Document And Entity Information
Document And Entity Information - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 15, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST II INC | ||
Entity Central Index Key | 1,436,975 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 18.3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investment property: | ||
Land and improvements | $ 44,137 | $ 43,907 |
Building and improvements | 174,234 | 170,136 |
Furniture and fixtures | 38,827 | 36,036 |
Construction in progress | 675 | 3,567 |
Gross investment property | 257,873 | 253,646 |
Less accumulated depreciation | (25,430) | (14,959) |
Net investment property | 232,443 | 238,687 |
Investment in unconsolidated affiliated entity | 5,836 | 6,021 |
Cash and cash equivalents | 43,179 | 37,381 |
Marketable securities, available for sale | 8,738 | 15,464 |
Restricted escrows and deposits | 3,488 | 7,243 |
Notes receivable from related party | 0 | 2,055 |
Accounts receivable and other assets | 4,189 | 4,173 |
Total Assets | 297,873 | 311,024 |
Liabilities and Stockholders' Equity | ||
Accounts payable and other accrued expenses | 6,581 | 7,218 |
Margin loan | 3,854 | 7,577 |
Mortgages payable, net | 127,140 | 128,392 |
Due to related party | 418 | 403 |
Distributions payable | 3,248 | 3,279 |
Total liabilities | 141,241 | 146,869 |
Commitments and contingencies (Note 12) | ||
Company's stockholders' equity: | ||
Preferred shares, $0.01 par value, 10,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 100,000 shares authorized, 18,411 and 18,586 shares issued and outstanding in 2016 and 2015, respectively | 184 | 186 |
Additional paid-in-capital | 157,259 | 158,966 |
Accumulated other comprehensive loss | (1,456) | (2,464) |
Accumulated deficit | (19,552) | (12,529) |
Total Company stockholders' equity | 136,435 | 144,159 |
Noncontrolling interests | 20,197 | 19,996 |
Total Stockholders' Equity | 156,632 | 164,155 |
Total Liabilities and Stockholders' Equity | $ 297,873 | $ 311,024 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, shares authorized | 10,000 | 10,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 18,411 | 18,586 |
Common stock, shares outstanding | 18,411 | 18,586 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 83,421 | $ 71,368 | $ 23,566 |
Expenses: | |||
Property operating expenses | 52,625 | 46,052 | 14,692 |
Real estate taxes | 3,043 | 2,667 | 857 |
General and administrative costs | 4,667 | 4,878 | 2,903 |
Depreciation and amortization | 10,496 | 8,867 | 3,446 |
Total operating expenses | 70,831 | 62,464 | 21,898 |
Operating income | 12,590 | 8,904 | 1,668 |
Interest and dividend income | 1,324 | 2,082 | 1,443 |
Bargain purchase gain | 0 | 0 | 2,790 |
Interest expense | (7,887) | (5,664) | (1,325) |
Other income, net | 108 | 271 | 75 |
Income/(loss) from investments in unconsolidated affiliated entities | 107 | (136) | (111) |
Net income | 6,242 | 5,457 | 4,540 |
Less: net income attributable to noncontrolling interests | (297) | (144) | (68) |
Net income applicable to Company's common shares | $ 5,945 | $ 5,313 | $ 4,472 |
Net income per Company's common share, basic and diluted | $ 0.32 | $ 0.29 | $ 0.35 |
Weighted average number of common shares outstanding, basic and diluted | 18,496 | 18,629 | 12,608 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 6,242 | $ 5,457 | $ 4,540 |
Other comprehensive income/(loss): | |||
Holding gain/(loss) on available for sale securities | 1,071 | (2,716) | (147) |
Reclassification adjustment for gains included in net income | (63) | 0 | 0 |
Other comprehensive income/(loss) | 1,008 | (2,716) | (147) |
Comprehensive income | 7,250 | 2,741 | 4,393 |
Less: Comprehensive income attributable to noncontrolling interests | (297) | (144) | (68) |
Comprehensive income attributable to the Company's common shares | $ 6,953 | $ 2,597 | $ 4,325 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Subscription Receivable [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Accumulated Deficit [Member] | Total Noncontrolling Interests [Member] |
BALANCE at Dec. 31, 2013 | $ 67,025 | $ 76 | $ 60,755 | $ (25) | $ 399 | $ (1,781) | $ 7,601 |
BALANCE, shares at Dec. 31, 2013 | 7,643 | ||||||
Net income | 4,540 | $ 0 | 0 | 0 | 0 | 4,472 | 68 |
Other comprehensive income (loss) | (147) | 0 | 0 | 0 | (147) | 0 | 0 |
Distributions declared | (8,194) | 0 | 0 | 0 | 0 | (8,194) | 0 |
Distributions paid to noncontrolling interests | (131) | 0 | 0 | 0 | 0 | 0 | (131) |
Contributions from noncontrolling interests | 11,300 | 0 | 0 | 0 | 0 | 0 | 11,300 |
Proceeds from offering | 104,592 | $ 107 | 104,540 | (55) | 0 | 0 | 0 |
Proceeds from offering, shares | 10,579 | ||||||
Selling commissions and dealer manager fees | (8,934) | $ 0 | (8,934) | 0 | 0 | 0 | 0 |
Other offering costs | (611) | 0 | (611) | 0 | 0 | 0 | 0 |
Redemption and cancellation of shares | (676) | $ (1) | (675) | 0 | 0 | 0 | 0 |
Redemption and cancellation of shares, shares | (72) | ||||||
Shares issued from distribution reinvestment program | 3,258 | $ 3 | 3,255 | 0 | 0 | 0 | 0 |
Shares issued from distribution reinvestment program, shares | 343 | ||||||
Notes receivable issued to noncontrolling interests | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 |
BALANCE at Dec. 31, 2014 | 172,022 | $ 185 | 158,330 | (80) | 252 | (5,503) | 18,838 |
BALANCE, shares at Dec. 31, 2014 | 18,493 | ||||||
Net income | 5,457 | $ 0 | 0 | 0 | 0 | 5,313 | 144 |
Other comprehensive income (loss) | (2,716) | 0 | 0 | 0 | (2,716) | 0 | 0 |
Distributions declared | (12,339) | 0 | 0 | 0 | 0 | (12,339) | 0 |
Distributions paid to noncontrolling interests | (641) | 0 | 0 | 0 | 0 | 0 | (641) |
Contributions from noncontrolling interests | 2,284 | 0 | 0 | 0 | 0 | 0 | 2,284 |
Proceeds from offering | 80 | $ 0 | 0 | 80 | 0 | 0 | 0 |
Proceeds from offering, shares | 0 | ||||||
Other offering costs | 10 | $ 0 | 10 | 0 | 0 | 0 | 0 |
Redemption and cancellation of shares | (858) | $ (1) | (857) | 0 | 0 | 0 | 0 |
Redemption and cancellation of shares, shares | (89) | ||||||
Shares issued from distribution reinvestment program | 1,723 | $ 2 | 1,721 | 0 | 0 | 0 | 0 |
Shares issued from distribution reinvestment program, shares | 182 | ||||||
Acquisition of noncontrolling interest in a subsidiary | (867) | $ 0 | (238) | 0 | 0 | 0 | (629) |
BALANCE at Dec. 31, 2015 | 164,155 | $ 186 | 158,966 | 0 | (2,464) | (12,529) | 19,996 |
BALANCE, shares at Dec. 31, 2015 | 18,586 | ||||||
Net income | 6,242 | $ 0 | 0 | 0 | 0 | 5,945 | 297 |
Other comprehensive income (loss) | 1,008 | 0 | 0 | 0 | 1,008 | 0 | 0 |
Distributions declared | (12,968) | 0 | 0 | 0 | 0 | (12,968) | 0 |
Distributions paid to noncontrolling interests | (106) | 0 | 0 | 0 | 0 | 0 | (106) |
Contributions from noncontrolling interests | 10 | 0 | 0 | 0 | 0 | 0 | 10 |
Redemption and cancellation of shares | (1,709) | $ (2) | (1,707) | 0 | 0 | 0 | 0 |
Redemption and cancellation of shares, shares | (175) | ||||||
BALANCE at Dec. 31, 2016 | $ 156,632 | $ 184 | $ 157,259 | $ 0 | $ (1,456) | $ (19,552) | $ 20,197 |
BALANCE, shares at Dec. 31, 2016 | 18,411 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 6,242 | $ 5,457 | $ 4,540 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 10,496 | 8,867 | 3,446 |
Amortization of deferred financing costs | 665 | 516 | 72 |
Bargain purchase gain | 0 | 0 | (2,790) |
(Income)/loss from investments in unconsolidated affiliated entities | (107) | 136 | 111 |
Other non-cash adjustments | 252 | 72 | (110) |
Changes in assets and liabilities: | |||
Decrease/(increase) in accounts receivable and other assets | (169) | 673 | (1,912) |
Decrease/(increase) in accounts payable and other accrued expenses | (80) | 1,086 | 902 |
Increase in due to related party | 15 | 204 | 92 |
Net cash provided by operating activities | 17,314 | 17,011 | 4,351 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of investment property, net | (4,747) | (99,440) | (60,615) |
Purchase of marketable securities, net of margin loan | 0 | 0 | (19,774) |
Purchase of noncontrolling interest in a subsidiary | 0 | (867) | 0 |
Proceeds from sale of marketable securities | 7,573 | 0 | 9,692 |
Purchase of restricted escrow | 0 | (2,442) | 0 |
Issuance of notes receivable from related party | (24,200) | (20,200) | 0 |
Collections on note receivable from related party | 26,255 | 18,145 | 0 |
Release/(funding) of restricted escrows | 3,755 | (3,243) | 1,306 |
Contributions to unconsolidated affiliated entity | 0 | (2,653) | 0 |
Distributions from unconsolidated affiliated entities | 291 | 0 | 219 |
Net cash provided by/(used in) investing activities | 8,927 | (110,700) | (69,172) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from mortgage financings | 0 | 74,230 | 0 |
Payment on mortgages payable | (1,917) | (1,008) | (499) |
Payment of loan fees and expenses | 0 | (1,691) | 0 |
(Payments)/proceeds on margin loan, net | (3,723) | 1,762 | 3,909 |
Proceeds from issuance of common stock | 0 | 80 | 104,592 |
Payment of commissions and offering costs | 0 | (116) | (9,612) |
Redemption and cancellation of common shares | (1,709) | (858) | (676) |
Contribution from noncontrolling interests | 10 | 2,175 | 11,300 |
Distributions to noncontrolling interests | (106) | (641) | (131) |
Distributions to common stockholders | (12,998) | (10,365) | (3,080) |
Net cash (used in)/provided by financing activities | (20,443) | 63,568 | 105,803 |
Net change in cash and cash equivalents | 5,798 | (30,121) | 40,982 |
Cash and cash equivalents, beginning of year | 37,381 | 67,502 | 26,520 |
Cash and cash equivalents, end of year | $ 43,179 | $ 37,381 | $ 67,502 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2016 | |
Organization [Abstract] | |
Organization | 1. Organization Lightstone Value Plus Real Estate Investment Trust II, Inc. (the “Lightstone REIT II”) is a Maryland corporation formed on April 28, 2008, which has qualified as a real estate investment trust (“REIT”) for U.S. federal income tax purposes since its taxable year ending December 31, 2009. The Lightstone REIT II was formed primarily for the purpose of engaging in the business of investing in and owning commercial, residential and hospitality properties, as well as other real estate-related investments, located principally in North America. The Lightstone REIT II is structured as an umbrella partnership REIT, or UPREIT, and substantially all of its current and future business is and will be conducted through Lightstone Value Plus REIT II LP (the “Operating Partnership”), a Delaware limited partnership formed on April 30, 2008. The Lightstone REIT II and the Operating Partnership and its subsidiaries are collectively referred to as the ‘‘Company’’ and the use of ‘‘we,’’ ‘‘our,’’ ‘‘us’’ or similar pronouns refers to the Lightstone REIT II, its Operating Partnership or the Company as required by the context in which such pronoun is used. Offering and Structure Our sponsor David Lichtenstein (“Lichtenstein”), who does business as the Lightstone Group (the “Sponsor”) and majority owns the limited liability company of that name with a diversified portfolio of over 120 properties containing approximately 10,000 multifamily units, approximately 250,000 square feet of office space, 1.5 million square feet of industrial space, 31 hotels and 4.6 million square feet of retail space. The residential, office, industrial, hotel and retail properties are located in 26 states. Based in New York and supported by a regional office in New Jersey, our Sponsor employs approximately 397 staff and professionals. Our advisor is Lightstone Value Plus REIT II LLC (the “Advisor”), which is wholly owned by our Sponsor. Our Advisor, together with our Board of Directors, is and will continue to be primarily responsible for making investment decisions and managing our day-to-day operations. Mr. Lichtenstein also acts as our Chairman and Chief Executive Officer. As a result, he exerts influence over but does not control Lightstone REIT II or the Operating Partnership. We do not have and will not have any employees that are not also employed by our Sponsor or its affiliates. We depend substantially on our Advisor, which generally has responsibility for our day-to-day operations. Under the terms of an advisory agreement, the Advisor also undertakes to use its commercially reasonable best efforts to present to us investment opportunities consistent with our investment policies and objectives as adopted by our Board of Directors. Our Advisor has affiliated property managers (our “Property Managers”) that are related parties, which may manage certain of the properties we acquire. We also use other unaffiliated third-party property managers, principally for the management of our hospitality properties. On April 24, 2009, we commenced an initial public offering (the “Offering”) to sell a maximum of 51.0 10.00 6.5 75,000 255,000 The Offering, which terminated on August 15, 2012, raised aggregate gross proceeds of approximately $ 49.8 5.0 5.2 4.5 40.1 0.3 2.9 The Company’s registration statement on Form S-11 (the “Follow-On Offering”), pursuant to which it offered to sell up to 30.0 10.00 2,500,000 9.50 255,000 127.5 12.9 11.0 4.0 112.5 The Company’s DRIP Registration Statement on Form S-3D was filed and became effective under the Securities Act of 1933 on September 26, 2014. On January 19, 2015, the Board of Directors suspended the Company’s DRIP effective April 15, 2015. For so long as the DRIP remains suspended, all future distributions will be in the form of cash. As of December 31, 2016, 5.9 Effective September 27, 2012, Orchard Securities, LLC (“Orchard Securities”) became the Dealer Manager of the Company’s Follow-On Offering, which terminated on September 27, 2014. As of December 31, 2016, the Advisor owned 20,000 200 10.00 6.5 177.3 99 The Company’s shares of common stock are not currently listed on a national securities exchange. The Company may seek to list its shares of common stock for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its shares at this time. The Company does not anticipate that there would be any market for its shares of common stock until they are listed for trading. In the event the Company does not obtain listing prior to the tenth anniversary of the completion or termination of its Offering, its charter requires that the Board of Directors must either (i) seek stockholder approval of an extension or amendment of this listing deadline; or (ii) seek stockholder approval to adopt a plan of liquidation of the corporation. Noncontrolling Interest Partners of Operating Partnership The noncontrolling interests consist of (i) parties of the Company that hold units in the Operating Partnership and (ii) membership interests held by others in a joint venture (the “Joint Venture”) formed between the Company and Lightstone Value Plus Real Estate Investment Trust, Inc. (“Lightstone I”), a related party REIT also sponsored by the Company’s Sponsor, (see Note 3) and (iii) the membership interests held by minority owners of certain of our hotels. During 2015, the Company paid an aggregate of $ 0.9 On May 20, 2008, the Advisor contributed $ 2 200 Lightstone SLP II LLC, which is wholly owned by the Sponsor, committed to purchase subordinated profits interests in our Operating Partnership (“Subordinated Profits Interests”) at a cost of $ 100,000 1.0 From the Company’s inception through the termination of the Follow-On Offering, our Sponsor contributed cash of approximately $ 12.9 48.6 4.8 177.0 17.7 Operations - Operating Partnership Activity The Operating Partnership commenced its operations on October 1, 2009. Since then we have acquired and/or intend to continue to acquire and operate commercial, residential and hospitality properties, and make real estate-related investments, principally in North America through its Operating Partnership. Our current holdings consist of retail (primarily multi-tenanted shopping centers) and lodging properties. All of our properties have been and will continue to be acquired and operated by us alone or jointly with others. In addition, we may invest up to 20% of our net assets in collateralized debt obligations, commercial mortgage-backed securities (“CMBS”) and mortgage and mezzanine loans secured, directly or indirectly, by the same types of properties which we may acquire directly. Related Parties The Advisor and its affiliates and Lightstone SLP II, LLC are related parties. Certain of these entities have or will receive compensation and fees for services related to the Company’s offerings and will continue to receive compensation and fees for services provided for the investment and management of the Company’s assets. These entities have and/or will receive fees during the Company’s offering stage (which was completed on September 27, 2014), acquisition, operational and liquidation stages. The compensation levels during the offering, acquisition and operational stages are based on percentages of the offering proceeds raised, the cost of acquired properties and the annual revenue earned from such properties, and other such fees outlined in each of the respective agreements. See Note 11 for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The consolidated financial statements include the accounts of Lightstone REIT II and the Operating Partnership and its subsidiaries (over which Lightstone REIT II exercises financial and operating control). As of December 31, 2016, the Company had a 99 The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and investments in other real estate entities, depreciable lives of long-lived assets and revenue recognition. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. Investments in other real estate entities where the Company has the ability to exercise significant influence, but does not exercise financial and operating control, and is not considered to be the primary beneficiary will be accounted for using the equity method. Investments in other real estate entities where the Company has virtually no influence will be accounted for using the cost method. