Document And Entity Information
Document And Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2018 | May 15, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18.1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investment property: | ||
Land and improvements | $ 40,443 | $ 40,411 |
Building and improvements | 214,952 | 214,518 |
Furniture and fixtures | 36,359 | 36,268 |
Construction in progress | 213 | 329 |
Gross investment property | 291,967 | 291,526 |
Less accumulated depreciation | (29,823) | (26,982) |
Net investment property | 262,144 | 264,544 |
Investment in unconsolidated affiliated entities | 18,328 | 5,140 |
Cash and cash equivalents | 28,733 | 44,449 |
Marketable securities, available for sale | 9,757 | 9,778 |
Restricted cash | 5,361 | 5,724 |
Accounts receivable and other assets | 6,631 | 5,337 |
Total Assets | 330,954 | 334,972 |
Liabilities and Stockholders' Equity | ||
Accounts payable and other accrued expenses | 9,026 | 7,790 |
Margin loan | 6,422 | 6,642 |
Mortgages payable, net | 143,773 | 143,781 |
Due to related party | 776 | 957 |
Distributions payable | 3,131 | 3,211 |
Total liabilities | 163,128 | 162,381 |
Commitments and contingencies | ||
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, 18,140 and 18,199, shares issued and outstanding, respectively | 181 | 182 |
Additional paid-in-capital | 154,587 | 155,162 |
Accumulated other comprehensive loss | (232) | (211) |
Accumulated (deficit)/surplus | (2,115) | 1,771 |
Total Company stockholders' equity | 152,421 | 156,904 |
Noncontrolling interests | 15,405 | 15,687 |
Total Stockholders' Equity | 167,826 | 172,591 |
Total Liabilities and Stockholders' Equity | $ 330,954 | $ 334,972 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 18,140 | 18,199 |
Common stock, shares outstanding | 18,140 | 18,199 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | $ 19,364 | $ 20,606 |
Expenses: | ||
Property operating expenses | 12,749 | 12,848 |
Real estate taxes | 901 | 726 |
General and administrative costs | 1,390 | 1,411 |
Depreciation and amortization | 2,850 | 2,697 |
Total operating expenses | 17,890 | 17,682 |
Operating income | 1,474 | 2,924 |
Interest and dividend income | 132 | 142 |
Interest expense | (2,392) | (1,973) |
Loss on sale of marketable securities, available for sale | 0 | (307) |
Earnings from investment in unconsolidated affiliated entities | 59 | 56 |
Other expense, net | (10) | (27) |
Net (loss)/income | (737) | 815 |
Less: net income attributable to noncontrolling interests | (18) | (42) |
Net (loss)/income applicable to Company's common shares | $ (755) | $ 773 |
Net (loss)/income per Company's common share, basic and diluted | $ (0.04) | $ 0.04 |
Weighted average number of common shares outstanding, basic and diluted | 18,162 | 18,373 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net (loss)/income | $ (737) | $ 815 |
Other comprehensive (loss)/income: | ||
Holding (loss)/gain on marketable securities, available for sale | (21) | 443 |
Reclassification adjustment for loss included in net income | 0 | 307 |
Other comprehensive (loss)/income | (21) | 750 |
Comprehensive (loss)/income | (758) | 1,565 |
Less: Comprehensive income attributable to noncontrolling interests | (18) | (42) |
Comprehensive (loss)/income attributable to the Company's common shares | $ (776) | $ 1,523 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Total Noncontrolling Interests [Member] |
BALANCE at Dec. 31, 2017 | $ 172,591 | $ 182 | $ 155,162 | $ (211) | $ 1,771 | $ 15,687 |
BALANCE (in shares) at Dec. 31, 2017 | 18,199 | |||||
Net (loss)/income | (737) | $ 0 | 0 | 0 | (755) | 18 |
Other comprehensive loss | (21) | 0 | 0 | (21) | 0 | 0 |
Distributions declared | (3,131) | 0 | 0 | 0 | (3,131) | 0 |
Contributions of noncontrolling interests | 13 | 0 | 0 | 0 | 0 | 13 |
Distributions to noncontrolling interests | (313) | 0 | 0 | 0 | 0 | (313) |
Redemption and cancellation of shares | (576) | $ (1) | (575) | 0 | 0 | 0 |
Redemption and cancellation of shares (in shares) | (59) | |||||
BALANCE at Mar. 31, 2018 | $ 167,826 | $ 181 | $ 154,587 | $ (232) | $ (2,115) | $ 15,405 |
BALANCE (in shares) at Mar. 31, 2018 | 18,140 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss)/income | $ (737) | $ 815 |
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,850 | 2,697 |
Amortization of deferred financing costs | 99 | 166 |
Earnings from investment in unconsolidated affiliated entities | (59) | (56) |
Loss on sale of marketable securities, available for sale | 0 | 307 |
Other non-cash adjustments | 35 | (35) |
Changes in assets and liabilities: | ||
Increase in accounts receivable and other assets | (1,336) | (760) |
Increase in accounts payable and other accrued expenses | 1,197 | 972 |
Decrease in due to related party | (466) | (3) |
Net cash provided by operating activities | 1,583 | 4,103 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (405) | (1,099) |
Purchase of marketable securities | 0 | (3,556) |
Proceeds from sale of marketable securities | 0 | 3,504 |
Investments in unconsolidated affiliated entities | (12,906) | 0 |
Distributions from unconsolidated affiliated entities | 62 | 49 |
Net cash used in investing activities | (13,249) | (1,102) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on mortgages payable | (95) | (346) |
Payment of loan fees and expenses | (11) | 0 |
Payment on margin loan | (220) | (75) |
Redemption and cancellation of common shares | (576) | (647) |
Distributions to noncontrolling interests | (313) | (4,170) |
Contributions of noncontrolling interests | 13 | 0 |
Distributions to common stockholders | (3,211) | (5,388) |
