Carey Watermark Investors 10-Q 11 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 04, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Central Index Key	1,430,259
Entity Filer Category	Non-accelerated Filer
Entity Registrant Name	Carey Watermark Investors Inc
Entity Common Stock, Shares Outstanding		137,459,005

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investments in real estate:
Hotels, at cost	$ 2,293,363	$ 2,290,542
Accumulated depreciation	(206,588)	(176,423)
Net investments in hotels	2,086,775	2,114,119
Assets held for sale (Note 4)	0	35,023
Equity investments in real estate	74,811	75,928
Cash	67,836	61,762
Intangible assets, net	79,248	80,117
Accounts receivable	20,971	23,879
Restricted cash	64,550	56,496
Other assets	28,975	29,620
Total assets	2,423,166	2,476,944
Liabilities and Equity
Non-recourse debt, net, including debt attributable to Assets held for sale (Note 4)	1,426,125	1,456,152
Senior Credit Facility	0	22,785
Accounts payable, accrued expenses and other liabilities	113,119	112,033
Due to related parties and affiliates	25,632	2,628
Distributions payable	19,423	19,292
Other liabilities held for sale (Note 4)	0	797
Total liabilities	1,584,299	1,613,687
Commitments and contingencies (Note 10)
Common stock, $0.001 par value; 300,000,000 shares authorized; 136,302,878 and 135,379,038 shares, respectively, issued and outstanding	136	135
Additional paid-in capital	1,136,420	1,125,835
Distributions and accumulated losses	(360,678)	(326,748)
Accumulated other comprehensive loss	(795)	(1,128)
Total stockholders’ equity	775,083	798,094
Noncontrolling interests	63,784	65,163
Total equity	838,867	863,257
Total liabilities and equity	$ 2,423,166	$ 2,476,944

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Equity:
Common stock, par value (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	300,000,000	300,000,000
Common stock, shares outstanding (shares)	136,302,878	135,379,038

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Hotel Revenues
Rooms	$ 112,901	$ 115,065	$ 217,252	$ 221,174
Food and beverage	43,924	43,915	86,110	80,915
Other operating revenue	14,529	14,596	27,696	26,847
Total Hotel Revenues	171,354	173,576	331,058	328,936
Hotel Expenses
Rooms	24,302	23,992	47,819	46,570
Food and beverage	30,310	29,765	59,591	56,455
Other hotel operating expenses	7,784	7,638	14,927	14,658
Property taxes, insurance, rent and other	16,790	16,676	33,154	34,185
Sales and marketing	15,651	16,091	30,804	31,039
General and administrative	14,189	13,568	28,172	27,113
Repairs and maintenance	5,343	5,338	10,575	10,458
Management fees	4,704	5,198	10,269	10,723
Utilities	4,018	3,879	8,117	7,752
Depreciation and amortization	20,789	20,134	41,032	39,734
Total Hotel Expenses	143,880	142,279	284,460	278,687
Other Operating Expenses
Asset management fees to affiliate and other expenses	3,972	3,939	8,018	7,711
Corporate general and administrative expenses	2,811	2,944	5,320	6,338
Impairment charges	0	3,660	0	3,660
Acquisition-related expenses	0	0	0	3,727
Total Other Operating Expenses	6,783	10,543	13,338	21,436
Operating Income	20,691	20,754	33,260	28,813
Other Income and (Expenses)
Interest expense	(16,557)	(16,162)	(32,863)	(32,179)
Equity in earnings of equity method investments in real estate	1,551	2,813	4,536	5,115
Net loss on extinguishment of debt (Note 9)	(84)	0	(225)	(1,064)
Other income	34	8	60	13
Total Other Income and (Expenses)	(15,056)	(13,341)	(28,492)	(28,115)
Income from Operations Before Income Taxes and Net Gain on Sale of Real Estate	5,635	7,413	4,768	698
Provision for income taxes	(1,078)	(3,176)	(792)	(2,004)
Income (Loss) from Operations Before Net Gain on Sale of Real Estate	4,557	4,237	3,976	(1,306)
Net gain on sale of real estate, net of tax	5,516	0	5,164	0
Net Income (Loss)	10,073	4,237	9,140	(1,306)
Loss (income) attributable to noncontrolling interests (inclusive of Available Cash Distributions to a related party of $1,544, $1,586, $3,245 and $4,093, respectively)	310	293	(4,170)	(5,079)
Net Income (Loss) Attributable to CWI Stockholders	$ 10,383	$ 4,530	$ 4,970	$ (6,385)
Basic and Diluted Income (Loss) Per Share (usd per share)	$ 0.08	$ 0.03	$ 0.04	$ (0.05)
Basic and Diluted Weighted-Average Shares Outstanding (shares)	136,621,135	134,402,469	136,471,543	134,012,328
Distributions declared (per share)	$ 0.1425	$ 0.1425	$ 0.285	$ 0.2850

Consolidated Statements Of Ope5

Consolidated Statements Of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Available Cash Distributions	$ 1,544	$ 1,586	$ 3,245	$ 4,093

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 10,073	$ 4,237	$ 9,140	$ (1,306)
Other Comprehensive Income (Loss)
Unrealized gain (loss) on derivative instruments	232	(145)	337	(1,058)
Comprehensive Income (Loss)	10,305	4,092	9,477	(2,364)
Amounts Attributable to Noncontrolling Interests
Net loss (income)	310	293	(4,170)	(5,079)
Unrealized (gain) loss on derivative instruments	(3)	3	(4)	372
Comprehensive loss (income) attributable to noncontrolling interests	307	296	(4,174)	(4,707)
Comprehensive Income (Loss) Attributable to CWI Stockholders	$ 10,612	$ 4,388	$ 5,303	$ (7,071)

Consolidated Statements of Equi

Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	Total CWI 1 Stockholders	Common Stock	Additional Paid In Capital	Distributions and Accumulated Losses	Accumulated Other Comprehensive Loss	Noncontrolling Interest
Beginning equity balance, value at Dec. 31, 2015	$ 955,447	$ 870,510	$ 134	$ 1,112,640	$ (241,379)	$ (885)	$ 84,937
Beginning equity balance, shares at Dec. 31, 2015			132,686,254
Stockholders' Equity
Net income	(1,306)	(6,385)			(6,385)		5,079
Shares issued net of offering costs, value	23,170	23,170	$ 2	23,168
Shares issued, net of offering costs, shares			2,211,709
Distributions to noncontrolling interests	(6,074)						(6,074)
Shares issued under share incentive plans - value	81	81		81
Shares issued under share incentive plans - shares			24,664
Stock-based compensation to directors - value	180	180		180
Stock-based compensation to directors - shares			16,886
Distributions declared, value	(38,127)	(38,127)			(38,127)
Purchase of membership interest from noncontrolling interest	(21,121)	(16,947)		(16,024)		(923)	(4,174)
Other comprehensive income (loss):
Net unrealized gain (loss) on derivative instruments	(1,058)	(686)				(686)	(372)
Repurchase of shares, value	(9,001)	(9,001)	$ (2)	(8,999)
Repurchase of shares, shares			(889,183)
Ending equity balance, value at Jun. 30, 2016	902,191	822,795	$ 134	1,111,046	(285,891)	(2,494)	79,396
Ending equity balance, shares at Jun. 30, 2016			134,050,330
Stockholders' Equity
Net income	4,237
Ending equity balance, value at Jun. 30, 2016	902,191	822,795	$ 134	1,111,046	(285,891)	(2,494)	79,396
Ending equity balance, shares at Jun. 30, 2016			134,050,330
Beginning equity balance, value at Dec. 31, 2016	$ 863,257	798,094	$ 135	1,125,835	(326,748)	(1,128)	65,163
Beginning equity balance, shares at Dec. 31, 2016	135,379,038		135,379,038
Stockholders' Equity
Net income	$ 9,140	4,970			4,970		4,170
Shares issued net of offering costs, value	22,874	22,874	$ 2	22,872
Shares issued, net of offering costs, shares			2,131,969
Shares issued to affiliate, value	5,977	5,977	$ 1	5,976
Shares issued to affiliated, shares			556,213
Distributions to noncontrolling interests	(5,553)						(5,553)
Shares issued under share incentive plans - value	72	72		72
Shares issued under share incentive plans - shares			23,710
Stock-based compensation to directors - value	180	180		180
Stock-based compensation to directors - shares			16,667
Distributions declared, value	(38,900)	(38,900)			(38,900)
Other comprehensive income (loss):
Net unrealized gain (loss) on derivative instruments	337	333				333	4
Repurchase of shares, value	(18,517)	(18,517)	$ (2)	(18,515)
Repurchase of shares, shares			(1,804,719)
Ending equity balance, value at Jun. 30, 2017	$ 838,867	775,083	$ 136	1,136,420	(360,678)	(795)	63,784
Ending equity balance, shares at Jun. 30, 2017	136,302,878		136,302,878
Stockholders' Equity
Net income	$ 10,073
Ending equity balance, value at Jun. 30, 2017	$ 838,867	$ 775,083	$ 136	$ 1,136,420	$ (360,678)	$ (795)	$ 63,784
Ending equity balance, shares at Jun. 30, 2017	136,302,878		136,302,878

Consolidated Statements of Equ8

Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Stockholders' Equity [Abstract]
Distributions declared (per share)	$ 0.1425	$ 0.1425	$ 0.285	$ 0.2850

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows - Operating Activities
Net Income (Loss)	$ 9,140	$ (1,306)
Adjustments to net loss:
Depreciation and amortization	41,032	39,734
Asset management fees to affiliates settled in shares	7,198	0
Net gain on sale of real estate (Note 4)	(5,164)	0
Straight-line rent adjustments	2,632	2,657
Amortization of deferred financing costs, fair market value of debt, ground lease intangible and other	1,535	(89)
Equity in earnings of equity method investments in real estate in excess of distributions received	(1,097)	(1,974)
Amortization of stock-based compensation expense	377	377
Net loss on extinguishment of debt (Note 9)	222	668
Impairment charges	0	3,660
Decrease in due to related parties and affiliates	(679)	(267)
Net changes in other operating assets and liabilities	618	(535)
Receipt of key money and other deferred incentive payments	66	1,075
Net Cash Provided by Operating Activities	55,880	44,000
Cash Flows — Investing Activities
Funds placed in escrow	(71,250)	(65,573)
Funds released from escrow	62,623	74,933
Proceeds from the sale of investments (Note 4)	25,743	0
Capital expenditures	(24,141)	(36,816)
Distributions received from equity investments in excess of equity income	2,193	949
Repayments of loan receivable	134	0
Acquisitions of hotels	0	(74,224)
Deposits released for hotel investments	0	5,718
Net Cash Used in Investing Activities	(4,698)	(95,013)
Cash Flows — Financing Activities
Scheduled payments and prepayments of mortgage principal	(87,199)	(126,123)
Proceeds from mortgage financing	83,500	213,500
Distributions paid	(38,769)	(37,934)
Proceeds from issuance of shares, net of offering costs	22,874	23,170
Proceeds from note payable to affiliate	22,835	0
Repayment of Senior Credit Facility	(22,785)	(17,914)
Repurchase of shares	(18,523)	(9,001)
Distributions to noncontrolling interests	(5,553)	(6,074)
Deposits released for mortgage financing	1,610	1,850
Deposits for mortgage financing	(1,510)	(1,970)
Deferred financing costs	(1,296)	(2,776)
Scheduled payments of loan	(155)	0
Withholding on restricted stock units	(126)	(116)
Purchase of interest rate caps	(11)	(74)
Proceeds from Senior Credit Facility	0	30,000
Purchase of membership interest from noncontrolling interest (Note 11)	0	(21,121)
Termination of interest rate swap	0	(1,221)
Net Cash (Used in) Provided by Financing Activities	(45,108)	44,196
Change in Cash During the Period
Net increase (decrease) in cash	6,074	(6,817)
Cash, beginning of period	61,762	83,112
Cash, end of period	$ 67,836	$ 76,295