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. All cash equivalents are held in commercial paper and money market funds. Year Ended December 31, 2016 2015 2014 Supplemental disclosure of cash flow information: Cash paid for interest $ 7,155 $ 4,683 $ 1,255 Distributions declared $ 12,968 $ 12,339 $ 8,194 Noncash commissions and other offering costs in accounts payable and other accrued expenses $ - $ - $ 126 Subscription receivable $ - $ - $ 55 Value of shares issued from distribution reinvestment program $ - $ 1,723 $ 3,258 Debt assumed for acquisition $ - $ 32,841 $ - Non controlling interest assumed for acquisition $ - $ 656 $ - Unrealized (loss)/gain in available for sale securities $ 1,071 $ (2,716) $ (147) Purchase of loan receivable $ - $ 547 $ - Non-cash purchase of investment property $ - $ 521 $ - Marketable securities consist of equity securities and corporate bonds that are designated as available-for-sale and are recorded at fair value. Unrealized holding gains or losses will be reported as a component of accumulated other comprehensive income/(loss). Realized gains or losses resulting from the sale of these securities will be determined based on the specific identification of the securities sold. An impairment charge will be recognized when the decline in the fair value of a security below the amortized cost basis is determined to be other-than-temporary. The Company will consider various factors in determining whether to recognize an impairment charge, including the duration and severity of any decline in fair value below our amortized cost basis, any adverse changes in the financial condition of the issuers and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. The Board has authorized the Company from time to time to invest the Company’s available cash in marketable securities of real estate related companies. The Board of Directors has approved investments up to 30% of the Company’s total assets to be made at the Company’s discretion, subject to compliance with any REIT or other restrictions. Hotel revenue is recognized as earned, which is generally defined as the date upon which a guest occupies a room or utilizes the hotel’s services. The Company makes estimates of the uncollectability of its accounts receivable related to base rents, expense reimbursements and other revenues. The Company analyzes accounts receivable and historical bad debt levels, customer credit worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants in bankruptcy are analyzed and estimates are made in connection with the expected recovery of pre-petition and post-petition claims. The Company’s reported net income or loss is directly affected by management’s estimate of the collectability of accounts receivable. Accounting for Acquisitions When the Company makes an investment in real estate, the fair value of the real estate acquired is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases for acquired in-place leases and the value of tenant relationships, based in each case on their fair values. Purchase accounting is applied to assets and liabilities related to real estate entities acquired based upon the percentage of interest acquired. Fees incurred related to acquisitions are expensed as incurred and recorded in general and administrative costs in the consolidated statements of operations. Transaction costs incurred related to the Company’s investments in unconsolidated affiliated entities, accounted for under the equity method of accounting, are capitalized as part of the cost of the investment. Upon the acquisition of real estate operating properties, the Company estimates the fair value of acquired tangible assets and identified intangible assets and liabilities and certain liabilities such as assumed debt and contingent liabilities, at the date of acquisition, based on evaluation of information and estimates available at that date. Based on these estimates, the Company allocates the initial purchase price to the applicable assets, liabilities and noncontrolling interests, if any. As final information regarding fair value of the assets acquired, liabilities assumed and noncontrolling interests is received and estimates are refined, appropriate adjustments are be made to the purchase price allocation. The allocations are finalized as soon as all the information necessary is available and in no case later than within twelve months from the acquisition date. In determining the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The capitalized above-market lease values and the capitalized below-market lease values are amortized as an adjustment to rental income over the initial non-cancelable lease term and any fixed-rate renewal periods, which are reasonably assured, in the respective leases. The aggregate value of in-place leases is determined by evaluating various factors, including an estimate of carrying costs during the expected lease-up periods, current market conditions and similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases including leasing commissions, legal and other related costs. Optional renewal periods are not considered. The aggregate value of other acquired intangible assets includes tenant relationships. Factors considered by management in assigning a value to these relationships include: assumptions of probability of lease renewals, investment in tenant improvements, leasing commissions and an approximate time lapse in rental income while a new tenant is located. The value assigned to this intangible asset is amortized over the remaining lease terms. Carrying Value of Assets The amounts capitalized as a result of periodic improvements and additions to real estate property, when applicable, and the periods over which the assets are depreciated or amortized, are determined based on the application of accounting standards that may require estimates as to fair value and the allocation of various costs to the individual assets. Differences in the amount attributed to the assets can be significant based upon the assumptions made in calculating these estimates. Impairment Evaluation Management evaluates the recoverability of its investments in real estate assets at the lowest identifiable level, the individual property level. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The Company evaluates the long-lived assets for potential impairment on a quarterly basis and records an impairment charge when there is an indicator of impairment and the undiscounted projected cash flows are less than the carrying amount for a particular property. The estimated cash flows used for the impairment analysis and the determination of estimated fair value are based on the Company’s plans for the respective assets and the Company’s views of market and economic conditions. The estimates consider matters such as current and historical rental rates, occupancies for the respective properties and comparable properties, and recent sales data for comparable properties. Changes in estimated future cash flows due to changes in the Company’s plans or views of market and economic conditions could result in recognition of impairment losses, which, under the applicable accounting guidance, could be substantial. As of December 31, 2016 and 2015, the Company did not recognize any impairment charges. Depreciation expense is computed based on the straight-line method over the estimated useful life of the applicable real estate asset. We generally use estimated useful lives of up to thirty-nine years for buildings and improvements and five to ten years for furniture and fixtures. Expenditures for tenant improvements and construction allowances paid to commercial tenants are capitalized and amortized over the initial term of each lease. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. Deferred financing costs are recorded at cost and consist of loan fees and other costs incurred in issuing debt. Amortization of deferred financing costs is computed using a method that approximates the effective interest method over the term of the related debt and is included in interest expense in the consolidated statements of operations. Unamortized deferred financing costs are included as a direct deduction from the related debt in the consolidated balance sheets.. The Company evaluates its investments in other entities for consolidation. The percentage interest in the joint venture, evaluation of control and whether a variable interest entity (“VIE”) exists are all considered in determining if the investment qualifies for consolidation. The Company accounts for its investments in unconsolidated affiliated entities using the equity or cost method of accounting, as appropriate. Under the equity method, the investment is recorded initially at cost, and subsequently adjusted for equity in net income/(loss) and cash contributions and distributions. The net income/(loss) of each investor is allocated in accordance with the provisions of the applicable operating agreements of the entities. The allocation provisions in these agreements may differ from the ownership interest held by each investor. Differences between the carrying amount of the Company’s investment in the respective joint venture and the Company’s share of the underlying equity of such unconsolidated affiliated entities are amortized over the respective lives of the underlying assets as applicable. These items are reported as a single line item in the consolidated statements of operations as income or loss from investments in unconsolidated affiliated entities. Under the cost method of accounting, the investment is recorded initially at cost, and subsequently adjusted for cash contributions and distributions resulting from any capital events. Dividends earned from the underlying entities are recorded as interest income in the consolidated statements of operations. On a quarterly basis, the Company assesses whether the value of the investments in unconsolidated affiliated entities has been impaired. An investment is impaired only if management’s estimate of the fair value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the fair value of the investment. Management’s estimate of fair value for each investment is based on a number of assumptions that are subject to economic and market uncertainties. As these factors are difficult to predict and are subject to future events that may alter our assumptions, the fair values estimated by management in the impairment analysis may not be realized. Any decline that is not considered temporary will result in the recording of an impairment charge. Management believes no impairment of its investments in unconsolidated affiliated entities existed as of December 31, 2016 and 2015. We elected to be taxed as a REIT in conjunction with the filing of our 2009 U.S. federal income tax return. If we remain qualified as a REIT, we generally will not be subject to U.S. federal income tax on our net taxable income that we distribute currently to our stockholders. To maintain our REIT qualification under the Internal Revenue Code of 1986, as amended, or the Code, we must meet a number of organizational and operational requirements, including a requirement that we annually distribute to our stockholders at least 90 have a material adverse effect on The Company engages in certain activities through taxable REIT subsidiaries ("TRSs"). When the Company purchases a hotel it establishes a TRS and enters into an operating lease agreement for the hotel. As such, the Company may be subject to U.S. federal and state income taxes and franchise taxes from these activities. As of December 31, 2016, the Company had no material uncertain income tax positions. Additionally, even if we qualify as a REIT for U.S. federal income tax purposes, we may still be subject to some U.S. federal, state and local taxes on our income and property and to U.S. federal income taxes and excise taxes on our undistributed income. The carrying amounts of cash and cash equivalents, restricted escrows and deposits, prepaid expenses and other assets, accounts payable and other accrued expenses, margin loan, due to related party, and distributions payable approximated their fair values as of December 31, 2016 and 2015 because of the short maturity of these instruments. The estimated fair value of our mortgages payable is as follows: As of December 31, 2016 As of December 31, 2015 Estimated Fair Estimated Fair Carrying Amount Value Carrying Amount Value Mortgages payable $ 127,907 $ 128,052 $ 129,824 $ 130,255 The fair value of our mortgages payable was determined by discounting the future contractual interest and principal payments by market interest rates. Selling commissions and dealer manager fees paid to the Dealer Manager, and other third-party offering expenses such as registration fees, due diligence fees, marketing costs, and professional fees are accounted for as a reduction against additional paid-in capital (“APIC”) as costs are incurred. From the commencement of the Offering through the termination of the Follow-On Offering (September 27, 2014), the Company incurred approximately $ 16.3 8.5 24.8 The Company may enter into derivative financial instrument transactions in order to mitigate interest rate risk on a related financial instrument. The Company may designate these derivative financial instruments as hedges and apply hedge accounting. The Company will record all derivative instruments at fair value on the consolidated balance sheet. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, will be considered cash flow hedges. The Company will formally document all relationships between hedging instruments and hedged items, as well as our risk- management objective and strategy for undertaking each hedge transaction. The Company will periodically review the effectiveness of each hedging transaction, which involves estimating future cash flows. Cash flow hedges will be accounted for by recording the fair value of the derivative instrument on the consolidated balance sheet as either an asset or liability, with a corresponding amount recorded in accumulated other comprehensive income (loss) within stockholders’ equity. Amounts will be reclassified from other comprehensive income (loss) to the consolidated statement of operations in the period or periods the hedged forecasted transaction affects earnings. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, will be considered fair value hedges. The effective portion of the derivatives gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the transaction affects earnings. The ineffective portion of the gain or loss is reported in earnings immediately. The Company maintains its cash in bank deposit accounts, which, at times, may exceed U.S. federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. The Company has an Employee and Director Incentive Restricted Share Plan. Awards, if any, will be granted at the fair market value on the date of the grant with fair value estimated using the Black-Scholes-Merton option valuation model, which incorporates assumptions surrounding the volatility, dividend yield, the risk-free interest rate, expected life, and the exercise price as compared to the underlying stock price on the grant date. As stock-based compensation expense recognized in the consolidated statements of operations will be based on awards ultimately expected to vest, the amount of expense will be reduced for forfeitures estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures will be estimated based on historical experience. The Company has not granted any stock-based incentive awards. Basic and Diluted Net Earnings per Common Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, earnings per share is calculated by dividing net income attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the applicable period. In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that clarifies the definition of a business and assists in the evaluation of whether a transaction will be accounted for as an acquisition of an asset or as a business combination. The guidance provides a test to determine when a set of assets and activities acquired is not a business. When substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. Under the updated guidance, an acquisition of a single property will likely be treated as an asset acquisition as opposed to a business combination and associated transaction costs will be capitalized rather than expensed as incurred. Additionally, assets acquired, liabilities assumed, and any noncontrolling interest will be measured at their relative fair values. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, with early adoption permitted. This guidance will not have a material impact on the Company’s consolidated financial statements. In January 2017, FASB issued guidance that amends the Codification for SEC staff announcements made at recent Emerging Issues Task Force meetings. The SEC guidance that specifically relates to our consolidated financial statement was from the September 2016 meeting, where the SEC staff expressed their expectations about the extent of disclosures registrants should make about the effects of the new FASB guidance on revenue. Registrants are required to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. In cases where a registrant cannot reasonably estimate the impact of the adoption, then additional qualitative disclosures should be considered. The adoption this guidance did not have a material effect on the Company's consolidated financial statements. In August 2016, the issued FASB an accounting standards update which provides guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including those related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance, and distributions received from equity method investees. This guidance is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The guidance must be adopted on a retrospective basis and must be applied to all periods presented, but may be applied prospectively if retrospective application would be impracticable. This guidance will not have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued an accounting standards update that generally requires companies to measure investments in equity securities, except those accounted for under the equity method, at fair value and recognize any changes in fair value in net income. The new guidance must be applied using a modified-retrospective approach and is effective for periods beginning after December 15, 2017 and early adoption is not permitted. If the Company had adopted this standard during the year ended December 31, 2016, it would have resulted in an increase/(decrease) to net incomeof approximately $ 1.0 2.7 0.1 In April 2015, the FASB issued an accounting standards update to simplify the presentation of debt issuance costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This new guidance was effective for the Company beginning January 1, 2016. The Company adopted this standard during the quarter ended March 31, 2016. As a result of adopting this standard on a retrospective basis, approximately $ 1.4 In May 2014, the FASB issued an accounting standards update that provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company does not expect the adoption of this standard to have a material impact on its financial position, results of operations or cash flows. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. Certain prior period amounts may have been reclassified to conform to the current year presentation. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions [Abstract] | |