Net cash used in financing activities | (4,413) | (10,626) |
Net change in cash, cash equivalents and restricted cash | (16,079) | (7,625) |
Cash and cash equivalents and restricted cash, beginning of year | 50,173 | 46,667 |
Cash and cash equivalents and restricted cash, end of period | 34,094 | 39,042 |
Supplemental cash flow information for the periods indicated is as follows: | ||
Cash paid for interest | 2,079 | 1,795 |
Distributions declared | 3,131 | 5,313 |
Unrealized (loss)/gain on marketable securities, available for sale | (21) | 443 |
Accrual of acquisition fee | 285 | |
Non cash purchase of investment property | $ 36 | $ 64 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2018 | |
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 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 99 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. The Company is managed by Lightstone Value Plus REIT II LLC (the “Advisor”), an affiliate of The Lightstone Group, Inc. under the terms and conditions of an advisory agreement. The Lightstone Group, Inc. previously served as the Company’s sponsor (the “Sponsor”) during its initial public offering (the “Offering”) and follow-on offering (the “Follow-on Offering”, and collectively, “the Offerings”), which terminated on August 15, 2012 and September 27, 2014, respectively. Subject to the oversight of the Company’s board of directors (the “Board of Directors”), the Advisor has primary responsibility for making investment decisions and managing the Company’s day-to-day operations. Through his ownership and control of The Lightstone Group, Inc., Mr. Lichtenstein is the indirect owner of the Advisor and the indirect owner and manager of Lightstone SLP II LLC, which has subordinated profits interests in the Operating Partnership. Mr. Lichtenstein also acts as the Company’s Chairman and Chief Executive Officer. As a result, he exerts influence over but does not control Lightstone REIT II or the Operating Partnership. 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 August 15, 2022, the tenth anniversary of the termination of its initial public 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 Interests The noncontrolling interests consist of (i) parties of the Company that hold units in the Operating Partnership, (ii) membership interests held by Lightstone Value Plus Real Estate Investment Trust, Inc., a REIT also sponsored by the Company’s Sponsor, in a joint venture (“the Joint Venture”), and (iii) the membership interests held by minority owners of certain of the Company’s hotels. Partners of Operating Partnership On May 20, 2008, the Advisor contributed $ 2 200 Lightstone SLP II LLC, which is wholly owned by the Company’s Sponsor, committed to purchase subordinated profits interests in the Operating Partnership (“Subordinated Profits Interests”) at a cost of $ 100,000 1.0 12.9 48.6 4.8 177.0 17.7 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The consolidated financial statements include the accounts of Lightstone REIT II and its Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of March 31, 2018, the Lightstone REIT II had a 99 The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Value Plus Real Estate Investment Trust II, Inc. and Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. 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, depreciable lives, 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. The consolidated balance sheet as of December 31, 2017 included herein has been derived from the consolidated balance sheet included in the Company's Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. Effective January 1, 2018 the Company adopted guidance issued by the Financial Accounting Standards Board (“FASB”) that that requires amounts that are generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this standard using the retrospective transition method As required by the Company’s lenders, restricted cash is held in escrow accounts for anticipated capital expenditures, real estate taxes, and other reserves for certain of our consolidated properties. Capital reserves are typically utilized for non-operating expenses such as major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. Restricted cash may also include certain funds temporarily placed in escrow with qualified intermediaries to facilitate potential like-kind exchange transactions in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended. Three Months Ended March 31, 2018 2017 Cash and cash equivalents $ 28,733 $ 35,432 Restricted cash 5,361 3,610 Total cash, cash equivalents and restricted cash $ 34,094 $ 39,042 Effective January 1, 2018 the Company adopted guidance issued by the FASB that that 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. Since all of the Company’s marketable securities, available for sale, are debt securities this guidance had no impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted guidance issued by the FASB 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. Additionally, assets acquired, liabilities assumed, and any noncontrolling interest will be measured at their relative fair values. The Company anticipates future acquisitions of real estate assets, if any, will likely qualify as an asset acquisition. Therefore, any future transaction costs associated with an asset acquisition will be capitalized and accounted for in accordance with this guidance. Effective January 1, 2018, the Company adopted guidance issued by the FASB that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the previous revenue recognition guidance. The new