Business

Business	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business	Business Organization Carey Watermark Investors Incorporated, or CWI, together with its consolidated subsidiaries, is a publicly-owned, non-listed real estate investment trust, or REIT, that invests in, and through our advisor, manages and seeks to enhance the value of, interests in lodging and lodging-related properties primarily in the United States. We conduct substantially all of our investment activities and own all of our assets through CWI OP, LP, or the Operating Partnership. We are a general partner and a limited partner of, and own a 99.985% capital interest in, the Operating Partnership. Carey Watermark Holdings, LLC, or Carey Watermark Holdings, which is owned indirectly by both W. P. Carey Inc., or WPC, and Watermark Capital Partners, LLC, or Watermark Capital Partners, holds a special general partner interest in the Operating Partnership. We are managed by Carey Lodging Advisors, LLC, or our Advisor, an indirect subsidiary of WPC. Our Advisor manages our overall portfolio, including providing oversight and strategic guidance to the independent hotel operators that manage our hotels. CWA, LLC, a subsidiary of Watermark Capital Partners, or the Subadvisor, provides services to our Advisor primarily relating to acquiring, managing, financing and disposing of our hotels and overseeing the independent operators that manage the day-to-day operations of our hotels. In addition, the Subadvisor provides us with the services of Mr. Michael G. Medzigian, our Chief Executive Officer, subject to the approval of our independent directors. We held ownership interests in 31 hotels at June 30, 2017 . See Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 — Portfolio Overview for a complete listing of the hotels that we consolidate, or our Consolidated Hotels, and the hotels that we record as equity investments, or our Unconsolidated Hotels, at June 30, 2017 . Public Offerings We raised $575.8 million through our initial public offering, which ran from September 15, 2010 through September 15, 2013, and $577.4 million through our follow-on offering, which ran from December 20, 2013 through December 31, 2014. In addition, from inception through June 30, 2017 , $147.4 million of distributions were reinvested in our common stock as a result of our distribution reinvestment plan, or DRIP. We have fully invested the proceeds from both our initial public offering and follow-on offering.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Basis of Presentation Our interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations and cash flows in accordance with generally accepted accounting principles in the United States, or GAAP. In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of financial position, results of operations and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 2016 , which are included in our 2016 Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this Report. Operating results for interim periods are not necessarily indicative of operating results for an entire year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Basis of Consolidation Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a variable interest entity, or VIE, and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Certain decision-making rights within a loan or joint-venture agreement can cause us to consider an entity a VIE. Limited partnerships and other similar entities which operate as a partnership will be considered a VIE unless the limited partners hold substantive kick-out rights or participation rights. Significant judgment is required to determine whether a VIE should be consolidated. We review the contractual arrangements provided for in the partnership agreement or other related contracts to determine whether the entity is considered a VIE, and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those of the other variable interest holders to determine which party is the primary beneficiary of the VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The liabilities of these VIEs are non-recourse to us and can only be satisfied from each VIE’s respective assets. At both June 30, 2017 and December 31, 2016 , we considered five entities to be VIEs, four of which we consolidated as we are considered the primary beneficiary. The following table presents a summary of selected financial data of consolidated VIEs included in the consolidated balance sheets (in thousands): June 30, 2017 December 31, 2016 Net investments in hotels $ 513,037 $ 518,335 Intangible assets, net 39,050 39,451 Total assets 580,183 587,608 Non-recourse debt, net $ 341,325 $ 341,082 Total liabilities 366,854 372,991 Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU , 2014-09 , Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes or replaces nearly all GAAP revenue recognition guidance. The new guidance establishes a new control-based revenue recognition model that changes the basis for deciding when revenue is recognized over time or at a point in time and expands the disclosures about revenue. The new guidance also applies to sales of real estate and the new principles-based approach is largely based on the transfer of control of the real estate to the buyer. The guidance is effective for annual reporting periods beginning after December 15, 2017, and the interim periods within those annual periods. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. We expect to adopt this new standard on January 1, 2018 using the modified retrospective transition method, which requires a cumulative effect adjustment upon the date of adoption. We are in the process of evaluating the impact of the new standard and do not believe the adoption of this standard will have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 outlines a new model for accounting by lessees, whereby their rights and obligations under substantially all leases, existing and new, would be capitalized and recorded on the balance sheet. For lessors, however, the accounting remains largely unchanged from the current model, with the distinction between operating and financing leases retained, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Additionally, the new standard requires extensive quantitative and qualitative disclosures. ASU 2016-02 is effective for GAAP public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application will be permitted for all entities. The new standard must be adopted using a modified retrospective transition of the new guidance and provides for certain practical expedients. Transition will require application of the new model at the beginning of the earliest comparative period presented. We have not yet completed our analysis on this new standard, but we believe the application of the new standard will result in the recording of a right-of-use asset and a lease liability on the consolidated balance sheet for each of our ground leases. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 intends to reduce diversity in practice for certain cash flow classifications, including, but not limited to (i) debt prepayment or debt extinguishment costs, (ii) contingent consideration payments made after a business combination, (iii) proceeds from the settlement of insurance claims, (iv) distributions received from equity method investees and (v) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-15 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. ASU 2016-17 changes how a reporting entity that is a decision maker should consider indirect interests in a VIE held through an entity under common control. If a decision maker must evaluate whether it is the primary beneficiary of a VIE, it will only need to consider its proportionate indirect interest in the VIE held through a common control party. ASU 2016-17 amends ASU 2015-02, which we adopted on January 1, 2016, and which currently directs the decision maker to treat the common control party’s interest in the VIE as if the decision maker held the interest itself. ASU 2016-17 is effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted ASU 2016-17 as of January 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2016-18 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist companies and other reporting organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The changes to the definition of a business will likely result in more acquisitions being accounted for as asset acquisitions across all industries. The guidance is effective for annual reporting periods beginning after December 15, 2017, and the interim periods within those annual periods. We expect to adopt this new guidance on January 1, 2018. While we are evaluating the potential impact of the standard, we currently expect that certain future hotel acquisitions may be considered asset acquisitions rather than business combinations, which would affect the capitalization of acquisition costs (such costs are expensed for business combinations and capitalized for asset acquisitions). In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) . ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term “in substance nonfinancial asset,” in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. This amendment also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent company may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. ASU 2017-05 is effective for periods beginning after December 15, 2017, with early application permitted for fiscal years beginning after December 15, 2016. We are currently evaluating the impact of ASU 2017-05 on our consolidated financial statements.

Agreements and Transactions wit

Agreements and Transactions with Related Parties	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Agreements and Transactions with Related Parties	Agreements and Transactions with Related Parties Agreements with Our Advisor and Affiliates We have an advisory agreement with our Advisor to perform certain services for us under a fee arrangement, including managing our overall business; the identification, evaluation, negotiation, purchase and disposition of lodging and lodging-related properties; and the performance of certain administrative duties. The advisory agreement has a term of one year and may be renewed for successive one-year periods. Our Advisor has entered into a subadvisory agreement with the Subadvisor, whereby our Advisor pays 20% of the fees earned under the advisory agreement to the Subadvisor and the Subadvisor provides certain personnel services to us, as discussed below. The following tables present a summary of fees we paid, expenses we reimbursed and distributions we made to our Advisor, the Subadvisor and other affiliates, as described below, in accordance with the terms of those agreements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Amounts Included in the Consolidated Statements of Operations Asset management fees $ 3,585 $ 3,538 $ 7,198 $ 7,008 Available Cash Distributions 1,544 1,586 3,245 4,093 Personnel and overhead reimbursements 1,486 1,604 2,909 3,579 Disposition fees ( Note 4 ) 143 — 225 — Interest expense 117 — 128 — Acquisition fees — — — 2,158 $ 6,875 $ 6,728 $ 13,705 $ 16,838 Other Transaction Fees Incurred Capitalized loan refinancing fees $ 340 $ — $ 340 $ 500 Advisor fee for purchase of membership interest ( Note 11 ) — — — 527 $ 340 $ — $ 340 $ 1,027 The following table presents a summary of the amounts included in Due to related parties and affiliates in the consolidated financial statements (in thousands): June 30, 2017 December 31, 2016 Amounts Due to Related Parties and Affiliates Note payable to WPC $ 22,964 $ — Reimbursable costs 1,298 1,311 Other amounts due to our Advisor 1,222 1,202 Due to joint venture partners and other 148 115 $ 25,632 $ 2,628 Asset Management Fees, Dispositions Fees and Loan Refinancing Fees We pay our Advisor an annual asset management fee equal to 0.5% of the aggregate Average Market Value of our Investments, both as defined in our advisory agreement with our Advisor. Our Advisor is also entitled to receive disposition fees of up to 1.5% of the contract sales price of a property, as well as a loan refinancing fee of up to 1.0% of the principal amount of a refinanced loan, if certain conditions described in the advisory agreement are met. If our Advisor elects to receive all or a portion of its fees in shares, the number of shares issued is determined by dividing the dollar amount of fees by our most recently published estimated net asset value per share, or NAV. At our Advisor’s election, we paid our asset management fees in shares of our common stock for the three and six months ended June 30, 2017 and in cash for the three and six months ended June 30, 2016 . For the six months ended June 30, 2017 , $6.0 million in asset management fees were settled in shares of our common stock. No such fees were settled in shares during the six months ended June 30, 2016 . At June 30, 2017 , our Advisor owned 2,057,241 shares ( 1.5% ) of our outstanding common stock. Asset management fees are included in Asset management fees to affiliate and other expenses in the consolidated financial statements. Available Cash Distributions Carey Watermark Holdings’ special general partner interest entitles it to receive distributions of 10% of Available Cash, as defined in the limited partnership agreement of the Operating Partnership, or Available Cash Distributions, generated by the Operating Partnership, subject to certain limitations. In addition, in the event of the dissolution of the Operating Partnership, Carey Watermark Holdings will be entitled to receive distributions of up to 15% of any net proceeds, provided certain return thresholds are met for the initial investors in the Operating Partnership. Available Cash Distributions are included in Loss (income) attributable to noncontrolling interests in the consolidated financial statements. Personnel and Overhead Reimbursements/Reimbursable Costs Under the terms of the advisory agreement, our Advisor generally allocates expenses of dedicated and shared resources, including the cost of personnel, rent and related office expenses, between us and our affiliate, Carey Watermark Investors 2 Incorporated, or CWI 2, based on total pro rata hotel revenues on a quarterly basis. Pursuant to the subadvisory agreement, after we reimburse our Advisor, it will subsequently reimburse the Subadvisor for personnel costs and other charges, including the services of our Chief Executive Officer, subject to the approval of our board of directors. We have also granted restricted stock units to employees of the Subadvisor pursuant to our 2010 Equity Incentive Plan. These reimbursements are included in Corporate general and administrative expenses and Due to related parties and affiliates in the consolidated financial statements. Acquisition Fees to our Advisor We pay our Advisor acquisition fees of 2.5% of the total investment cost of the properties acquired, as defined in our advisory agreement, described above, including on our proportionate share of equity method investments and loans originated by us. The total fees to be paid may not exceed 6% of the aggregate contract purchase price of all investments and loans, as measured over a period specified in our advisory agreement. Note Payable to WPC and Other Transactions with Affiliates During the first quarter of 2017, our board of directors and the board of directors of WPC approved unsecured loans from WPC to us of up to $25.0 million , at an interest rate equal to the rate at which WPC is able to borrow funds under its senior unsecured credit facility, which we refer to as the WPC Line of Credit, for the purpose of replacing our Senior Credit Facility ( Note 9 ). All loans under the WPC Line of Credit are made solely at the discretion of WPC’s management. On March 23, 2017, we borrowed $22.8 million from WPC at the London Interbank Offered Rate, or LIBOR, plus 1.0% and a maturity date of March 22, 2018 and simultaneously repaid and terminated our Senior Credit Facility. At June 30, 2017 , the amount due to WPC was $23.0 million , including accrued interest. The interest expense on these notes payable to our affiliate is included in Interest expense on the consolidated statements of operations. Other Amounts Due to Our Advisor This balance primarily represents asset management fees payable. Jointly Owned Investments and Other Transactions with Affiliates At June 30, 2017 , we owned interests in two jointly-owned investments with CWI 2: the Ritz-Carlton Key Biscayne, a Consolidated Hotel, and the Marriott Sawgrass Golf Resort & Spa, an Unconsolidated Hotel. CWI 2 is a publicly owned, non-listed REIT that is also advised by our Advisor and invests in lodging and lodging-related properties.