Acquisitions | 3 Acquisitions LVP REIT Hotels On January 19, 2015, the Company’s Board of Directors provided approval for the Company to form the Joint Venture and for the Joint Venture to acquire Lightstone I’s membership interest in up to 11 select service hotels (the “LVP REIT Hotels”). The Company’s Advisor elected to waive the acquisition fee associated with this transaction. On January 29, 2015, the Company through the Operating Partnership, entered into an agreement to form the Joint Venture with Lightstone I whereby the Company and Lightstone I have 97.5 2.5 Subsequently, on January 29, 2015, the Company, through the Joint Venture, completed the acquisition of 100.0 64.6 63.0 1.6 · a Courtyard by Marriott located in Willoughby, Ohio (the “Courtyard Willoughby”); · a Fairfield Inn & Suites by Marriott located in West Des Moines, Iowa (the “Fairfield Inn Des Moines”); · a SpringHill Suites by Marriott located in West Des Moines, Iowa (the SpringHill Suites Des Moines”); · a Hampton Inn located in Miami, Florida (the “Hampton Inn Miami”); and · a Hampton Inn & Suites located in Fort Lauderdale, Florida (the “Hampton Inn & Suites Fort Lauderdale”). On January 29, 2015, the Company, through two wholly owned subsidiaries, entered into a $ 60.0 4.95 65.0 35.0 On February 11, 2015, the Company, through the Joint Venture, completed the acquisition of Lightstone I’s (i) 100.0 90.0 24.1 0.3 10 11.6 12.2 11.9 0.3 The assumed debt consisted of (i) a $ 7.8 3.50 3.8 5.36 On June 10, 2015, the Company through the Joint Venture, completed the acquisition of Lightstone I’s (i) 100.0 100.0 95.0 28.0 0.7 5 15.1 12.9 12.6 0.3 4.94 On June 30, 2015, the Company through the Joint Venture, completed the acquisition of Lightstone I’s 90.0 7.4 0.7 10.0 6.1 1.3 1.2 0.1 5.56 As a result, the Company, through the Joint Venture, has completed the acquisition of all of the LVP REIT Hotels. The aggregate purchase price for the LVP REIT Hotels was approximately $ 124.1 The acquisition of the LVP REIT Hotels was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition has been allocated to the assets acquired based upon their fair values as of the dates of the acquisition. Approximately $ 21.0 86.4 16.7 Holiday Inn - Opelika On April 1, 2014, the Company completed the acquisition of an 87-room select service hotel located in Opelika, Alabama (the “Holiday Inn Opelika”), from an unrelated third party. The Holiday Inn Opelika operates as a “Holiday Inn Express Hotel & Suites” pursuant to a 15-year franchise agreement with the International Hotel Group. The aggregate purchase price for the Holiday Inn Opelika was approximately $ 6.9 0.95 66 The acquisition of the Holiday Inn Opelika was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Holiday Inn Opelika has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. There was no contingent consideration related to this acquisition. Approximately $ 1.0 5.3 0.6 Aloft - Tucson On April 8, 2014, the Company completed the acquisition of a 154-room select service hotel located in Tucson, Arizona (the “Aloft Tucson”), from an unrelated third party. The Aloft Tucson operates as an “Aloft” pursuant to a 20-year franchise agreement with Sheraton LLC, or Starwood. The aggregate purchase price for the Aloft - Tucson was approximately $ 19.0 0.95 19.0 181 The acquisition of the Aloft Tucson was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Aloft Tucson has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. There was no contingent consideration related to this acquisition. Approximately $ 1.9 14.7 2.4 Hampton Inn Fort Myers Beach On October 2, 2014, the Company completed the acquisition of a 120-room select service hotel located in Fort Myers, Florida (the “Hampton Inn Fort Myers Beach”) from an unrelated third party. The Hampton Inn Fort Myers Beach operates as a “Hampton Inn & Suites” pursuant to a 15-year franchise agreement with Hampton Inn Franchise LLC. The aggregate purchase price for the Hampton Inn Fort Myers Beach was approximately $ 9.4 0.95 0.1 The acquisition of the Hampton Inn Fort Myers Beach was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Hampton Inn Fort Myers Beach has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. There was no contingent consideration related to this acquisition. Approximately $ 3.0 5.1 1.3 Philadelphia Airport Hotel Portfolio On December 17, 2014, the Company completed the portfolio acquisition of the Aloft Philadelphia Airport (the “Aloft - Philadelphia”), a 136-room select service hotel, the Four Points by Sheraton Philadelphia Airport (the “Four Points by Sheraton - Philadelphia”), a 177-room select service hotel and a land parcel adjacent the Four Points by Sheraton Philadelphia (the “Land Parcel” and collectively, the “Philadelphia Airport Hotel Portfolio”) from an unrelated third party. The Aloft Philadelphia operates as an “Aloft” pursuant to a 20-year franchise agreement with Starwood and the Four Points by Sheraton Philadelphia operates as a “Four Points by Sheraton” pursuant to a 20-year franchise agreement with Starwood. The aggregate purchase price for the Philadelphia Airport Hotel Portfolio was approximately $ 22.6 0.3 0.95 0.2 25.4 22.6 2.8 The acquisition of the Philadelphia Airport Hotel Portfolio was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Philadelphia Hotel Portfolio has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. Approximately $ 7.9 15.5 2.0 Financial Information For the Years Ended December 31, 2016 2015 2014 Rental revenue $ 63,819 $ 52,395 $ 6,416 Net income (1) $ 8,283 $ 8,043 $ 2,596 Note (1) Includes the approximately $2.8 million bargain purchase gain recorded in the year ended December 31, 2014 in connection with the acquisition of the Philadelphia Airport Hotel Portfolio. For the Years Ended December 31, 2015 2014 Pro forma rental revenue $ 79,359 $ 74,411 Pro forma net income per Company's common share (2) $ 6,007 $ 3,119 Pro forma net income per Company's common share, basic and diluted (2) $ 0.32 $ 0.25 Note (2) Excludes the approximately $ 2.8 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliated Entity | 12 Months Ended |
Dec. 31, 2016 | |
Investments in Unconsolidated Affiliated Entities [Abstract] | |
Investments in Unconsolidated Affiliated Entities | 4. Investments in Unconsolidated Affiliated Entity The entity listed below is partially owned by the Company. The Company accounts for this investment under the equity method of accounting as the Company exercises significant influence, but does not exercise financial and operating control, and is not considered to be the primary beneficiary of this entity. As of Entity Date of Ownership Ownership % December 31, 2016 December 31, 2015 Brownmill LLC ("Brownmill") Various 48.58 % $ 5,836 $ 6,021 Brownmill During 2010, 2011 and 2012, the Company entered into five separate contribution agreements with Lightstone Holdings LLC (‘‘LGH’’), a wholly-owned subsidiary of the Company’s Sponsor, pursuant to which LGH contributed to the Company an approximate aggregate 48.6 34.4 5.6 8.6 48 33 6 9 100,000 4.8 3.3 0.6 0.9 The aggregate fair value of the Company’s 48.6% interest in Brownmill, based on estimated fair values as of the effective dates of the applicable contributions, was approximately $ 15.5 4.8 10.7 As a result of these contributions in exchange for Subordinated Profit Interests, as of December 31, 2016, the Company owns a 48.6 595 450 292 219 During the year ended December 31, 2015, Brownmill refinanced its mortgage payable. In connection with the refinancing, Brownmill made a principal payment of approximately $ 5.5 2.7 Brownmill owns two retail properties known as Browntown Shopping Center, located in Old Bridge, New Jersey, and Millburn Mall, located in Vauxhaull, New Jersey, which collectively, are referred to as the “Brownmill Properties.” Brownmill Condensed Financial Information The Company’s carrying value of its interest in Brownmill differs from its share of member’s equity reported in the condensed balance sheet of Brownmill due to the Company’s basis of its investment in excess of the historical net book value of Brownmill. The Company’s additional basis allocated to depreciable assets is being recognized on a straight-line basis over the lives of the appropriate assets. For the Year Ended For the Year Ended For the Year Ended December 31, 2016 December 31, 2015 December 31, 2014 Revenue $ 3,596 $ 3,644 $ 3,600 Property operating expenses 1,592 1,596 1,458 Depreciation and amortization 846 904 842 Operating income 1,158 1,144 1,300 Interest expense and other, net (590) (1,018) (1,094) Net income $ 568 $ 126 $ 206 Company's share of net income $ 276 $ 61 $ 100 Additional depreciation and amortization expense (1) (169) (197) (211) Company's income/(loss) from investment $ 107 $ (136) $ (111) 1. Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in Brownmill and the amount of the underlying equity in net assets of Brownmill. As of As of December 31, 2016 December 31, 2015 Real estate, at cost (net) $ 15,273 $ 15,651 Cash and restricted cash 1,412 1,080 Other assets 1,269 1,482 Total assets $ 17,954 $ 18,213 Mortgage payable $ 14,519 $ 14,700 Other liabilities 482 527 Members' deficiency 2,953 2,986 Total liabilities and members' deficiency $ 17,954 $ 18,213 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities, Margin Loan and Fair Value Measurements [Abstract] | |
Marketable Securities and Fair Value Measurements | 5. Marketable Securities and Fair Value Measurements Marketable Securities: As of December 31, 2016 Gross Unrealized Adjusted Cost Gross Unrealized Gains Losses Fair Value Equity Securities $ 10,194 $ - $ (1,456) $ 8,738 As of December 31, 2015 Gross Unrealized Adjusted Cost Gross Unrealized Gains Losses Fair Value Equity Securities $ 17,928 $ 63 $ (2,527) $ 15,464 The Company has access to a margin loan from a financial institution that holds custody of certain of the Company’s marketable securities. The margin loan is collateralized by the marketable securities in the Company’s account. The amounts available to the Company under the margin loan are at the discretion of the financial institution and not limited to the amount of collateral in its account. The margin loan bears interest at Libor plus 0.85 1.62 During the year ended December 31, 2016, the Company sold equity securities with a cost basis of approximately $ 7.8 7.6 When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s amortized cost basis. As of December 31, 2016 and 2015, the Company did not recognize any impairment charges. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: · Level 1 Quoted prices in active markets for identical assets or liabilities. · Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of December 31, 2016 and 2015 all of the Company’s equity securities were classified as Level 1 assets and there were no transfers between the level classifications. The Company did not have any other significant financial assets or liabilities, which would require revised valuations that are recognized at fair value. |
Notes Receivable from Related P
Notes Receivable from Related Party | 12 Months Ended |
Dec. 31, 2016 | |
Notes Receivable from Related Party [Abstract] | |
Notes Receivable from Related Party | 6. Notes Receivable from Related Party The Company had entered into various revolving promissory notes (collectively, the “Notes Receivable from Related Party”) with the operating partnership of Lightstone Value Plus Real Estate Investment Trust III, Inc. (“Lightstone III”), a REIT also sponsored by the Company’s Sponsor as discussed below. During the years ended December 31, 2016 and 2015, the Company recorded interest income (included in interest and dividend income in the consolidated statements of operations) of $ 606 277 904 178 Des Moines Note Receivable On February 4, 20 1 10.0 8.2 The Des Moines Note Receivable had a term of one year, bore interest at a floating rate of three-month Libor plus 6.0 100 Durham Note Receivable On May 15, 2015, the Company entered into a revolving promissory note (the “Durham Note Receivable”) of up to $ 13.0 12.0 The Durham Note Receivable had a term of one year, bore interest at a floating rate of three-month Libor plus 6.0 130 2.1 10.9 8.0 10.1 Lansing Note Receivable On May 2, 2016, the Company entered into a revolving promissory note (the “Lansing Note Receivable”) of up to $ 8.0 6.0 6.0 80 Green Bay Note Receivable On May 2, 2016, the Company entered into a revolving promissory note (the “Green Bay Note Receivable”) of up to $ 14.5 10.2 6.0 145 |
Mortgages payable
Mortgages payable | 12 Months Ended |
Dec. 31, 2016 | |
Mortgages payable [Abstract] | |
Mortgages payable | 7. Mortgages Payable Weighted Average Interest Rate as of As of As of Interest December 31, Maturity Amount Due December 31, December 31, Description Rate 2016 Date at Maturity 2016 2015 Promissory Note, secured by four properties 4.94% 4.94 % August 2018 $ 21,754 $ 22,688 $ 23,236 Revolving Loan, secured by nine properties LIBOR + 4.95% 5.68 % January 2018 73,616 73,616 74,230 Courtyard - Parsippany LIBOR + 3.50% 3.98 % August 2018 7,126 7,431 7,612 Residence Inn - Baton Rouge 5.36% 5.36 % November 2018 3,480 3,640 3,720 Promissory Note, secured by three properties 4.94% 4.94 % August 2018 14,008 14,610 14,962 Courtyard - Baton Rouge 5.56% 5.56 % May 2017 5,873 5,922 6,064 Total mortgages payable 5.35 % $ 125,857 $ 127,907 $ 129,824 Less: Deferred financing costs (767) (1,432) Total mortgages payable, net $ 127,140 $ 128,392 Promissory Note On July 29, 2013, the Company, through certain subsidiaries, entered into a promissory note (the “Promissory Note”) with Barclays Bank PLC (“Barclays”) for approximately $ 24.4 five 4.94 142 The Promissory Note is cross-collateralized by four hotel properties consisting of the SpringHill Suites - Peabody, the TownePlace Suites - Metairie and the Arkansas Hotel Portfolio. Revolving Credit Facility On January 29, 2015, the Company, through two Libor plus 4.95 three 65.0 35.0 24.2 75.0 15.0 Courtyard-Parsippany The $ 7.8 Libor plus 3.50 Residence Inn - Baton Rouge The $ 3.8 5.36 Promissory Note The $ 15.1 4.94 Courtyard - Baton Rouge The $ 6.1 5.56 Principal Maturities Remainder of 2017 2018 2019 2020 2021 Thereafter Total Principal maturities $ 7,152 $ 120,755 $ - $ - $ - $ - $ 127,907 Less: Deferred financing costs (767) Total principal maturiteis, net 127,140 Debt Compliance Pursuant to the Company’s debt agreements, approximately $ 3.5 2.2 Additionally, the Company’s mortgage loan (outstanding principal balance of $ 5.9 73.6 |
Selling Commission, Dealer Mana
Selling Commission, Dealer Manager Fees and Other Offering Costs | 12 Months Ended |
Dec. 31, 2016 | |
Selling Commission Dealer Manager Fees And Other Offering Costs [Abstract] | |
Selling Commission, Dealer Manager Fees and Other Offering Costs | 8. Selling Commission, Dealer Manager Fees and Other Offering Costs Selling commissions and dealer manager fees were paid to the Dealer Manager, pursuant to various agreements, and other third-party offering expenses such as registration fees, due diligence fees, marketing costs, and professional fees were accounted for as a reduction against additional paid-in capital (“APIC”) as costs were incurred. Any organizational costs were accounted for as general and administrative costs. Since commencement of its Offering through the termination of the Follow-On Offering (September 27, 2014), the Company incurred approximately $ 16.3 8.5 8.9 0.6 |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholder’s Equity | 9. Stockholder’s Equity Preferred Shares Shares of preferred stock may be issued in the future in one or more series as authorized by the Company’s Board of Directors. Prior to the issuance of shares of any series, the Board of Directors is required by the Company’s charter to fix the number of shares to be included in each series and the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms or conditions of redemption for each series. Because the Company’s Board of Directors has the power to establish the preferences, powers and rights of each series of preferred stock, it may provide the holders of any series of preferred stock with preferences, powers and rights, voting or otherwise, senior to the rights of holders of our common stock. The issuance of preferred stock could have the effect of delaying, deferring or preventing a change in control of the Company, including an extraordinary transaction (such as a merger, tender offer or sale of all or substantially all of our assets) that might provide a premium price for holders of the Company’s common stock. To date, the Company had no outstanding preferred shares. Common Shares All of the common stock offered by the Company will be duly authorized, fully paid and nonassessable. Subject to the preferential rights of any other class or series of stock and to the provisions of its charter regarding the restriction on the ownership and transfer of shares of our stock, holders of the Company’s common stock will be entitled to receive distributions if authorized by the Board of Directors and to share ratably in the Company’s assets available for distribution to the stockholders in the event of a liquidation, dissolution or winding-up. Each outstanding share of the Company’s common stock entitles the holder to one vote on all matters submitted to a vote of stockholders, including the election of directors. There is no cumulative voting in the election of directors, which means that the holders of a majority of the outstanding common stock can elect all of the directors then standing for election, and the holders of the remaining common stock will not be able to elect any directors. Holders of the Company’s common stock have no conversion, sinking fund, redemption or exchange rights, and have no preemptive rights to subscribe for any of its securities. Maryland law provides that a stockholder has appraisal rights in connection with some transactions. However, the Company’s charter provides that the holders of its stock do not have appraisal rights unless a majority of the Board of Directors determines that such rights shall apply. Shares of the Company’s common stock have equal dividend, distribution, liquidation and other rights. Under its charter, the Company cannot make any material changes to its business form or operations without the approval of stockholders holding at least a majority of the shares of our stock entitled to vote on the matter. These include (1) amendment of its charter, (2) its liquidation or dissolution, (3) its reorganization, and (4) its merger, consolidation or the sale or other disposition of its assets. Share exchanges in which the Company is the acquirer, however, do not require stockholder approval. Distributions U.S. federal income tax law requires that a REIT distribute annually at least 90 Distributions are at the discretion of our Board of Directors. We commenced regular quarterly distributions beginning with the fourth quarter of 2009. We may fund future distributions from borrowings if we do not generated sufficient cash flow from our operations to fund distributions. Our ability to continue to pay regular distributions and the size of these distributions will depend upon a variety of factors. For example, our borrowing policy permits us to incur short-term indebtedness, having a maturity of two years or less, and we may have to borrow funds on a short-term basis to meet the distribution requirements that are necessary to achieve the tax benefits associated with qualifying as a REIT. We cannot assure that regular quarterly distributions will continue to be made or that we will maintain any particular level of distributions that we have established or may establish. We are an accrual basis taxpayer, and as such our REIT taxable income could be higher than the cash available to us. We may therefore borrow to make distributions, which could reduce the cash available to us, in order to distribute 90% of our REIT taxable income as a condition to our election to be taxed as a REIT. These distributions made with borrowed funds may constitute a return of capital to stockholders. “Return of capital” refers to distributions to investors in excess of net income. To the extent that distributions to stockholders exceed earnings and profits, such amounts constitute a return of capital for U.S. federal income tax purposes, although such distributions might not reduce stockholders’ aggregate invested capital. Because our earnings and profits are reduced for depreciation and other non-cash items, it is likely that a portion of each distribution will constitute a tax-deferred return of capital for U.S. federal income tax purposes. On March 30, 2009, our Board of Directors declared an annualized distribution rate for each quarterly period commencing 30 days subsequent to us achieving the minimum offering of 500,000 0.00178082191 365 6.5 10.00 At the beginning of October 2009, we achieved our minimum offering of 500,000 On September 25, 2015, the Board of Directors resolved that future distributions declared to shareholders of record on the close of business on the last day of the quarter during the applicable quarter would be targeted to be paid at a rate of $ 0.0019178 365 7.0 10.00 6.5 Total distributions declared during the years ended December 31, 2016, 2015 and 2014 were $ 13.0 12.3 8.2 On February 28, 2017, our Board of Directors declared a special distribution (the “Catch-Up Distribution”) representing the difference between the Revised Annualized Distribution Rate and the Initial Annualized Distribution Rate for the period from October 1, 2009 through September 30, 2015. This distribution was calculated based on stockholders of record each day during the applicable period at a rate of $ 0.000136986 365 0.5 10.00 2.1 On March 17, 2017, our Board of Directors declared the quarterly distribution for the three-month period ended March 31, 2017 at the Revised Annualized Distribution Rate payable to stockholders of record on the close of business on the last day of the quarter, which will be paid on or about April 15, 2017. Our stockholders have the option to elect the receipt of shares of common stock in lieu of cash under our DRIP. On January 19, 2015, the Board of Directors suspended the Company’s DRIP effective April 15, 2015. For so long as the DRIP remains suspended, all future distributions will be in the form of cash. The amount of distributions to be paid to our stockholders in the future will be determined by our Board of Directors and are dependent on a number of factors, including funds available for payment of distributions, our financial condition, capital expenditure requirements and annual distribution requirements needed to maintain our status as a REIT under the Code. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2016 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | 10. Noncontrolling Interests The noncontrolling interests consist of (i) parties of the Company that hold units in the Operating Partnership (ii) membership interests held by others in the Joint Venture (see Note 3) and (iii) the membership interests held by minority owners of certain of our hotels. The units include Subordinated Profits Interests, limited partner units, and Common Units. With respect to the units in the Operating Partnership, the noncontrolling interest in the Company’s consolidated balance sheets as of December 31, 2016 and 2015 include (i) the 200 177 During 2015, the Company paid an aggregate $ 0.6 100.0 S hare Description See Note 1 for a discussion of rights related to the Subordinated Profits Interests. The limited partner and Common Units of the Operating Partnership have similar rights as those of the Company’s stockholders including distribution rights. |
Related Party and Other Transac
Related Party and Other Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party and Other Transactions | 11. Related Party and Other Transactions The Company has agreements with the Dealer Manager, Advisor and Property Managers to pay certain fees, as follows, in exchange for services performed by these entities and other related party entities. The Company’s ability to secure financing and subsequent real estate operations are dependent upon its Advisor, Property Managers and their affiliates to perform such services as provided in these agreements. Fees Amount Selling Commission The Dealer Manager was paid up to 7 11.2 Dealer Management Fee The Dealer Manager was paid up to 3 5.1 Reimbursement of Offering Expenses The Company sold Subordinated Profits Interests to Lightstone SLP II LLC for $ 12.9 48.6 4.8 177.0 17.7 Fees Amount Acquisition Fee The Advisor will be paid an acquisition fee equal to 0.95 Property Management Residential/Retail/ Hospitality The Property Managers will be paid a monthly management fee of up to 5 Property Management Office/Industrial The Property Managers will be paid monthly property management and leasing fees of up to 4.5 Asset Management Fee The Advisor or its affiliates will be paid an asset management fee of 0.95 Reimbursement of Other expenses For any year in which the Company qualifies as a REIT, the Advisor must reimburse the Company for the amounts, if any, by which the total operating expenses, the sum of the advisor asset management fee plus other operating expenses paid during the previous fiscal year exceed the greater of 2 25 The Advisor or its affiliates will be reimbursed for expenses that may include costs of goods and services, administrative services and non-supervisory services performed directly for the Company by independent parties. Lightstone SLP II, LLC has purchased Subordinated Profits Interests in the Operating Partnership. These Subordinated Profits Interests, the purchase price of which will be repaid only after stockholders receive a stated preferred return and their net investment, may entitle Lightstone SLP II, LLC to a portion of any regular distributions made by the Operating Partnership. There were no distributions paid through December 31, 2016. However, in connection with the Board of Directors declaration of the Catch-Up Distribution on February 28, 2017, it also declared that distributions be brought current through December 31, 2016 on the Subordinated Profits Interests at a 7% annualized rate of return which amounted to approximately $4.2 million and 7 The Subordinated Profits Interests may also entitle Lightstone SLP II, LLC to a portion of any liquidating distributions made by the Operating Partnership. The value of such distributions will depend upon the net sale proceeds upon the liquidation of the Company and, therefore, cannot be determined at the present time. Liquidating distributions to Lightstone SLP II, LLC will always be subordinated until stockholders receive a distribution equal to their initial investment plus a stated preferred return, as described below: Liquidating Stage Distributions Amount of Distribution 7% Stockholder Return Threshold Once stockholders have received liquidation distributions, and a cumulative non-compounded 7% return per year on their initial net investment, Lightstone SLP, LLC will receive available distributions until it has received an amount equal to its initial purchase price of the Subordinated Profits Interests plus a cumulative non-compounded return of 7 Returns in Excess of 7% Once stockholders have received liquidation distributions, and a cumulative non-compounded return of 7% per year on their initial net investment, 70 30 12 Returns in Excess of 12% After stockholders and Lightstone SLP II, LLC have received liquidation distributions, and a cumulative non-compounded return of 12% per year on their initial net investment, 60 40 Operating Stage Distributions Amount of Distribution 7% stockholder Return Threshold Once a cumulative non-compounded return of 7 7 10 Returns in excess of 7% Once a cumulative non-compounded return of 7% per year is realized by stockholders on their net investment, 70 30 12 Returns in Excess of 12% After the 12 60 40 In addition to certain related party payments that were made to the Dealer Manager, the Company also has agreements with the Advisor and its affiliates to perform such services as provided in these agreements. For the Years Ended December 31, 2016 2015 2014 Acquisition fees $ - $ - $ 547 Asset management fees 2,389 2,032 - Development fees 59 20 140 Total $ 2,448 $ 2,052 $ 687 Pursuant to an Advisory Agreement, our Advisor is entitled to receive an asset management fee equal to 0.95 0.8 As of December 31, 2016, the Company owns a 48.6 Other Related Party Transactions From time to time, the Company purchases title insurance from an agent in which our Sponsor owns a 50% limited partnership interest. Because this title insurance agent receives significant fees for providing title insurance, our Advisor may face a conflict of interest when considering the terms of purchasing title insurance from this agent. However, prior to the purchase by the Company of any title insurance, an independent title consultant with more than 25 years of experience in the title insurance industry reviews the transaction, and performs market research and competitive analysis on our behalf. During the year ended December 31, 2014 the Company paid approximately $ 44 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Management Agreements The Company’s hotels operate pursuant to management agreements with various third-party management companies. The management companies perform management functions including, but not limited to, hiring and supervising employees, establishing room prices, establishing administrative policies and procedures, managing expenditures and arranging and supervising public relations and advertising. The Management Agreements are for terms ranging from 1 10 The Management Agreements provide for the payment of a base management fee equal to 3 3.5 Franchise Agreements As of December 31, 2016, the Company’s hotels operated pursuant to franchise agreements. Under the franchise agreements, the Company generally pays a fee equal to 5 1.5 3.5 The franchise agreements are for terms ranging from 15 20 Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. On July 13, 2011, JF Capital Advisors, filed a lawsuit against The Lightstone Group, LLC, the Company, and Lightstone Value Plus Real Estate Investment Trust, Inc. in the Supreme Court of the State of New York seeking payment for services alleged to have been rendered, and to be rendered prospectively, under theories of unjust enrichment and breach of contract. Effective January 4, 2017, the litigation was settled in its entirety for an insignificant amount and this matter has now been fully disposed of. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | 13. Quarterly Financial Data (Unaudited) 2016 Year ended Quarter ended Quarter ended Quarter ended Quarter ended December 31, December 31, September 30, June 30, March 31, Total revenue $ 83,421 $ 19,986 $ 22,195 $ 21,351 $ 19,889 Operating income $ 12,590 $ 2,328 $ 4,003 $ 3,924 $ 2,335 Net income $ 6,242 $ 580 $ 2,265 $ 2,396 $ 1,001 Less (income)/loss attributable to noncontrolling interests (297) (114) (111) (75) 3 Net income applicable to Company's common shares $ 5,945 $ 466 $ 2,154 $ 2,321 $ 1,004 Net income per common share, basic and diluted $ 0.32 $ 0.03 $ 0.12 $ 0.13 $ 0.05 2015 Year ended Quarter ended Quarter ended Quarter ended Quarter ended December 31, December 31, September 30, June 30, March 31, Total revenue $ 71,368 $ 18,560 $ 19,687 $ 18,330 $ 14,791 Operating income $ 8,904 $ 1,482 $ 2,579 $ 2,818 $ 2,025 Net income $ 5,457 $ 248 $ 1,255 $ 2,116 $ 1,838 Less income attributable to noncontrolling interests (144) (15) (53) (53) (23) Net income applicable to Company's common shares $ 5,313 $ 233 $ 1,202 $ 2,063 $ 1,815 Net income per common share, basic and diluted $ 0.29 $ 0.01 $ 0.06 $ 0.11 $ 0.10 |
Schedule III Real Estate and Ac
Schedule III Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2016 | |
Schedule III Real Estate and Accumulated Depreciation [Abstract] | |
Schedule III Real Estate and Accumulated Depreciation | Schedule III Real Estate and Accumulated Depreciation December 31, 2016 Gross amount at which Initial Cost (A) carried at end of period Net Costs Buildings and Capitalized & Buildings and Improvements Impairments Improvements and Furniture Subsequent to Land and and Furniture Accumulated Depreciable Encumbrance Land and Fixtures Acquisition Improvements and Fixtures Total (B) Depreciation (C) Date Acquired Life (D) Fairfield Inn East Rutherford, NJ $ - $ 2,945 $ 8,743 $ 5,493 $ 3,067 $ 14,114 $ 17,181 $ (2,700) 12/31/2012 (D) Hampton Inn Hotel Ft. Myers Beach, FL - 3,028 6,397 783 3,028 7,180 10,208 (780) 10/2/2014 (D) Vacant Lot Philadelphia, PA - 2,000 - - 2,000 - 2,000 - 12/17/2014 (D) Courtyard Marriott Parsippany, NJ 7,377 2,690 14,310 574 2,836 14,738 17,574 (1,416) 2/11/2015 (D) Marriott Residence Inn Baton Rouge, LA 3,599 2,190 4,849 137 2,198 4,978 7,176 (599) 2/11/2015 (D) Marriott Courtyard Baton Rouge, LA 5,900 2,061 5,281 111 2,061 5,392 7,453 (461) 6/30/2015 (D) Total $ 16,876 $ 14,914 $ 39,580 $ 7,098 $ 15,190 $ 46,402 $ 61,592 $ (5,956) Promissory Note (1) TownePlace Suites Hotel Harahan, LA $ 8,779 $ 1,800 $ 10,484 $ 2,063 $ 1,804 $ 12,543 $ 14,347 $ (2,623) 1/19/2011 (D) SpringHill Suites Hotel Peabody, MA 7,536 2,126 10,624 3,141 2,168 13,723 15,891 (3,672) 7/13/2012 (D) TownePlace Suites Hotel Johnson, AR 2,774 990 4,710 1,061 990 5,771 6,761 (1,041) 6/18/2013 (D) TownePlace Suites Hotel Little Rock, AR 3,486 1,037 5,220 1,008 1,045 6,220 7,265 (1,084) 6/18/2013 (D) Total $ 22,575 $ 5,953 $ 31,038 $ 7,273 $ 6,007 $ 38,257 $ 44,264 $ (8,420) Revolving Credit Facility (2) Holiday Inn Express Hotel Opelika, AL $ - $ 999 $ 5,871 $ 152 $ 999 $ 6,023 $ 7,022 $ (649) 4/1/2014 (D) Aloft Tucson University Hotel Tucson, AZ - 1,860 17,140 82 1,860 17,222 19,082 (2,046) 4/8/2014 (D) Aloft Philadelphia Airport Hotel Philadelphia, PA - 2,595 11,805 1,691 2,595 13,496 16,091 (1,021) 12/17/2014 (D) Four Points by Sheraton Hotel Philadelphia, PA - 3,267 5,733 2,913 3,278 8,635 11,913 (711) 12/17/2014 (D) Courtyard Marriott Willoughby, OH - 1,177 10,823 138 1,180 10,958 12,138 (1,039) 1/29/2015 (D) Fairfield Inn & Suites Des Moines, IA - 1,648 6,852 182 1,662 7,020 8,682 (744) 1/29/2015 (D) SpringHill Suites Des Moines, IA - 1,495 7,905 152 1,512 8,040 9,552 (793) 1/29/2015 (D) Hampton Inn Hotel Miami, FL - 3,571 15,629 1,558 3,571 17,187 20,758 (1,078) 1/29/2015 (D) Hampton Inn Hotel Ft Lauderdale, FL - 2,383 13,117 1,499 2,383 14,616 16,999 (960) 1/29/2015 (D) Unallocated 73,175 - - - - - - - (D) Total $ 73,175 $ 18,995 $ 94,875 $ 8,367 $ 19,040 $ 103,197 $ 122,237 $ (9,041) Promissory Note (3) Holiday Inn Express Hotel Auburn, AL $ 3,920 $ 817 $ 7,241 $ 49 $ 817 $ 7,290 $ 8,107 $ (674) 6/10/2015 (D) Aloft - Rogers Rogers, AR 7,618 1,383 12,917 934 1,383 13,851 15,234 (942) 6/10/2015 (D) Fairfield Inn & Suites Jonesboro, AR 2,976 1,613 3,987 839 1,700 4,739 6,439 (397) 6/10/2015 (D) Total $ 14,514 $ 3,813 $ 24,145 $ 1,822 $ 3,900 $ 25,880 $ 29,780 $ (2,013) Grand Total $ 127,140 $ 43,675 $ 189,638 $ 24,560 $ 44,137 $ 213,736 $ 257,873 $ (25,430) Notes: (1) - The Company's first Promissory Note is cross-collateralized by four hotels, each of which has an allocated loan amount. (2) - The Company's Revolving Credit Facility is cross-collateralized by nine hotels. (3) - The Company's second Promissory Note is cross-collateralized by three hotels, each of which has an allocated loan amount. Notes to Schedule III: (A) The initial cost to the Company represents the original purchase price of the property, including (i) bargain purchase gains recorded in connection with the acquisition and (ii) amounts incurred subsequent to acquisition which were contemplated at the time the property was acquired. (B) Reconciliation of total real estate owned: 2016 2015 2014 Balance at beginning of year $ 253,646 $ 120,790 $ 56,757 Acquisitions, at cost - 123,939 57,905 Acquisitions, bargain purchase gain - - 2,790 Improvements 4,227 8,917 3,338 Balance at end of year $ 257,873 $ 253,646 $ 120,790 (C) Reconciliation of accumulated depreciation: For the years ended December 31, 2016 2015 2014 Balance at beginning of year $ 14,959 $ 6,111 $ 2,670 Depreciation expense 10,471 8,848 3,441 Balance at end of year $ 25,430 $ 14,959 $ 6,111 (D) Depreciation is computed based upon the following estimated lives: Buildings and improvements 15-39 years Tenant improvements and equipment 5-10 years |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT II and the Operating Partnership and its subsidiaries (over which Lightstone REIT II exercises financial and operating control). As of December 31, 2016, the Company had a 99 The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and investments in other real estate entities, depreciable lives of long-lived assets and revenue recognition. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. Investments in other real estate entities where the Company has the ability to exercise significant influence, but does not exercise financial and operating control, and is not considered to be the primary beneficiary will be accounted for using the equity method. Investments in other real estate entities where the Company has virtually no influence will be accounted for using the cost method. |
Cash and Cash Equivalents | The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. All cash equivalents are held in commercial paper and money market funds. Year Ended December 31, 2016 2015 2014 Supplemental disclosure of cash flow information: Cash paid for interest $ 7,155 $ 4,683 $ 1,255 Distributions declared $ 12,968 $ 12,339 $ 8,194 Noncash commissions and other offering costs in accounts payable and other accrued expenses $ - $ - $ 126 Subscription receivable $ - $ - $ 55 Value of shares issued from distribution reinvestment program $ - $ 1,723 $ 3,258 Debt assumed for acquisition $ - $ 32,841 $ - Non controlling interest assumed for acquisition $ - $ 656 $ - Unrealized (loss)/gain in available for sale securities $ 1,071 $ (2,716) $ (147) Purchase of loan receivable $ - $ 547 $ - Non-cash purchase of investment property $ - $ 521 $ - |
Marketable Securities | Marketable Securities Marketable securities consist of equity securities and corporate bonds that are designated as available-for-sale and are recorded at fair value. Unrealized holding gains or losses will be reported as a component of accumulated other comprehensive income/(loss). Realized gains or losses resulting from the sale of these securities will be determined based on the specific identification of the securities sold. An impairment charge will be recognized when the decline in the fair value of a security below the amortized cost basis is determined to be other-than-temporary. The Company will consider various factors in determining whether to recognize an impairment charge, including the duration and severity of any decline in fair value below our amortized cost basis, any adverse changes in the financial condition of the issuers and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. The Board has authorized the Company from time to time to invest the Company’s available cash in marketable securities of real estate related companies. The Board of Directors has approved investments up to 30% of the Company’s total assets to be made at the Company’s discretion, subject to compliance with any REIT or other restrictions. |
Revenue Recognition | Hotel revenue is recognized as earned, which is generally defined as the date upon which a guest occupies a room or utilizes the hotel’s services. |