guidance requires companies to apply a five-step model in accounting for revenue arising from contracts with customers, as well as enhance disclosures regarding revenue recognition. Additionally, the sale of real estate will be required to follow the new model. The Company adopted this standard on January 1, 2018 using the modified retrospective transition method. Due to the short-term nature of the Company's revenue streams, the adoption of this standard did not have an impact on the amount and timing of revenue recognition for revenues from rooms and food, beverage and other ancillary services. The adoption of this standard had no impact on the Company's revenue or net income, and, therefore, no adjustment was recorded to the Company's opening balance of accumulated surplus. The Company also considered and determined that presenting revenue disaggregated by rooms and food, beverage and other depicts the appropriate categories about the nature and timing of its revenue streams and that no additional disaggregation is needed. See Note New Accounting Pronouncements In February 2016, the FASB issued an accounting standards update which supersedes the existing lease accounting model, and modifies both lessee and lessor accounting. The new guidance will require lessees to recognize a liability to make lease payments and a right-of-use asset, initially measured at the present value of lease payments, for both operating and financing leases, with classification affecting the pattern of expense recognition in the statement of earnings. For leases with a term of 12 months or less, lessees will be permitted to make an accounting policy election by class of underlying asset to not recognize lease liabilities and lease assets. The Company intends to adopt the standard on January 1, 2019 and apply certain practical expedients available to us upon adoption. The Company is continuing to evaluate the impact this guidance will have on its consolidated financial statements when adopted. 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 |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 3. Revenues Revenues consist of amounts derived from hotel operations, including occupied hotel rooms and sales of food, beverage and other ancillary services and are presented on a disaggregated basis below. Revenues are recorded net of any sales or occupancy tax collected from our guests. Room revenue is generated through contracts with customers whereby the customers agree to pay a daily rate for right to use a hotel room. The Company's contract performance obligations are fulfilled at the end of the day that the customer is provided the room and revenue is recognized daily at the contract rate. Payment from the customer is secured at the end of the contract upon check-out by the customer from our hotel. The Company participates in frequent guest programs sponsored by the brand owners of our hotels whereby the brand owner allows guests to earn loyalty points during their hotel stay. The Company recognizes revenue at the amount earned that it will receive from the brand owner when a guest redeems their loyalty points by staying at one of the Company’s hotels. Revenue from food, beverage and other ancillary services is generated when a customer chooses to purchase goods or services separately from a hotel room and revenue is recognized when these goods or services are provided to the customer and the Company’s contract performance obligations have been fulfilled Some contracts for rooms, food, beverage or other services require an upfront deposit which is recorded as deferred revenues (or contract liabilities) and recognized once the performance obligations are satisfied. The contract liabilities are not significant. The Company notes no significant judgements regarding the recognition of room, food and beverage or other revenues. hotel operations on a disaggregated basis For the Three Months 2018 2017 Revenues Room $ 18,247 $ 19,714 Food, beverage and other 1,117 892 Total revenues $ 19,364 $ 20,606 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliated Entities | 3 Months Ended |
Mar. 31, 2018 | |
Investments in Unconsolidated Affiliated Entities [Abstract] | |
Investments in Unconsolidated Affiliated Entities | Investments in Unconsolidated Affiliated Entities The entities listed below are partially owned by the Company. The Company accounts for these investments 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 these entities. As of Entity Date of Ownership Ownership % March 31, 2018 December 31, 2017 Brownmill Various 48.58 % $ 5,099 $ 5,140 Hilton Garden Inn Joint Venture March 27, 2018 50.00 % 13,229 - Total investments in unconsolidated affiliated real estate entities $ 18,328 $ 5,140 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 As of March 31, 2018, the Company owns a 48.6 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 Three Months Ended 2018 2017 Revenue $ 961 $ 893 Property operating expenses 461 430 Depreciation and amortization 178 215 Operating income 322 248 Interest expense and other, net (212) (59) Net income $ 110 $ 189 Company's share of net income $ 53 $ 92 Additional depreciation and amortization expense (1) (32) (36) Company's earnings from investment $ 21 $ 56 1) As of As of March 31, 2018 December 31, 2017 Real estate, at cost (net) $ 14,562 $ 14,697 Cash and restricted cash 762 727 Other assets 1,451 1,388 Total assets $ 16,775 $ 16,812 Mortgage payable $ 14,432 $ 14,485 Other liabilities 557 523 Members' capital 1,786 1,804 Total liabilities and members' capital $ 16,775 $ 16,812 Hilton Garden Inn Joint Venture On March 