Net Investments in Hotels

Net Investments in Hotels	6 Months Ended
	Jun. 30, 2017
Real Estate [Abstract]
Net Investments in Hotels	Net Investments in Hotels Net investments in hotels are summarized as follows (in thousands): June 30, 2017 December 31, 2016 Buildings $ 1,654,760 $ 1,670,895 Land 379,453 380,970 Furniture, fixtures and equipment 129,229 122,155 Building and site improvements 118,257 89,667 Construction in progress 11,664 26,855 Hotels, at cost 2,293,363 2,290,542 Less: Accumulated depreciation (206,588 ) (176,423 ) Net investments in hotels $ 2,086,775 $ 2,114,119 During the six months ended June 30, 2017 , we retired fully depreciated furniture, fixtures and equipment aggregating $7.8 million . Property Dispositions and Assets and Liabilities Held for Sale On February 1, 2017, we sold our 100% ownership interests in each of the Hampton Inn Frisco Legacy Park, the Hampton Inn Birmingham Colonnade and the Hilton Garden Inn Baton Rouge Airport to an unaffiliated third party for a contractual sales price of $33.0 million and net proceeds of approximately $7.4 million . The seller assumed the outstanding non-recourse debt on the three properties totaling $26.5 million . We recognized a loss on sale of $0.4 million during the first quarter of 2017. These three properties comprised the held for sale balance at December 31, 2016. On May 11, 2017, we sold our 100% ownership interest in the Hampton Inn Boston Braintree to an unaffiliated third party for a contractual sales price of $19.0 million and net proceeds of approximately $6.6 million . During the second quarter of 2017, we recognized a gain on sale of $5.5 million , which is net of a $0.6 million participation management fee that was incurred as a result of the disposition and paid to StepStone Hospitality, the hotel management company, pursuant to the management agreement. At June 30, 2017 , no properties were classified as held for sale. Below is a summary of our assets and liabilities held for sale (in thousands): June 30, 2017 December 31, 2016 Net investments in hotels $ — $ 32,300 Restricted cash — 2,089 Accounts receivable — 169 Other assets — 465 Assets held for sale $ — $ 35,023 Non-recourse debt, net attributable to Assets held for sale $ — $ 26,560 Accounts payable, accrued expenses and other liabilities $ — $ 789 Due to related parties and affiliates — 8 Other liabilities held for sale $ — $ 797 Construction in Progress At June 30, 2017 and December 31, 2016 , construction in progress, recorded at cost, was $11.7 million and $26.9 million , respectively, and related primarily to renovations at the Hutton Hotel Nashville at June 30, 2017 and renovations at the Ritz-Carlton Key Biscayne and Westin Pasadena at December 31, 2016 ( Note 10 ). We capitalize interest expense and certain other costs, such as property taxes, property insurance, utilities expense and hotel incremental labor costs, related to hotels undergoing major renovations. We capitalized $0.2 million and $0.9 million of such costs during the three months ended June 30, 2017 and 2016 , respectively, and $0.7 million and $1.2 million during the six months ended June 30, 2017 and 2016 , respectively. At June 30, 2017 and December 31, 2016 , accrued capital expenditures were $3.2 million and $2.3 million , respectively, representing non-cash investing activity.

Equity Investment in Real Estat

Equity Investment in Real Estate	6 Months Ended
	Jun. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity Investments in Real Estate	Equity Investments in Real Estate At June 30, 2017 , we owned equity interests in four Unconsolidated Hotels, three with unrelated third parties and one with CWI 2. We do not control the ventures that own these hotels, but we exercise significant influence over them. We account for these investments under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences from acquisition costs paid to our Advisor that we incur and other-than-temporary impairment charges, if any). Under the conventional approach of accounting for equity method investments, an investor applies its percentage ownership interest to the venture’s net income to determine the investor’s share of the earnings or losses of the venture. This approach is inappropriate if the venture’s capital structure gives different rights and priorities to its investors. We have priority returns on several of our equity method investments. Therefore, we follow the hypothetical liquidation at book value method in determining our share of these ventures’ earnings or losses for the reporting period as this method better reflects our claim on the ventures’ book value at the end of each reporting period. Earnings for our equity method investments are recognized in accordance with each respective investment agreement and, where applicable, based upon the allocation of the investment’s net assets at book value as if the investment were hypothetically liquidated at the end of each reporting period. The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values. The carrying values of these ventures are affected by the timing and nature of distributions (dollars in thousands): Unconsolidated Hotels State Number of Rooms % Owned Acquisition Date Hotel Type Carrying Value at June 30, 2017 December 31, 2016 Hyatt Centric French Quarter Venture (a) LA 254 80% 9/6/2011 Full-service $ 711 $ 664 Westin Atlanta Venture (b) GA 372 57% 10/3/2012 Full-service 4,935 5,795 Marriott Sawgrass Golf Resort & Spa Venture (c) (d) FL 514 50% 4/1/2015 Resort 29,880 31,208 Ritz-Carlton Philadelphia Venture (e) PA 301 60% 5/15/2015 Full-service 39,285 38,261 1,441 $ 74,811 $ 75,928 ___________ (a) We received cash distributions of $0.3 million and $0.7 million from this investment during the three and six months ended June 30, 2017 , respectively. (b) We received cash distributions of $0.7 million and $1.3 million from this investment during the three and six months ended June 30, 2017 , respectively. (c) We received cash distributions of $1.3 million and $3.0 million from this investment during the three and six months ended June 30, 2017 , respectively. (d) This investment is considered a VIE ( Note 2 ). We do not consolidate this entity because we are not the primary beneficiary and the nature of our involvement in the activities of the entity allows us to exercise significant influence but does not give us power over decisions that significantly affect the economic performance of the entity. (e) We received cash distributions of less than $0.1 million and $0.6 million from this investment during the three and six months ended June 30, 2017 , respectively. The following table sets forth our share of equity in earnings from our Unconsolidated Hotels, which are based on the hypothetical liquidation at book value model, as well as certain amortization adjustments related to basis differentials from acquisitions of investments (in thousands): Three Months Ended June 30, Six Months Ended June 30, Venture 2017 2016 2017 2016 Marriott Sawgrass Golf Resort & Spa Venture $ 320 $ 1,097 $ 1,706 $ 2,222 Ritz-Carlton Philadelphia Venture 824 741 1,629 1,386 Hyatt Centric French Quarter Venture 254 743 729 983 Westin Atlanta Venture 153 232 472 524 Total equity in earnings of equity method investments in real estate $ 1,551 $ 2,813 $ 4,536 $ 5,115 No other-than-temporary impairment charges related to our investments in these ventures were recognized during the three or six months ended June 30, 2017 or 2016 . At June 30, 2017 and December 31, 2016 , the unamortized basis differences on our equity investments were $3.1 million and $3.3 million , respectively. Net amortization of the basis differences reduced the carrying values of our equity investments by less than $0.1 million during both the three months ended June 30, 2017 and 2016 , and by $0.1 million for both the six months ended June 30, 2017 and 2016 . The following tables present combined summarized financial information of our Marriott Sawgrass Golf Resort & Spa Venture and Ritz-Carlton Philadelphia Venture. Amounts provided are the total amounts attributable to the ventures and does not represent our proportionate share (in thousands): June 30, 2017 December 31, 2016 Real estate, net $ 239,584 $ 244,106 Other assets 19,946 19,882 Total assets 259,530 263,988 Debt 136,517 136,575 Other liabilities 24,464 23,394 Total liabilities 160,981 159,969 Members’ equity $ 98,549 $ 104,019 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues $ 25,157 $ 24,149 $ 49,831 $ 43,943 Expenses (24,137 ) (22,169 ) (48,588 ) (41,373 ) Net income attributable to equity method investment $ 1,020 $ 1,980 $ 1,243 $ 2,570

Intangible Assets and Liabiliti

Intangible Assets and Liabilities	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Liabilities	Intangible Assets and Liabilities Intangible assets and liabilities, included in Intangible assets, net and Accounts payable, accrued expenses and other liabilities, respectively, in the consolidated financial statements, are summarized as follows (dollars in thousands): June 30, 2017 December 31, 2016 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Carrying Finite-Lived Intangible Assets Villa/condo rental programs 45 – 55 $ 72,400 $ (4,263 ) $ 68,137 $ 72,400 $ (3,510 ) $ 68,890 Below-market hotel ground leases and parking garage lease 10 – 93 11,655 (628 ) 11,027 11,655 (531 ) 11,124 In-place leases 4 – 21 151 (67 ) 84 235 (132 ) 103 Total intangible assets, net $ 84,206 $ (4,958 ) $ 79,248 $ 84,290 $ (4,173 ) $ 80,117 Finite-Lived Intangible Liability Above-market hotel ground lease 85 $ (2,100 ) $ 77 $ (2,023 ) $ (2,100 ) $ 64 $ (2,036 ) Net amortization of intangibles was $0.4 million for both the three months ended June 30, 2017 and 2016 , and $0.9 million for both the six months ended June 30, 2017 and 2016 . Amortization of the villa/condo rental programs and in-place lease intangibles are included in Depreciation and amortization, and amortization of below-market hotel ground lease, below-market hotel parking garage lease and above-market hotel ground lease intangibles are included in Property taxes, insurance, rent and other in the consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments, including interest rate caps and swaps; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions. Items Measured at Fair Value on a Recurring Basis Derivative Assets and Liabilities — Our derivative assets and liabilities are comprised of interest rate swaps and caps that were measured at fair value using readily observable market inputs, such as quotations on interest rates. These derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market ( Note 8 ). We did not have any transfers into or out of Level 1, Level 2 and Level 3 category of measurements during the three or six months ended June 30, 2017 or 2016 . Gains and losses (realized and unrealized) included in earnings are reported in Other income in the consolidated financial statements. Our non-recourse debt, net, which we have classified as Level 3, had a carrying value of $1.4 billion and $1.5 billion at June 30, 2017 and December 31, 2016 , respectively, and an estimated fair value of $1.4 billion and $1.5 billion at June 30, 2017 and December 31, 2016 , respectively. We determined the estimated fair value using a discounted cash flow model with rates that take into account the interest rate risk. We also considered the value of the underlying collateral, taking into account the quality of the collateral and the then-current interest rate. We estimated that our other financial assets and liabilities had fair values that approximated their carrying values at both June 30, 2017 and December 31, 2016 . Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges) We periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable. For real estate assets held for investment and related intangible assets in which an impairment indicator is identified, we follow a two-step process to determine whether an asset is impaired and to determine the amount of the charge. First, we compare the carrying value of the property’s asset group to the estimated future undiscounted net cash flows that we expect the property’s asset group will generate, including any estimated proceeds from the eventual sale of the property’s asset group. If this amount is less than the carrying value, the property’s asset group is considered not recoverable. We then measure the impairment charge as the excess of the carrying value of the property’s asset group over the estimated fair value of the property’s asset group, which is primarily determined using market information from outside sources, such as broker quotes, recent comparable sales or third-party appraisals. If relevant market information is not available or is not deemed appropriate, we perform a future net cash flow analysis, discounted for inherent risk associated with each investment. We classify real estate assets as held for sale when we have entered into a contract to sell the property, all material due diligence requirements have been satisfied or we believe it is probable that the disposition will occur within one year. When we classify an asset as held for sale, we compare the asset’s fair value less estimated cost to sell to its carrying value, and if the fair value less estimated cost to sell is less than the property’s carrying value, we reduce the carrying value to the fair value less estimated cost to sell. We base the fair value on the contract and the estimated cost to sell on information provided by brokers and legal counsel. We will continue to review the property for subsequent changes in the fair value and may recognize an additional impairment charge, if warranted. We determined that the significant inputs used to value these investments fall within Level 3 for fair value reporting. As a result of our assessments, we calculated an impairment charge based on market conditions and assumptions that existed at the time. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change. During the second quarter of 2016, we recognized impairment charges totaling $3.7 million on three properties with an aggregate fair value measurement of $33.0 million in order to reduce the carrying value of the properties to their estimated fair values. We did not recognize any impairment charges during the three or six months ended June 30, 2017 .

