 31, 2016 and 2015. As of March 31, 2016, the Company owned 179 hotels with an aggregate of 22,961 rooms located in 32 states. As of March 31, 2016, the Company had outstanding contracts for the potential purchase of four additional hotels for a total purchase price of $81.1 million. All four hotels are under construction and are planned to be completed and opened for business over the next 15 months from March 31, 2016, at which time closing on these hotels is expected to occur. Although the Company is working towards acquiring these hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the 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 March 31, 2016. All dollar amounts are in thousands. Location (a) Brand Date of Purchase Contract Rooms Refundable Deposits Gross Purchase Price Atlanta, GA Home2 Suites 5/5/2015 128 $ 300 $ 24,600 Birmingham, AL (b)(c) Home2 Suites 8/28/2015 105 3 19,219 Birmingham, AL (b)(c) Hilton Garden Inn 8/28/2015 105 2 19,219 Fort Worth, TX (b) Courtyard 8/28/2015 124 5 18,034 462 $ 310 $ 81,072 (a) As of March 31, 2016, these hotels were under construction. 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 15 months from March 31, 2016. (b) 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. (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. 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 Company intends to use borrowings under its $965 million credit facility to purchase hotels under contract if a closing occurs. |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 3. Dispositions On February 26, 2015, the Company sold 18 hotels in a single transaction for a total sales price of $206.4 million, resulting in a gain of approximately $15.6 million, which is included in the Company’s consolidated statements of operations in the first quarter of 2015. 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 one of the sold properties, 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. The proceeds from the sale were used primarily to repay the outstanding balance under the Company’s revolving credit facility, with the increased availability used to fund hotel acquisitions during 2015. The Company’s consolidated statements of operations include operating income of approximately $2.0 million for the three months ended March 31, 2015 relating to results of operations for the 18 hotels for the respective period of ownership. The sale of these properties does not represent a strategic shift that has, or will have, a major effect on the Company’s operations and financial results, and therefore the operating results for the period of ownership of these properties are included in income from continuing operations for the three months ended March 31, 2015. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 4. Debt $965 Million Credit Facility On May 18, 2015, the Company entered into an amendment and restatement of its unsecured $345 million credit facility, increasing the borrowing capacity to $965 million, reducing the annual interest rate and extending the maturity dates. The unsecured $965 million credit facility is comprised of (a) a $540 million revolving credit facility with an initial maturity date of May 18, 2019 (the “revolving credit facility”), 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 (the “$425 million term loans”). 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 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, 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. 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 revolving credit facility, based on the amount of borrowings outstanding during the quarter. As of March 31, 2016 and December 31, 2015, the details of the Company’s revolving credit facility and $425 million term loans were as follows. All dollar amounts are in thousands. March 31, 2016 December 31, 2015 Maturity date Outstanding balance Interest rate Outstanding balance Interest rate Revolving credit facility (1) 5/18/2019 $ 171,900 1.99 % (2) $ 114,800 1.98 % (2) $425 million term loans Outstanding principal balance 5/18/2020 425,000 2.82 % (3) 425,000 2.81 % (3) Unamortized debt issuance costs (3,353 ) (3,556 ) Total term loans 421,647 421,444 Total revolving credit facility and term loans $ 593,547 $ 536,244 (1) Unamortized debt issuance costs related to the revolving credit facility totaled approximately $3.7 million and $4.0 million as of March 31, 2016 and December 31, 2015, respectively, and are included in other assets, net in the Company's consolidated balance sheets. (2) Annual variable interest rate at the balance sheet date. (3) Effective annual interest rate which includes the effect of interest rate swaps on $322.5 million of the outstanding loan balance, resulting in an annual fixed interest rate of approximately 3.10% on this portion of the debt subject to adjustment based on the Company's leverage ratio. See Note 5 for more information on the interest rate swap agreements. Remaining portion is variable rate debt. 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, which include, among others, a minimum tangible net worth, maximum debt limits, minimum interest and fixed charge coverage ratios, limits on dividend payments and share repurchases and restrictions on certain investments. The Company was in compliance with the applicable covenants at March 31, 2016. Mortgage Debt As of March 31, 2016, the Company had approximately $428.6 million in outstanding property level debt secured by 34 properties, with maturity dates ranging from April 2016 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 or debt issuance costs as of March 31, 2016 and December 31, 2015 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 March 31, 2016 Outstanding balance as of December 31, 2015 Austin, TX Homewood Suites 5.99 % 4/14/2009 (2) $ 7,556 $ 0 $ 6,255 Austin, TX Hampton Inn 5.95 % 4/14/2009 (2) 7,553 0 6,247 Hilton Head, SC Hilton Garden Inn 6.29 % 3/1/2014 (2) 5,557 0 5,226 Round Rock, TX Hampton Inn 5.95 % 3/6/2009 (2) 4,175 0 3,457 Highlands Ranch, CO Residence Inn 5.94 % 3/1/2014 (2) 10,494 0 10,118 Texarkana, TX Hampton Inn & Suites 6.90 % 1/31/2011 (3) 4,954 4,555 4,578 Bristol, VA Courtyard 6.59 % 11/7/2008 (4) 9,767 8,701 8,747 Virginia Beach, VA Courtyard 6.02 % 3/1/2014 11/11/2016 13,931 13,322 13,399 Virginia Beach, VA Courtyard 6.02 % 3/1/2014 11/11/2016 16,813 16,078 16,172 Charlottesville, VA Courtyard 6.02 % 3/1/2014 11/11/2016 14,892 14,241 14,323 Carolina Beach, NC Courtyard 6.02 % 3/1/2014 11/11/2016 12,009 11,485 11,551 Winston-Salem, NC Courtyard 5.94 % 3/1/2014 12/8/2016 7,458 7,185 7,220 Lewisville, TX (5) Hilton Garden Inn 0.00 % 10/16/2008 12/31/2016 3,750 2,000 2,000 Oceanside, CA Residence Inn 4.24 % (6) 3/1/2014 1/13/2017 15,662 15,012 15,090 Burbank, CA Residence Inn 4.24 % (6) 3/1/2014 1/13/2017 23,493 22,518 22,635 Savannah, GA Hilton Garden Inn 5.87 % 3/1/2014 2/1/2017 4,977 4,647 4,688 Greenville, SC Residence Inn 6.03 % 3/1/2014 2/8/2017 6,012 5,780 5,810 Birmingham, AL Homewood Suites 6.03 % 3/1/2014 2/8/2017 10,908 10,488 10,541 Jacksonville, FL Homewood Suites 6.03 % 3/1/2014 2/8/2017 15,856 15,245 15,322 Irving, TX Homewood Suites 5.83 % 12/29/2010 4/11/2017 6,052 5,213 5,260 Duncanville, TX Hilton Garden Inn 5.88 % 10/21/2008 5/11/2017 13,966 12,333 12,401 Grapevine, TX Hilton Garden Inn 4.89 % 8/29/2012 9/1/2022 11,810 10,917 10,986 Collegeville/Philadelphia, PA Courtyard 4.89 % 8/30/2012 9/1/2022 12,650 11,694 11,768 Hattiesburg, MS Courtyard 5.00 % 3/1/2014 9/1/2022 5,732 5,461 5,495 Rancho Bernardo, CA Courtyard 5.00 % 3/1/2014 9/1/2022 15,060 14,346 14,436 Kirkland, WA Courtyard 5.00 % 3/1/2014 9/1/2022 12,145 11,570 11,642 Seattle, WA Residence Inn 4.96 % 3/1/2014 9/1/2022 28,269 26,922 27,091 Anchorage, AK Embassy Suites 4.97 % 9/13/2012 10/1/2022 23,230 21,540 21,675 Somerset, NJ Courtyard 4.73 % 3/1/2014 10/6/2022 8,750 8,323 8,376 Tukwila, WA Homewood Suites 4.73 % 3/1/2014 10/6/2022 9,431 8,970 9,028 Prattville, AL Courtyard 4.12 % 3/1/2014 2/6/2023 6,596 6,253 6,296 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 2/6/2023 8,306 7,874 7,928 San Diego, CA Residence Inn 3.97 % 3/1/2014 3/6/2023 18,600 17,618 17,741 Miami, FL Homewood Suites 4.02 % 3/1/2014 4/1/2023 16,677 15,807 15,915 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 26,048 26,204 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 10,000 9,797 9,854 Dallas, TX Hilton 3.95 % 5/22/2015 6/1/2025 28,000 27,629 27,754 Syracuse, NY Courtyard 4.75 % 10/16/2015 8/1/2024 (7) 11,199 11,095 11,158 Syracuse, NY Residence Inn 4.75 % 10/16/2015 8/1/2024 (7) 11,199 11,095 11,158 Malvern/Philadelphia, PA Courtyard 6.50 % 11/30/2010 10/1/2032 (8) 7,894 6,855 6,912 $ 488,383 428,617 462,457 Unamortized fair value adjustment of assumed debt 606 1,284 Unamortized debt issuance costs (1,728 ) (1,882 ) Total $ 427,495 $ 461,859 (1) Unless otherwise noted, these rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. (2) Loans were repaid in full during the three months ended March 31, 2016. (3) Loan was repaid in full on April 8, 2016. (4) Loan was repaid in full on May 2, 2016. (5) Unsecured loan. (6) The annual fixed interest rate gives effect to an interest rate swap agreement assumed by the Company with the mortgage debt. (7) Outstanding principal balance is callable by lender or prepayable by the Company on August 1, 2019. (8) Outstanding principal balance is callable by lender or prepayable by the Company beginning on October 1, 2016, and every five years thereafter until maturity, subject to certain conditions. The aggregate amounts of principal payable under the Company’s total debt obligations (including mortgage debt, the revolving credit facility and $425 million term loans), for the five years subsequent to March 31, 2016 and thereafter are as follows (in thousands): 2016 (April - December) $ 90,655 2017 96,245 2018 6,866 2019 199,215 2020 431,888 Thereafter 200,648 1,025,517 Unamortized fair value adjustment of assumed debt 606 Unamortized debt issuance costs related to term loans and mortgage debt (5,081 ) Total $ 1,021,042 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 5. Fair Value of Financial Instruments Except as described below, the carrying value of the Company’s financial instruments approximates fair value due to the short-term nature of these financial instruments. Debt The Company estimates the fair value of its debt by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity of a debt obligation with similar credit terms and credit characteristics, which are Level 3 inputs under the fair value hierarchy. Market rates take into consideration general market conditions and maturity. As of March 31, 2016 and December 31, 2015, both the carrying value and estimated fair value of the Company’s debt were approximately $1.0 billion. Both the carrying value and estimated fair value of the Company’s debt as discussed above is net of unamortized debt issue costs related to term loans and mortgage debt for each specific year. 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 March 31, 2016 and December 31, 2015 (in thousands): Fair value Hedge Type Notional amount at March 31, 2016 Assumption or Origination Date Maturity date March 31, 2016 December 31, 2015 Non-designated hedge (1) $ 37,530 3/1/2014 1/13/2017 $ (152 ) $ (134 ) Cash flow hedge 212,500 5/21/2015 5/18/2020 (5,649 ) (1,233 ) Cash flow hedge 110,000 7/2/2015 5/18/2020 (3,102 ) (824 ) $ (8,903 ) $ (2,191 ) (1) Effective date of the forward interest rate swap agreement was January 13, 2015, the same date the previous swap agreement matured. 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 (including four swaps, of which two matured or terminated in the first quarter of 2015 and one terminated in the second quarter of 2015), 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 terminated interest rate swap for which hedge accounting was discontinued during the first quarter of 2015 as discussed below, fair value changes for derivatives not in qualifying hedge relationships for the three months ended March 31, 2016 and 2015 were not material. To adjust qualifying cash flow hedges to their fair value and recognize the impact of hedge accounting, the Company recorded unrealized losses of approximately $6.7 million and $0.3 million during the three months ended March 31, 2016 and 2015, respectively, to other comprehensive income (loss). There was no ineffectiveness recorded on the designated hedges during the three months ended March 31, 2016 and 2015. Amounts recorded to accumulated other comprehensive loss totaled approximately $8.8 million and $2.1 million as of March 31, 2016 and December 31 2015, respectively. Outstanding Interest Rate Swaps In May 2015 and July 2015, 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 4 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 both March 31, 2016 and December 31, 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 March 31, 2016, 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. Terminated Interest Rate Swap In May 2015, the Company amended and restated its credit facility, at which time it repaid its $100 million term loan and terminated its $100 million interest rate swap. At inception, this swap was designated as a cash flow hedge for accounting purposes, and from inception of the swap through March 2, 2015, the swap was a fully effective hedge, 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 (including $0.3 million recorded during the first quarter of 2015). In the first quarter of 2015, it was determined that the cash flows being hedged were no longer probable of occurring through the maturity date of the swap. Therefore the Company discontinued hedge accounting, and the change in fair value, resulting in a loss of $0.8 million for the remainder of the first quarter of 2015, was recorded to interest and other expense, net in the Company’s consolidated statements of operations. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 6. 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. As of March 31, 2016, there have been no changes to the contracts and relationships discussed in the Company’s 2015 Annual Report on Form 10-K. Below is a summary of the related party relationships in effect and transactions that occurred during the three months ended March 31, 2016 and 2015. Also see Note 9 for a discussion of the potential merger with Apple REIT Ten, Inc. (“Apple Ten”). Glade M. Knight, Executive Chairman of the Company, is currently Chairman and Chief Executive Officer of Apple Ten. Apple Ten’s advisors, Apple Ten Advisors, Inc. (“A10A”) and Apple Realty Group, Inc., formerly known as Apple Suites Realty Group, Inc. (“ARG”), 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. Justin G. Knight, the Company’s President and Chief Executive Officer, and a member of the Company’s Board of Directors, also serves as President of Apple Ten. Subcontract Agreement with A10A The Company has a subcontract agreement with A10A to subcontract A10A’s obligations under the advisory agreement between A10A and Apple Ten to the Company. The Company provides to Apple Ten the advisory services contemplated under the A10A advisory agreement and receives an annual fee ranging from 0.1% to 0.25% (based on Apple Ten’s operating results) of total equity proceeds received by Apple Ten, and is reimbursed by Apple Ten for the use of the Company’s employees and corporate office and other costs associated with the advisory agreement, as described below. Total advisory fees earned by the Company from Apple Ten for the three months ended March 31, 2016 and 2015 totaled approximately $0.6 million and $0.4 million, and are recorded as a reduction to general and administrative expenses in the Company’s consolidated statements of operations. The increase in the first three months of 2016 was primarily due to Apple Ten reaching the top fee tier under its advisory agreement in the second quarter of 2015 due to improved results of operations of Apple Ten. Support Services to Apple Ten, A10A and ARG The Company provides support services to Apple Ten and its advisors, A10A and ARG, which have agreed to reimburse the Company for its costs in providing these services. Total reimbursed costs received by the Company from these entities for the three months ended March 31, 2016 and 2015 totaled approximately $0.8 million and $0.7 million, respectively, and are recorded as a reduction to general and administrative expenses in the Company’s consolidated statements of operations. As of March 31, 2016 and December 31, 2015, total amounts due from Apple Ten, A10A and ARG for reimbursements under the cost sharing structure totaled approximately $0.2 million and $0.3 million, respectively, and are included in other assets, net in the Company’s consolidated balance sheets. 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 ARG. 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 ARG. To efficiently manage cash disbursements, the Company, Apple Ten, A10A or ARG 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, renovation and public relations 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 March 31, 2016 and December 31, 2015, totaled approximately $0.9 and $0.7 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. The Company also utilizes aircraft, owned through two entities, one of which is owned by the Company’s Executive Chairman, and the other, its President and Chief Executive Officer, for acquisition, asset management, renovation and public relations purposes, and reimburses these entities at third party rates. Total amounts incurred during the three months ended March 31, 2016 and 2015 were approximately $0.05 million in each period related to aircraft owned through these two entities and are included in general and administrative expenses in the Company’s consolidated statements of operations. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 7. Shareholders’ Equity Distributions For the three months ended March 31, 2016 and 2015, the Company paid distributions of $0.30 and $0.34 per common share for a total of $52.4 million and $63.4 million, respectively. In March 2016, the Company declared a monthly distribution of $0.10 per common share, totaling $17.5 million, which was recorded as a payable as of March 31, 2016 and paid in April 2016. As of December 31, 2015, a monthly distribution of $0.10 per common share, totaling $17.4 million, was recorded as a payable and paid in January 2016. These accrued distributions were 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. On April 23, 2015, the Company’s Board of Directors, in anticipation of the Listing, reduced the annual distribution rate from $1.36 per common share to the current annual distribution rate, effective with the June 2015 distribution. Reverse Share Split 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, 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. All common shares and per share amounts for all periods presented have been adjusted to reflect the reverse share split. Share Repurchases 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 provided for share repurchases in open market transactions that was intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. To be able to more effectively respond to market conditions, the Company terminated the Plan in January 2016. Since implementation through the termination of the Plan, the Company purchased approximately 1.3 million of its common shares under the Plan, at a weighted-average market purchase price of approximately $17.62 per common share, for an aggregate purchase price of approximately $22.4 million, including the purchase of approximately 20,000 of its common shares in January 2016, at a weighted-average market purchase price of approximately $18.10 per common share for an aggregate purchase price of approximately $0.4 million. The Company plans to continue to consider opportunistic share repurchases under the $477.6 million remaining portion of its authorized $500 million share repurchase program. The program may be suspended or terminated at any time by the Company. If not terminated earlier, the program will end in July 2016. During the three months ended March 31, 2015, the Company redeemed approximately 0.6 million common shares at a price of $18.40 per common share, or a total of approximately $10.8 million under its previous share redemption program that was terminated following the April 2015 redemption. |
Compensation Plans
Compensation Plans | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 8. Compensation Plans In May 2014, the Board of Directors adopted the Company’s 2014 Omnibus Incentive Plan (the “Omnibus Plan”), and in May 2015, the Company’s shareholders approved the Omnibus Plan. The Omnibus Plan permits the grant of awards of stock options, stock appreciation rights, restricted stock, stock units, unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards, and cash bonus awards to any employee, officer, or director of the Company or an affiliate of the Company, a consultant or adviser currently providing services to the Company or an affiliate of the Company, or any other person whose participation in the Omnibus Plan is determined by the Compensation Committee of the Board of Directors to be in the best interests of the Company. The maximum number of the Company’s common shares available for issuance under the Omnibus Plan is 10 million. In February 2016, the Compensation Committee of the Board of Directors (“Compensation Committee”) approved an executive incentive plan (“2016 Incentive Plan”), effective January 1, 2016, and established incentive goals for 2016. Under the 2016 Incentive Plan, participants are eligible to receive a bonus based on the achievement of certain 2016 performance measures, consisting of operational performance metrics (including targeted Modified Funds from Operations per share, Comparable Hotels revenue per available room growth and Adjusted Hotel EBITDA Margin growth) and shareholder return metrics (including shareholder return relative to a peer group and total shareholder return). The components of the operational performance metrics and shareholder return metrics are equally weighted and the two metrics each account for 50% of the total target incentive compensation. The range of aggregate payouts under the 2016 Incentive Plan is $0 - $15 million. Based on performance through March 31, 2016, the Company has accrued approximately $1.9 million as a liability for potential executive bonus payments under the 2016 Incentive Plan, which is included in accounts payable and other liabilities in the Company’s consolidated balance sheets as of March 31, 2016 and in general and administrative expense in the Company’s consolidated statements of operations for the three months ended March 31, 2016. Approximately 25% of awards under the 2016 Incentive Plan, if any, will be paid in cash, and 75% will be issued in stock under the Omnibus Plan, two-thirds of which would vest at the end of 2016 and one-third of which would vest at the end of 2017. During 2015, a comparable executive incentive plan was approved by the Compensation Committee (“2015 Incentive Plan”) that was effective January 1, 2015, and the Company recorded approximately $2.2 million in general and administrative expense in the Company’s consolidated statements of operations for the three months ended March 31, 2015. Share Based Compensation Awards During the first quarter of 2016, the Company issued 304,345 common shares earned under the 2015 Incentive Plan (net of shares surrendered to satisfy tax withholding obligations) at $19.87 per share, or approximately $6.0 million in share based compensation. Of the total shares issued, 146,279 shares were unrestricted at the time of issuance, and the remaining 158,066 restricted shares will vest on December 31, 2016. Of the total 2015 share based compensation, approximately $4.5 million was recorded as a liability as of December 31, 2015, which was included in accounts payable and other liabilities in the Company’s consolidated balance sheets and the remaining $1.6 million, which is subject to vesting on December 31, 2016, will be recognized as compensation expense proportionately throughout 2016. For the three months ended March 31, 2016, the Company recognized approximately $0.4 million of share based compensation expense related to the unvested restricted share awards. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 9. Subsequent Events In April 2016, the Company paid approximately $17.5 million, or $0.10 per outstanding common share, in distributions to its common shareholders. In April 2016, the Company declared a regular monthly cash distribution of $0.10 per common share for the month of May 2016. The distribution is payable on May 16, 2016. In April 2016, the Company entered into a loan agreement with a syndicate of commercial banks, which provides for up to $150 million of unsecured term loans in two facilities, of which $100 million will mature on April 8, 2023 (“Term Loan I”) and $50 million will mature on April 8, 2021 (“Term Loan II”). The loan agreement contains requirements and covenants similar to the Company’s unsecured $965 million credit facility. The interest rate for the term loans will be equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.80% to 2.60% for Term Loan I and 1.45% to 2.20% for Term Loan II, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. The Company initially borrowed $50 million under these facilities and may borrow the remaining $100 million no later than October 5, 2016. The Company also entered into two interest rate swap agreements, which beginning on September 30, 2016 will effectively fix the interest rate on Term Loan I and Term Loan II at 3.13% and 2.54%, respectively, subject to adjustment based on the Company’s leverage ratio. Proceeds from the term loans have been and will be used to pay down outstanding balances under the Company’s revolving credit facility with the intent to use the increased availability to repay scheduled debt maturities within the next 12 months. On April 13, 2016, the Company entered into a definitive merger agreement with Apple Ten, pursuant to which Apple Ten would merge into a wholly-owned subsidiary of the Company (the “Acquisition Sub”). Apple Ten owns 56 hotels with 7,209 rooms. Under the merger agreement, each outstanding Unit of Apple Ten (consisting of one common share of Apple Ten and one Series A preferred share of Apple Ten), other than those with respect to which statutory dissenters’ rights of appraisal have been properly exercised, perfected and not subsequently withdrawn under Virginia law, would be converted into the right to receive $1.00 in cash and 0.522 shares of the Company’s common shares, and each Apple Ten Series B convertible preferred share would be converted into the right to receive (i) a number of common shares of the Company equal to 12.11423 multiplied by 0.522 and (ii) an amount equal to 12.11423 multiplied by $1.00 in cash. The current outstanding Company common shares will remain outstanding. Also, under the merger agreement, the Company would assume all of Apple Ten’s assets and liabilities at closing, which include approximately $239 million of debt as of March 31, 2016. The merger agreement provides Apple Ten with a 45-day “go-shop period” (expiring at 11:59 pm on May 28, 2016), during which Apple Ten and its subsidiaries and representatives may initiate, solicit, provide information and enter into discussions concerning proposals relating to alternative business combination transactions. The merger is subject to shareholder approval by each of the companies and to other customary closing conditions. As a result, there is no assurance that the merger will occur. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of these entities, and therefore does not consolidate the entities. As of March 31, 2016, the Company owned 179 hotels with an aggregate of 22,961 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. All common shares and per share amounts for all periods presented have been adjusted to reflect the reverse share split. See Note 7 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 2015 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2016. |
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, shareholders’ equity or cash flows. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Comprehensive income includes net income and other comprehensive income (loss), which is comprised of unrealized losses resulting from hedging activity. |
Earnings Per Share, Policy [Policy Text Block] | Net Income Per Common Share Basic net income per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for the three months ended March 31, 2016 and 2015. As a result, basic and dilutive net income per common share were the same. |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Standards Recently Issued In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting, |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Real Estate [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The Company’s total investment in real estate consisted of the following (in thousands): March 31, December 31, 2016 2015 Land $ 561,630 $ 561,630 Building and Improvements 3,213,007 3,200,918 Furniture, Fixtures and Equipment 300,093 293,444 Franchise Fees 8,832 8,832 4,083,562 4,064,824 Less Accumulated Depreciation (456,266 ) (423,057 ) Investment in Real Estate, net $ 3,627,296 $ 3,641,767 |
Schedule of Outstanding Contracts for Potential Purchase of Hotels [Table Text Block] | As of March 31, 2016, the Company had outstanding contracts for the potential purchase of four additional hotels for a total purchase price of $81.1 million. All four hotels are under construction and are planned to be completed and opened for business over the next 15 months from March 31, 2016, at which time closing on these hotels is expected to occur. Although the Company is working towards acquiring these hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the 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 March 31, 2016. All dollar amounts are in thousands. Location (a) Brand Date of Purchase Contract Rooms Refundable Deposits Gross Purchase Price Atlanta, GA Home2 Suites 5/5/2015 128 $ 300 $ 24,600 Birmingham, AL (b)(c) Home2 Suites 8/28/2015 105 3 19,219 Birmingham, AL (b)(c) Hilton Garden Inn 8/28/2015 105 2 19,219 Fort Worth, TX (b) Courtyard 8/28/2015 124 5 18,034 462 $ 310 $ 81,072 (a) As of March 31, 2016, these hotels were under construction. 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 15 months from March 31, 2016. (b) 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. (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. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | As of March 31, 2016 and December 31, 2015, the details of the Company’s revolving credit facility and $425 million term loans were as follows. All dollar amounts are in thousands. March 31, 2016 December 31, 2015 Maturity date Outstanding balance Interest rate Outstanding balance Interest rate Revolving credit facility (1) 5/18/2019 $ 171,900 1.99 % (2) $ 114,800 1.98 % (2) $425 million term loans Outstanding principal balance 5/18/2020 425,000 2.82 % (3) 425,000 2.81 % (3) Unamortized debt issuance costs (3,353 ) (3,556 ) Total term loans 421,647 421,444 Total revolving credit facility and term loans $ 593,547 $ 536,244 (1) Unamortized debt issuance costs related to the revolving credit facility totaled approximately $3.7 million and $4.0 million as of March 31, 2016 and December 31, 2015, respectively, and are included in other assets, net in the Company's consolidated balance sheets. (2) Annual variable interest rate at the balance sheet date. (3) Effective annual interest rate which includes the effect of interest rate swaps on $322.5 million of the outstanding loan balance, resulting in an annual fixed interest rate of approximately 3.10% on this portion of the debt subject to adjustment based on the Company's leverage ratio. See Note 5 for more information on the interest rate swap agreements. Remaining portion is variable rate debt. |
Schedule of Debt [Table Text Block] | As of March 31, 2016, the Company had approximately $428.6 million in outstanding property level debt secured by 34 properties, with maturity dates ranging from April 2016 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 or debt issuance costs as of March 31, 2016 and December 31, 2015 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 March 31, 2016 Outstanding balance as of December 31, 2015 Austin, TX Homewood Suites 5.99 % 4/14/2009 (2) $ 7,556 $ 0 $ 6,255 Austin, TX Hampton Inn 5.95 % 4/14/2009 (2) 7,553 0 6,247 Hilton Head, SC Hilton Garden Inn 6.29 % 3/1/2014 (2) 5,557 0 5,226 Round Rock, TX Hampton Inn 5.95 % 3/6/2009 (2) 4,175 0 3,457 Highlands Ranch, CO Residence Inn 5.94 % 3/1/2014 (2) 10,494 0 10,118 Texarkana, TX Hampton Inn & Suites 6.90 % 1/31/2011 (3) 4,954 4,555 4,578 Bristol, VA Courtyard 6.59 % 11/7/2008 (4) 9,767 8,701 8,747 Virginia Beach, VA Courtyard 6.02 % 3/1/2014 11/11/2016 13,931 13,322 13,399 Virginia Beach, VA Courtyard 6.02 % 3/1/2014 11/11/2016 16,813 16,078 16,172 Charlottesville, VA Courtyard 6.02 % 3/1/2014 11/11/2016 14,892 14,241 14,323 Carolina Beach, NC Courtyard 6.02 % 3/1/2014 11/11/2016 12,009 11,485 11,551 Winston-Salem, NC Courtyard 5.94 % 3/1/2014 12/8/2016 7,458 7,185 7,220 Lewisville, TX (5) Hilton Garden Inn 0.00 % 10/16/2008 12/31/2016 3,750 2,000 2,000 Oceanside, CA Residence Inn 4.24 % (6) 3/1/2014 1/13/2017 15,662 15,012 15,090 Burbank, CA Residence Inn 4.24 % (6) 3/1/2014 1/13/2017 23,493 22,518 22,635 Savannah, GA Hilton Garden Inn 5.87 % 3/1/2014 2/1/2017 4,977 4,647 4,688 Greenville, SC Residence Inn 6.03 % 3/1/2014 2/8/2017 6,012 5,780 5,810 Birmingham, AL Homewood Suites 6.03 % 3/1/2014 2/8/2017 10,908 10,488 10,541 Jacksonville, FL Homewood Suites 6.03 % 3/1/2014 2/8/2017 15,856 15,245 15,322 Irving, TX Homewood Suites 5.83 % 12/29/2010 4/11/2017 6,052 5,213 5,260 Duncanville, TX Hilton Garden Inn 5.88 % 10/21/2008 5/11/2017 13,966 12,333 12,401 Grapevine, TX Hilton Garden Inn 4.89 % 8/29/2012 9/1/2022 11,810 10,917 10,986 Collegeville/Philadelphia, PA Courtyard 4.89 % 8/30/2012 9/1/2022 12,650 11,694 11,768 Hattiesburg, MS Courtyard 5.00 % 3/1/2014 9/1/2022 5,732 5,461 5,495 Rancho Bernardo, CA Courtyard 5.00 % 3/1/2014 9/1/2022 15,060 14,346 14,436 Kirkland, WA Courtyard 5.00 % 3/1/2014 9/1/2022 12,145 11,570 11,642 Seattle, WA Residence Inn 4.96 % 3/1/2014 9/1/2022 28,269 26,922 27,091 Anchorage, AK Embassy Suites 4.97 % 9/13/2012 10/1/2022 23,230 21,540 21,675 Somerset, NJ Courtyard 4.73 % 3/1/2014 10/6/2022 8,750 8,323 8,376 Tukwila, WA Homewood Suites 4.73 % 3/1/2014 10/6/2022 9,431 8,970 9,028 Prattville, AL Courtyard 4.12 % 3/1/2014 2/6/2023 6,596 6,253 6,296 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 2/6/2023 8,306 7,874 7,928 San Diego, CA Residence Inn 3.97 % 3/1/2014 3/6/2023 18,600 17,618 17,741 Miami, FL Homewood Suites 4.02 % 3/1/2014 4/1/2023 16,677 15,807 15,915 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 26,048 26,204 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 10,000 9,797 9,854 Dallas, TX Hilton 3.95 % 5/22/2015 6/1/2025 28,000 27,629 27,754 Syracuse, NY Courtyard 4.75 % 10/16/2015 8/1/2024 (7) 11,199 11,095 11,158 Syracuse, NY Residence Inn 4.75 % 10/16/2015 8/1/2024 (7) 11,199 11,095 11,158 Malvern/Philadelphia, PA Courtyard 6.50 % 11/30/2010 10/1/2032 (8) 7,894 6,855 6,912 $ 488,383 428,617 462,457 Unamortized fair value adjustment of assumed debt 606 1,284 Unamortized debt issuance costs (1,728 ) (1,882 ) Total $ 427,495 $ 461,859 (1) Unless otherwise noted, these rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. (2) Loans were repaid in full during the three months ended March 31, 2016. (3) Loan was repaid in full on April 8, 2016. (4) Loan was repaid in full on May 2, 2016. (5) Unsecured loan. (6) The annual fixed interest rate gives effect to an interest rate swap agreement assumed by the Company with the mortgage debt. (7) Outstanding principal balance is callable by lender or prepayable by the Company on August 1, 2019. (8) Outstanding principal balance is callable by lender or prepayable by the Company beginning on October 1, 2016, and every five years thereafter until maturity, subject to certain conditions. |