27, 2018, the Company and its Sponsor’s other public program, Lightstone Value Plus Real Estate Investment Trust III, Inc. (“Lightstone REIT III”), acquired, through LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”) a 183-room, limited-service hotel located at 29-21 41 st 60.0 25.0 35.0 50.0 In connection with the acquisition, the Company accrued an acquisition fee of $ 0.3 0.95 The Company paid approximately $ 12.9 Hilton Garden Inn Joint Venture Financial Information For the Period Revenues $ 169 Property operating expenses 69 Operating income 100 Interest expense (24) Net income $ 76 Company's share of net income $ 38 As of March 31, 2018 Investment property, net $ 60,327 Cash 28 Other assets 491 Total assets $ 60,846 Mortgage payable, net $ 34,724 Other liabilities 234 Members' capital 25,888 Total liabilities and members' capital $ 60,846 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Marketable Securities, Margin Loan and Fair Value Measurements [Abstract] | |
Marketable Securities and Fair Value Measurements | Marketable Securities and Fair Value Measurements Marketable Securities As of March 31, 2018 Adjusted Gross Gross Fair Debt securities: Corporate Bonds and Preferred Securities $ 9,989 $ - $ (232) $ 9,757 As of December 31, 2017 Adjusted Gross Gross Fair Debt securities: Corporate Bonds and Preferred Securities $ 9,989 $ - $ (211) $ 9,778 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 March 31, 2018 and December 31, 2017, 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 March 31, 2018 and December 31, 2017, all of the Company’s debt securities and were classified as Level 1 assets and there were no transfers between the level classifications during the three months ended March 31, 2018. The fair values of the Company’s investments in Corporate Bonds and Preferred Securities are measured using readily available quoted prices for similar assets. As of Due in 1 year $ - Due in 1 year through 5 years 5,010 Due in 5 year through 10 years - Due after 10 years 4,747 Total $ 9,757 The Company did not have any other significant financial assets or liabilities, which would require revised valuations that are recognized at fair value. 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 2.73 |
Mortgages payable, net
Mortgages payable, net | 3 Months Ended |
Mar. 31, 2018 | |
Mortgages payable [Abstract] | |
Mortgages payable, net | . Mortgages payable, net Weighted Description Interest as of Maturity Amount Due As of As of Promissory Note, secured by two properties 4.94% 4.94 % August 2018 $ 6,546 $ 6,607 $ 6,653 Revolving Loan, secured by nine properties LIBOR + 4.95% 6.71 % May 2018 73,616 73,616 73,616 Courtyard - Parsippany LIBOR + 3.50% 5.10 % August 2018 7,126 7,191 7,240 Hyatt New Orleans LIBOR + 3.75% (subject to a 5.14% floor) 5.36 % December 2020 18,000 18,000 18,000 Residence Inn Needham LIBOR + 3.75% (subject to a 5.18% floor) 5.36 % December 2020 25,000 25,000 25,000 Courtyard Paso Robles 5.49% 5.49 % November 2023 13,022 14,000 14,000 Total mortgages payable 6.03 % $ 143,310 $ 144,414 $ 144,509 Less: Deferred financing costs (641) (728) Total mortgages payable, net $ 143,773 $ 143,781 Principal Maturities Remainder of 2018 2019 2020 2021 2022 Thereafter Total Principal maturities $ 87,429 $ 179 $ 43,187 $ 200 $ 211 $ 13,208 $ 144,414 Less: deferred financing costs (641) Total principal maturiteis, net $ 143,773 Additionally, the non-recourse Revolving Loan (outstanding principal balance of $ 73.6 as of March 31, 2018) that was initially scheduled to mature in January 2018, which had been further extended to April 2018, and then again further extended through May 28, 2018 and the Company is currently working with the lender on refinancing the Revolving Loan. In addition, the Company’s recourse mortgage loans secured by the Courtyard Parsippany (outstanding principal balance 7.2 of March 31, 2018) and the Springhill Suites Peabody and the TownePlace Suites Little Rock (outstanding principal balance of $ 6.6 Restricted escrows Pursuant to the Company’s loan agreements, escrows in the amount of $ 5.4 5.2 Debt Compliance Certain of our debt agreements also contain clauses providing for prepayment penalties and require the maintenance of certain ratios, including debt service coverage and fixed leverage charge ratio. As of March 31, 2018, the Company is in compliance with respect to all of its financial debt covenants other than the debt associated with the Revolving Loan, secured by nine properties as discussed below. During the first quarter of 2018, the Company did not meet certain financial covenants on the non-recourse Revolving Loan, secured by nine properties. On May 14, 2018, the lender provided a waiver with respect to these financial covenants for the testing period ending March 31, 2018 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Earnings per 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 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. Related Party Transactions The Company has agreements with the Advisor and Lightstone Value Plus REIT Management LLC (the “Property Manager”) to pay certain fees 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 Manager and their affiliates to perform such services as provided in these agreements. For the Three Months Ended March 31, 2018 2017 Acquisition Fees (1) $ 285 $ - Asset Management Fees (general and administrative costs) 687 604 Total $ 972 $ 604 (1) The acquisition fee for the Hilton Garden Inn Joint Venture of $ 285 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments [Abstract] | |