Risk Management and Use of Deri

Risk Management and Use of Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedges, Assets [Abstract]
Risk Management and Use of Derivative Financial Instruments	Risk Management and Use of Derivative Financial Instruments Risk Management In the normal course of our ongoing business operations, we encounter economic risk. There are two main components of economic risk that impact us: interest rate risk and market risk. We are primarily subject to interest rate risk on our interest-bearing assets and liabilities. Market risk includes changes in the value of our properties and related loans. Derivative Financial Instruments When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates. We have not entered into, and do not plan to enter into, financial instruments for trading or speculative purposes. In addition to entering into derivative instruments on our own behalf, we may also be a party to derivative instruments that are embedded in other contracts, which are considered to be derivative instruments. The primary risks related to our use of derivative instruments include a counterparty to a hedging arrangement defaulting on its obligation and a downgrade in the credit quality of a counterparty to such an extent that our ability to sell or assign our side of the hedging transaction is impaired. While we seek to mitigate these risks by entering into hedging arrangements with large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated, and that qualified, as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of the change in fair value of any derivative is immediately recognized in earnings. The following table sets forth certain information regarding our derivative instruments on our Consolidated Hotels (in thousands): Derivatives Designated as Hedging Instruments Asset Derivatives Fair Value at Liability Derivatives Fair Value at Balance Sheet Location June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Interest rate swaps Other assets $ 85 $ 48 $ — $ — Interest rate caps Other assets 16 51 — — Interest rate swaps Accounts payable, accrued expenses and other liabilities — — — (2 ) $ 101 $ 99 $ — $ (2 ) All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis in our consolidated financial statements. At both June 30, 2017 and December 31, 2016 , no cash collateral had been posted nor received for any of our derivative positions. We recognized unrealized losses of less than $0.1 million and $0.5 million in Other comprehensive income (loss) on derivatives in connection with our interest rate swaps and caps during the three months ended June 30, 2017 and 2016 , respectively, and unrealized losses of $0.2 million and $1.8 million during the six months ended June 30, 2017 and 2016 , respectively. We reclassified $0.2 million from Other comprehensive income (loss) on derivatives into Interest expense during each of the three months ended June 30, 2017 and 2016 , and $0.4 million and $0.5 million during the six months ended June 30, 2017 and 2016 , respectively. Amounts reported in Other comprehensive income (loss) related to interest rate swaps and caps will be reclassified to Interest expense as interest expense is incurred on our variable-rate debt. At June 30, 2017 , we estimated that an additional $0.6 million , inclusive of amounts attributable to noncontrolling interests of less than $0.1 million , will be reclassified as Interest expense during the next 12 months related to our interest rate swaps and caps. Interest Rate Swaps and Caps We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our investment partners may obtain variable-rate non-recourse mortgage loans and, as a result, may enter into interest rate swap or cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of a loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The face amount on which the swaps are based is not exchanged. An interest rate cap limits the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements. The interest rate swaps and caps that we had outstanding on our Consolidated Hotels at June 30, 2017 were designated as cash flow hedges and are summarized as follows (dollars in thousands): Number of Notional Fair Value at Interest Rate Derivatives Instruments Amount June 30, 2017 Interest rate swaps 1 $ 47,720 $ 85 Interest rate caps 8 303,080 16 $ 101 Credit Risk-Related Contingent Features We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of any collateral received. No collateral was received as of June 30, 2017 . At June 30, 2017 , both our total credit exposure and the maximum exposure to any single counterparty were $0.1 million . Some of the agreements we have with our derivative counterparties contain cross-default provisions that could trigger a declaration of default on our derivative obligations if we default, or are capable of being declared in default, on certain of our indebtedness. At June 30, 2017 , we had not been declared in default on any of our derivative obligations. At June 30, 2017 , we had no derivatives that were in a net liability position. At December 31, 2016 , the estimated fair value of our derivatives in a net liability position was less than $0.1 million , which included accrued interest and any nonperformance risk adjustments. If we had breached any of these provisions at December 31, 2016 , we could have been required to settle our obligations under these agreements at their aggregate termination value of less than $0.1 million .

Debt

Debt	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Debt	Debt Non-Recourse Debt Our non-recourse debt consists of mortgage notes payable, which are collateralized by the assignment of hotel properties. The following table presents the non-recourse debt, net on our Consolidated Hotel investments (dollars in thousands): Carrying Amount at Interest Rate Range Current Maturity Date Range (a) June 30, 2017 December 31, 2016 Fixed rate 3.6% – 6.5% 3/2018 – 4/2024 $ 1,086,442 $ 1,084,987 Variable rate (b) 3.4% – 8.3% 10/2017 – 12/2020 339,683 371,165 $ 1,426,125 $ 1,456,152 ___________ (a) Many of our mortgage loans have extension options, which are subject to certain conditions. The maturity dates in the table do not reflect the extension options. (b) These mortgage loans have variable interest rates, which have effectively been capped or converted to fixed rates through the use of interest rate caps or swaps ( Note 8 ). The interest rate range presented for these mortgage loans reflect the rates in effect at June 30, 2017 through the use of an interest rate cap or swap, when applicable. Most of our mortgage loan agreements contain “lock-box” provisions, which permit the lender to access or sweep a hotel’s excess cash flow and would be triggered under limited circumstances, including the failure to maintain minimum debt service coverage ratios. If a provision were triggered, we would generally be permitted to spend an amount equal to our budgeted hotel operating expenses, taxes, insurance and capital expenditure reserves for the relevant hotel. The lender would then hold all excess cash flow after the payment of debt service in an escrow account until certain performance hurdles are met. At December 31, 2016 , the minimum debt service coverage ratio for the Holiday Inn Manhattan 6 th Avenue Chelsea was not met; therefore, a cash management agreement was enacted that permits the lender to sweep the hotel’s excess cash flow. As of June 30, 2017 , this ratio was still not met and the cash management agreement remained in effect. At June 30, 2017, the minimum debt service coverage ratio for the Lake Arrowhead Resort and Spa was not met; therefore we are required to fund $0.5 million into a lender held reserve account that will be released after a specified debt service coverage ratio is achieved for two consecutive quarters. We will fund the required $0.5 million into the lender held reserve account during the third quarter of 2017, which will be included in Restricted cash in our consolidated balance sheet. Covenants Pursuant to our mortgage loan agreements, our consolidated subsidiaries are subject to various operational and financial covenants, including minimum debt service coverage ratios. At June 30, 2017 , we were in compliance with the applicable covenants for each of our mortgage loans. Senior Credit Facility At December 31, 2016, we had a senior credit facility that provided for a $25.0 million senior unsecured revolving credit facility, or our Senior Credit Facility. The Senior Credit Facility bore interest at LIBOR plus 2.75% , was scheduled to mature on December 4, 2017 and had an outstanding balance of $22.8 million at December 31, 2016. On March 23, 2017, we repaid the $22.8 million outstanding balance using proceeds from the WPC Line of Credit ( Note 3 ) and simultaneously terminated our Senior Credit Facility. We recognized a loss on extinguishment of debt of $0.1 million during the first quarter of 2017 on this termination, related primarily to the write-off of unamortized deferred financing costs. Financing Activity During 2017 During the six months ended June 30, 2017 , we refinanced two non-recourse mortgage loans totaling $70.6 million with new non-recourse mortgage loans totaling $83.5 million , which have a weighted-average interest rate of 5.1% and term of 5 years . We recognized a net loss on extinguishment of debt of less than $0.1 million on these refinancings. Scheduled Debt Principal Payments Scheduled debt principal payments during the remainder of 2017 , each of the next four calendar years following December 31, 2017 , and thereafter are as follows (in thousands): Years Ending December 31, Total 2017 (remainder) (a) $ 78,991 2018 (b) 130,888 2019 148,727 2020 196,362 2021 458,253 Thereafter through 2024 420,973 1,434,194 Unamortized deferred financing costs (8,069 ) Total $ 1,426,125 ___________ (a) Balance includes $72.7 million of scheduled balloon payments on two consolidated mortgage loans. We currently intend to refinance these mortgage loans, although there can be no assurance that we will be able to do so on favorable terms, if at all. (b) Excludes $22.8 million of loan proceeds from the WPC Line of Credit used to repay our Senior Credit Facility ( Note 3 ). The WPC Line of Credit has a maturity date of March 22, 2018.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies At June 30, 2017 , we were not involved in any material litigation. Various claims and lawsuits arising in the normal course of business are pending against us, but we do not expect the results of such proceedings to have a material adverse effect on our consolidated financial position or results of operations. Hotel Management Agreements As of June 30, 2017 , our Consolidated Hotel properties were operated pursuant to long-term management agreements with 12 different management companies, with initial terms ranging from five to 30 years . For hotels operated with separate franchise agreements, each management company receives a base management fee, generally ranging from 1.0% to 3.5% of hotel revenues. Four of our management agreements contain the right and license to operate the hotels under specified brands; no separate franchise agreements exist and no separate franchise fee is required for these hotels. The management agreements that include the benefit of a franchise agreement incur a base management fee equal to 3.0% of hotel revenues. The management companies are generally also eligible to receive an incentive management fee, which is typically calculated as a percentage of operating profit, either (i) in excess of projections with a cap or (ii) after we have received a priority return on our investment in the hotel. For the three months ended June 30, 2017 and 2016 , we incurred management fee expense, including amortization of deferred management fees, of $4.7 million and $5.2 million , respectively, and $10.3 million and $10.7 million for the six months ended June 30, 2017 and 2016 , respectively. Franchise Agreements As of June 30, 2017 , we had 12 franchise agreements with Marriott owned brands, five with Hilton owned brands, two with InterContinental Hotels owned brands and one with a Hyatt owned brand related to our Consolidated Hotels. The franchise agreements have initial terms ranging from 15 to 25 years . This number excludes four hotels that receive the benefits of a franchise agreement pursuant to management agreements, as discussed above. Also, three of our Consolidated Hotels are independent and not subject to franchise agreements. Our franchise agreements grant us the right to the use of the brand name, systems and marks with respect to specified hotels and establish various management, operational, record-keeping, accounting, reporting and marketing standards and procedures that the licensed hotel must comply with. In addition, the franchisor establishes requirements for the quality and condition of the hotel and its furniture, fixtures and equipment, and we are obligated to expend such funds as may be required to maintain the hotel in compliance with those requirements. Typically, our franchise agreements provide for a license fee, or royalty, of 3.0% to 7.0% of room revenues and, if applicable, 2.0% to 3.0% of food and beverage revenue. In addition, we generally pay 1.0% to 4.0% of room revenues as marketing and reservation system contributions for the system-wide benefit of brand hotels. Franchise fees are included in sales and marketing expense in our consolidated financial statements. For the three months ended June 30, 2017 and 2016 , we incurred franchise fee expense, including amortization of deferred franchise fees, of $5.1 million and $5.4 million , respectively, and $9.8 million and $10.1 million for the six months ended June 30, 2017 and 2016 , respectively. Renovation Commitments Certain of our hotel franchise and loan agreements require us to make planned renovations to our Consolidated Hotels ( Note 4 ). We do not currently expect, and are not obligated, to fund any planned renovations on our Unconsolidated Hotels beyond our original investment. At June 30, 2017 , eight hotels were either undergoing renovation or in the planning stage of renovations, and we currently expect that three will be completed during the second half of 2017, three will be completed during the first half of 2018 and two will be completed during the second half of 2018. The following table summarizes our capital commitments related to our Consolidated Hotels (in thousands): June 30, 2017 December 31, 2016 Capital commitments $ 75,312 $ 84,325 Less: amounts paid (36,001 ) (43,179 ) Unpaid commitments 39,311 41,146 Less: amounts in restricted cash designated for renovations (23,395 ) (13,136 ) Unfunded commitments (a) $ 15,916 $ 28,010 ___________ (a) Of our unfunded commitments at June 30, 2017 and December 31, 2016 , approximately $1.2 million and $5.3 million , respectively, of unrestricted cash on our balance sheet was designated for renovations. Capital Expenditures and Reserve Funds With respect to our hotels that are operated under management or franchise agreements with major international hotel brands and for most of our hotels subject to mortgage loans, we are obligated to maintain furniture, fixtures and equipment reserve accounts for future capital expenditures at these hotels, sufficient to cover the cost of routine improvements and alterations at the hotels. The amount funded into each of these reserve accounts is generally determined pursuant to the management agreements, franchise agreements and/or mortgage loan documents for each of the respective hotels and typically ranges between 2% and 5% of the respective hotel’s total gross revenue. As of June 30, 2017 and December 31, 2016 , $27.4 million and $29.3 million , respectively, was held in furniture, fixtures and equipment reserve accounts for future capital expenditures, and is included in Restricted cash in the consolidated financial statements. Ground Lease Commitments Three of our hotels are subject to ground leases. Scheduled future minimum ground lease payments during the remainder of 2017 , each of the next four calendar years following December 31, 2017 and thereafter are as follows (in thousands): Years Ending December 31, Total 2017 (remainder) $ 1,598 2018 3,254 2019 3,328 2020 3,404 2021 3,482 Thereafter through 2106 651,117 Total $ 666,183 For each of the three months ended June 30, 2017 and 2016 , we recorded rent expense of $1.0 million , inclusive of percentage rents of $0.2 million for each period, related to these ground leases, which are included in Property taxes, insurance, rent and other in the consolidated financial statements. For each of the six months ended June 30, 2017 and 2016 , we recorded rent expense of $1.9 million , inclusive of percentage rents of $0.3 million for each period, related to these ground leases. Additionally, we recorded straight-line rent adjustment expense related to these ground leases of $1.3 million for each of the three months ended June 30, 2017 and 2016 and $2.6 million and $2.7 million for the six months ended June 30, 2017 and 2016 , respectively.