Schedule of Maturities of Long-term Debt [Table Text Block] | The aggregate amounts of principal payable under the Company’s total debt obligations (including mortgage debt, the revolving credit facility and $425 million term loans), for the five years subsequent to March 31, 2016 and thereafter are as follows (in thousands): 2016 (April - December) $ 90,655 2017 96,245 2018 6,866 2019 199,215 2020 431,888 Thereafter 200,648 1,025,517 Unamortized fair value adjustment of assumed debt 606 Unamortized debt issuance costs related to term loans and mortgage debt (5,081 ) Total $ 1,021,042 |
Fair Value of Financial Instr18
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 (in thousands): Fair value Hedge Type Notional amount at March 31, 2016 Assumption or Origination Date Maturity date March 31, 2016 December 31, 2015 Non-designated hedge (1) $ 37,530 3/1/2014 1/13/2017 $ (152 ) $ (134 ) Cash flow hedge 212,500 5/21/2015 5/18/2020 (5,649 ) (1,233 ) Cash flow hedge 110,000 7/2/2015 5/18/2020 (3,102 ) (824 ) $ (8,903 ) $ (2,191 ) (1) Effective date of the forward interest rate swap agreement was January 13, 2015, the same date the previous swap agreement matured. |
Organization and Summary of S19
Organization and Summary of Significant Accounting Policies (Details) | May. 18, 2015 | Mar. 31, 2016shares | Mar. 31, 2015shares |
Accounting Policies [Abstract] | |||
Number of Reportable Segments | 1 | ||
Number of Hotels | 179 | ||
Aggregate Number of Hotel Rooms | 22,961 | ||
Number of States in which Hotels are Located | 32 | ||
Reverse Stock Split Ratio of Common Stock | 0.50 | ||
Weighted Average Number Diluted Shares Outstanding Adjustment (in Shares) | 0 | 0 |
Investment in Real Estate (Deta
Investment in Real Estate (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015 | |
Investment in Real Estate (Details) [Line Items] | ||
Number of Hotels | 179 | |
Aggregate Number of Hotel Rooms | 22,961 | |
Number of States in which Hotels Are Located | 32 | |
Hotel Acquisitions [Member] | ||
Investment in Real Estate (Details) [Line Items] | ||
Number of Businesses Acquired | 0 | 0 |
Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Under Construction [Member] | ||
Investment in Real Estate (Details) [Line Items] | ||
Number of Hotels | 4 | |
Aggregate Number of Hotel Rooms | 462 | |
Business Acquisition, Gross Purchase Price (in Dollars) | $ 81,072 | |
Hotel Construction, Time to Completion | over the next 15 months |
Investment in Real Estate (De21
Investment in Real Estate (Details) - Investment in Real Estate - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Investment in Real Estate [Abstract] | ||
Land | $ 561,630 | $ 561,630 |
Building and Improvements | 3,213,007 | 3,200,918 |
Furniture, Fixtures and Equipment | 300,093 | 293,444 |
Franchise Fees | 8,832 | 8,832 |
4,083,562 | 4,064,824 | |
Less Accumulated Depreciation | (456,266) | (423,057) |
Investment in Real Estate, net | $ 3,627,296 | $ 3,641,767 |
Investment in Real Estate (De22
Investment in Real Estate (Details) - Outstanding Contracts $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | ||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ||
Rooms | 22,961 | |
Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Under Construction [Member] | ||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ||
Rooms | 462 | |
Refundable Deposits | $ 310 | |
Gross Purchase Price | $ 81,072 | |
Home2 Suites Atlanta, GA [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Under Construction [Member] | ||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ||
Brand | Home2 Suites | [1] |
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 Construction [Member] | ||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ||
Brand | Home2 Suites | [1],[2],[3] |
Date of Purchase Contract | Aug. 28, 2015 | |
Rooms | 105 | |
Refundable Deposits | $ 3 | |
Gross Purchase Price | $ 19,219 | |
Hilton Garden Inn Birmingham, AL [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Under Construction [Member] | ||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ||
Brand | Hilton Garden Inn | [1],[2],[3] |
Date of Purchase Contract | Aug. 28, 2015 | |
Rooms | 105 | |
Refundable Deposits | $ 2 | |
Gross Purchase Price | $ 19,219 | |
Courtyard Fort Worth, TX [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | Hotels Under Construction [Member] | ||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ||
Brand | Courtyard | [1],[2] |
Date of Purchase Contract | Aug. 28, 2015 | |
Rooms | 124 | |
Refundable Deposits | $ 5 | |
Gross Purchase Price | $ 18,034 | |
[1] | As of March 31, 2016, these hotels were under construction. 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 15 months from March 31, 2016. | |
[2] | 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. | |
[3] | 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 | ||
Feb. 26, 2015USD ($) | Feb. 13, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Dispositions (Details) [Line Items] | ||||
Number of Hotels | 179 | |||
Gain (Loss) on Disposition of Assets | $ 0 | $ 15,629 | ||
Operating Income (Loss) | $ 43,752 | 36,287 | ||
Hotels Sold [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 | |||
Repayments of Secured Debt | $ 4,600 | |||
Operating Income (Loss) | $ 2,000 |
Debt (Details)
Debt (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 03, 2014USD ($) | |
Debt (Details) [Line Items] | |||
Debt Issuance Costs, Net | $ 5,081 | ||
Long-term Debt, Gross | $ 1,025,517 | ||
$965 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
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 its unsecured $345 million credit facility, increasing the borrowing capacity to $965 million, reducing the annual interest rate and extending the maturity dates | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 965,000 | ||
Line of Credit Facility, Borrowing Capacity, Description | the amount of the total credit facility may be increased from $965 million to $1.25 billion | ||
Line of Credit Facility, Covenant Terms | 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, which include, among others, a minimum tangible net worth, maximum debt limits, minimum interest and fixed charge coverage ratios, limits on dividend payments and share repurchases and restrictions on certain investments. The Company was in compliance with the applicable covenants at March 31, 2016. | ||
Original $345 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 345,000 | ||
London Interbank Offered Rate (LIBOR) [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | ||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.30% | ||
$540 Million Unsecured Revolving Credit Facility [Member] | $965 Million Unsecured Credit Facility [Member] | |||
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 | ||
Debt Issuance Costs, Net | $ 3,700 | $ 4,000 | |
$540 Million Unsecured Revolving Credit Facility [Member] | Minimum [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
$540 Million Unsecured Revolving Credit Facility [Member] | Maximum [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||
Unsecured $425 Million Term Loans [Member] | $965 Million Unsecured Credit Facility [Member] | |||
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 (the “$425 million term loans”) | ||
Number of Term Loans | 3 | ||
Unsecured $425 Million Term Loans [Member] | Unsecured $212.5 Million Term Loan Funded May 18, 2015 [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 212,500 | ||
Unsecured $425 Million Term Loans [Member] | Unsecured $110.0 Million Term Loan Funded July 1, 2015 [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | 110,000 | ||
Unsecured $425 Million Term Loans [Member] | Unsecured $102.5 Million Term Loan Funded August 14, 2015 [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | 102,500 | ||