Accounts Receivable | Accounts Receivable The Company makes estimates of the uncollectability of its accounts receivable related to base rents, expense reimbursements and other revenues. The Company analyzes accounts receivable and historical bad debt levels, customer credit worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants in bankruptcy are analyzed and estimates are made in connection with the expected recovery of pre-petition and post-petition claims. The Company’s reported net income or loss is directly affected by management’s estimate of the collectability of accounts receivable. |
Investment in Real Estate | Investment in Real Estate Accounting for Acquisitions When the Company makes an investment in real estate, the fair value of the real estate acquired is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases for acquired in-place leases and the value of tenant relationships, based in each case on their fair values. Purchase accounting is applied to assets and liabilities related to real estate entities acquired based upon the percentage of interest acquired. Fees incurred related to acquisitions are expensed as incurred and recorded in general and administrative costs in the consolidated statements of operations. Transaction costs incurred related to the Company’s investments in unconsolidated affiliated entities, accounted for under the equity method of accounting, are capitalized as part of the cost of the investment. Upon the acquisition of real estate operating properties, the Company estimates the fair value of acquired tangible assets and identified intangible assets and liabilities and certain liabilities such as assumed debt and contingent liabilities, at the date of acquisition, based on evaluation of information and estimates available at that date. Based on these estimates, the Company allocates the initial purchase price to the applicable assets, liabilities and noncontrolling interests, if any. As final information regarding fair value of the assets acquired, liabilities assumed and noncontrolling interests is received and estimates are refined, appropriate adjustments are be made to the purchase price allocation. The allocations are finalized as soon as all the information necessary is available and in no case later than within twelve months from the acquisition date. In determining the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The capitalized above-market lease values and the capitalized below-market lease values are amortized as an adjustment to rental income over the initial non-cancelable lease term and any fixed-rate renewal periods, which are reasonably assured, in the respective leases. The aggregate value of in-place leases is determined by evaluating various factors, including an estimate of carrying costs during the expected lease-up periods, current market conditions and similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases including leasing commissions, legal and other related costs. Optional renewal periods are not considered. The aggregate value of other acquired intangible assets includes tenant relationships. Factors considered by management in assigning a value to these relationships include: assumptions of probability of lease renewals, investment in tenant improvements, leasing commissions and an approximate time lapse in rental income while a new tenant is located. The value assigned to this intangible asset is amortized over the remaining lease terms. Carrying Value of Assets The amounts capitalized as a result of periodic improvements and additions to real estate property, when applicable, and the periods over which the assets are depreciated or amortized, are determined based on the application of accounting standards that may require estimates as to fair value and the allocation of various costs to the individual assets. Differences in the amount attributed to the assets can be significant based upon the assumptions made in calculating these estimates. Impairment Evaluation Management evaluates the recoverability of its investments in real estate assets at the lowest identifiable level, the individual property level. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The Company evaluates the long-lived assets for potential impairment on a quarterly basis and records an impairment charge when there is an indicator of impairment and the undiscounted projected cash flows are less than the carrying amount for a particular property. The estimated cash flows used for the impairment analysis and the determination of estimated fair value are based on the Company’s plans for the respective assets and the Company’s views of market and economic conditions. The estimates consider matters such as current and historical rental rates, occupancies for the respective properties and comparable properties, and recent sales data for comparable properties. Changes in estimated future cash flows due to changes in the Company’s plans or views of market and economic conditions could result in recognition of impairment losses, which, under the applicable accounting guidance, could be substantial. As of December 31, 2016 and 2015, the Company did not recognize any impairment charges. |
Depreciation and Amortization | Depreciation and Amortization Depreciation expense is computed based on the straight-line method over the estimated useful life of the applicable real estate asset. We generally use estimated useful lives of up to thirty-nine years for buildings and improvements and five to ten years for furniture and fixtures. Expenditures for tenant improvements and construction allowances paid to commercial tenants are capitalized and amortized over the initial term of each lease. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. |
Deferred Costs | Deferred financing costs are recorded at cost and consist of loan fees and other costs incurred in issuing debt. Amortization of deferred financing costs is computed using a method that approximates the effective interest method over the term of the related debt and is included in interest expense in the consolidated statements of operations. Unamortized deferred financing costs are included as a direct deduction from the related debt in the consolidated balance sheets.. |
Investments in Unconsolidated Affiliated Entities | Investments in Unconsolidated Affiliated Entities The Company evaluates its investments in other entities for consolidation. The percentage interest in the joint venture, evaluation of control and whether a variable interest entity (“VIE”) exists are all considered in determining if the investment qualifies for consolidation. The Company accounts for its investments in unconsolidated affiliated entities using the equity or cost method of accounting, as appropriate. Under the equity method, the investment is recorded initially at cost, and subsequently adjusted for equity in net income/(loss) and cash contributions and distributions. The net income/(loss) of each investor is allocated in accordance with the provisions of the applicable operating agreements of the entities. The allocation provisions in these agreements may differ from the ownership interest held by each investor. Differences between the carrying amount of the Company’s investment in the respective joint venture and the Company’s share of the underlying equity of such unconsolidated affiliated entities are amortized over the respective lives of the underlying assets as applicable. These items are reported as a single line item in the consolidated statements of operations as income or loss from investments in unconsolidated affiliated entities. Under the cost method of accounting, the investment is recorded initially at cost, and subsequently adjusted for cash contributions and distributions resulting from any capital events. Dividends earned from the underlying entities are recorded as interest income in the consolidated statements of operations. On a quarterly basis, the Company assesses whether the value of the investments in unconsolidated affiliated entities has been impaired. An investment is impaired only if management’s estimate of the fair value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the fair value of the investment. Management’s estimate of fair value for each investment is based on a number of assumptions that are subject to economic and market uncertainties. As these factors are difficult to predict and are subject to future events that may alter our assumptions, the fair values estimated by management in the impairment analysis may not be realized. Any decline that is not considered temporary will result in the recording of an impairment charge. Management believes no impairment of its investments in unconsolidated affiliated entities existed as of December 31, 2016 and 2015. |
Income Taxes | We elected to be taxed as a REIT in conjunction with the filing of our 2009 U.S. federal income tax return. If we remain qualified as a REIT, we generally will not be subject to U.S. federal income tax on our net taxable income that we distribute currently to our stockholders. To maintain our REIT qualification under the Internal Revenue Code of 1986, as amended, or the Code, we must meet a number of organizational and operational requirements, including a requirement that we annually distribute to our stockholders at least 90 have a material adverse effect on The Company engages in certain activities through taxable REIT subsidiaries ("TRSs"). When the Company purchases a hotel it establishes a TRS and enters into an operating lease agreement for the hotel. As such, the Company may be subject to U.S. federal and state income taxes and franchise taxes from these activities. As of December 31, 2016, the Company had no material uncertain income tax positions. Additionally, even if we qualify as a REIT for U.S. federal income tax purposes, we may still be subject to some U.S. federal, state and local taxes on our income and property and to U.S. federal income taxes and excise taxes on our undistributed income. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, restricted escrows and deposits, prepaid expenses and other assets, accounts payable and other accrued expenses, margin loan, due to related party, and distributions payable approximated their fair values as of December 31, 2016 and 2015 because of the short maturity of these instruments. The estimated fair value of our mortgages payable is as follows: As of December 31, 2016 As of December 31, 2015 Estimated Fair Estimated Fair Carrying Amount Value Carrying Amount Value Mortgages payable $ 127,907 $ 128,052 $ 129,824 $ 130,255 The fair value of our mortgages payable was determined by discounting the future contractual interest and principal payments by market interest rates. |
Selling Commission, Dealer Manager Fees and Organization and Other Offering Costs | Selling Commissions, Dealer Manager Fees and Organization and Other Offering Costs Selling commissions and dealer manager fees paid to the Dealer Manager, and other third-party offering expenses such as registration fees, due diligence fees, marketing costs, and professional fees are accounted for as a reduction against additional paid-in capital (“APIC”) as costs are incurred. From the commencement of the Offering through the termination of the Follow-On Offering (September 27, 2014), the Company incurred approximately $ 16.3 8.5 24.8 |
Accounting for Derivative Financial Investments and Hedging Activities | Accounting for Derivative Financial Investments and Hedging Activities. The Company may enter into derivative financial instrument transactions in order to mitigate interest rate risk on a related financial instrument. The Company may designate these derivative financial instruments as hedges and apply hedge accounting. The Company will record all derivative instruments at fair value on the consolidated balance sheet. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, will be considered cash flow hedges. The Company will formally document all relationships between hedging instruments and hedged items, as well as our risk- management objective and strategy for undertaking each hedge transaction. The Company will periodically review the effectiveness of each hedging transaction, which involves estimating future cash flows. Cash flow hedges will be accounted for by recording the fair value of the derivative instrument on the consolidated balance sheet as either an asset or liability, with a corresponding amount recorded in accumulated other comprehensive income (loss) within stockholders’ equity. Amounts will be reclassified from other comprehensive income (loss) to the consolidated statement of operations in the period or periods the hedged forecasted transaction affects earnings. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, will be considered fair value hedges. The effective portion of the derivatives gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the transaction affects earnings. The ineffective portion of the gain or loss is reported in earnings immediately. |
Concentration of Risk | Concentration of Risk The Company maintains its cash in bank deposit accounts, which, at times, may exceed U.S. federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Share-based Compensation, Option and Incentive Plans Policy | Stock-Based Compensation The Company has an Employee and Director Incentive Restricted Share Plan. Awards, if any, will be granted at the fair market value on the date of the grant with fair value estimated using the Black-Scholes-Merton option valuation model, which incorporates assumptions surrounding the volatility, dividend yield, the risk-free interest rate, expected life, and the exercise price as compared to the underlying stock price on the grant date. As stock-based compensation expense recognized in the consolidated statements of operations will be based on awards ultimately expected to vest, the amount of expense will be reduced for forfeitures estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures will be estimated based on historical experience. The Company has not granted any stock-based incentive awards. |
Basic and Diluted Net Earnings per Common Share | Basic and Diluted Net Earnings per Common Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, earnings per share is calculated by dividing net income attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the applicable period. |
New Accounting Pronouncements | New Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that clarifies the definition of a business and assists in the evaluation of whether a transaction will be accounted for as an acquisition of an asset or as a business combination. The guidance provides a test to determine when a set of assets and activities acquired is not a business. When substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. Under the updated guidance, an acquisition of a single property will likely be treated as an asset acquisition as opposed to a business combination and associated transaction costs will be capitalized rather than expensed as incurred. Additionally, assets acquired, liabilities assumed, and any noncontrolling interest will be measured at their relative fair values. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, with early adoption permitted. This guidance will not have a material impact on the Company’s consolidated financial statements. In January 2017, FASB issued guidance that amends the Codification for SEC staff announcements made at recent Emerging Issues Task Force meetings. The SEC guidance that specifically relates to our consolidated financial statement was from the September 2016 meeting, where the SEC staff expressed their expectations about the extent of disclosures registrants should make about the effects of the new FASB guidance on revenue. Registrants are required to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. In cases where a registrant cannot reasonably estimate the impact of the adoption, then additional qualitative disclosures should be considered. The adoption this guidance did not have a material effect on the Company's consolidated financial statements. In August 2016, the issued FASB an accounting standards update which provides guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including those related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance, and distributions received from equity method investees. This guidance is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The guidance must be adopted on a retrospective basis and must be applied to all periods presented, but may be applied prospectively if retrospective application would be impracticable. This guidance will not have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued an accounting standards update that generally requires companies to measure investments in equity securities, except those accounted for under the equity method, at fair value and recognize any changes in fair value in net income. The new guidance must be applied using a modified-retrospective approach and is effective for periods beginning after December 15, 2017 and early adoption is not permitted. If the Company had adopted this standard during the year ended December 31, 2016, it would have resulted in an increase/(decrease) to net incomeof approximately $ 1.0 2.7 0.1 In April 2015, the FASB issued an accounting standards update to simplify the presentation of debt issuance costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This new guidance was effective for the Company beginning January 1, 2016. The Company adopted this standard during the quarter ended March 31, 2016. As a result of adopting this standard on a retrospective basis, approximately $ 1.4 In May 2014, the FASB issued an accounting standards update that provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company does not expect the adoption of this standard to have a material impact on its financial position, results of operations or cash flows. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. |
Reclassifications | Reclassifications Certain prior period amounts may have been reclassified to conform to the current year presentation. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Supplemental Cash Flow Information | Year Ended December 31, 2016 2015 2014 Supplemental disclosure of cash flow information: Cash paid for interest $ 7,155 $ 4,683 $ 1,255 Distributions declared $ 12,968 $ 12,339 $ 8,194 Noncash commissions and other offering costs in accounts payable and other accrued expenses $ - $ - $ 126 Subscription receivable $ - $ - $ 55 Value of shares issued from distribution reinvestment program $ - $ 1,723 $ 3,258 Debt assumed for acquisition $ - $ 32,841 $ - Non controlling interest assumed for acquisition $ - $ 656 $ - Unrealized (loss)/gain in available for sale securities $ 1,071 $ (2,716) $ (147) Purchase of loan receivable $ - $ 547 $ - Non-cash purchase of investment property $ - $ 521 $ - |
Summary of Estimated Fair Value of Debt | The estimated fair value of our mortgages payable is as follows: As of December 31, 2016 As of December 31, 2015 Estimated Fair Estimated Fair Carrying Amount Value Carrying Amount Value Mortgages payable $ 127,907 $ 128,052 $ 129,824 $ 130,255 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Business Acquisition, Pro Forma Information Acquistion Date Actual | For the Years Ended December 31, 2016 2015 2014 Rental revenue $ 63,819 $ 52,395 $ 6,416 Net income (1) $ 8,283 $ 8,043 $ 2,596 Note (1) Includes the approximately $2.8 million bargain purchase gain recorded in the year ended December 31, 2014 in connection with the acquisition of the Philadelphia Airport Hotel Portfolio. |