Equity

Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Equity	Equity Transfers to Noncontrolling Interests On February 12, 2016, we acquired the remaining 25% interest in the Fairmont Sonoma Mission Inn & Spa Venture from an unaffiliated third party for $20.6 million , bringing our ownership interest to 100% . In connection with this transaction, we also paid a fee to our Advisor of $0.5 million . Our acquisition of the additional interest in the venture is accounted for as an equity transaction and we recorded an adjustment of approximately $16.0 million to Additional paid-in capital in our consolidated statement of equity for the six months ended June 30, 2016 related to the difference between the carrying value and the purchase price. No gain or loss was recognized in the consolidated statement of operations, and the components of accumulated other comprehensive loss are proportionately reallocated to us from the noncontrolling interest as presented in the consolidated statement of equity. Reclassifications Out of Accumulated Other Comprehensive Loss The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended June 30, Gains and Losses on Derivative Instruments 2017 2016 Beginning balance $ (1,024 ) $ (2,352 ) Other comprehensive loss before reclassifications (14 ) (496 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 182 243 Equity in earnings of equity method investments in real estate 64 108 Total 246 351 Net current period other comprehensive income (loss) 232 (145 ) Net current period other comprehensive (income) loss attributable to noncontrolling interests (3 ) 3 Ending balance $ (795 ) $ (2,494 ) Six Months Ended June 30, Gains and Losses on Derivative Instruments 2017 2016 Beginning balance $ (1,128 ) $ (885 ) Other comprehensive loss before reclassifications (163 ) (1,794 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 356 518 Equity in earnings of equity method investments in real estate 144 218 Total 500 736 Net current period other comprehensive income (loss) 337 (1,058 ) Net current period other comprehensive (income) loss attributable to noncontrolling interests (4 ) 372 Reclassification to additional-paid in capital relating to purchase of remaining 25% membership interest in Fairmont Sonoma Mission Inn & Spa venture — (923 ) Ending balance $ (795 ) $ (2,494 ) Distributions Declared During the second quarter of 2017, our board of directors declared a quarterly distribution of $0.1425 per share, which was paid on July 14, 2017 to stockholders of record on June 30, 2017 , in the aggregate amount of $19.4 million . For the six months ended June 30, 2017 , our board of directors declared distributions of $38.9 million , including distributions of $19.5 million declared during the three months ended March 31, 2017. We paid distributions of $38.8 million during the six months ended June 30, 2017 , comprised of $19.5 million declared during the three months ended March 31, 2017 and $19.3 million declared during the three months ended December 31, 2016 .

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We elected to be treated as a REIT and believe that we have been organized and have operated in such a manner to maintain our qualification as a REIT for federal and state income tax purposes. As a REIT, we are generally not subject to corporate level federal income taxes on earnings distributed to our stockholders. Since inception, we have distributed at least 100% of our taxable income annually and intend to do so for the tax year ending December 31, 2017 . Accordingly, we have not included any provisions for federal income taxes related to the REIT in the accompanying consolidated financial statements for the three and six months ended June 30, 2017 and 2016 . We conduct business in various states and municipalities within the United States, and, as a result, we or one or more of our subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. As a result, we are subject to certain state and local taxes and a provision for such taxes is included in the consolidated financial statements. Certain of our subsidiaries have elected taxable REIT subsidiary, or TRS, status. A TRS may provide certain services considered impermissible for REITs and may hold assets that REITs may not hold directly. The accompanying consolidated financial statements include an interim tax provision for our TRSs for the three and six months ended June 30, 2017 and 2016 . Current income tax expense was $0.6 million and $2.0 million for the three months ended June 30, 2017 and 2016 , respectively, and $1.7 million and $3.7 million for the six months ended June 30, 2017 and 2016 , respectively. Our TRSs are subject to U.S. federal and state income taxes. As such, deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance for deferred tax assets is provided if we believe that it is more likely than not that we will not realize the tax benefit of deferred tax assets based on available evidence at the time the determination is made. A change in circumstances may cause us to change our judgment about whether a deferred tax asset will more likely than not be realized. We generally report any change in the valuation allowance through our income statement in the period in which such changes in circumstances occur. Deferred tax assets (net of valuation allowance) and liabilities for our TRSs were recorded, as necessary, as of June 30, 2017 and December 31, 2016 . Deferred tax assets (net of valuation allowance) totaled $3.1 million and $4.4 million at June 30, 2017 and December 31, 2016 , respectively, and are included in Other assets in the consolidated financial statements. Deferred tax liabilities totaled $5.6 million and $7.5 million at June 30, 2017 and December 31, 2016 , respectively, and are included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements. The majority of our deferred tax assets relate to net operating losses, accrued expenses and deferred key money liabilities. The majority of our deferred tax liabilities relate to differences between the tax basis and financial reporting basis of the villa/condo rental management agreements. Provision for income taxes included deferred income tax expense of $0.5 million and $1.2 million for the three months ended June 30, 2017 and 2016 , respectively, and deferred income tax benefit of $0.9 million and $1.7 million for the six months ended June 30, 2017 and 2016 , respectively.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Our interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations and cash flows in accordance with generally accepted accounting principles in the United States, or GAAP.
Basis of Consolidation	Basis of Consolidation Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.
Recently Adopted Accounting Policy	When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a variable interest entity, or VIE, and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Certain decision-making rights within a loan or joint-venture agreement can cause us to consider an entity a VIE. Limited partnerships and other similar entities which operate as a partnership will be considered a VIE unless the limited partners hold substantive kick-out rights or participation rights. Significant judgment is required to determine whether a VIE should be consolidated. We review the contractual arrangements provided for in the partnership agreement or other related contracts to determine whether the entity is considered a VIE, and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those of the other variable interest holders to determine which party is the primary beneficiary of the VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE.
New Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU , 2014-09 , Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes or replaces nearly all GAAP revenue recognition guidance. The new guidance establishes a new control-based revenue recognition model that changes the basis for deciding when revenue is recognized over time or at a point in time and expands the disclosures about revenue. The new guidance also applies to sales of real estate and the new principles-based approach is largely based on the transfer of control of the real estate to the buyer. The guidance is effective for annual reporting periods beginning after December 15, 2017, and the interim periods within those annual periods. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. We expect to adopt this new standard on January 1, 2018 using the modified retrospective transition method, which requires a cumulative effect adjustment upon the date of adoption. We are in the process of evaluating the impact of the new standard and do not believe the adoption of this standard will have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 outlines a new model for accounting by lessees, whereby their rights and obligations under substantially all leases, existing and new, would be capitalized and recorded on the balance sheet. For lessors, however, the accounting remains largely unchanged from the current model, with the distinction between operating and financing leases retained, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Additionally, the new standard requires extensive quantitative and qualitative disclosures. ASU 2016-02 is effective for GAAP public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application will be permitted for all entities. The new standard must be adopted using a modified retrospective transition of the new guidance and provides for certain practical expedients. Transition will require application of the new model at the beginning of the earliest comparative period presented. We have not yet completed our analysis on this new standard, but we believe the application of the new standard will result in the recording of a right-of-use asset and a lease liability on the consolidated balance sheet for each of our ground leases. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 intends to reduce diversity in practice for certain cash flow classifications, including, but not limited to (i) debt prepayment or debt extinguishment costs, (ii) contingent consideration payments made after a business combination, (iii) proceeds from the settlement of insurance claims, (iv) distributions received from equity method investees and (v) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-15 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. ASU 2016-17 changes how a reporting entity that is a decision maker should consider indirect interests in a VIE held through an entity under common control. If a decision maker must evaluate whether it is the primary beneficiary of a VIE, it will only need to consider its proportionate indirect interest in the VIE held through a common control party. ASU 2016-17 amends ASU 2015-02, which we adopted on January 1, 2016, and which currently directs the decision maker to treat the common control party’s interest in the VIE as if the decision maker held the interest itself. ASU 2016-17 is effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted ASU 2016-17 as of January 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2016-18 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist companies and other reporting organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The changes to the definition of a business will likely result in more acquisitions being accounted for as asset acquisitions across all industries. The guidance is effective for annual reporting periods beginning after December 15, 2017, and the interim periods within those annual periods. We expect to adopt this new guidance on January 1, 2018. While we are evaluating the potential impact of the standard, we currently expect that certain future hotel acquisitions may be considered asset acquisitions rather than business combinations, which would affect the capitalization of acquisition costs (such costs are expensed for business combinations and capitalized for asset acquisitions). In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) . ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term “in substance nonfinancial asset,” in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. This amendment also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent company may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. ASU 2017-05 is effective for periods beginning after December 15, 2017, with early application permitted for fiscal years beginning after December 15, 2016. We are currently evaluating the impact of ASU 2017-05 on our consolidated financial statements.
Equity Method Investments	Under the conventional approach of accounting for equity method investments, an investor applies its percentage ownership interest to the venture’s net income to determine the investor’s share of the earnings or losses of the venture. This approach is inappropriate if the venture’s capital structure gives different rights and priorities to its investors. We have priority returns on several of our equity method investments. Therefore, we follow the hypothetical liquidation at book value method in determining our share of these ventures’ earnings or losses for the reporting period as this method better reflects our claim on the ventures’ book value at the end of each reporting period. Earnings for our equity method investments are recognized in accordance with each respective investment agreement and, where applicable, based upon the allocation of the investment’s net assets at book value as if the investment were hypothetically liquidated at the end of each reporting period.
Intangible Assets and Liabilities	Amortization of the villa/condo rental programs and in-place lease intangibles are included in Depreciation and amortization, and amortization of below-market hotel ground lease, below-market hotel parking garage lease and above-market hotel ground lease intangibles are included in Property taxes, insurance, rent and other in the consolidated financial statements. Intangible assets and liabilities, included in Intangible assets, net and Accounts payable, accrued expenses and other liabilities, respectively, in the consolidated financial statements,
Fair Value Measurements	The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments, including interest rate caps and swaps; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions. Items Measured at Fair Value on a Recurring Basis Derivative Assets and Liabilities — Our derivative assets and liabilities are comprised of interest rate swaps and caps that were measured at fair value using readily observable market inputs, such as quotations on interest rates. These derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market ( Note 8 ).
Impairments	Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges) We periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable. For real estate assets held for investment and related intangible assets in which an impairment indicator is identified, we follow a two-step process to determine whether an asset is impaired and to determine the amount of the charge. First, we compare the carrying value of the property’s asset group to the estimated future undiscounted net cash flows that we expect the property’s asset group will generate, including any estimated proceeds from the eventual sale of the property’s asset group. If this amount is less than the carrying value, the property’s asset group is considered not recoverable. We then measure the impairment charge as the excess of the carrying value of the property’s asset group over the estimated fair value of the property’s asset group, which is primarily determined using market information from outside sources, such as broker quotes, recent comparable sales or third-party appraisals. If relevant market information is not available or is not deemed appropriate, we perform a future net cash flow analysis, discounted for inherent risk associated with each investment. We classify real estate assets as held for sale when we have entered into a contract to sell the property, all material due diligence requirements have been satisfied or we believe it is probable that the disposition will occur within one year. When we classify an asset as held for sale, we compare the asset’s fair value less estimated cost to sell to its carrying value, and if the fair value less estimated cost to sell is less than the property’s carrying value, we reduce the carrying value to the fair value less estimated cost to sell. We base the fair value on the contract and the estimated cost to sell on information provided by brokers and legal counsel. We will continue to review the property for subsequent changes in the fair value and may recognize an additional impairment charge, if warranted. We determined that the significant inputs used to value these investments fall within Level 3 for fair value reporting. As a result of our assessments, we calculated an impairment charge based on market conditions and assumptions that existed at the time. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change. During the second quarter of 2016, we recognized impairment charges totaling $3.7 million on three properties with an aggregate fair value measurement of $33.0 million in order to reduce the carrying value of the properties to their estimated fair values. We did not recognize any impairment charges during the three or six months ended June 30, 2017 .
Derivatives	We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated, and that qualified, as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of the change in fair value of any derivative is immediately recognized in earnings.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Variable Interest Entities	The following table presents a summary of selected financial data of consolidated VIEs included in the consolidated balance sheets (in thousands): June 30, 2017 December 31, 2016 Net investments in hotels $ 513,037 $ 518,335 Intangible assets, net 39,050 39,451 Total assets 580,183 587,608 Non-recourse debt, net $ 341,325 $ 341,082 Total liabilities 366,854 372,991