Unsecured $425 Million Term Loans [Member] | Loans With Interest Rates Effectively Fixed By Interest Rate Swaps [Member] | $965 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Derivative, Notional Amount | $ 322,500 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.10% | ||
Mortgage Debt [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Maturity Date, Description | maturity dates ranging from April 2016 to October 2032 | ||
Long-term Debt, Gross | $ 428,600 | ||
Number of Hotel Properties Used to Secure Debt | 34 | ||
Mortgage Debt [Member] | Minimum [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.66% | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | ||
Mortgage Debt [Member] | Maximum [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 6.52% | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.90% |
Debt (Details) - Revolving Cred
Debt (Details) - Revolving Credit Facility and Term Loans - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||
Outstanding balance | $ 1,025,517 | ||
Unamortized debt issuance costs | (5,081) | ||
Carrying value | $ 1,021,042 | $ 1,000,000 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | May 18, 2019 | ||
Outstanding balance | [1] | $ 171,900 | $ 114,800 |
Interest rate | [2] | 1.99% | 1.98% |
$425 Million Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | May 18, 2020 | ||
Outstanding balance | $ 425,000 | $ 425,000 | |
Interest rate | [3] | 2.82% | 2.81% |
Unamortized debt issuance costs | $ (3,353) | $ (3,556) | |
Carrying value | 421,647 | 421,444 | |
Revolving Credit Facility and Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value | $ 593,547 | $ 536,244 | |
[1] | Unamortized debt issuance costs related to the revolving credit facility totaled approximately $3.7 million and $4.0 million as of March 31, 2016 and December 31, 2015, respectively, and are included in other assets, net in the Company's consolidated balance sheets. | ||
[2] | Annual variable interest rate at the balance sheet date. | ||
[3] | Effective annual interest rate which includes the effect of interest rate swaps on $322.5 million of the outstanding loan balance, resulting in an annual fixed interest rate of approximately 3.10% on this portion of the debt subject to adjustment based on the Company's leverage ratio. See Note 5 for more information on the interest rate swap agreements. Remaining portion is variable rate debt. |
Debt (Details) - Mortgage Note
Debt (Details) - Mortgage Note Debt - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | |||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Outstanding Balance | $ 1,025,517 | |||
Unamortized fair value adjustment of assumed debt | 606 | |||
Unamortized debt issuance costs | (5,081) | |||
Total | 427,495 | $ 461,859 | ||
Total [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Principal Assumed or Originated | 488,383 | |||
Outstanding Balance | 428,617 | 462,457 | ||
Unamortized fair value adjustment of assumed debt | 606 | 1,284 | ||
Unamortized debt issuance costs | (1,728) | (1,882) | ||
Total | $ 427,495 | 461,859 | ||
Homewood Suites Austin, TX [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Homewood Suites | |||
Interest Rate | [1] | 5.99% | ||
Loan Assumption or Origination Date | Apr. 14, 2009 | |||
Principal Assumed or Originated | $ 7,556 | |||
Outstanding Balance | $ 0 | [2] | 6,255 | |
Hampton Inn Austin, TX [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hampton Inn | |||
Interest Rate | [1] | 5.95% | ||
Loan Assumption or Origination Date | Apr. 14, 2009 | |||
Principal Assumed or Originated | $ 7,553 | |||
Outstanding Balance | $ 0 | [2] | 6,247 | |
Hilton Garden Inn Hilton Head, SC [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hilton Garden Inn | |||
Interest Rate | [1] | 6.29% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Principal Assumed or Originated | $ 5,557 | |||
Outstanding Balance | $ 0 | [2] | 5,226 | |
Hampton Inn Round Rock, TX [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hampton Inn | |||
Interest Rate | [1] | 5.95% | ||
Loan Assumption or Origination Date | Mar. 6, 2009 | |||
Principal Assumed or Originated | $ 4,175 | |||
Outstanding Balance | $ 0 | [2] | 3,457 | |
Residence Inn Highlands Ranch, CO [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1] | 5.94% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Principal Assumed or Originated | $ 10,494 | |||
Outstanding Balance | $ 0 | [2] | 10,118 | |
Hampton Inn & Suites Texarkana, TX [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hampton Inn & Suites | |||
Interest Rate | [1] | 6.90% | ||
Loan Assumption or Origination Date | Jan. 31, 2011 | |||
Principal Assumed or Originated | $ 4,954 | |||
Outstanding Balance | $ 4,555 | [3] | 4,578 | |
Courtyard Bristol, VA [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 6.59% | ||
Loan Assumption or Origination Date | Nov. 7, 2008 | |||
Principal Assumed or Originated | $ 9,767 | |||
Outstanding Balance | $ 8,701 | [4] | 8,747 | |
Courtyard Virginia Beach, VA [Member] | ||||
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 | $ 13,322 | 13,399 | ||
Courtyard Virginia Beach, VA [Member] | ||||
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 | $ 16,078 | 16,172 | ||
Courtyard Charlottesville, VA [Member] | ||||
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 | $ 14,241 | 14,323 | ||
Courtyard Carolina Beach, NC [Member] | ||||
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 | $ 11,485 | 11,551 | ||
Courtyard Winston-Salem, NC [Member] | ||||
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 | $ 7,185 | 7,220 | ||
Hilton Garden Inn Lewisville, TX [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hilton Garden Inn | |||
Interest Rate | [1],[5] | 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] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1],[6] | 4.24% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Jan. 13, 2017 | |||
Principal Assumed or Originated | $ 15,662 | |||
Outstanding Balance | $ 15,012 | 15,090 | ||
Residence Inn Burbank, CA [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1],[6] | 4.24% | ||
Loan Assumption or Origination Date | Mar. 1, 2014 | |||
Maturity Date | Jan. 13, 2017 | |||
Principal Assumed or Originated | $ 23,493 | |||
Outstanding Balance | $ 22,518 | 22,635 | ||
Hilton Garden Inn Savannah, GA [Member] | ||||
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 | $ 4,647 | 4,688 | ||
Residence Inn Greenville, SC [Member] | ||||
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 | $ 5,780 | 5,810 | ||
Homewood Suites Birmingham, AL [Member] | ||||
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 | $ 10,488 | 10,541 | ||
Homewood Suites Jacksonville, FL [Member] | ||||
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 | $ 15,245 | 15,322 | ||
Homewood Suites Irving, TX [Member] | ||||
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 | $ 5,213 | 5,260 | ||
Hilton Garden Inn Duncanville, TX [Member] | ||||
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 | $ 12,333 | 12,401 | ||
Hilton Garden Inn Grapevine, TX [Member] | ||||
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 | $ 10,917 | 10,986 | ||
Courtyard Collegeville/Philadelphia, PA [Member] | ||||
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 | $ 11,694 | 11,768 | ||
Courtyard Hattiesburg, MS [Member] | ||||
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 | $ 5,461 | 5,495 | ||
Courtyard Rancho Bernardo, CA [Member] | ||||
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 | $ 14,346 | 14,436 | ||
Courtyard Kirkland, WA [Member] | ||||
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 | $ 11,570 | 11,642 | ||
Residence Inn Seattle, WA [Member] | ||||
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 | $ 26,922 | 27,091 | ||
Embassy Suites Anchorage, AK [Member] | ||||
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 | $ 21,540 | 21,675 | ||
Courtyard Somerset, NJ [Member] | ||||
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 | $ 8,323 | 8,376 | ||
Homewood Suites Tukwila, WA [Member] | ||||
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 | $ 8,970 | 9,028 | ||
Courtyard Prattville, AL [Member] | ||||
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 | $ 6,253 | 6,296 | ||
Homewood Suites Huntsville, AL [Member] | ||||
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 | $ 7,874 | 7,928 | ||
Residence Inn San Diego, CA [Member] | ||||
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 | $ 17,618 | 17,741 | ||
Homewood Suites Miami, FL [Member] | ||||
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 | $ 15,807 | 15,915 | ||
Homewood Suites New Orleans, LA [Member] | ||||
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 | $ 26,048 | 26,204 | ||