Financial Instruments | Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable and other assets, accounts payable and accrued expenses, margin loan, due to related party, and distributions payable approximated their fair values because of the short maturity of these instruments. As of March 31, 2018 As of December 31, 2017 Carrying Estimated Carrying Estimated Mortgages payable $ 144,414 $ 144,526 $ 144,509 $ 144,942 The fair value of our mortgages payable was determined by discounting the future contractual interest and principal payments by market interest rates |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. 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 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distribution Payments On April 15, 2018, the distribution for the three-month period ending March 31, 2018 of $ 3.1 Distribution Declaration On May 11, 2018, the Board of Directors authorized and the Company declared a distribution for the three-month period ending June 30, 2018. The distribution will be calculated based on shareholders of record each day during this three-month period at a rate of $ 0.0019178 365 7.0 10.00 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT II and its Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of March 31, 2018, the Lightstone REIT II had a 99 The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Value Plus Real Estate Investment Trust II, Inc. and Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. 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, depreciable lives, 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. The consolidated balance sheet as of December 31, 2017 included herein has been derived from the consolidated balance sheet included in the Company's Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective January 1, 2018 the Company adopted guidance issued by the Financial Accounting Standards Board (“FASB”) that that requires amounts that are generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this standard using the retrospective transition method As required by the Company’s lenders, restricted cash is held in escrow accounts for anticipated capital expenditures, real estate taxes, and other reserves for certain of our consolidated properties. Capital reserves are typically utilized for non-operating expenses such as major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. Restricted cash may also include certain funds temporarily placed in escrow with qualified intermediaries to facilitate potential like-kind exchange transactions in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended. Three Months Ended March 31, 2018 2017 Cash and cash equivalents $ 28,733 $ 35,432 Restricted cash 5,361 3,610 Total cash, cash equivalents and restricted cash $ 34,094 $ 39,042 Effective January 1, 2018 the Company adopted guidance issued by the FASB that that 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. Since all of the Company’s marketable securities, available for sale, are debt securities this guidance had no impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted guidance issued by the FASB 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. Additionally, assets acquired, liabilities assumed, and any noncontrolling interest will be measured at their relative fair values. The Company anticipates future acquisitions of real estate assets, if any, will likely qualify as an asset acquisition. Therefore, any future transaction costs associated with an asset acquisition will be capitalized and accounted for in accordance with this guidance. Effective January 1, 2018, the Company adopted guidance issued by the FASB that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the previous revenue recognition guidance. The new guidance requires companies to apply a five-step model in accounting for revenue arising from contracts with customers, as well as enhance disclosures regarding revenue recognition. Additionally, the sale of real estate will be required to follow the new model. The Company adopted this standard on January 1, 2018 using the modified retrospective transition method. Due to the short-term nature of the Company's revenue streams, the adoption of this standard did not have an impact on the amount and timing of revenue recognition for revenues from rooms and food, beverage and other ancillary services. The adoption of this standard had no impact on the Company's revenue or net income, and, therefore, no adjustment was recorded to the Company's opening balance of accumulated surplus. The Company also considered and determined that presenting revenue disaggregated by rooms and food, beverage and other depicts the appropriate categories about the nature and timing of its revenue streams and that no additional disaggregation is needed. See Note New Accounting Pronouncements In February 2016, the FASB issued an accounting standards update which supersedes the existing lease accounting model, and modifies both lessee and lessor accounting. The new guidance will require lessees to recognize a liability to make lease payments and a right-of-use asset, initially measured at the present value of lease payments, for both operating and financing leases, with classification affecting the pattern of expense recognition in the statement of earnings. For leases with a term of 12 months or less, lessees will be permitted to make an accounting policy election by class of underlying asset to not recognize lease liabilities and lease assets. The Company intends to adopt the standard on January 1, 2019 and apply certain practical expedients available to us upon adoption. The Company is continuing to evaluate the impact this guidance will have on its consolidated financial statements when adopted. 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. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following is a summary of the Company’s cash, cash equivalents, and restricted cash total as presented in our statements of cash flows for the periods presented: Three Months Ended March 31, 2018 2017 Cash and cash equivalents $ 28,733 $ 35,432 Restricted cash 5,361 3,610 Total cash, cash equivalents and restricted cash $ 34,094 $ 39,042 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table represents the total revenues from hotel operations on a disaggregated basis For the Three Months 2018 2017 Revenues Room $ 18,247 $ 19,714 Food, beverage and other 1,117 892 Total revenues $ 19,364 $ 20,606 |