Agreements and Transactions w24

Agreements and Transactions with Related Parties (Tables)	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Summary of fees paid to Related Parties	The following tables present a summary of fees we paid, expenses we reimbursed and distributions we made to our Advisor, the Subadvisor and other affiliates, as described below, in accordance with the terms of those agreements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Amounts Included in the Consolidated Statements of Operations Asset management fees $ 3,585 $ 3,538 $ 7,198 $ 7,008 Available Cash Distributions 1,544 1,586 3,245 4,093 Personnel and overhead reimbursements 1,486 1,604 2,909 3,579 Disposition fees ( Note 4 ) 143 — 225 — Interest expense 117 — 128 — Acquisition fees — — — 2,158 $ 6,875 $ 6,728 $ 13,705 $ 16,838 Other Transaction Fees Incurred Capitalized loan refinancing fees $ 340 $ — $ 340 $ 500 Advisor fee for purchase of membership interest ( Note 11 ) — — — 527 $ 340 $ — $ 340 $ 1,027 The following table presents a summary of the amounts included in Due to related parties and affiliates in the consolidated financial statements (in thousands): June 30, 2017 December 31, 2016 Amounts Due to Related Parties and Affiliates Note payable to WPC $ 22,964 $ — Reimbursable costs 1,298 1,311 Other amounts due to our Advisor 1,222 1,202 Due to joint venture partners and other 148 115 $ 25,632 $ 2,628

Net Investments in Hotels (Tabl

Net Investments in Hotels (Tables)	6 Months Ended
	Jun. 30, 2017
Real Estate [Abstract]
Schedule of Hotel Properties	Net investments in hotels are summarized as follows (in thousands): June 30, 2017 December 31, 2016 Buildings $ 1,654,760 $ 1,670,895 Land 379,453 380,970 Furniture, fixtures and equipment 129,229 122,155 Building and site improvements 118,257 89,667 Construction in progress 11,664 26,855 Hotels, at cost 2,293,363 2,290,542 Less: Accumulated depreciation (206,588 ) (176,423 ) Net investments in hotels $ 2,086,775 $ 2,114,119
Assets Held-for-sale	Below is a summary of our assets and liabilities held for sale (in thousands): June 30, 2017 December 31, 2016 Net investments in hotels $ — $ 32,300 Restricted cash — 2,089 Accounts receivable — 169 Other assets — 465 Assets held for sale $ — $ 35,023 Non-recourse debt, net attributable to Assets held for sale $ — $ 26,560 Accounts payable, accrued expenses and other liabilities $ — $ 789 Due to related parties and affiliates — 8 Other liabilities held for sale $ — $ 797

Equity Investment in Real Est26

Equity Investment in Real Estate (Tables)	6 Months Ended
	Jun. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Schedule Equity Method Investments	The following tables present combined summarized financial information of our Marriott Sawgrass Golf Resort & Spa Venture and Ritz-Carlton Philadelphia Venture. Amounts provided are the total amounts attributable to the ventures and does not represent our proportionate share (in thousands): June 30, 2017 December 31, 2016 Real estate, net $ 239,584 $ 244,106 Other assets 19,946 19,882 Total assets 259,530 263,988 Debt 136,517 136,575 Other liabilities 24,464 23,394 Total liabilities 160,981 159,969 Members’ equity $ 98,549 $ 104,019 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues $ 25,157 $ 24,149 $ 49,831 $ 43,943 Expenses (24,137 ) (22,169 ) (48,588 ) (41,373 ) Net income attributable to equity method investment $ 1,020 $ 1,980 $ 1,243 $ 2,570 The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values. The carrying values of these ventures are affected by the timing and nature of distributions (dollars in thousands): Unconsolidated Hotels State Number of Rooms % Owned Acquisition Date Hotel Type Carrying Value at June 30, 2017 December 31, 2016 Hyatt Centric French Quarter Venture (a) LA 254 80% 9/6/2011 Full-service $ 711 $ 664 Westin Atlanta Venture (b) GA 372 57% 10/3/2012 Full-service 4,935 5,795 Marriott Sawgrass Golf Resort & Spa Venture (c) (d) FL 514 50% 4/1/2015 Resort 29,880 31,208 Ritz-Carlton Philadelphia Venture (e) PA 301 60% 5/15/2015 Full-service 39,285 38,261 1,441 $ 74,811 $ 75,928 ___________ (a) We received cash distributions of $0.3 million and $0.7 million from this investment during the three and six months ended June 30, 2017 , respectively. (b) We received cash distributions of $0.7 million and $1.3 million from this investment during the three and six months ended June 30, 2017 , respectively. (c) We received cash distributions of $1.3 million and $3.0 million from this investment during the three and six months ended June 30, 2017 , respectively. (d) This investment is considered a VIE ( Note 2 ). We do not consolidate this entity because we are not the primary beneficiary and the nature of our involvement in the activities of the entity allows us to exercise significant influence but does not give us power over decisions that significantly affect the economic performance of the entity. (e) We received cash distributions of less than $0.1 million and $0.6 million from this investment during the three and six months ended June 30, 2017 , respectively. The following table sets forth our share of equity in earnings from our Unconsolidated Hotels, which are based on the hypothetical liquidation at book value model, as well as certain amortization adjustments related to basis differentials from acquisitions of investments (in thousands): Three Months Ended June 30, Six Months Ended June 30, Venture 2017 2016 2017 2016 Marriott Sawgrass Golf Resort & Spa Venture $ 320 $ 1,097 $ 1,706 $ 2,222 Ritz-Carlton Philadelphia Venture 824 741 1,629 1,386 Hyatt Centric French Quarter Venture 254 743 729 983 Westin Atlanta Venture 153 232 472 524 Total equity in earnings of equity method investments in real estate $ 1,551 $ 2,813 $ 4,536 $ 5,115

Intangible Assets and Liabili27

Intangible Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Liabilities	Intangible assets and liabilities, included in Intangible assets, net and Accounts payable, accrued expenses and other liabilities, respectively, in the consolidated financial statements, are summarized as follows (dollars in thousands): June 30, 2017 December 31, 2016 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Carrying Finite-Lived Intangible Assets Villa/condo rental programs 45 – 55 $ 72,400 $ (4,263 ) $ 68,137 $ 72,400 $ (3,510 ) $ 68,890 Below-market hotel ground leases and parking garage lease 10 – 93 11,655 (628 ) 11,027 11,655 (531 ) 11,124 In-place leases 4 – 21 151 (67 ) 84 235 (132 ) 103 Total intangible assets, net $ 84,206 $ (4,958 ) $ 79,248 $ 84,290 $ (4,173 ) $ 80,117 Finite-Lived Intangible Liability Above-market hotel ground lease 85 $ (2,100 ) $ 77 $ (2,023 ) $ (2,100 ) $ 64 $ (2,036 )

Risk Management and Use of De28

Risk Management and Use of Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedges, Assets [Abstract]
Schedule of Derivative Instruments on our Consolidated Hotels	The following table sets forth certain information regarding our derivative instruments on our Consolidated Hotels (in thousands): Derivatives Designated as Hedging Instruments Asset Derivatives Fair Value at Liability Derivatives Fair Value at Balance Sheet Location June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Interest rate swaps Other assets $ 85 $ 48 $ — $ — Interest rate caps Other assets 16 51 — — Interest rate swaps Accounts payable, accrued expenses and other liabilities — — — (2 ) $ 101 $ 99 $ — $ (2 )
Schedule of Derivative Instruments	The interest rate swaps and caps that we had outstanding on our Consolidated Hotels at June 30, 2017 were designated as cash flow hedges and are summarized as follows (dollars in thousands): Number of Notional Fair Value at Interest Rate Derivatives Instruments Amount June 30, 2017 Interest rate swaps 1 $ 47,720 $ 85 Interest rate caps 8 303,080 16 $ 101

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Schedule of Debt	The following table presents the non-recourse debt, net on our Consolidated Hotel investments (dollars in thousands): Carrying Amount at Interest Rate Range Current Maturity Date Range (a) June 30, 2017 December 31, 2016 Fixed rate 3.6% – 6.5% 3/2018 – 4/2024 $ 1,086,442 $ 1,084,987 Variable rate (b) 3.4% – 8.3% 10/2017 – 12/2020 339,683 371,165 $ 1,426,125 $ 1,456,152 ___________ (a) Many of our mortgage loans have extension options, which are subject to certain conditions. The maturity dates in the table do not reflect the extension options. (b) These mortgage loans have variable interest rates, which have effectively been capped or converted to fixed rates through the use of interest rate caps or swaps ( Note 8 ). The interest rate range presented for these mortgage loans reflect the rates in effect at June 30, 2017 through the use of an interest rate cap or swap, when applicable.
Debt Maturity Schedule	Scheduled Debt Principal Payments Scheduled debt principal payments during the remainder of 2017 , each of the next four calendar years following December 31, 2017 , and thereafter are as follows (in thousands): Years Ending December 31, Total 2017 (remainder) (a) $ 78,991 2018 (b) 130,888 2019 148,727 2020 196,362 2021 458,253 Thereafter through 2024 420,973 1,434,194 Unamortized deferred financing costs (8,069 ) Total $ 1,426,125 ___________ (a) Balance includes $72.7 million of scheduled balloon payments on two consolidated mortgage loans. We currently intend to refinance these mortgage loans, although there can be no assurance that we will be able to do so on favorable terms, if at all. (b) Excludes $22.8 million of loan proceeds from the WPC Line of Credit used to repay our Senior Credit Facility ( Note 3 ). The WPC Line of Credit has a maturity date of March 22, 2018.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Funding Commitments	The following table summarizes our capital commitments related to our Consolidated Hotels (in thousands): June 30, 2017 December 31, 2016 Capital commitments $ 75,312 $ 84,325 Less: amounts paid (36,001 ) (43,179 ) Unpaid commitments 39,311 41,146 Less: amounts in restricted cash designated for renovations (23,395 ) (13,136 ) Unfunded commitments (a) $ 15,916 $ 28,010 ___________ (a) Of our unfunded commitments at June 30, 2017 and December 31, 2016 , approximately $1.2 million and $5.3 million , respectively, of unrestricted cash on our balance sheet was designated for renovations.
Schedule of Future Minimum Lease Payments for Leases	Scheduled future minimum ground lease payments during the remainder of 2017 , each of the next four calendar years following December 31, 2017 and thereafter are as follows (in thousands): Years Ending December 31, Total 2017 (remainder) $ 1,598 2018 3,254 2019 3,328 2020 3,404 2021 3,482 Thereafter through 2106 651,117 Total $ 666,183

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Reclassification out of Accumulated Other Comprehensive Income	The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended June 30, Gains and Losses on Derivative Instruments 2017 2016 Beginning balance $ (1,024 ) $ (2,352 ) Other comprehensive loss before reclassifications (14 ) (496 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 182 243 Equity in earnings of equity method investments in real estate 64 108 Total 246 351 Net current period other comprehensive income (loss) 232 (145 ) Net current period other comprehensive (income) loss attributable to noncontrolling interests (3 ) 3 Ending balance $ (795 ) $ (2,494 ) Six Months Ended June 30, Gains and Losses on Derivative Instruments 2017 2016 Beginning balance $ (1,128 ) $ (885 ) Other comprehensive loss before reclassifications (163 ) (1,794 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 356 518 Equity in earnings of equity method investments in real estate 144 218 Total 500 736 Net current period other comprehensive income (loss) 337 (1,058 ) Net current period other comprehensive (income) loss attributable to noncontrolling interests (4 ) 372 Reclassification to additional-paid in capital relating to purchase of remaining 25% membership interest in Fairmont Sonoma Mission Inn & Spa venture — (923 ) Ending balance $ (795 ) $ (2,494 )

Business - Narratives (Details)

Business - Narratives (Details) $ in Millions	12 Months Ended	36 Months Ended	82 Months Ended
	Dec. 31, 2014USD ($)	Sep. 15, 2013USD ($)	Jun. 30, 2017USD ($)property
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Capital interest ownership in operating partnership			99.985%
Number of properties | property			31
Proceeds from issuance, initial public offering		$ 575.8
Proceeds from follow on offering	$ 577.4
Proceeds from DRIP			$ 147.4

Basis of Presentation Basis of

Basis of Presentation Basis of Presentation - Narratives (Details) - vie	Jun. 30, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable interest entities, count	5	5
Variable interest entities consolidated, count	4	4

Basis of Presentation - Variabl

Basis of Presentation - Variable Interest Entity Disclosure (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets
Net investments in hotels	$ 2,086,775	$ 2,114,119
Intangible assets, net	79,248	80,117
Total assets	2,423,166	2,476,944
Liabilities
Non-recourse debt, net	1,426,125	1,456,152
Total liabilities	1,584,299	1,613,687
Variable Interest Entity
Assets
Net investments in hotels	513,037	518,335
Intangible assets, net	39,050	39,451
Total assets	580,183	587,608
Liabilities
Non-recourse debt, net	341,325	341,082
Total liabilities	$ 366,854	$ 372,991