Residence Inn Westford, MA [Member] | ||||
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 | Apr. 11, 2025 | |||
Principal Assumed or Originated | $ 10,000 | |||
Outstanding Balance | $ 9,797 | 9,854 | ||
Hilton Dallas, TX [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Hilton | |||
Interest Rate | [1] | 3.95% | ||
Loan Assumption or Origination Date | May 22, 2015 | |||
Maturity Date | Jun. 1, 2025 | |||
Principal Assumed or Originated | $ 28,000 | |||
Outstanding Balance | $ 27,629 | 27,754 | ||
Courtyard Syracuse, NY [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 4.75% | ||
Loan Assumption or Origination Date | Oct. 16, 2015 | |||
Maturity Date | [7] | Aug. 1, 2024 | ||
Principal Assumed or Originated | $ 11,199 | |||
Outstanding Balance | $ 11,095 | 11,158 | ||
Residence Inn Syracuse, NY [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Residence Inn | |||
Interest Rate | [1] | 4.75% | ||
Loan Assumption or Origination Date | Oct. 16, 2015 | |||
Maturity Date | [7] | Aug. 1, 2024 | ||
Principal Assumed or Originated | $ 11,199 | |||
Outstanding Balance | $ 11,095 | 11,158 | ||
Courtyard Malvern/Philadelphia, PA [Member] | ||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||
Brand | Courtyard | |||
Interest Rate | [1] | 6.50% | ||
Loan Assumption or Origination Date | Nov. 30, 2010 | |||
Maturity Date | [8] | Oct. 1, 2032 | ||
Principal Assumed or Originated | $ 7,894 | |||
Outstanding Balance | $ 6,855 | $ 6,912 | ||
[1] | Unless otherwise noted, these rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. | |||
[2] | Loans were repaid in full during the three months ended March 31, 2016. | |||
[3] | Loan was repaid in full on April 8, 2016. | |||
[4] | Loan was repaid in full on May 2, 2016. | |||
[5] | Unsecured loan. | |||
[6] | The annual fixed interest rate gives effect to an interest rate swap agreement assumed by the Company with the mortgage debt. | |||
[7] | Outstanding principal balance is callable by lender or prepayable by the Company on August 1, 2019. | |||
[8] | Outstanding principal balance is callable by lender or prepayable by the Company beginning on October 1, 2016, and every five years thereafter until maturity, subject to certain conditions. |
Debt (Details) - Future Minimum
Debt (Details) - Future Minimum Debt Payments - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Future Minimum Debt Payments [Abstract] | ||
2016 (April - December) | $ 90,655 | |
2,017 | 96,245 | |
2,018 | 6,866 | |
2,019 | 199,215 | |
2,020 | 431,888 | |
Thereafter | 200,648 | |
1,025,517 | ||
Unamortized fair value adjustment of assumed debt | 606 | |
Unamortized debt issuance costs related to term loans and mortgage debt | (5,081) | |
Total | $ 1,021,042 | $ 1,000,000 |
Fair Value of Financial Instr28
Fair Value of Financial Instruments (Details) | 1 Months Ended | 3 Months Ended | ||||
May. 31, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Mar. 02, 2015USD ($) | Dec. 31, 2014 | |
Fair Value of Financial Instruments (Details) [Line Items] | ||||||
Long-term Debt | $ 1,021,042,000 | $ 1,000,000,000 | ||||
Long-term Debt, Fair Value | $ 1,000,000,000 | 1,000,000,000 | ||||
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 | $ (6,694,000) | $ (274,000) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (8,751,000) | $ (2,057,000) | ||||
Repayments of Debt | 33,840,000 | $ 19,899,000 | ||||
Not Designated as Hedging Instrument [Member] | ||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||
Number of Interest Rate Derivatives Held | 4 | |||||
Number of Interest Rate Derivatives Matured or Terminated | 1 | 2 | ||||
Designated as Hedging Instrument [Member] | ||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | $ 0 | $ 0 | ||||
Designated as Hedging Instrument [Member] | Unsecured $212.5 Million Term Loan Interest Rate Swap [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 | |||||
Derivative, Fixed Interest Rate | 1.58% | |||||
Designated as Hedging Instrument [Member] | Unsecured $110.0 Million Term Loan Interest Rate Swap [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 | |||||
Derivative, Fixed Interest Rate | 1.62% | |||||
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] | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (300,000) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (800,000) | |||||
Derivative, Notional Amount | $ 100,000,000 | |||||
Repayments of Debt | $ 100,000,000 | |||||
Derivative, Gain (Loss) on Derivative, Net | $ (800,000) | |||||
Unsecured $425 Million Term Loans [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] | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.08% | 3.08% | ||||
Unsecured $425 Million Term Loans [Member] | Loans With Interest Rates Effectively Fixed By Interest Rate Swaps [Member] | $965 Million Unsecured Credit Facility [Member] | Unsecured $110.0 Million Term Loan Funded July 1, 2015 [Member] | ||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.12% | 3.12% |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||
Fair value | $ (8,903) | $ (2,191) | |
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] | $ 37,530 | |
Assumption or Origination Date | Mar. 1, 2014 | ||
Maturity date | Jan. 13, 2017 | ||
Fair value | $ (152) | (134) | |
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 | $ 212,500 | ||
Assumption or Origination Date | May 21, 2015 | ||
Maturity date | May 18, 2020 | ||
Fair value | $ (5,649) | (1,233) | |
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 | $ 110,000 | ||
Assumption or Origination Date | Jul. 2, 2015 | ||
Maturity date | May 18, 2020 | ||
Fair value | $ (3,102) | $ (824) | |
[1] | Effective date of the forward interest rate swap agreement was January 13, 2015, the same date the previous swap agreement matured. |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Related Parties (Details) [Line Items] | |||
Related Party Transaction, Description of Transaction | To efficiently manage cash disbursements, the Company, Apple Ten, A10A or ARG 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. [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. [Member] | Apple Ten [Member] | Advisory Fees Earned by Apple Hospitality [Member] | |||
Related Parties (Details) [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ (600) | $ (400) | |
Reimbursement Received From Related Parties For Their Proportionate Share of Staffing and Office Related Costs Provided by Apple Hospitality [Member] | |||
Related Parties (Details) [Line Items] | |||
Related Party Transaction, Amounts of Transaction | (800) | (700) | |
Due from Related Parties | $ 200 | $ 300 | |
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 | $ 900 | $ 700 | |
Aircraft Owned by Executive Officers [Member] | |||
Related Parties (Details) [Line Items] | |||
Aircraft Rental Expense | $ 50 | $ 50 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | May. 18, 2015shares | Jan. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | May. 31, 2015$ / shares | Jan. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares |
Shareholders' Equity (Details) [Line Items] | ||||||||
Payments of Ordinary Dividends, Common Stock | $ | $ 52,360 | $ 63,417 | ||||||
Dividends Payable | $ | $ 17,451 | $ 0 | $ 17,451 | |||||
Reverse Stock Split Ratio of Common Stock | 0.50 | |||||||
Common Stock, Shares, Outstanding | shares | 174,665,236 | 174,665,236 | 174,368,340 | |||||
Common Stock, Shares, Issued | shares | 174,665,236 | 174,665,236 | 174,368,340 | |||||
Distributions [Member] | ||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 0.30 | $ 0.34 | ||||||
Payments of Ordinary Dividends, Common Stock | $ | $ 52,400 | $ 63,400 | ||||||
Dividends Payable, Amount Per Share | $ / shares | $ 0.10 | $ 0.10 | $ 0.10 | |||||
Dividends Payable | $ | $ 17,500 | $ 17,500 | $ 17,400 | |||||
Annual Distribution [Member] | ||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||
Annual Distribution rate | $ / shares | $ 1.36 | $ 1.20 | ||||||
July 2015 Share Repurchase Program [Member] | ||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ | $ 500,000 | $ 500,000 | ||||||
Stock Repurchased and Retired During Period, Shares | shares | 20,000 | 1,300,000 | ||||||
Stock Repurchased During Period, Weighted Average Market Purchase Price Per Share | $ / shares | $ 18.10 | $ 17.62 | ||||||
Stock Repurchased and Retired During Period, Value | $ | $ 400 | $ 22,400 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 477,600 | $ 477,600 | ||||||
Share Repurchase Program End Date | July 2,016 | |||||||
Terminated Share Redemption Program [Member] | ||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||
Stock Repurchased and Retired During Period, Shares | shares | 600,000 | |||||||
Stock Repurchased and Retired During Period, Value | $ | $ 10,800 | |||||||
Stock Repurchased During Period, Price Per Share | $ / shares | $ 18.40 | |||||||
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 | shares | 372,200,000 | |||||||
Common Stock, Shares, Issued | shares | 372,200,000 | |||||||
Common Shares After Reverse Share Split [Member] | ||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||
Common Stock, Shares, Outstanding | shares | 186,100,000 | |||||||
Common Stock, Shares, Issued | shares | 186,100,000 |
Compensation Plans (Details)
Compensation Plans (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
2014 Omnibus Incentive Plan [Member] | |||
Compensation Plans (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 10,000,000 | ||
2016 Executive Incentive Plan [Member] | |||
Compensation Plans (Details) [Line Items] | |||
Compensation Arrangement by Cash and Share-based Payment Award, Component Description | The components of the operational performance metrics and shareholder return metrics are equally weighted and the two metrics each account for 50% of the total target incentive compensation. | ||
Labor and Related Expense | $ 1,900,000 | ||
Accrued Bonuses, Current | $ 1,900,000 | ||
Portion of Awards Paid in Cash | 25.00% | ||
Portion of Awards Issued in Equity | 75.00% | ||
2015 Executive Incentive Plan [Member] | |||
Compensation Plans (Details) [Line Items] | |||
Labor and Related Expense | $ 2,200,000 | ||
2015 Executive Incentive Plan [Member] | Total Common Shares Earned [Member] | Share Based Compensation [Member] | |||
Compensation Plans (Details) [Line Items] | |||
Accrued Bonuses, Current | $ 4,500,000 | ||
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | 304,345 | ||
Shares Issued, Price Per Share (in Dollars per share) | $ 19.87 | ||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 6,000,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,600,000 | ||
2015 Executive Incentive Plan [Member] | Total Common Shares Earned [Member] | Share Based Compensation [Member] | Unrestricted Shares at Time of Issuance [Member] | |||
Compensation Plans (Details) [Line Items] | |||
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | 146,279 | ||
2015 Executive Incentive Plan [Member] | Total Common Shares Earned [Member] | Share Based Compensation [Member] | Restricted Shares Vesting on December 31, 2016 [Member] | |||
Compensation Plans (Details) [Line Items] | |||
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | 158,066 | ||
Allocated Share-based Compensation Expense | $ 400,000 | ||
Equity Awards Vesting at End of 2016 [Member] | 2016 Executive Incentive Plan [Member] | |||
Compensation Plans (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Portion | two-thirds | ||
Equity Awards Vesting at End of 2017 [Member] | 2016 Executive Incentive Plan [Member] | |||
Compensation Plans (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Portion | one-third | ||
Minimum Potential Aggregate Payout [Member] | 2016 Executive Incentive Plan [Member] | |||
Compensation Plans (Details) [Line Items] | |||
Labor and Related Expense | $ 0 | ||
Maximum Potential Aggregate Payout [Member] | 2016 Executive Incentive Plan [Member] | |||
Compensation Plans (Details) [Line Items] | |||
Labor and Related Expense | $ 15,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | Apr. 13, 2016USD ($)$ / sharesshares | Apr. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) |
Subsequent Events (Details) [Line Items] | ||||
Payments of Ordinary Dividends, Common Stock (in Dollars) | $ 52,360 | $ 63,417 | ||
Proceeds from Issuance of Debt (in Dollars) | $ 0 | $ 10,000 | ||
Number of Hotels | 179 | |||
Aggregate Number of Hotel Rooms | 22,961 | |||
Long-term Debt, Gross (in Dollars) | $ 1,025,517 | |||
Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Payments of Ordinary Dividends, Common Stock (in Dollars) | $ 17,500 | |||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $ / shares | $ 0.10 | |||
Dividend Payable, Date | April 2,016 | |||
Common Stock, Dividends, Per Share, Declared (in Dollars per share) | $ / shares | $ 0.10 | |||
Dividends Payable, Date to be Paid | May 16, 2016 | |||
Apple Ten and Apple Hospitality Merger Agreement [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Business Combination, Merger Agreement Description | Under the merger agreement, each outstanding Unit of Apple Ten (consisting of one common share of Apple Ten and one Series A preferred share of Apple Ten), other than those with respect to which statutory dissenters’ rights of appraisal have been properly exercised, perfected and not subsequently withdrawn under Virginia law, would be converted into the right to receive $1.00 in cash and 0.522 shares of the Company’s common shares, and each Apple Ten Series B convertible preferred share would be converted into the right to receive (i) a number of common shares of the Company equal to 12.11423 multiplied by 0.522 and (ii) an amount equal to 12.11423 multiplied by $1.00 in cash. The current outstanding Company common shares will remain outstanding. Also, under the merger agreement, the Company would assume all of Apple Ten’s assets and liabilities at closing, which include approximately $239 million of debt as of March 31, 2016. The merger agreement provides Apple Ten with a 45-day “go-shop period” (expiring at 11:59 pm on May 28, 2016), during which Apple Ten and its subsidiaries and representatives may initiate, solicit, provide information and enter into discussions concerning proposals relating to alternative business combination transactions. The merger is subject to shareholder approval by each of the companies and to other customary closing conditions. As a result, there is no assurance that the merger will occur. | |||
Apple Ten and Apple Hospitality Merger Agreement [Member] | Subsequent Event [Member] | Estimated Debt to be Assumed at Closing [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Long-term Debt, Gross (in Dollars) | $ 239,000 | |||
Apple Ten and Apple Hospitality Merger Agreement [Member] | Apple Ten Unit and Series B Convertible Preferred Share Consideration [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Unit Description | one common share of Apple Ten and one Series A preferred share of Apple Ten | |||
Business Combination, Cash Paid as Partial Consideration (in Dollars per share) | $ / shares | $ 1 | |||
Business Combination, Exchange Rate of Shares Issued (in Shares) | shares | 0.522 | |||
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | shares | 12.11423 | |||
Apple Ten and Apple Hospitality Merger Agreement [Member] | Hotels to be Acquired [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Number of Hotels | 56 | |||
Aggregate Number of Hotel Rooms | 7,209 | |||
Unsecured $150 Million Term Loans [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Term Loan Facility, Maximum Borrowing Capacity (in Dollars) | $ 150,000 | |||
Number of Facilities | 2 | |||
Debt Instrument, Covenant Description | The loan agreement contains requirements and covenants similar to the Company’s unsecured $965 million credit facility. | |||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | |||
Debt Instrument, Description | The Company initially borrowed $50 million under these facilities and may borrow the remaining $100 million no later than October 5, 2016. | |||
Proceeds from Issuance of Debt (in Dollars) | $ 50,000 | |||
Debt Instrument, Unused Borrowing Capacity, Amount (in Dollars) | $ 100,000 | |||
Number of Interest Rate Derivatives Held | 2 | |||
Term Loan 1 [Member] | Unsecured $150 Million Term Loans [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Term Loan Facility, Maximum Borrowing Capacity (in Dollars) | $ 100,000 | |||
Debt Instrument, Maturity Date | Apr. 8, 2023 | |||
Term Loan 1 [Member] | Effective Interest Rate Fixed with Swap Beginning September 30, 2016 [Member] | Unsecured $150 Million Term Loans [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.13% | |||
Term Loan 1 [Member] | Minimum [Member] | Unsecured $150 Million Term Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.80% | |||
Term Loan 1 [Member] | Maximum [Member] | Unsecured $150 Million Term Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.60% | |||
Term Loan 2 [Member] | Unsecured $150 Million Term Loans [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Term Loan Facility, Maximum Borrowing Capacity (in Dollars) | $ 50,000 | |||
Debt Instrument, Maturity Date | Apr. 8, 2021 | |||
Term Loan 2 [Member] | Effective Interest Rate Fixed with Swap Beginning September 30, 2016 [Member] | Unsecured $150 Million Term Loans [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 2.54% | |||
Term Loan 2 [Member] | Minimum [Member] | Unsecured $150 Million Term Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.45% | |||
Term Loan 2 [Member] | Maximum [Member] | Unsecured $150 Million Term Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.20% |