Investments in Unconsolidated22
Investments in Unconsolidated Affiliated Entities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |
Summary of Investments in Unconsolidated Entities | A summary of the Company’s investments in the unconsolidated affiliated entities is as follows: As of Entity Date of Ownership Ownership % March 31, 2018 December 31, 2017 Brownmill Various 48.58 % $ 5,099 $ 5,140 Hilton Garden Inn Joint Venture March 27, 2018 50.00 % 13,229 - Total investments in unconsolidated affiliated real estate entities $ 18,328 $ 5,140 |
Brownmill, LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Unaudited Condensed Income Statements of Affiliated Entities | The following table represents the condensed income statements for Brownmill for the periods indicated: For the Three Months Ended 2018 2017 Revenue $ 961 $ 893 Property operating expenses 461 430 Depreciation and amortization 178 215 Operating income 322 248 Interest expense and other, net (212) (59) Net income $ 110 $ 189 Company's share of net income $ 53 $ 92 Additional depreciation and amortization expense (1) (32) (36) Company's earnings from investment $ 21 $ 56 |
Unaudited Condensed Balance Sheets of Affiliated Entities | The following table represents the condensed balance sheets for Brownmill: As of As of March 31, 2018 December 31, 2017 Real estate, at cost (net) $ 14,562 $ 14,697 Cash and restricted cash 762 727 Other assets 1,451 1,388 Total assets $ 16,775 $ 16,812 Mortgage payable $ 14,432 $ 14,485 Other liabilities 557 523 Members' capital 1,786 1,804 Total liabilities and members' capital $ 16,775 $ 16,812 |
Hilton Garden Inn Joint Venture [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Unaudited Condensed Income Statements of Affiliated Entities | The following table represents the condensed income statement for the Hilton Garden Inn Joint Venture for the period indicated: For the Period Revenues $ 169 Property operating expenses 69 Operating income 100 Interest expense (24) Net income $ 76 Company's share of net income $ 38 |
Unaudited Condensed Balance Sheets of Affiliated Entities | The following table represents the condensed balance sheet for the Hilton Garden Inn Joint Venture: As of March 31, 2018 Investment property, net $ 60,327 Cash 28 Other assets 491 Total assets $ 60,846 Mortgage payable, net $ 34,724 Other liabilities 234 Members' capital 25,888 Total liabilities and members' capital $ 60,846 |
Marketable Securities and Fai23
Marketable Securities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Marketable Securities, Margin Loan and Fair Value Measurements [Abstract] | |
Summary of Available for Sale Securities | As of March 31, 2018 Adjusted Gross Gross Fair Debt securities: Corporate Bonds and Preferred Securities $ 9,989 $ - $ (232) $ 9,757 As of December 31, 2017 Adjusted Gross Gross Fair Debt securities: Corporate Bonds and Preferred Securities $ 9,989 $ - $ (211) $ 9,778 |
Summary of Marketable Debt Securities | The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: As of Due in 1 year $ - Due in 1 year through 5 years 5,010 Due in 5 year through 10 years - Due after 10 years 4,747 Total $ 9,757 |
Mortgages payable, net (Tables)
Mortgages payable, net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Mortgages payable [Abstract] | |
Schedule of Mortgages Payable | Mortgages payable, net consisted of the following: Weighted Description Interest as of Maturity Amount Due As of As of Promissory Note, secured by two properties 4.94% 4.94 % August 2018 $ 6,546 $ 6,607 $ 6,653 Revolving Loan, secured by nine properties LIBOR + 4.95% 6.71 % May 2018 73,616 73,616 73,616 Courtyard - Parsippany LIBOR + 3.50% 5.10 % August 2018 7,126 7,191 7,240 Hyatt New Orleans LIBOR + 3.75% (subject to a 5.14% floor) 5.36 % December 2020 18,000 18,000 18,000 Residence Inn Needham LIBOR + 3.75% (subject to a 5.18% floor) 5.36 % December 2020 25,000 25,000 25,000 Courtyard Paso Robles 5.49% 5.49 % November 2023 13,022 14,000 14,000 Total mortgages payable 6.03 % $ 143,310 $ 144,414 $ 144,509 Less: Deferred financing costs (641) (728) Total mortgages payable, net $ 143,773 $ 143,781 |
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 March 31, 2018: Remainder of 2018 2019 2020 2021 2022 Thereafter Total Principal maturities $ 87,429 $ 179 $ 43,187 $ 200 $ 211 $ 13,208 $ 144,414 Less: deferred financing costs (641) Total principal maturiteis, net $ 143,773 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 for the periods indicated: For the Three Months Ended March 31, 2018 2017 Acquisition Fees (1) $ 285 $ - Asset Management Fees (general and administrative costs) 687 604 Total $ 972 $ 604 (1) The acquisition fee for the Hilton Garden Inn Joint Venture of $ 285 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments [Abstract] | |