Agreements and Transactions w35

Agreements and Transactions with Related Parties - Narratives (Details) - USD ($)	Mar. 23, 2017	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Dec. 31, 2016
Agreement with Our Advisors and Affiliates
Percentage of fees earned by advisor paid to subadvisor		20.00%
Asset Management Fees and Loan Refinancing Fees
Percentage of asset management fee (based on the aggregate average invested value of investments)		0.50%
Percentage disposition fee		1.50%
Loan refinancing fee percentage		1.00%
Asset management fees to affiliates settled in shares		$ 6,000,000	$ 0
Common stock, shares outstanding (shares)		136,302,878			135,379,038
Available Cash Distribution
Percentage of available cash distribution		10.00%
General partners distribution percentage of net proceeds		15.00%
Acquisition Fee
Due to related parties and affiliates		$ 25,632,000			$ 2,628,000
W.P. Carey
Acquisition Fee
Maximum borrowing capacity				$ 25,000,000
Due to related parties and affiliates	$ 22,800,000	$ 22,964,000			$ 0
W.P. Carey | LIBOR
Acquisition Fee
Debt instrument, basis spread on variable rate	1.00%
Invested asset
Acquisition Fee
Percentage of acquisition fees		2.50%
Contract purchase price | Maximum
Acquisition Fee
Percentage of acquisition fees		6.00%
Advisor
Asset Management Fees and Loan Refinancing Fees
Common stock, shares outstanding (shares)		2,057,241
Percentage of common stock owned		1.50%

Agreements and Transactions w36

Agreements and Transactions with Related Parties - Related Party Income (Details) - USD ($) $ in Thousands	Feb. 12, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Amounts Included in the Consolidated Statements of Operations
Asset management fees		$ 3,585	$ 3,538	$ 7,198	$ 7,008
Available Cash Distributions		1,544	1,586	3,245	4,093
Personnel and overhead reimbursements		1,486	1,604	2,909	3,579
Disposition fees (Note 4)		143	0	225	0
Interest expense		117	0	128	0
Acquisition fees		0	0	0	2,158
Related party fees included in operating expenses		6,875	6,728	13,705	16,838
Other Transaction Fees Incurred
Capitalized loan refinancing fees		340	0	340	500
Advisor fee for purchase of membership interest (Note 11)	$ 500	0	0	0	527
Other transactions fees incurred		$ 340	$ 0	$ 340	$ 1,027

Agreements and Transactions w37

Agreements and Transactions with Related Parties - Due to Affiliates (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 23, 2017	Dec. 31, 2016
Amounts Due to Related Parties and Affiliates
Reimbursable costs	$ 1,298		$ 1,311
Other amounts due to our Advisor	1,222		1,202
Due to joint venture partners and other	148		115
Due to affiliates	25,632		2,628
W.P. Carey
Amounts Due to Related Parties and Affiliates
Due to affiliates	$ 22,964	$ 22,800	$ 0

Net Investments in Hotels - Nar

Net Investments in Hotels - Narratives (Details) $ in Thousands	May 11, 2017USD ($)	Feb. 01, 2017USD ($)property	Jun. 30, 2017USD ($)property	Mar. 31, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)property	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)property
Business Acquisition, Cost of Acquired Entity, Purchase Price
Assets Retired			$ 7,800			$ 7,800
Proceeds sales of investment						25,743	$ 0
Non-recourse debt, net			1,426,125			1,426,125		$ 1,456,152
Net gain on sale of real estate, net of tax			$ 5,516		$ 0	$ 5,164	0
Number of properties | property			31			31
Real estate under construction			$ 11,664			$ 11,664		26,855
Capitalized construction cost			200		$ 900	700	$ 1,200
Accrued capital expenditures						$ 3,200		$ 2,300
Assets Sold
Business Acquisition, Cost of Acquired Entity, Purchase Price
Ownership interest, unconsolidated		100.00%
Contract price		$ 33,000
Proceeds sales of investment		7,400
Non-recourse debt, net		$ 26,500
Net gain on sale of real estate, net of tax				$ 400
Number of properties | property		3						3
Assets Sold | Hampton Inn Boston Braintree
Business Acquisition, Cost of Acquired Entity, Purchase Price
Ownership interest, unconsolidated	100.00%
Contract price	$ 19,000
Proceeds sales of investment	$ 6,600
Participation management fee			$ 600
Assets held for sale
Business Acquisition, Cost of Acquired Entity, Purchase Price
Number of properties | property			0			0

Net Investments in Hotels - Pro

Net Investments in Hotels - Property Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Real Estate [Abstract]
Buildings	$ 1,654,760	$ 1,670,895
Land	379,453	380,970
Furniture, fixtures & equipment	129,229	122,155
Building and site improvements	118,257	89,667
Construction in progress	11,664	26,855
Hotels, at cost	2,293,363	2,290,542
Less: Accumulated depreciation	(206,588)	(176,423)
Net investments in hotels	$ 2,086,775	$ 2,114,119

Net Investments in Hotels - Sum

Net Investments in Hotels - Summary of Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Disposal Group, Including Discontinued Operation, Assets
Assets held for sale	$ 0	$ 35,023
Disposal Group, Including Discontinued Operation, Liabilities
Other liabilities held for sale	0	797
Held-for-sale
Disposal Group, Including Discontinued Operation, Assets
Net investments in hotels	0	32,300
Restricted cash	0	2,089
Accounts receivable	0	169
Other assets	0	465
Assets held for sale	0	35,023
Non-recourse debt, net attributable to Assets held for sale	0	26,560
Disposal Group, Including Discontinued Operation, Liabilities
Accounts payable, accrued expenses and other liabilities	0	789
Due to related parties and affiliates	0	8
Other liabilities held for sale	$ 0	$ 797

Equity Investment in Real Est41

Equity Investment in Real Estate - Narratives (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017USD ($)property	Jun. 30, 2017USD ($)property	Dec. 31, 2016USD ($)
Equity Method Investment, Financial Statement, Reported Amounts
Number of properties	31	31
Aggregate unamortized basis difference on equity investments | $	$ 3.1	$ 3.1	$ 3.3
Amortization of basis differences | $	$ 0.1	$ 0.1
Unconsolidated
Equity Method Investment, Financial Statement, Reported Amounts
Number of properties	4	4
Unconsolidated | CWI 2
Equity Method Investment, Financial Statement, Reported Amounts
Number of properties	1	1
Unconsolidated | Third Party
Equity Method Investment, Financial Statement, Reported Amounts
Number of properties	3	3

Equity Investments in Real Esta

Equity Investments in Real Estate - Ownership Interest in Equity Investments (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017USD ($)room	Jun. 30, 2017USD ($)room	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Hotel Details
Carrying Value	$ 74,811	$ 74,811		$ 75,928
Distributions from equity method investments (return of capital)		$ 2,193	$ 949
Unconsolidated
Hotel Details
Rooms | room	1,441	1,441
Carrying Value	$ 74,811	$ 74,811		75,928
Unconsolidated | Hyatt Centric French Quarter Venture
Hotel Details
State		LA
Rooms | room	254	254
Ownership interest, unconsolidated	80.00%	80.00%
Acquisition Date		Sep. 6, 2011
Hotel Type		Full-service
Carrying Value	$ 711	$ 711		664
Distributions from equity method investments (return of capital)	$ 300	$ 700
Unconsolidated | Westin Atlanta Venture
Hotel Details
State		GA
Rooms | room	372	372
Ownership interest, unconsolidated	57.00%	57.00%
Acquisition Date		Oct. 3, 2012
Hotel Type		Full-service
Carrying Value	$ 4,935	$ 4,935		5,795
Distributions from equity method investments (return of capital)	$ 700	$ 1,300
Unconsolidated | Marriott Sawgrass Golf Resort & Spa Venture
Hotel Details
State		FL
Rooms | room	514	514
Ownership interest, unconsolidated	50.00%	50.00%
Acquisition Date		Apr. 1, 2015
Hotel Type		Resort
Carrying Value	$ 29,880	$ 29,880		31,208
Distributions from equity method investments (return of capital)	$ 1,300	$ 3,000
Unconsolidated | Ritz-Carlton Philadelphia Venture
Hotel Details
State		PA
Rooms | room	301	301
Ownership interest, unconsolidated	60.00%	60.00%
Acquisition Date		May 15, 2015
Hotel Type		Full-service
Carrying Value	$ 39,285	$ 39,285		$ 38,261
Distributions from equity method investments (return of capital)	$ 100	$ 600

Equity Investments in Real Es43

Equity Investments in Real Estate - Earnings From Unconsolidated Hotel (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions
Total equity in earnings of equity method investments in real estate	$ 1,551	$ 2,813	$ 4,536	$ 5,115
Unconsolidated | Marriott Sawgrass Golf Resort & Spa Venture
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions
Total equity in earnings of equity method investments in real estate	320	1,097	1,706	2,222
Unconsolidated | Ritz-Carlton Philadelphia Venture
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions
Total equity in earnings of equity method investments in real estate	824	741	1,629	1,386
Unconsolidated | Hyatt Centric French Quarter Venture
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions
Total equity in earnings of equity method investments in real estate	254	743	729	983
Unconsolidated | Westin Atlanta Venture
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions
Total equity in earnings of equity method investments in real estate	$ 153	$ 232	$ 472	$ 524

Equity Investments in Real Es44

Equity Investments in Real Estate - Summarized Balance Sheet of Equity Investments (Details) - Unconsolidated - Marriott Sawgrass Golf Resort & Spa Venture and Ritz-Carlton Philadelphia Venture - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Equity Method Investment, Summarized Financial Information, Assets [Abstract]
Real estate, net	$ 239,584	$ 244,106
Other assets	19,946	19,882
Total assets	259,530	263,988
Debt	136,517	136,575
Other liabilities	24,464	23,394
Total liabilities	160,981	159,969
Members’ equity	$ 98,549	$ 104,019

Equity Investments in Real Es45

Equity Investments in Real Estate - Summarized Income Statement of Equity Investments (Details) - Marriott Sawgrass Golf Resort & Spa Venture and Ritz-Carlton Philadelphia Venture - Unconsolidated - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Revenues	$ 25,157	$ 24,149	$ 49,831	$ 43,943
Expenses	(24,137)	(22,169)	(48,588)	(41,373)
Net income attributable to equity method investment	$ 1,020	$ 1,980	$ 1,243	$ 2,570

Intangible Assets and Liabili46

Intangible Assets and Liabilities - Narratives (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Net amortization of intangibles	$ 0.4	$ 0.4	$ 0.9	$ 0.9

Intangible Assets and Liabili47

Intangible Assets and Liabilities - Intangible Assets and Liabilities Summary (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Amortizable Intangible Assets
Gross Carrying Amount	$ 84,206	$ 84,290
Accumulated Amortization	(4,958)	(4,173)
Net Carrying Amount	$ 79,248	80,117
Above-market hotel ground lease
Finite Lived Intangible Liabilities Net
Finite-lived intangible liability, useful life	85 years
Finite-lived intangible liability, gross	$ (2,100)	(2,100)
Finite-lived intangible liability, accumulated depreciation	77	64
Finite-lived intangible liabilities, net	(2,023)	(2,036)
Villa/condo rental program
Amortizable Intangible Assets
Gross Carrying Amount	72,400	72,400
Accumulated Amortization	(4,263)	(3,510)
Net Carrying Amount	$ 68,137	68,890
Villa/condo rental program | Maximum
Amortizable Intangible Assets
Finite-lived intangible asset, useful life	55 years
Villa/condo rental program | Minimum
Amortizable Intangible Assets
Finite-lived intangible asset, useful life	45 years
Below-market hotel ground leases
Amortizable Intangible Assets
Gross Carrying Amount	$ 11,655	11,655
Accumulated Amortization	(628)	(531)
Net Carrying Amount	$ 11,027	11,124
Below-market hotel ground leases | Maximum
Amortizable Intangible Assets
Finite-lived intangible asset, useful life	93 years
Below-market hotel ground leases | Minimum
Amortizable Intangible Assets
Finite-lived intangible asset, useful life	10 years
In-place leases
Amortizable Intangible Assets
Gross Carrying Amount	$ 151	235
Accumulated Amortization	(67)	(132)
Net Carrying Amount	$ 84	$ 103
In-place leases | Maximum
Amortizable Intangible Assets
Finite-lived intangible asset, useful life	21 years
In-place leases | Minimum
Amortizable Intangible Assets
Finite-lived intangible asset, useful life	4 years