Business Acquisition, Pro Forma Information | The following table provides unaudited pro forma results of operations for the periods indicated, as if the LVP REIT Hotels, the Holiday Inn Opelika, the Aloft Tucson, the Hampton Inn Fort Myers Beach and the Philadelphia Airport Hotel Portfolio had been acquired at the beginning of the earliest period presented. Such pro forma results are not necessarily indicative of the results that actually would have occurred had these acquisitions been completed on the dates indicated, nor are they indicative of the future operating results of the combined company. For the Years Ended December 31, 2015 2014 Pro forma rental revenue $ 79,359 $ 74,411 Pro forma net income per Company's common share (2) $ 6,007 $ 3,119 Pro forma net income per Company's common share, basic and diluted (2) $ 0.32 $ 0.25 Note (2) Excludes the approximately $ 2.8 |
Investments in Unconsolidated25
Investments in Unconsolidated Affiliated Entity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |
Summary of Investments in Unconsolidated Entities | A summary of the Company’s investment in the unconsolidated affiliated entity is as follows: As of Entity Date of Ownership Ownership % December 31, 2016 December 31, 2015 Brownmill LLC ("Brownmill") Various 48.58 % $ 5,836 $ 6,021 |
Brownmill, LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Unaudited Condensed Income Statements of Affiliated Entities | The following table represents the unaudited condensed income statements for Brownmill for the periods indicated: For the Year Ended For the Year Ended For the Year Ended December 31, 2016 December 31, 2015 December 31, 2014 Revenue $ 3,596 $ 3,644 $ 3,600 Property operating expenses 1,592 1,596 1,458 Depreciation and amortization 846 904 842 Operating income 1,158 1,144 1,300 Interest expense and other, net (590) (1,018) (1,094) Net income $ 568 $ 126 $ 206 Company's share of net income $ 276 $ 61 $ 100 Additional depreciation and amortization expense (1) (169) (197) (211) Company's income/(loss) from investment $ 107 $ (136) $ (111) 1. Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in Brownmill and the amount of the underlying equity in net assets of Brownmill. |
Unaudited Condensed Balance Sheets of Affiliated Entities | The following table represents the unaudited condensed balance sheets for Brownmill: As of As of December 31, 2016 December 31, 2015 Real estate, at cost (net) $ 15,273 $ 15,651 Cash and restricted cash 1,412 1,080 Other assets 1,269 1,482 Total assets $ 17,954 $ 18,213 Mortgage payable $ 14,519 $ 14,700 Other liabilities 482 527 Members' deficiency 2,953 2,986 Total liabilities and members' deficiency $ 17,954 $ 18,213 |
Marketable Securities and Fai26
Marketable Securities and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities, Margin Loan and Fair Value Measurements [Abstract] | |
Summary of Available for Sale Securities | The following is a summary of the Company’s available for sale securities as of the dates indicated: As of December 31, 2016 Gross Unrealized Adjusted Cost Gross Unrealized Gains Losses Fair Value Equity Securities $ 10,194 $ - $ (1,456) $ 8,738 As of December 31, 2015 Gross Unrealized Adjusted Cost Gross Unrealized Gains Losses Fair Value Equity Securities $ 17,928 $ 63 $ (2,527) $ 15,464 |
Mortgages payable (Tables)
Mortgages payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mortgages payable [Abstract] | |
Schedule of Mortgages Payable | Mortgages payable consisted of the following: Weighted Average Interest Rate as of As of As of Interest December 31, Maturity Amount Due December 31, December 31, Description Rate 2016 Date at Maturity 2016 2015 Promissory Note, secured by four properties 4.94% 4.94 % August 2018 $ 21,754 $ 22,688 $ 23,236 Revolving Loan, secured by nine properties LIBOR + 4.95% 5.68 % January 2018 73,616 73,616 74,230 Courtyard - Parsippany LIBOR + 3.50% 3.98 % August 2018 7,126 7,431 7,612 Residence Inn - Baton Rouge 5.36% 5.36 % November 2018 3,480 3,640 3,720 Promissory Note, secured by three properties 4.94% 4.94 % August 2018 14,008 14,610 14,962 Courtyard - Baton Rouge 5.56% 5.56 % May 2017 5,873 5,922 6,064 Total mortgages payable 5.35 % $ 125,857 $ 127,907 $ 129,824 Less: Deferred financing costs (767) (1,432) Total mortgages payable, net $ 127,140 $ 128,392 |
Schedule of Estimated Contractual Principal Maturities | The following table, based on the initial terms of the mortgages, sets forth their aggregate estimated contractual principal maturities, including balloon payments due at maturity, as of December 31, 2016: Remainder of 2017 2018 2019 2020 2021 Thereafter Total Principal maturities $ 7,152 $ 120,755 $ - $ - $ - $ - $ 127,907 Less: Deferred financing costs (767) Total principal maturiteis, net 127,140 |
Related Party and Other Trans28
Related Party and Other Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Fees to Related Parties | The following table represents the fees incurred associated with the payments to the Company’s Advisor and its affiliates for the periods: For the Years Ended December 31, 2016 2015 2014 Acquisition fees $ - $ - $ 547 Asset management fees 2,389 2,032 - Development fees 59 20 140 Total $ 2,448 $ 2,052 $ 687 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data | The following table presents selected unaudited quarterly financial data for each quarter during the year ended December 31, 2016 and 2015: 2016 Year ended Quarter ended Quarter ended Quarter ended Quarter ended December 31, December 31, September 30, June 30, March 31, Total revenue $ 83,421 $ 19,986 $ 22,195 $ 21,351 $ 19,889 Operating income $ 12,590 $ 2,328 $ 4,003 $ 3,924 $ 2,335 Net income $ 6,242 $ 580 $ 2,265 $ 2,396 $ 1,001 Less (income)/loss attributable to noncontrolling interests (297) (114) (111) (75) 3 Net income applicable to Company's common shares $ 5,945 $ 466 $ 2,154 $ 2,321 $ 1,004 Net income per common share, basic and diluted $ 0.32 $ 0.03 $ 0.12 $ 0.13 $ 0.05 2015 Year ended Quarter ended Quarter ended Quarter ended Quarter ended December 31, December 31, September 30, June 30, March 31, Total revenue $ 71,368 $ 18,560 $ 19,687 $ 18,330 $ 14,791 Operating income $ 8,904 $ 1,482 $ 2,579 $ 2,818 $ 2,025 Net income $ 5,457 $ 248 $ 1,255 $ 2,116 $ 1,838 Less income attributable to noncontrolling interests (144) (15) (53) (53) (23) Net income applicable to Company's common shares $ 5,313 $ 233 $ 1,202 $ 2,063 $ 1,815 Net income per common share, basic and diluted $ 0.29 $ 0.01 $ 0.06 $ 0.11 $ 0.10 |
Organization (Details Textual)
Organization (Details Textual) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | 25 Months Ended | 36 Months Ended | 40 Months Ended | 77 Months Ended | ||||||||
Sep. 27, 2012$ / sharesshares | Apr. 24, 2009$ / sharesshares | May 20, 2008USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2012USD ($)shares | Dec. 31, 2011USD ($)shares | Dec. 31, 2010USD ($)shares | Sep. 27, 2014USD ($)shares | Dec. 31, 2012USD ($)$ / sharesshares | Aug. 15, 2012USD ($)shares | Sep. 27, 2014USD ($) | Sep. 30, 2009USD ($) | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||||
Date of incorporation | Apr. 28, 2008 | |||||||||||||
Lightstone REIT, partnership formation date | Apr. 30, 2008 | |||||||||||||
Common stock authorized and reserved for issuance under plan | shares | 75,000 | |||||||||||||
Proceeds from offering | $ 80 | $ 104,592 | ||||||||||||
Subscription receivable | $ 6,500 | |||||||||||||
Gross proceeds from issuance of equity | $ 177,300 | |||||||||||||
Selling commissions and dealer manager fees | 8,934 | $ 16,300 | ||||||||||||
General partner ownership interest | 99.00% | 99.00% | ||||||||||||
Payment for remaining membership interests | $ 0 | 867 | $ 0 | |||||||||||
Advisor's contribution to operating partnership | $ 2 | |||||||||||||
Partnership units issued | 200 | |||||||||||||
Public Offering [Member] | ||||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||||
Common stock, price per share | $ / shares | $ 10 | $ 10 | ||||||||||||
Shares reserved for issuance | shares | 30,000,000 | |||||||||||||
Proceeds from offering, shares | shares | 12,900,000 | 5,000,000 | ||||||||||||
Proceeds from offering | $ 127,500 | |||||||||||||
Gross proceeds from issuance of equity | $ 49,800 | |||||||||||||
Selling commissions and dealer manager fees | 11,000 | 5,200 | ||||||||||||
Payment for organization and other offering expenses | 4,000 | 4,500 | ||||||||||||
Net proceeds from issuance initial public offering | $ 112,500 | $ 40,100 | ||||||||||||
Distribution Reinvestment Plan [Member] | ||||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||||
Common stock, price per share | $ / shares | $ 9.50 | |||||||||||||
Shares reserved for issuance | shares | 2,500,000 | 6,500,000 | 5,900,000 | |||||||||||
Proceeds from offering, shares | shares | 300,000 | |||||||||||||
Proceeds form issuance of equity, share-based compensation plan | $ 2,900 | |||||||||||||
Brownmill, LLC [Member] | ||||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||||
Subordinated general partner participation, per unit cost | $ / shares | $ 100,000 | |||||||||||||
Sponsor's cash contribution | $ 12,900 | |||||||||||||
Ownership interest | 48.60% | |||||||||||||
Value of ownership interest | $ 4,800 | |||||||||||||
Subordinate profit interest units | shares | 177 | 9 | 6 | 33 | 48 | |||||||||
Aggregate value of subordinate profits | $ 17,700 | $ 900 | $ 600 | $ 3,300 | $ 4,800 | |||||||||
for each $1.0 million in subscriptions up to ten percent of its primary offering proceeds on a semi-annual basis [Member] | ||||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||||
Subordinate General Partner Unit Value | $ 1,000 | |||||||||||||
Subordinated general partner participation, per unit cost | $ / shares | $ 100,000 | |||||||||||||
Advisory Services [Member] | ||||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||||
Stock issued during period, per share | $ / shares | $ 10 | |||||||||||||
Stock issued during period for services, shares | shares | 20,000 | |||||||||||||
Stock issued during period for services, value | $ 200 | |||||||||||||
Corporate Joint Venture [Member] | Hotel Portfolio [Member] | ||||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||||
Payment for remaining membership interests | $ 900 | |||||||||||||
Ownership interest | 100.00% | |||||||||||||
Maximum [Member] | Public Offering [Member] | ||||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||||
Shares reserved for issuance | shares | 51,000,000 | |||||||||||||
Restricted Share Award [Member] | ||||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||||
Common stock authorized and reserved for issuance under plan | shares | 255,000 | 255,000 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | $ 7,155 | $ 4,683 | $ 1,255 |
Distributions declared | 12,968 | 12,339 | 8,194 |
Noncash commissions and other offering costs in accounts payable and other accrued expenses | 0 | 0 | 126 |
Subscription receivable | 0 | 0 | 55 |
Value of shares issued from distribution reinvestment program | 0 | 1,723 | 3,258 |
Debt assumed for acquisition | 0 | 32,841 | 0 |
Non controlling interest assumed for acquisition | 0 | 656 | 0 |
Unrealized (loss)/gain in available for sale securities | 1,071 | (2,716) | (147) |
Purchase of loan receivable | 0 | 547 | 0 |
Non-cash purchase of investment property | $ 0 | $ 521 | $ 0 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Significant Accounting Policies [Line Items] | ||
Mortgages payable-Carrying Amount | $ 127,140 | $ 128,392 |
Mortgages payable-Estimated Fair Value | $ 128,052 | $ 130,255 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | 25 Months Ended | 77 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Percentage general partnership interest in common units operating partnership | 99.00% | 99.00% | |||
REIT annual distribution, percent of taxable income | 90.00% | ||||
Selling commissions and dealer manager fees | $ 8,934 | $ 16,300 | |||
Aggregate offering costs | 24,800 | ||||
Adjustments to Additional Paid in Capital, Other | $ (10) | 611 | $ 8,500 | ||
Effect of New Accounting Pronouncement or Change in Accounting Principle | $ 1,000 | (2,700) | $ (100) | ||
Secured Debt | 127,140 | $ 128,392 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Secured Debt | $ 1,400 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Business Acquisition [Line Items] | ||||
Rental revenue | $ 63,819 | $ 52,395 | $ 6,416 | |
Net income | [1] | $ 8,283 | $ 8,043 | $ 2,596 |
[1] | Includes the approximately $2.8 million bargain purchase gain recorded in the year ended December 31, 2014 in connection with the acquisition of the Philadelphia Airport Hotel Portfolio. |
Acquisitions (Details 1)
Acquisitions (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Pro forma rental revenue | $ 79,359 | $ 74,411 | |
Pro forma net income per Company's common share | [1] | $ 6,007 | $ 3,119 |
Pro forma net income per Company's common share, basic and diluted | [1] | $ 0.32 | $ 0.25 |
[1] | Excludes the approximately $2.8 million bargain purchase gain recorded in the year ended December 31, 2014 in connection with the acquisition of the Philadelphia Airport Hotel Portfolio. |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - USD ($) $ in Thousands | Jun. 10, 2015 | Feb. 11, 2015 | Jan. 29, 2015 | Oct. 02, 2014 | Apr. 08, 2014 | Apr. 02, 2014 | Jun. 30, 2015 | Dec. 17, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Membership percentage in joint venture by Company | 97.50% | ||||||||||||
Acquisition fees received by the advisor as percentage of acquisition price | 0.95% | ||||||||||||
Bargain purchase gain | $ 0 | $ 0 | $ 2,790 | ||||||||||
Parent [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Cash paid | $ 12,600 | $ 11,900 | $ 1,200 | ||||||||||
Holiday Inn - Opelika [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Cash paid | $ 6,900 | ||||||||||||
Acquisition fees received by the advisor as percentage of acquisition price | 0.95% | ||||||||||||
Acquisition fees received by the advisor | $ 66 | ||||||||||||
Purchase price allocation, land and improvements | 1,000 | ||||||||||||
Purchase price allocation, building and improvements | 5,300 | ||||||||||||
Purchase price allocation, furnitures and fixtures | $ 600 | ||||||||||||
Aloft - Tucson [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Cash paid | $ 19,000 | ||||||||||||
Acquisition fees received by the advisor as percentage of acquisition price | 0.95% | ||||||||||||
Acquisition fees received by the advisor | $ 181 | ||||||||||||
Purchase price allocation, land and improvements | 19,000 | ||||||||||||
Purchase price allocation, building and improvements | 14,700 | ||||||||||||
Purchase price allocation, furnitures and fixtures | $ 2,400 | ||||||||||||
Hampton Inn - Fort Myers Beach [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Cash paid | $ 9,400 | ||||||||||||
Acquisition fees received by the advisor as percentage of acquisition price | 0.95% | ||||||||||||
Acquisition fees received by the advisor | $ 100 | ||||||||||||
Purchase price allocation, land and improvements | 3,000 | ||||||||||||
Purchase price allocation, building and improvements | 5,100 | ||||||||||||
Purchase price allocation, furnitures and fixtures | $ 1,300 | ||||||||||||
Philadelphia Airport Hotel Portfolio [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Cash paid | $ 22,600 | ||||||||||||
Contingent consideration | $ 300 | ||||||||||||
Acquisition fees received by the advisor as percentage of acquisition price | 0.95% | ||||||||||||
Acquisition fees received by the advisor | $ 200 | ||||||||||||
Fair value of assets acquired | 25,400 | ||||||||||||
Purchase price allocation, land and improvements | 7,900 | ||||||||||||
Purchase price allocation, building and improvements | 15,500 | ||||||||||||
Purchase price allocation, furnitures and fixtures | $ 2,000 | ||||||||||||
Bargain purchase gain | $ 2,800 | $ 2,800 | |||||||||||
Hotel Portfolio [Member] | Parent [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Purchase consideration | $ 63,000 | ||||||||||||
Courtyard-Parsippany [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Maturity Date | Aug. 1, 2018 | Aug. 31, 2018 | |||||||||||
Interest rate, Libor plus | 3.50% | ||||||||||||
Debt assumed | $ 7,800 | $ 7,800 | |||||||||||
Residence Inn - Baton Rouge [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Maturity Date | Nov. 30, 2018 | ||||||||||||
Debt assumed | $ 3,800 | $ 3,800 | |||||||||||
Interest Rate | 5.36% | 5.36% | |||||||||||
Fairfield Inn & Suites by Marriott Marriott, located in Jonesboro, Arkansas [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Amount of noncontrolling interest ownership by noncontrolling owners | $ 700 | ||||||||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 5.00% | ||||||||||||
Holiday Inn Express - Auburn ,the Aloft - Rogers and the Fairfield Inn - Jonesboro [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Maturity Date | Aug. 31, 2018 | ||||||||||||
Interest rate, Libor plus | 4.94% | ||||||||||||
Courtyard - Baton Rouge [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Amount of noncontrolling interest ownership by noncontrolling owners | $ 700 | ||||||||||||
Maturity Date | May 31, 2017 | May 31, 2017 | |||||||||||
Debt assumed | $ 6,100 | ||||||||||||
Interest Rate | 5.56% | 5.56% | |||||||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 10.00% | ||||||||||||
LVP REIT Hotels [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Purchase consideration | $ 24,100 | $ 124,100 | |||||||||||
Purchase price allocation, land and improvements | 21,000 | ||||||||||||
Purchase price allocation, building and improvements | 86,400 | ||||||||||||
Purchase price allocation, furnitures and fixtures | $ 16,700 | ||||||||||||
LVP REIT Hotels [Member] | Total Noncontrolling Interests [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Purchase consideration | $ 300 | ||||||||||||
Business acquisition, percentage of voting interests acquired | 10.00% | ||||||||||||
Joint venture [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Purchase consideration | $ 28,000 | ||||||||||||
Cash paid | 12,900 | $ 12,200 | |||||||||||
Debt assumed | $ 15,100 | $ 11,600 | |||||||||||
Joint venture [Member] | Hotel Portfolio [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Purchase consideration | $ 64,600 | ||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | ||||||||||||
Joint venture [Member] | Courtyard-Parsippany [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | ||||||||||||
Joint venture [Member] | Residence Inn - Baton Rouge [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Business acquisition, percentage of voting interests acquired | 90.00% | ||||||||||||
Joint venture [Member] | Holiday Inn - Auburn [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | ||||||||||||
Joint venture [Member] | Starwood Hotel Group Aloft Hotel Located in Rogers,Arkansas [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | ||||||||||||