Summary of Estimated Fair Value of Debt | The estimated fair value of our mortgages payable is as follows: As of March 31, 2018 As of December 31, 2017 Carrying Estimated Carrying Estimated Mortgages payable $ 144,414 $ 144,526 $ 144,509 $ 144,942 |
Organization (Details Textual)
Organization (Details Textual) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||
May 20, 2008USD ($) | Mar. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2012USD ($)shares | Dec. 31, 2011USD ($)shares | Dec. 31, 2010USD ($)shares | Dec. 31, 2012USD ($)$ / sharesshares | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||
Date of incorporation | Apr. 28, 2008 | |||||
Lightstone REIT, partnership formation date | Apr. 30, 2008 | |||||
General partner ownership interest | 99.00% | |||||
Advisor's contribution to operating partnership | $ 2 | |||||
Partnership units issued | 200 | |||||
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 | 48.58% | |||||
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 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Summary of Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 28,733 | $ 44,449 | $ 35,432 | |
Restricted cash | 5,361 | 5,724 | 3,610 | |
Total cash, cash equivalents and restricted cash | $ 34,094 | $ 50,173 | $ 39,042 | $ 46,667 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Line Items] | |
Percentage general partnership interest in common units operating partnership | 99.00% |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Room | $ 18,247 | $ 19,714 |
Food, beverage and other | 1,117 | 892 |
Total revenues | $ 19,364 | $ 20,606 |
Investments in Unconsolidated31
Investments in Unconsolidated Affiliated Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 27, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 18,328 | $ 5,140 | |
Brownmill, LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Date of Ownership | Various | ||
Ownership % | 48.58% | ||
Equity Method Investments | $ 5,099 | 5,140 | |
Hilton Garden Inn Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Date of Ownership | Mar. 27, 2018 | ||
Ownership % | 50.00% | 50.00% | |
Equity Method Investments | $ 13,229 | $ 12,900 | $ 0 |
Investments in Unconsolidated32
Investments in Unconsolidated Affiliated Entities (Details 1) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Company's share of net income (loss) | $ 59 | $ 56 | ||
Brownmill, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue | 961 | 893 | ||
Property operating expenses | 461 | 430 | ||
Depreciation and amortization | 178 | 215 | ||
Operating income | 322 | 248 | ||
Interest expense and other, net | (212) | (59) | ||
Net income | 110 | 189 | ||
Company's share of net income (loss) | 53 | 92 | ||
Additional depreciation and amortization expense | [1] | (32) | (36) | |
Company's earnings from investment | $ 21 | $ 56 | ||
Hilton Garden Inn Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue | $ 169 | |||
Property operating expenses | 69 | |||
Operating income | 100 | |||
Interest expense and other, net | (24) | |||
Net income | 76 | |||
Company's share of net income (loss) | $ 38 | |||
[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 Unconsolidated33
Investments in Unconsolidated Affiliated Entities (Details 2) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Brownmill, LLC [Member] | ||
Equity method investment, assets | $ 16,775 | $ 16,812 |
Members' capital | 1,786 | 1,804 |
Total liabilities and members' capital | 16,775 | 16,812 |
Brownmill, LLC [Member] | Real estate, at cost (net) [Member] | ||
Equity method investment, assets | 14,562 | 14,697 |
Brownmill, LLC [Member] | Cash and restricted cash [Member] | ||
Equity method investment, assets | 762 | 727 |
Brownmill, LLC [Member] | Other assets [Member] | ||
Equity method investment, assets | 1,451 | 1,388 |
Brownmill, LLC [Member] | Mortgage payable [Member] | ||
Equity method investment, liabilities | 14,432 | 14,485 |
Brownmill, LLC [Member] | Other liabilities [Member] | ||
Equity method investment, liabilities | 557 | $ 523 |
Hilton Garden Inn Joint Venture [Member] | ||
Equity method investment, assets | 60,846 | |
Members' capital | 25,888 | |
Total liabilities and members' capital | 60,846 | |
Hilton Garden Inn Joint Venture [Member] | Real estate, at cost (net) [Member] | ||
Equity method investment, assets | 60,327 | |
Hilton Garden Inn Joint Venture [Member] | Cash and restricted cash [Member] | ||
Equity method investment, assets | 28 | |
Hilton Garden Inn Joint Venture [Member] | Other assets [Member] | ||
Equity method investment, assets | 491 | |
Hilton Garden Inn Joint Venture [Member] | Mortgage payable [Member] | ||
Equity method investment, liabilities | 34,724 | |
Hilton Garden Inn Joint Venture [Member] | Other liabilities [Member] | ||
Equity method investment, liabilities | $ 234 |
Investments in Unconsolidated34
Investments in Unconsolidated Affiliated Entities (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||
Mar. 27, 2018 | Mar. 31, 2018 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | $ 18,328 | $ 5,140 | |||||
Brownmill, LLC [Member] | |||||||
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 | ||||||
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 | 48.58% | ||||||
Equity Method Investments | $ 5,099 | 5,140 | |||||
Hilton Garden Inn Joint Venture [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||||
Business Combination, Consideration Transferred | $ 60,000 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | 25,000 | ||||||
Payments for (Proceeds from) Businesses and Interest in Affiliates | $ 35,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 0.95% | ||||||