Fair Value Measurements - Narra

Fair Value Measurements - Narratives (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)property	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)property	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Impairment charges	$ 0	$ 3,660	$ 0	$ 3,660
Number of properties | property	31		31
Level 3 | Reported Value
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Debt instrument value	$ 1,400,000		$ 1,400,000		$ 1,500,000
Level 3 | Estimated fair value
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Debt instrument value	$ 1,400,000		$ 1,400,000		$ 1,500,000
Real Estate [Member] | Fair Value, Measurements, Nonrecurring | Level 3
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Number of properties | property	3		3
Fair value of impaired assets		$ 33,000		$ 33,000

Risk Management and Use of De49

Risk Management and Use of Derivative Financial Instruments - Narratives (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Concentration Risk
Collateral posted for derivative positions	$ 0		$ 0		$ 0
Unrealized gain (loss) on derivative instruments	232,000	$ (145,000)	337,000	$ (1,058,000)
Interest expense	16,557,000	16,162,000	32,863,000	32,179,000
Amounts reported in OCI related to interest rate swaps to be reclassified to interest expense			600,000
Total credit exposure on derivatives	100,000		100,000
Derivatives in net liability position, fair value	0		0		100,000
Potential loss on contract termination for default					$ 100,000
Individual Counterparty
Concentration Risk
Total credit exposure on derivatives	100,000		100,000
Gains and Losses on Derivative Instruments
Concentration Risk
Unrealized gain (loss) on derivative instruments	(14,000)	(496,000)	(163,000)	(1,794,000)
Gains and Losses on Derivative Instruments | Amounts reclassified from accumulated other comprehensive loss
Concentration Risk
Interest expense	$ 182,000	$ 243,000	356,000	$ 518,000
Noncontrolling Interest
Concentration Risk
Amounts reported in OCI related to interest rate swaps to be reclassified to interest expense			$ 100,000

Risk Management and Use of De50

Risk Management and Use of Derivative Financial Instruments - Information Regarding Derivative Instrument (Details) - Designated as hedging - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value
Derivative asset, fair value, net	$ 101	$ 99
Derivative liability, fair value, net	0	(2)
Interest rate swaps | Other assets
Derivatives, Fair Value
Derivative asset, fair value, net	85	48
Interest rate swaps | Accounts payable, accrued expenses and other liabilities
Derivatives, Fair Value
Derivative liability, fair value, net	0	(2)
Interest rate caps | Other assets
Derivatives, Fair Value
Derivative asset, fair value, net	$ 16	$ 51

Risk Management and Use of De51

Risk Management and Use of Derivative Financial Instruments - Interest Rate Swap and Caps Summary (Details) - Designated as hedging $ in Thousands	Jun. 30, 2017USD ($)instrument
Derivative
Fair Value	$ 101
Cash flow hedging | Interest rate swaps
Derivative
Number of Instruments | instrument	1
Notional Amount	$ 47,720
Fair Value	$ 85
Cash flow hedging | Interest rate caps
Derivative
Number of Instruments | instrument	8
Notional Amount	$ 303,080
Fair Value	$ 16

Debt - Narrative (Details)

Debt - Narrative (Details)	Mar. 23, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)loan	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2017USD ($)
Mortgage debt
Funding requirement		$ 500,000			$ 500,000
Debt Instrument, Covenant Compliance					At June 30, 2017 , we were in compliance with the applicable covenants for each of our mortgage loans.
Line of credit		0			$ 0		$ 22,785,000
Repayment of senior debt					22,785,000	$ 17,914,000
Loss on extinguishment of debt		84,000		$ 0	225,000	1,064,000
Repayments of secured debt					87,199,000	$ 126,123,000
Scheduled balloon payments		72,700,000			72,700,000
Due to affiliates		25,632,000			25,632,000		2,628,000
W.P. Carey
Mortgage debt
Maximum borrowing capacity			$ 25,000,000
Due to affiliates	$ 22,800,000	22,964,000			22,964,000		0
LIBOR | W.P. Carey
Mortgage debt
Debt instrument, basis spread on variable rate	1.00%
Unsecured Debt | Letter of Credit
Mortgage debt
Maximum borrowing capacity							$ 25,000,000
Debt instrument, maturity date							Dec. 4, 2017
Line of credit							$ 22,800,000
Repayment of senior debt	$ 22,800,000
Loss on extinguishment of debt			$ 100,000
Unsecured Debt | Letter of Credit | LIBOR
Mortgage debt
Debt instrument, basis spread on variable rate							2.75%
Debt Refinanced
Mortgage debt
Loss on extinguishment of debt					$ 100,000
Number of loans refinanced, count | loan					2
Repayments of secured debt					$ 70,600,000
Secured debt		$ 83,500,000			$ 83,500,000
Debt instrument, weighted average interest rate		5.10%			5.10%
Debt instrument, term					5 years
Forecast
Mortgage debt
Restricted cash								$ 500,000

Debt - Summary of Non-recourse

Debt - Summary of Non-recourse Debt (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Hotel Details
Non-recourse debt, net	$ 1,426,125	$ 1,456,152
Fixed rate
Hotel Details
Non-recourse debt, net	$ 1,086,442	1,084,987
Fixed rate | Maximum
Hotel Details
Effective Interest Rate	6.50%
Current Maturity Date	Apr. 30, 2024
Fixed rate | Minimum
Hotel Details
Effective Interest Rate	3.60%
Current Maturity Date	Mar. 31, 2018
Variable rate
Hotel Details
Non-recourse debt, net	$ 339,683	$ 371,165
Variable rate | Maximum
Hotel Details
Effective Interest Rate	8.30%
Current Maturity Date	Dec. 31, 2020
Variable rate | Minimum
Hotel Details
Effective Interest Rate	3.40%
Current Maturity Date	Oct. 31, 2017

Debt - Scheduled Debt Principal

Debt - Scheduled Debt Principal Payments(Details) $ in Thousands	Jun. 30, 2017USD ($)
Long-term Debt, by Maturity
2017 (remainder)	$ 78,991
2,018	130,888
2,019	148,727
2,020	196,362
2,021	458,253
Thereafter through 2024	420,973
Total Debt	1,434,194
Unamortized deferred financing costs	(8,069)
Total	$ 1,426,125

Commitments and Contingencies -

Commitments and Contingencies - Narratives (Details) $ in Thousands	3 Months Ended		6 Months Ended				18 Months Ended
	Jun. 30, 2017USD ($)propertyagreement	Jun. 30, 2016USD ($)	Dec. 31, 2018property	Jun. 30, 2018property	Jun. 30, 2017USD ($)propertyagreement	Jun. 30, 2016USD ($)	Dec. 31, 2017property	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Funding Commitments
Management fees	$ 4,704	$ 5,198			$ 10,269	$ 10,723
Franchise fees	$ 5,100	5,400			$ 9,800	10,100
Properties under renovation | property	8				8
Cash	$ 67,836	76,295			$ 67,836	76,295		$ 61,762	$ 83,112
Restricted cash	$ 64,550				$ 64,550			56,496
Number of hotels subject to ground lease | property	3				3
Rent expense	$ 1,000	1,000			$ 1,900	1,900
Straight-line rent adjustments	1,300	1,300			2,632	2,657
Annual Percentage Rent
Funding Commitments
Rent expense	200	$ 200			300	$ 300
Building and Building Improvements
Funding Commitments
Cash	1,200				1,200			5,300
Furniture and Fixtures
Funding Commitments
Restricted cash	$ 27,400				$ 27,400			$ 29,300
Forecast
Funding Commitments
Number of construction projects expected to be completed | property			2	3			3
Marriott Brand
Funding Commitments
Franchise agreements, count | agreement	12				12
Hilton Brand
Funding Commitments
Franchise agreements, count | agreement	5				5
Intercontinental Hotels
Funding Commitments
Franchise agreements, count | agreement	2				2
Hyatt Brand
Funding Commitments
Franchise agreements, count | agreement	1				1
Licensing Agreements
Funding Commitments
Base hotel management fee (percentage)	3.00%				3.00%
Minimum
Funding Commitments
Hotel management contract term					5 years
Base hotel management fee (percentage)	1.00%				1.00%
Franchise agreement initial term					15 years
Marketing and reservation contribution rate (percentage)	1.00%				1.00%
Required FF&E percentages for future capital expenditures	2.00%				2.00%
Minimum | Room Revenue
Funding Commitments
License and royalty fees (percentage)	3.00%				3.00%
Minimum | Food and Beverage Revenue
Funding Commitments
License and royalty fees (percentage)	2.00%				2.00%
Maximum
Funding Commitments
Hotel management contract term					30 years
Base hotel management fee (percentage)	3.50%				3.50%
Franchise agreement initial term					25 years
Marketing and reservation contribution rate (percentage)	4.00%				4.00%
Required FF&E percentages for future capital expenditures	5.00%				5.00%
Maximum | Room Revenue
Funding Commitments
License and royalty fees (percentage)	7.00%				7.00%
Maximum | Food and Beverage Revenue
Funding Commitments
License and royalty fees (percentage)	3.00%				3.00%

Commitments and Contingencies56

Commitments and Contingencies - Renovation Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Funding Commitments
Capital Commitments	$ 75,312	$ 84,325
Less: Paid	(36,001)	(43,179)
Unpaid commitment	39,311	41,146
Less: amounts in restricted cash designated for renovations	(23,395)	(13,136)
Unfunded Commitment	$ 15,916	$ 28,010

Commitments and Contingencies57

Commitments and Contingencies - Scheduled Future Minimum Ground Lease Payments (Details) $ in Thousands	Jun. 30, 2017USD ($)
Leases, Future Minimum Payments Receivable, Fiscal Year Maturity
2017 (remainder)	$ 1,598
2,018	3,254
2,019	3,328
2,020	3,404
2,021	3,482
Thereafter through 2106	651,117
Total	$ 666,183

Equity - Narratives (Details)

Equity - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 12, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Dec. 31, 2016
Purchase of Additional Interests
Purchase of additional shares				$ 0	$ 21,121
Advisor fee for purchase of membership interest	$ 500	$ 0	$ 0	$ 0	527
Change in additional paid in capital					$ 16,000
Distributions declared (per share)		$ 0.1425	$ 0.1425	$ 0.285	$ 0.2850
Dividend payable, date				Jul. 14, 2017
Distributions payable		$ 19,423		$ 19,423		$ 19,500	$ 19,292
Dividends				38,900	$ 38,127
Distributions paid				$ 38,769	$ 37,934
Fairmont Sonoma Mission Inn and Spa
Purchase of Additional Interests
Increase equity Investment ownership percentage	25.00%
Purchase of additional shares	$ 20,600
Business acquisition, percentage of voting interests acquired	100.00%

Equity - Reclassifications of A

Equity - Reclassifications of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning equity balance, value			$ 863,257	$ 955,447
Other comprehensive loss before reclassifications	$ 232	$ (145)	337	(1,058)
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense	16,557	16,162	32,863	32,179
Equity in earnings of equity method investments in real estate	1,551	2,813	4,536	5,115
Reclassification to additional-paid in capital relating to purchase of remaining 25% membership interest in Fairmont Sonoma Mission Inn & Spa venture				(16,000)
Ending equity balance, value	838,867	902,191	838,867	902,191
Gains and Losses on Derivative Instruments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning equity balance, value	(1,024)	(2,352)	(1,128)	(885)
Other comprehensive loss before reclassifications	(14)	(496)	(163)	(1,794)
Amounts reclassified from accumulated other comprehensive loss to:
Total	246	351	500	736
Net current period other comprehensive income (loss)	232	(145)	337	(1,058)
Net current period other comprehensive (income) loss attributable to noncontrolling interests	(3)	3	(4)	372
Reclassification to additional-paid in capital relating to purchase of remaining 25% membership interest in Fairmont Sonoma Mission Inn & Spa venture			0	(923)
Ending equity balance, value	(795)	(2,494)	(795)	(2,494)
Gains and Losses on Derivative Instruments | Amounts reclassified from accumulated other comprehensive loss to:
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense	182	243	356	518
Equity in earnings of equity method investments in real estate	$ 64	$ 108	$ 144	$ 218

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Current income tax expense	$ 0.6	$ 2	$ 1.7	$ 3.7
Deferred tax assets, net of valuation allowance	3.1		3.1		$ 4.4
Deferred tax liability	5.6		5.6		$ 7.5
Deferred income tax expense (benefit)	$ 0.5	$ 1.2	$ (0.9)	$ (1.7)