Joint venture [Member] | Fairfield Inn & Suites by Marriott Marriott, located in Jonesboro, Arkansas [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Business acquisition, percentage of voting interests acquired | 95.00% | ||||||||||||
Joint venture [Member] | Courtyard - Baton Rouge [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Purchase consideration | $ 7,400 | ||||||||||||
Business acquisition, percentage of voting interests acquired | 90.00% | ||||||||||||
Cash paid | $ 1,300 | ||||||||||||
Debt assumed | 6,100 | ||||||||||||
Lightstone I [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Cash paid | $ 300 | $ 300 | $ 100 | ||||||||||
Membership percentage in joint venture by other party | 2.50% | ||||||||||||
Lightstone I [Member] | Hotel Portfolio [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Purchase consideration | $ 1,600 | ||||||||||||
Revolving Credit Facility [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Amount of credit facility | $ 75,000 | ||||||||||||
Maturity Date | Jan. 31, 2018 | ||||||||||||
Amount allowed for borrowings as percentage of loan to value ratio of properties | 65.00% | ||||||||||||
Initial loan received | $ 35,000 | $ 15,000 | |||||||||||
Revolving Credit Facility [Member] | Joint venture [Member] | Hotel Portfolio [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Amount allowed for borrowings as percentage of loan to value ratio of properties | 65.00% | ||||||||||||
Initial loan received | $ 35,000 | ||||||||||||
Revolving Credit Facility [Member] | GE Capital Markets Inc [Member] | |||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||
Amount of credit facility | $ 60,000 | ||||||||||||
Interest rate, Libor plus | 4.95% |
Investments in Unconsolidated37
Investments in Unconsolidated Affiliated Entity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 5,836 | $ 6,021 |
Brownmill, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Date of Ownership | Various | |
Ownership % | 48.60% | |
Equity Method Investments | $ 5,836 | $ 6,021 |
Investments in Unconsolidated38
Investments in Unconsolidated Affiliated Entity (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Company's income/(loss) from investment | $ 107 | $ (136) | $ (111) | |
Brownmill, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue | 3,596 | 3,644 | 3,600 | |
Property operating expenses | 1,592 | 1,596 | 1,458 | |
Depreciation and amortization | 846 | 904 | 842 | |
Operating income | 1,158 | 1,144 | 1,300 | |
Interest expense and other, net | (590) | (1,018) | (1,094) | |
Net income | 568 | 126 | 206 | |
Brownmill, LLC [Member] | Parent [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Company's share of net income | 276 | 61 | 100 | |
Additional depreciation and amortization expense | [1] | (169) | (197) | (211) |
Company's income/(loss) from investment | $ 107 | $ (136) | $ (111) | |
[1] | Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in Brownmill and the amount of the underlying equity in net assets of Brownmill. |
Investments in Unconsolidated39
Investments in Unconsolidated Affiliated Entity (Details 2) - Brownmill, LLC [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Equity method investment, assets | $ 17,954 | $ 18,213 |
Members' deficiency | 2,953 | 2,986 |
Total liabilities and members' deficiency | 17,954 | 18,213 |
Real estate, at cost (net) [Member] | ||
Equity method investment, assets | 15,273 | 15,651 |
Cash and restricted cash [Member] | ||
Equity method investment, assets | 1,412 | 1,080 |
Other assets [Member] | ||
Equity method investment, assets | 1,269 | 1,482 |
Mortgage payable [Member] | ||
Equity method investment, liabilities | 14,519 | 14,700 |
Other liabilities [Member] | ||
Equity method investment, liabilities | $ 482 | $ 527 |
Investments in Unconsolidated40
Investments in Unconsolidated Affiliated Entity (Details Textual) - Brownmill, LLC [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 36 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity investment, percentage ownership purchased | 8.60% | 5.60% | 34.40% | 48.60% | |||
Subordinated general partner participation, per unit cost | $ 100,000 | ||||||
Distribution to members | $ 595 | $ 0 | $ 450 | ||||
Distribution Received from real estate partnership | $ 292 | 0 | $ 219 | ||||
Subordinated General Partner Participation Units | 177 | 9 | 6 | 33 | 48 | ||
Subordinate Profit Interest Value | $ 17,700 | $ 900 | $ 600 | $ 3,300 | $ 4,800 | ||
Equity Method Investment, Ownership Percentage | 48.60% | ||||||
Debt Instrument, Periodic Payment, Principal | 5,500 | ||||||
Repayments of Related Party Debt | $ 2,700 | ||||||
Estimate of Fair Value, Fair Value Disclosure [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Capital contributions | $ 15,500 | ||||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Equity [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Capital contributions | 4,800 | ||||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Mortgages [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Capital contributions | $ 10,700 |
Marketable Securities and Fai41
Marketable Securities and Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 8,738 | $ 15,464 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 10,194 | 17,928 |
Gross Unrealized Gains | 0 | 63 |
Gross Unrealized Losses | (1,456) | (2,527) |
Fair Value | $ 8,738 | $ 15,464 |
Marketable Securities and Fai42
Marketable Securities and Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Stock Issued During Period, Value, New Issues | $ 80 | $ 104,592 | |
Equity Securities [Member] | |||
Debt Instrument [Line Items] | |||
Stock Issued During Period, Value, New Issues | $ 7,800 | ||
Proceeds from Issuance or Sale of Equity | 7,600 | ||
Gain (Loss) on Sale of Securities, Net | $ (200) | ||
Margin Loan [Member] | |||
Debt Instrument [Line Items] | |||
Libor | 1.62% | ||
Interest rate, Libor plus | 0.85% |
Notes Receivable from Related43
Notes Receivable from Related Party (Details Textual) - USD ($) $ in Thousands | May 02, 2016 | May 15, 2015 | Feb. 04, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Notes Receivable from Affiliate [Line Items] | |||||||
Amount of note receivable funded to related party | $ 24,200 | $ 20,200 | $ 0 | ||||
Outstanding principal balance | 0 | 2,055 | |||||
Proceeds from Collection of Long-term Loans to Related Parties | $ 26,255 | 18,145 | $ 0 | ||||
Des Moines Note Receivable [Member] | |||||||
Notes Receivable from Affiliate [Line Items] | |||||||
Debt instrument, borrowing period | 1 year | ||||||
Interest rate margin | 6.00% | ||||||
Debt Instrument Origination Fee Amount | $ 100 | ||||||
Lightstone III [Member] | |||||||
Notes Receivable from Affiliate [Line Items] | |||||||
Debt Instrument Origination Fee Amount | 277 | 178 | |||||
Interest Income, Related Party | $ 606 | 904 | |||||
Lightstone III [Member] | Des Moines Note Receivable [Member] | |||||||
Notes Receivable from Affiliate [Line Items] | |||||||
Maximum borrowing capacity | $ 10,000 | ||||||
Amount of note receivable funded to related party | $ 8,200 | ||||||
Lightstone III [Member] | Lansing Note Receivable [Member] | |||||||
Notes Receivable from Affiliate [Line Items] | |||||||
Maximum borrowing capacity | $ 8,000 | ||||||
Amount of note receivable funded to related party | $ 6,000 | ||||||
Debt instrument, borrowing period | 1 year | ||||||
Interest rate margin | 6.00% | ||||||
Debt Instrument Origination Fee Amount | $ 80 | ||||||
Lightstone III [Member] | Green Bay Note Receivable [Member] | |||||||
Notes Receivable from Affiliate [Line Items] | |||||||
Maximum borrowing capacity | 14,500 | ||||||
Amount of note receivable funded to related party | $ 10,200 | ||||||
Debt instrument, borrowing period | 1 year | ||||||
Interest rate margin | 6.00% | ||||||
Debt Instrument Origination Fee Amount | $ 145 | ||||||
Revolving Promissory Note - Durham [Member] | Lightstone III [Member] | |||||||
Notes Receivable from Affiliate [Line Items] | |||||||
Maximum borrowing capacity | $ 13,000 | ||||||
Amount of note receivable funded to related party | $ 12,000 | $ 8,000 | |||||
Debt instrument, borrowing period | 1 year | ||||||
Interest rate margin | 6.00% | ||||||
Debt Instrument Origination Fee Amount | $ 130 | ||||||
Outstanding principal balance | 2,100 | ||||||
Remaining borrowing capacity available | $ 10,900 | ||||||
Proceeds from Collection of Long-term Loans to Related Parties | $ 10,100 |
Mortgages Payable (Details)
Mortgages Payable (Details) - USD ($) $ in Thousands | Feb. 11, 2015 | Jan. 29, 2015 | Jun. 30, 2015 | Jul. 29, 2013 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate | 5.35% | |||||
Amount Due at Maturity | $ 125,857 | |||||
Total mortgages payable | 127,907 | $ 129,824 | ||||
Less: Deferred financing costs | (767) | (1,432) | ||||
Total mortgages payable, net | $ 127,140 | 128,392 | ||||
Promissory Note, secured by four properties [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 4.94% | 4.94% | ||||
Weighted Average Interest Rate | 4.94% | |||||
Maturity Date | Aug. 6, 2018 | Aug. 31, 2018 | ||||
Amount Due at Maturity | $ 21,754 | |||||
Total mortgages payable, net | $ 22,688 | 23,236 | ||||
Promissory Note, secured by three properties | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 4.94% | |||||
Weighted Average Interest Rate | 4.94% | |||||
Maturity Date | Aug. 31, 2018 | |||||
Amount Due at Maturity | $ 14,008 | |||||
Total mortgages payable, net | $ 14,610 | 14,962 | ||||
Revolving Loan, secured by nine properties [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate basis | Libor plus 4.95 | LIBOR + 4.95 | ||||
Weighted Average Interest Rate | 5.68% | |||||
Maturity Date | Jan. 31, 2018 | |||||
Amount Due at Maturity | $ 73,616 | |||||
Total mortgages payable, net | $ 73,616 | 74,230 | ||||
Courtyard-Parsippany [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate basis | LIBOR + 3.50 | |||||
Weighted Average Interest Rate | 3.98% | |||||
Maturity Date | Aug. 1, 2018 | Aug. 31, 2018 | ||||
Amount Due at Maturity | $ 7,126 | |||||
Total mortgages payable, net | $ 7,431 | 7,612 | ||||
Residence Inn - Baton Rouge [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 5.36% | 5.36% | ||||
Weighted Average Interest Rate | 5.36% | |||||
Maturity Date | Nov. 30, 2018 | |||||
Amount Due at Maturity | $ 3,480 | |||||
Total mortgages payable, net | $ 3,640 | 3,720 | ||||
Courtyard - Baton Rouge [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 5.56% | 5.56% | ||||
Weighted Average Interest Rate | 5.56% | |||||
Maturity Date | May 31, 2017 | May 31, 2017 | ||||
Amount Due at Maturity | $ 5,873 | |||||
Total mortgages payable, net | $ 5,922 | $ 6,064 |
Mortgages payable (Details 1)
Mortgages payable (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
2,017 | $ 7,152 | |
2,018 | 120,755 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 0 | |
Total | 127,907 | $ 129,824 |
Less: Deferred financing costs | (767) | (1,432) |
Total principal maturiteis, net | $ 127,140 | $ 128,392 |
Mortgages payable (Details Text
Mortgages payable (Details Textual) - USD ($) $ in Thousands | Feb. 11, 2015 | Jan. 29, 2015 | Jun. 30, 2015 | Jul. 29, 2013 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||||||
Restricted escrows | $ 3,488 | $ 7,243 | |||||
Secured Debt | 127,140 | 128,392 | |||||
Promissory Note, secured by four properties [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt assumed | $ 24,400 | ||||||
Term of credit facility | 5 years | ||||||
Restricted escrows | $ 3,500 | 2,200 | |||||
Monthly payments | $ 142 | ||||||
Interest Rate | 4.94% | 4.94% | |||||
Maturity Date | Aug. 6, 2018 | Aug. 31, 2018 | |||||
Secured Debt | $ 22,688 | 23,236 | |||||
Secured Promissory Note Two [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt assumed | $ 15,100 | ||||||
Interest Rate | 4.94% | ||||||
Maturity Date | Aug. 31, 2018 | ||||||
Secured Debt | $ 14,610 | 14,962 | |||||
Revolving Loan, secured by nine properties [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of wholly owned subsidiaries | 2 | ||||||
Term of credit facility | 3 years | ||||||
Amount allowed for borrowings as percentage of loan to value ratio of properties | 65.00% | ||||||
Loan received | $ 35,000 | $ 15,000 | |||||
Remaining borrowing capacity available | $ 24,200 | ||||||
Amount of credit facility | $ 75,000 | ||||||
Outstanding principal balance | $ 73,600 | ||||||
Maturity Date | Jan. 31, 2018 | ||||||
Variable interest rate basis | Libor plus 4.95 | LIBOR + 4.95 | |||||
Secured Debt | $ 73,616 | 74,230 | |||||
Courtyard-Parsippany [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt assumed | $ 7,800 | $ 7,800 | |||||
Maturity Date | Aug. 1, 2018 | Aug. 31, 2018 | |||||
Variable interest rate basis | LIBOR + 3.50 | ||||||
Secured Debt | $ 7,431 | 7,612 | |||||
Residence Inn - Baton Rouge [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt assumed | $ 3,800 | $ 3,800 | |||||
Interest Rate | 5.36% | 5.36% | |||||
Maturity Date | Nov. 30, 2018 | ||||||
Secured Debt | $ 3,640 | 3,720 | |||||
Courtyard Baton Rouge [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt assumed | $ 6,100 | ||||||
Interest Rate | 5.56% | 5.56% | |||||
Maturity Date | May 31, 2017 | May 31, 2017 | |||||
Secured Debt | $ 5,922 | $ 6,064 |
Selling Commission, Dealer Ma47
Selling Commission, Dealer Manager Fees and Other Offering Costs (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | 77 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 27, 2014 | |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 8,934 | $ 16,300 | |
Adjustments to Additional Paid in Capital, Other | $ (10) | $ 611 | $ 8,500 |
Stockholder's Equity (Details T
Stockholder's Equity (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Feb. 28, 2017 | Sep. 25, 2015 | Oct. 31, 2009 | Mar. 30, 2009 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders Equity Note [Line Items] | |||||||
REIT annual distribution, percent of taxable income | 90.00% | ||||||
Minimum number of shares issued in offering required to trigger distribution payments | 500,000 | 500,000 | |||||
Distribution Rate Per Day | $ 0.0019178 | $ 0.00178082191 | |||||
Number Of Days Used To Calculate Dividend Per Day | 365 days | 365 days | |||||
Annualized Distribution Rate | 6.50% | 6.50% | |||||
Share Price | $ 10 | $ 10 | |||||
Dividends, Cash | $ 12,968,000 | $ 12,339,000 | $ 8,194,000 | ||||
Annualized Rate | 7.00% | ||||||
Dividends Payable | $ 3,248,000 | $ 3,279,000 | |||||
Subsequent Event [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Distribution Rate Per Day | $ 0.000136986 | ||||||
Number Of Days Used To Calculate Dividend Per Day | 365 days | ||||||
Annualized Distribution Rate | 0.50% | ||||||
Share Price | $ 10 | ||||||
Dividends Payable | $ 2,100,000 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Noncontrolling Interest [Line Items] | |||
Limited partner units issued | 200 | ||
Payments to Acquire Equity Method Investments | $ 0 | $ 867 | $ 0 |
Lightstone SLP II, LLC [Member] | |||
Noncontrolling Interest [Line Items] | |||
Subordinated profits interests units | 177 | ||
Corporate Joint Venture [Member] | |||
Noncontrolling Interest [Line Items] | |||
Equity Method Investment, Ownership Percentage | 100.00% |
Related Party and Other Trans50
Related Party and Other Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||||
Acquisition fees received by the advisor as percentage of acquisition price | 0.95% | ||||
Maximum percentage of gross revenues allocated to management fees for residential, hospitality and retail properties | 5.00% | ||||
Asset Management Fees, Percentage Of Average Invested Assets | 0.95% | ||||
Asset management fees, payout terms | payable quarterly in an amount equal to 0.2375 of 1% of average invested assets as of the last day of the immediately preceding quarter. | ||||
Minimum percentage of other operating expenses required to be reimbursed | 2.00% | ||||
Minimum percentage of net income required to be reimbursed | 25.00% | ||||
Maximum percentage of gross revenues allocated to management fees for office and industrial properties | 4.50% | ||||
Brownmill, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from subordinated profit interest sold | $ 12.9 | ||||
Equity Method Investment, Ownership Percentage | 48.60% | ||||
Equity Method Investment, Quoted Market Value | $ 4.8 | ||||
Subordinated General Partner Participation Units | 177 | 9 | 6 | 33 | 48 |
Subordinate Profit Interest Value | $ 17.7 | $ 0.9 | $ 0.6 | $ 3.3 | $ 4.8 |
Selling Commission [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maximum percentage of gross offering proceeds paid to the dealer manager | 7.00% | ||||
Fees and commissions | $ 11.2 | ||||
Dealer Management Fee [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maximum percentage of gross offering proceeds paid to the dealer manager | 3.00% | ||||
Fees and commissions | $ 5.1 |
Related Party and Other Trans51
Related Party and Other Transactions (Details 1) - $ / shares | Dec. 31, 2016 | Sep. 25, 2015 | Mar. 30, 2009 |
Related Party Transaction [Line Items] | |||
Share price | $ 10 | $ 10 | |
Liquidating Stage Distribution, 7% Stockholder Return Threshold [Member] | |||
Related Party Transaction [Line Items] | |||
Distribution due, cumulative rate of return | 7.00% | ||
Liquidating Stage Distribution, In Excess of 7% Stockholder Return Threshold [Member] | |||
Related Party Transaction [Line Items] | |||
Distribution due, cumulative rate of return | 12.00% | ||
Liquidating Stage Distribution, In Excess of 7% Stockholder Return Threshold [Member] | Stockholder [Member] | |||
Related Party Transaction [Line Items] | |||
Percent of additional distributions payable to related party | 70.00% | ||
Liquidating Stage Distribution, In Excess of 7% Stockholder Return Threshold [Member] | Lightstone SLP II, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Percent of additional distributions payable to related party | 30.00% | ||
Liquidating Stage Distribution, In Excess of 12% Stockholder Returns Threshold [Member] | Stockholder [Member] | |||
Related Party Transaction [Line Items] | |||
Percent of additional distributions payable to related party | 60.00% | ||
Liquidating Stage Distribution, In Excess of 12% Stockholder Returns Threshold [Member] | Lightstone SLP II, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Percent of additional distributions payable to related party | 40.00% | ||
Operating Stage Distribution, 7% Stockholder Return Threshold [Member] | |||
Related Party Transaction [Line Items] | |||
Stockholders' return threshold, percent | 7.00% | ||
Distribution due, cumulative rate of return | 7.00% | ||
Share price | $ 10 | ||
Operating Stage Distribution, In Excess of 7% Stockholder Return Threshold [Member] | |||
Related Party Transaction [Line Items] | |||
Distribution due, cumulative rate of return | 12.00% | ||
Operating Stage Distribution, In Excess of 7% Stockholder Return Threshold [Member] | Stockholder [Member] | |||
Related Party Transaction [Line Items] | |||
Percent of additional distributions payable to related party | 70.00% | ||
Operating Stage Distribution, In Excess of 7% Stockholder Return Threshold [Member] | Lightstone SLP II, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Percent of additional distributions payable to related party | 30.00% | ||