Equity Method Investments | $ 12,900 | $ 13,229 | $ 0 | ||||
Accrued Acquision Expense | $ 300 |
Marketable Securities and Fai35
Marketable Securities and Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | $ 9,989 | $ 9,989 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (232) | (211) |
Fair Value | $ 9,757 | $ 9,778 |
Marketable Securities and Fai36
Marketable Securities and Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in 1 year | $ 0 | |
Due in 1 year through 5 years | 5,010 | |
Due in 5 year through 10 years | 0 | |
Due after 10 years | 4,747 | |
Total | $ 9,757 | $ 9,778 |
Marketable Securities and Fai37
Marketable Securities and Fair Value Measurements (Details Textual) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Loans Receivable, Description of Variable Rate Basis | Libor plus 0.85% | |
Margin Loan [Member] | ||
Debt Instrument [Line Items] | ||
Libor | 2.73% | |
Interest rate, Libor plus | 0.85% |
Mortgages payable, net (Details
Mortgages payable, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 6.03% | |
Amount Due at Maturity | $ 143,310 | |
Total mortgages payable | 144,414 | $ 144,509 |
Less: Deferred financing costs | (641) | (728) |
Total mortgages payable, net | $ 143,773 | 143,781 |
Promissory Note, secured by two properties [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.94% | |
Weighted Average Interest Rate | 4.94% | |
Maturity Date | Aug. 31, 2018 | |
Amount Due at Maturity | $ 6,546 | |
Total mortgages payable | $ 6,607 | |
Total mortgages payable, net | 6,653 | |
Revolving Loan, secured by nine properties [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate basis | LIBOR + 4.95 | |
Weighted Average Interest Rate | 6.71% | |
Maturity Date | May 31, 2018 | |
Amount Due at Maturity | $ 73,616 | |
Total mortgages payable | 73,616 | |
Total mortgages payable, net | $ 73,600 | 73,616 |
Courtyard-Parsippany [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate basis | LIBOR + 3.50 | |
Weighted Average Interest Rate | 5.10% | |
Maturity Date | Aug. 31, 2018 | |
Amount Due at Maturity | $ 7,126 | |
Total mortgages payable | 7,191 | |
Total mortgages payable, net | $ 7,200 | 7,240 |
Hyatt - New Orleans [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate basis | LIBOR + 3.75% (subject to a 5.14% floor) | |
Weighted Average Interest Rate | 5.36% | |
Maturity Date | Dec. 31, 2020 | |
Amount Due at Maturity | $ 18,000 | |
Total mortgages payable | $ 18,000 | |
Total mortgages payable, net | 18,000 | |
Residence Inn - Needham [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate basis | LIBOR + 3.75% (subject to a 5.18% floor) | |
Weighted Average Interest Rate | 5.36% | |
Maturity Date | Dec. 31, 2020 | |
Amount Due at Maturity | $ 25,000 | |
Total mortgages payable | $ 25,000 | |
Total mortgages payable, net | 25,000 | |
Courtyard - Paso Robles [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.49% | |
Weighted Average Interest Rate | 5.49% | |
Maturity Date | Nov. 30, 2023 | |
Amount Due at Maturity | $ 13,022 | |
Total mortgages payable | $ 14,000 | |
Total mortgages payable, net | $ 14,000 |
Mortgages payable, net (Detai39
Mortgages payable, net (Details 1) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2,018 | $ 87,429 | |
2,019 | 179 | |
2,020 | 43,187 | |
2,021 | 200 | |
2,022 | 211 | |
Thereafter | 13,208 | |
Total | 144,414 | $ 144,509 |
Less: Deferred financing costs | (641) | (728) |
Total principal maturiteis, net | $ 143,773 | $ 143,781 |
Mortgages payable, net (Detai40
Mortgages payable, net (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Secured Debt | $ 143,773 | $ 143,781 |
Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Restricted escrows | 5,400 | 5,200 |
Revolving Loan, secured by nine properties [Member] | ||
Debt Instrument [Line Items] | ||
Secured Debt | 73,600 | 73,616 |
Courtyard-Parsippany [Member] | ||
Debt Instrument [Line Items] | ||
Secured Debt | 7,200 | $ 7,240 |
Springhill Suites Peabody and Towne Place Suites Little Rock [Member] | ||
Debt Instrument [Line Items] | ||
Secured Debt | $ 6,600 |
Related Party Transactions (Det
Related Party Transactions (Details) - Related Party [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Related Party Transaction [Line Items] | |||
Acquisition Fees | [1] | $ 285 | $ 0 |
Asset Management Fees (general and administrative costs) | 687 | 604 | |
Total | $ 972 | $ 604 | |
[1] | The acquisition fee for the Hilton Garden Inn Joint Venture of $285 was capitalized and included in investment in unconsolidated affiliated entities on the consolidated balance sheets. |
Related Party Transactions (D42
Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Business Combination, Acquisition Related Costs | [1] | $ 285 | $ 0 |
[1] | The acquisition fee for the Hilton Garden Inn Joint Venture of $285 was capitalized and included in investment in unconsolidated affiliated entities on the consolidated balance sheets. |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Carrying Amount | $ 144,414 | $ 144,509 |
Mortgages payable [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Amount | 144,414 | 144,509 |
Estimated Fair Value | $ 144,526 | $ 144,942 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - USD ($) | May 11, 2018 | Mar. 31, 2018 |
Subsequent Event [Line Items] | ||
Distribution payment | $ 3,100,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Distribution on per day basis | $ 0.0019178 | |
Number of days used to calculate daily amount of distribution | 365 days | |
Annualized rate of dividend | 7.00% | |
Share price | $ 10 |