Operating Stage Distribution, In Excess of 12% Stockholder Returns Threshold [Member] | |||
Related Party Transaction [Line Items] | |||
Distribution due, cumulative rate of return | 12.00% | ||
Operating Stage Distribution, In Excess of 12% Stockholder Returns Threshold [Member] | Stockholder [Member] | |||
Related Party Transaction [Line Items] | |||
Percent of additional distributions payable to related party | 60.00% | ||
Operating Stage Distribution, In Excess of 12% Stockholder Returns Threshold [Member] | Lightstone SLP II, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Percent of additional distributions payable to related party | 40.00% |
Related Party and Other Trans52
Related Party and Other Transactions (Details 2) - Related Party [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Acquisition fees | $ 0 | $ 0 | $ 547 |
Asset management fees | 2,389 | 2,032 | 0 |
Development fees | 59 | 20 | 140 |
Total | $ 2,448 | $ 2,052 | $ 687 |
Related Party and Other Trans53
Related Party and Other Transactions (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Percentage of average invested assets allocated to asset management fees | 0.95% | |
Asset management fees waived | $ 800 | |
Payments for agency fees | $ 44 | |
Brownmill, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Equity Method Investment, Ownership Percentage | 48.60% | |
Lightstone SLP II, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Distributions, annualized rate of return | 7.00% | |
Proceeds from Limited Partnership Investments | $ 4,200 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) | 1 Months Ended | 12 Months Ended |
Jan. 31, 2012 | Dec. 31, 2016 | |
Commitments And Contingencies [Line Items] | ||
Number of claims filed | 2 | |
Franchise Fee Percentage | 5.00% | |
Minimum [Member] | ||
Commitments And Contingencies [Line Items] | ||
Management Agreement Term | 1 year | |
Marketing Fund Charge Percent | 1.50% | |
Franchise Agreement Term | 15 years | |
Property Management Fee, Percent Fee | 3.00% | |
Maximum [Member] | ||
Commitments And Contingencies [Line Items] | ||
Management Agreement Term | 10 years | |
Marketing Fund Charge Percent | 3.50% | |
Franchise Agreement Term | 20 years | |
Property Management Fee, Percent Fee | 3.50% |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information [Line Items] | |||||||||||
Total revenue | $ 19,986 | $ 22,195 | $ 21,351 | $ 19,889 | $ 18,560 | $ 19,687 | $ 18,330 | $ 14,791 | $ 83,421 | $ 71,368 | $ 23,566 |
Operating income | 2,328 | 4,003 | 3,924 | 2,335 | 1,482 | 2,579 | 2,818 | 2,025 | 12,590 | 8,904 | 1,668 |
Net income | 580 | 2,265 | 2,396 | 1,001 | 248 | 1,255 | 2,116 | 1,838 | 6,242 | 5,457 | 4,540 |
Less (income)/loss attributable to noncontrolling interests | (114) | (111) | (75) | 3 | (15) | (53) | (53) | (23) | 297 | 144 | 68 |
Net income applicable to Company's common shares | $ 466 | $ 2,154 | $ 2,321 | $ 1,004 | $ 233 | $ 1,202 | $ 2,063 | $ 1,815 | $ 5,945 | $ 5,313 | $ 4,472 |
Net income per common share, basic and diluted | $ 0.03 | $ 0.12 | $ 0.13 | $ 0.05 | $ 0.01 | $ 0.06 | $ 0.11 | $ 0.10 | $ 0.32 | $ 0.29 | $ 0.35 |
Schedule III Real Estate and 56
Schedule III Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Initial Cost | |||||
Encumbrance | $ 127,140 | ||||
Land | 43,675 | ||||
Buildings and Improvements and Furniture and Fixtures | 189,638 | ||||
Net Costs Capitalized & Impairments Subsequent to Acquisition | 24,560 | ||||
Gross amount at which carried at end of period | |||||
Land and Improvements | 44,137 | ||||
Buildings and Improvements and Furniture and Fixtures | 213,736 | ||||
Total | 257,873 | $ 253,646 | $ 120,790 | $ 56,757 | |
Accumulated Depreciation | (25,430) | $ (14,959) | $ (6,111) | $ (2,670) | |
Revolving Credit Facility [Member] | |||||
Initial Cost | |||||
Encumbrance | [1] | 73,175 | |||
Land | [1] | 18,995 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 94,875 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [1] | 8,367 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [1] | 19,040 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 103,197 | |||
Total | [1] | 122,237 | |||
Accumulated Depreciation | [1] | (9,041) | |||
Promissory Note One [Member] | |||||
Initial Cost | |||||
Encumbrance | [2] | 22,575 | |||
Land | [2] | 5,953 | |||
Buildings and Improvements and Furniture and Fixtures | [2] | 31,038 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [2] | 7,273 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [2] | 6,007 | |||
Buildings and Improvements and Furniture and Fixtures | [2] | 38,257 | |||
Total | [2] | 44,264 | |||
Accumulated Depreciation | [2] | (8,420) | |||
Promissory Note Two [Member] | |||||
Initial Cost | |||||
Encumbrance | [3] | 14,514 | |||
Land | [3] | 3,813 | |||
Buildings and Improvements and Furniture and Fixtures | [3] | 24,145 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [3] | 1,822 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [3] | 3,900 | |||
Buildings and Improvements and Furniture and Fixtures | [3] | 25,880 | |||
Total | [3] | 29,780 | |||
Accumulated Depreciation | [3] | (2,013) | |||
Hampton Inn Hotel Ft. Myers Beach, FL [Member] | |||||
Initial Cost | |||||
Encumbrance | 0 | ||||
Land | 3,028 | ||||
Buildings and Improvements and Furniture and Fixtures | 6,397 | ||||
Net Costs Capitalized & Impairments Subsequent to Acquisition | 783 | ||||
Gross amount at which carried at end of period | |||||
Land and Improvements | 3,028 | ||||
Buildings and Improvements and Furniture and Fixtures | 7,180 | ||||
Total | 10,208 | ||||
Accumulated Depreciation | $ (780) | ||||
Date Acquired | Oct. 2, 2014 | ||||
Holiday Inn Express Hotel Opelika, AL [Member] | Revolving Credit Facility [Member] | |||||
Initial Cost | |||||
Encumbrance | [1] | $ 0 | |||
Land | [1] | 999 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 5,871 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [1] | 152 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [1] | 999 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 6,023 | |||
Total | [1] | 7,022 | |||
Accumulated Depreciation | [1] | $ (649) | |||
Date Acquired | [1] | Apr. 1, 2014 | |||
Vacant Lot Philadelphia, PA [Member] | |||||
Initial Cost | |||||
Encumbrance | $ 0 | ||||
Land | 2,000 | ||||
Buildings and Improvements and Furniture and Fixtures | 0 | ||||
Net Costs Capitalized & Impairments Subsequent to Acquisition | 0 | ||||
Gross amount at which carried at end of period | |||||
Land and Improvements | 2,000 | ||||
Buildings and Improvements and Furniture and Fixtures | 0 | ||||
Total | 2,000 | ||||
Accumulated Depreciation | $ 0 | ||||
Date Acquired | Dec. 17, 2014 | ||||
Holiday Inn Express Hotel Auburn, AL [Member] | Promissory Note Two [Member] | |||||
Initial Cost | |||||
Encumbrance | [3] | $ 3,920 | |||
Land | [3] | 817 | |||
Buildings and Improvements and Furniture and Fixtures | [3] | 7,241 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [3] | 49 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [3] | 817 | |||
Buildings and Improvements and Furniture and Fixtures | [3] | 7,290 | |||
Total | [3] | 8,107 | |||
Accumulated Depreciation | [3] | $ (674) | |||
Date Acquired | [3] | Jun. 10, 2015 | |||
Aloft Philadelphia Airport Hotel Philadelphia, PA [Member] | Revolving Credit Facility [Member] | |||||
Initial Cost | |||||
Encumbrance | [1] | $ 0 | |||
Land | [1] | 2,595 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 11,805 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [1] | 1,691 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [1] | 2,595 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 13,496 | |||
Total | [1] | 16,091 | |||
Accumulated Depreciation | [1] | $ (1,021) | |||
Date Acquired | [1] | Dec. 17, 2014 | |||
Four Points by Sheraton Hotel Philadelphia, PA [Member] | Revolving Credit Facility [Member] | |||||
Initial Cost | |||||
Encumbrance | [1] | $ 0 | |||
Land | [1] | 3,267 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 5,733 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [1] | 2,913 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [1] | 3,278 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 8,635 | |||
Total | [1] | 11,913 | |||
Accumulated Depreciation | [1] | $ (711) | |||
Date Acquired | [1] | Dec. 17, 2014 | |||
Aloft Tucson University Hotel Tucson, AZ [Member] | Revolving Credit Facility [Member] | |||||
Initial Cost | |||||
Encumbrance | [1] | $ 0 | |||
Land | [1] | 1,860 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 17,140 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [1] | 82 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [1] | 1,860 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 17,222 | |||
Total | [1] | 19,082 | |||
Accumulated Depreciation | [1] | $ (2,046) | |||
Date Acquired | [1] | Apr. 8, 2014 | |||
Aloft - Rogers Rogers, AR [Member] | Promissory Note Two [Member] | |||||
Initial Cost | |||||
Encumbrance | [3] | $ 7,618 | |||
Land | [3] | 1,383 | |||
Buildings and Improvements and Furniture and Fixtures | [3] | 12,917 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [3] | 934 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [3] | 1,383 | |||
Buildings and Improvements and Furniture and Fixtures | [3] | 13,851 | |||
Total | [3] | 15,234 | |||
Accumulated Depreciation | [3] | $ (942) | |||
Date Acquired | [3] | Jun. 10, 2015 | |||
Fairfield Inn & Suites Jonesboro, AR [Member] | Promissory Note Two [Member] | |||||
Initial Cost | |||||
Encumbrance | [3] | $ 2,976 | |||
Land | [3] | 1,613 | |||
Buildings and Improvements and Furniture and Fixtures | [3] | 3,987 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [3] | 839 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [3] | 1,700 | |||
Buildings and Improvements and Furniture and Fixtures | [3] | 4,739 | |||
Total | [3] | 6,439 | |||
Accumulated Depreciation | [3] | $ (397) | |||
Date Acquired | [3] | Jun. 10, 2015 | |||
Fairfield Inn East Rutherford, NJ [Member] | |||||
Initial Cost | |||||
Encumbrance | $ 0 | ||||
Land | 2,945 | ||||
Buildings and Improvements and Furniture and Fixtures | 8,743 | ||||
Net Costs Capitalized & Impairments Subsequent to Acquisition | 5,493 | ||||
Gross amount at which carried at end of period | |||||
Land and Improvements | 3,067 | ||||
Buildings and Improvements and Furniture and Fixtures | 14,114 | ||||
Total | 17,181 | ||||
Accumulated Depreciation | $ (2,700) | ||||
Date Acquired | Dec. 31, 2012 | ||||
Courtyard Marriott Parsippany, NJ [Member] | |||||
Initial Cost | |||||
Encumbrance | $ 7,377 | ||||
Land | 2,690 | ||||
Buildings and Improvements and Furniture and Fixtures | 14,310 | ||||
Net Costs Capitalized & Impairments Subsequent to Acquisition | 574 | ||||
Gross amount at which carried at end of period | |||||
Land and Improvements | 2,836 | ||||
Buildings and Improvements and Furniture and Fixtures | 14,738 | ||||
Total | 17,574 | ||||
Accumulated Depreciation | $ (1,416) | ||||
Date Acquired | Feb. 11, 2015 | ||||
Marriott Residence Inn Baton Rouge, LA [Member] | |||||
Initial Cost | |||||
Encumbrance | $ 3,599 | ||||
Land | 2,190 | ||||
Buildings and Improvements and Furniture and Fixtures | 4,849 | ||||
Net Costs Capitalized & Impairments Subsequent to Acquisition | 137 | ||||
Gross amount at which carried at end of period | |||||
Land and Improvements | 2,198 | ||||
Buildings and Improvements and Furniture and Fixtures | 4,978 | ||||
Total | 7,176 | ||||
Accumulated Depreciation | $ (599) | ||||
Date Acquired | Feb. 11, 2015 | ||||
Marriott Courtyard Baton Rouge, LA [Member] | |||||
Initial Cost | |||||
Encumbrance | $ 5,900 | ||||
Land | 2,061 | ||||
Buildings and Improvements and Furniture and Fixtures | 5,281 | ||||
Net Costs Capitalized & Impairments Subsequent to Acquisition | 111 | ||||
Gross amount at which carried at end of period | |||||
Land and Improvements | 2,061 | ||||
Buildings and Improvements and Furniture and Fixtures | 5,392 | ||||
Total | 7,453 | ||||
Accumulated Depreciation | $ (461) | ||||
Date Acquired | Jun. 30, 2015 | ||||
Consolidated Total [Member] | |||||
Initial Cost | |||||
Encumbrance | $ 16,876 | ||||
Land | 14,914 | ||||
Buildings and Improvements and Furniture and Fixtures | 39,580 | ||||
Net Costs Capitalized & Impairments Subsequent to Acquisition | 7,098 | ||||
Gross amount at which carried at end of period | |||||
Land and Improvements | 15,190 | ||||
Buildings and Improvements and Furniture and Fixtures | 46,402 | ||||
Total | 61,592 | ||||
Accumulated Depreciation | (5,956) | ||||
TownePlace Suites Hotel Harahan, LA [Member] | Promissory Note One [Member] | |||||
Initial Cost | |||||
Encumbrance | [2] | 8,779 | |||
Land | [2] | 1,800 | |||
Buildings and Improvements and Furniture and Fixtures | [2] | 10,484 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [2] | 2,063 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [2] | 1,804 | |||
Buildings and Improvements and Furniture and Fixtures | [2] | 12,543 | |||
Total | [2] | 14,347 | |||
Accumulated Depreciation | [2] | $ (2,623) | |||
Date Acquired | [2] | Jan. 19, 2011 | |||
SpringHill Suites Hotel Peabody, MA [Member] | Promissory Note One [Member] | |||||
Initial Cost | |||||
Encumbrance | [2] | $ 7,536 | |||
Land | [2] | 2,126 | |||
Buildings and Improvements and Furniture and Fixtures | [2] | 10,624 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [2] | 3,141 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [2] | 2,168 | |||
Buildings and Improvements and Furniture and Fixtures | [2] | 13,723 | |||
Total | [2] | 15,891 | |||
Accumulated Depreciation | [2] | $ (3,672) | |||
Date Acquired | [2] | Jul. 13, 2012 | |||
TownePlace Suites Hotel Johnson, AR [Member] | Promissory Note One [Member] | |||||
Initial Cost | |||||
Encumbrance | [2] | $ 2,774 | |||
Land | [2] | 990 | |||
Buildings and Improvements and Furniture and Fixtures | [2] | 4,710 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [2] | 1,061 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [2] | 990 | |||
Buildings and Improvements and Furniture and Fixtures | [2] | 5,771 | |||
Total | [2] | 6,761 | |||
Accumulated Depreciation | [2] | $ (1,041) | |||
Date Acquired | [2] | Jun. 18, 2013 | |||
TownePlace Suites Hotel Little Rock, AR [Member] | Promissory Note One [Member] | |||||
Initial Cost | |||||
Encumbrance | [2] | $ 3,486 | |||
Land | [2] | 1,037 | |||
Buildings and Improvements and Furniture and Fixtures | [2] | 5,220 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [2] | 1,008 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [2] | 1,045 | |||
Buildings and Improvements and Furniture and Fixtures | [2] | 6,220 | |||
Total | [2] | 7,265 | |||
Accumulated Depreciation | [2] | $ (1,084) | |||
Date Acquired | [2] | Jun. 18, 2013 | |||
Courtyard Marriott Willoughby, OH [Member] | Revolving Credit Facility [Member] | |||||
Initial Cost | |||||
Encumbrance | [1] | $ 0 | |||
Land | [1] | 1,177 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 10,823 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [1] | 138 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [1] | 1,180 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 10,958 | |||
Total | [1] | 12,138 | |||
Accumulated Depreciation | [1] | $ (1,039) | |||
Date Acquired | [1] | Jan. 29, 2015 | |||
Fairfield Inn And Suites Des Moines, IA [Member] | Revolving Credit Facility [Member] | |||||
Initial Cost | |||||
Encumbrance | [1] | $ 0 | |||
Land | [1] | 1,648 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 6,852 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [1] | 182 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [1] | 1,662 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 7,020 | |||
Total | [1] | 8,682 | |||
Accumulated Depreciation | [1] | $ (744) | |||
Date Acquired | [1] | Jan. 29, 2015 | |||
SpringHill Suites Des Moines, IA [Member] | Revolving Credit Facility [Member] | |||||
Initial Cost | |||||
Encumbrance | [1] | $ 0 | |||
Land | [1] | 1,495 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 7,905 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [1] | 152 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [1] | 1,512 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 8,040 | |||
Total | [1] | 9,552 | |||
Accumulated Depreciation | [1] | $ (793) | |||
Date Acquired | [1] | Jan. 29, 2015 | |||
Hampton Inn Hotel Miami, FL [Member] | Revolving Credit Facility [Member] | |||||
Initial Cost | |||||
Encumbrance | [1] | $ 0 | |||
Land | [1] | 3,571 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 15,629 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [1] | 1,558 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [1] | 3,571 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 17,187 | |||
Total | [1] | 20,758 | |||
Accumulated Depreciation | [1] | $ (1,078) | |||
Date Acquired | [1] | Jan. 29, 2015 | |||
Hampton Inn Hotel Ft Lauderdale, FL [Member] | Revolving Credit Facility [Member] | |||||
Initial Cost | |||||
Encumbrance | [1] | $ 0 | |||
Land | [1] | 2,383 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 13,117 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [1] | 1,499 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [1] | 2,383 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 14,616 | |||
Total | [1] | 16,999 | |||
Accumulated Depreciation | [1] | $ (960) | |||
Date Acquired | [1] | Jan. 29, 2015 | |||
Unallocated [Member] | Revolving Credit Facility [Member] | |||||
Initial Cost | |||||
Encumbrance | [1] | $ 73,175 | |||
Land | [1] | 0 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 0 | |||
Net Costs Capitalized & Impairments Subsequent to Acquisition | [1] | 0 | |||
Gross amount at which carried at end of period | |||||
Land and Improvements | [1] | 0 | |||
Buildings and Improvements and Furniture and Fixtures | [1] | 0 | |||
Total | [1] | 0 | |||
Accumulated Depreciation | [1] | $ 0 | |||
[1] | The Company's Revolving Credit Facility is cross-collateralized by nine hotels. | ||||
[2] | The Company's first Promissory Note is cross-collateralized by four hotels, each of which has an allocated loan amount. | ||||
[3] | The Company's second Promissory Note is cross-collateralized by three hotels, each of which has an allocated loan amount. |
Schedule III Real Estate and 57
Schedule III Real Estate and Accumulated Depreciation (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Balance at beginning of year | $ 253,646 | $ 120,790 | $ 56,757 |
Acquisitions, at cost | 0 | 123,939 | 57,905 |
Acquisitions, bargain purchase gain | 0 | 0 | 2,790 |
Improvements | 4,227 | 8,917 | 3,338 |
Balance at end of year | $ 257,873 | $ 253,646 | $ 120,790 |
Schedule III Real Estate and 58
Schedule III Real Estate and Accumulated Depreciation (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Balance at beginning of year | $ 14,959 | $ 6,111 | $ 2,670 |
Depreciation expense | 10,471 | 8,848 | 3,441 |
Balance at end of year | $ 25,430 | $ 14,959 | $ 6,111 |
Schedule III Real Estate and 59
Schedule III Real Estate and Accumulated Depreciation (Details 3) | 12 Months Ended |
Dec. 31, 2016 | |
Buildings and improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Buildings and improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 39 years |
Tenant improvements and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Tenant improvements and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |