Document and Entity Information
Document and Entity Information - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2019 | Aug. 10, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity Registrant Name | LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST II INC | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17.7 | |
Entity Central Index Key | 0001436975 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investment property: | ||
Land and improvements | $ 38,803 | $ 40,584 |
Building and improvements | 208,907 | 216,029 |
Furniture and fixtures | 37,614 | 38,362 |
Construction in progress | 2,225 | 3,457 |
Gross investment property | 287,549 | 298,432 |
Less accumulated depreciation | (41,423) | (38,550) |
Net investment property | 246,126 | 259,882 |
Investments in unconsolidated affiliated entities | 17,317 | 17,721 |
Cash and cash equivalents | 24,214 | 27,293 |
Marketable securities, available for sale | 8,672 | 7,901 |
Restricted cash | 2,820 | 3,367 |
Accounts receivable and other assets | 5,723 | 4,703 |
Total Assets | 304,872 | 320,867 |
Liabilities and Stockholders' Equity | ||
Accounts payable and other accrued expenses | 9,333 | 8,107 |
Margin loan | 4,908 | 5,060 |
Mortgages payable, net | 144,847 | 152,900 |
Due to related party | 692 | 557 |
Distributions payable | 3,088 | 3,154 |
Total liabilities | 162,868 | 169,778 |
Commitments and contingencies | ||
Company's stockholders' equity: | ||
Preferred shares, $0.01 par value, 10.0 million shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 100.0 million shares authorized, 17.7 million and 17.9 million, shares issued and outstanding, respectively | 177 | 179 |
Additional paid-in-capital | 149,725 | 151,538 |
Accumulated other comprehensive loss | (46) | (817) |
Accumulated deficit | (20,676) | (13,277) |
Total Company stockholders' equity | 129,180 | 137,623 |
Noncontrolling interests | 12,824 | 13,466 |
Total Stockholders' Equity | 142,004 | 151,089 |
Total Liabilities and Stockholders' Equity | $ 304,872 | $ 320,867 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, shares authorized | 10 | 10 |
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 | 100 |
Common stock, shares issued | 17.7 | 17.9 |
Common stock, shares outstanding | 17.7 | 17.9 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Revenues | $ 20,921 | $ 21,468 | $ 38,685 | $ 40,832 |
Expenses: | ||||
Property operating expenses | 13,087 | 13,712 | 25,220 | 26,461 |
Real estate taxes | 906 | 799 | 1,873 | 1,700 |
General and administrative costs | 1,098 | 1,247 | 2,411 | 2,637 |
Depreciation and amortization | 2,829 | 2,870 | 5,816 | 5,720 |
Total operating expenses | 17,920 | 18,628 | 35,320 | 36,518 |
Operating income | 3,001 | 2,840 | 3,365 | 4,314 |
Interest and dividend income | 139 | 129 | 283 | 261 |
Loss on sale of marketable securities, available for sale | 0 | (31) | 0 | (31) |
Earnings from investments in unconsolidated affiliated entities | 157 | 88 | (157) | 147 |
Interest expense | (2,324) | (2,661) | (4,764) | (5,053) |
Other income/(expense), net | 82 | (36) | 48 | (46) |
Net income/(loss) | 1,055 | 329 | (1,225) | (408) |
Less: net income attributable to noncontrolling interests | (42) | (29) | (17) | (47) |
Net income/(loss) applicable to Company's common shares | $ 1,013 | $ 300 | $ (1,242) | $ (455) |
Net income/(loss) per Company's common share, basic and diluted | $ 0.06 | $ 0.02 | $ (0.07) | $ (0.03) |
Weighted average number of common shares outstanding, basic and diluted | 17,713 | 18,097 | 17,756 | 18,129 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | ||||
Net income/(loss) | $ 1,055 | $ 329 | $ (1,225) | $ (408) |
Other comprehensive income/(loss): | ||||
Holding gain/(loss) on marketable securities, available for sale | 246 | (330) | 771 | (351) |
Reclassification adjustment for loss included in net income | 0 | 31 | 0 | 31 |
Other comprehensive income/(loss) | 246 | (299) | 771 | (320) |
Comprehensive income/(loss) | 1,301 | 30 | (454) | (728) |
Less: Comprehensive income attributable to noncontrolling interest | (42) | (29) | (17) | (47) |
Comprehensive income/(loss) attributable to the Company's common shares | $ 1,259 | $ 1 | $ (471) | $ (775) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Surplus/(Deficit) | Noncontrolling Interests | Total | |
BALANCE at Dec. 31, 2017 | $ 182 | $ 155,162 | $ (211) | $ 1,771 | $ 15,687 | $ 172,591 | |
BALANCE (in shares) at Dec. 31, 2017 | 18,199 | ||||||
Net (loss)/income | $ 0 | 0 | 0 | (455) | 47 | (408) | |
Other comprehensive income (loss) | 0 | 0 | (320) | 0 | 0 | (320) | |
Distributions declared (a) | [1] | 0 | 0 | 0 | (6,285) | 0 | (6,285) |
Contributions of noncontrolling interests | 0 | 0 | 0 | 0 | 644 | 644 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | (1,331) | (1,331) | |
Redemption and cancellation of shares | $ (1) | (1,242) | 0 | 0 | 0 | (1,243) | |
Redemption and cancellation of shares (in shares) | (126) | ||||||
BALANCE at Jun. 30, 2018 | $ 181 | 153,920 | (531) | (4,969) | 15,047 | 163,648 | |
BALANCE (in shares) at Jun. 30, 2018 | 18,073 | ||||||
BALANCE at Mar. 31, 2018 | $ 181 | 154,587 | (232) | (2,115) | 15,405 | 167,826 | |
BALANCE (in shares) at Mar. 31, 2018 | 18,140 | ||||||
Net (loss)/income | $ 0 | 0 | 0 | 300 | 29 | 329 | |
Other comprehensive income (loss) | 0 | 0 | (299) | 0 | 0 | (299) | |
Distributions declared (a) | [1] | 0 | 0 | 0 | (3,154) | 0 | (3,154) |
Contributions of noncontrolling interests | 0 | 0 | 0 | 0 | 631 | 631 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | (1,018) | (1,018) | |
Redemption and cancellation of shares | $ 0 | (667) | 0 | 0 | 0 | (667) | |
Redemption and cancellation of shares (in shares) | (67) | ||||||
BALANCE at Jun. 30, 2018 | $ 181 | 153,920 | (531) | (4,969) | 15,047 | 163,648 | |
BALANCE (in shares) at Jun. 30, 2018 | 18,073 | ||||||
BALANCE at Dec. 31, 2018 | $ 179 | 151,538 | (817) | (13,277) | 13,466 | 151,089 | |
BALANCE (in shares) at Dec. 31, 2018 | 17,874 | ||||||
Net (loss)/income | $ 0 | 0 | 0 | (1,242) | 17 | (1,225) | |
Other comprehensive income (loss) | 0 | 0 | 771 | 0 | 0 | 771 | |
Distributions declared (a) | [1] | 0 | 0 | 0 | (6,157) | 0 | (6,157) |
Contributions of noncontrolling interests | 0 | 0 | 0 | 0 | 57 | 57 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | (716) | (716) | |
Redemption and cancellation of shares | $ (2) | (1,813) | 0 | 0 | 0 | (1,815) | |
Redemption and cancellation of shares (in shares) | (182) | ||||||
BALANCE at Jun. 30, 2019 | $ 177 | 149,725 | (46) | (20,676) | 12,824 | 142,004 | |
BALANCE (in shares) at Jun. 30, 2019 | 17,692 | ||||||
BALANCE at Mar. 31, 2019 | $ 178 | 150,624 | (292) | (18,601) | 13,160 | 145,069 | |
BALANCE (in shares) at Mar. 31, 2019 | 17,782 | ||||||
Net (loss)/income | $ 0 | 0 | 0 | 1,013 | 42 | 1,055 | |
Other comprehensive income (loss) | 0 | 0 | 246 | 0 | 0 | 246 | |
Distributions declared (a) | [1] | 0 | 0 | 0 | (3,088) | 0 | (3,088) |
Contributions of noncontrolling interests | 0 | 0 | 0 | 0 | 24 | 24 | |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | (402) | (402) | |
Redemption and cancellation of shares | $ (1) | (899) | 0 | 0 | 0 | (900) | |
Redemption and cancellation of shares (in shares) | (90) | ||||||
BALANCE at Jun. 30, 2019 | $ 177 | $ 149,725 | $ (46) | $ (20,676) | $ 12,824 | $ 142,004 | |
BALANCE (in shares) at Jun. 30, 2019 | 17,692 | ||||||
[1] | Distributions per share were $0.175. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Jun. 30, 2019 | Jun. 30, 2018 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||
Dividends Payable, Amount Per Share | $ 0.175 | $ 0.175 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,225) | $ (408) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 5,816 | 5,720 |
Amortization of deferred financing costs | 206 | 567 |
Earnings from investments in unconsolidated affiliated entities | 157 | (147) |
Other non-cash adjustments | (54) | 94 |
Changes in assets and liabilities: | ||
Increase in accounts receivable and other assets | (1,229) | (1,871) |
Increase in accounts payable and other accrued expenses | 1,150 | 879 |
Increase/(decrease) in due to related party | 135 | (398) |
Net cash provided by operating activities | 4,956 | 4,436 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (4,676) | (2,208) |
Proceeds from sale of marketable securities | 0 | 1,239 |
Proceeds from disposition of investment property, net | 12,955 | 0 |
Investments in unconsolidated affiliated entities | (58) | (13,266) |
Distributions from unconsolidated affiliated entities | 304 | 101 |
Net cash provided by/(used in) investing activities | 8,525 | (14,134) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from mortgages payable | 0 | 140,000 |
Payments on mortgages payable | (8,258) | (130,509) |
Payment of loan fees and expenses | 0 | (1,123) |
Payment on margin loan, net | (152) | (1,427) |
Redemption and cancellation of common shares | (1,815) | (1,243) |
Distributions to noncontrolling interests | (716) | (1,331) |
Contributions of noncontrolling interests | 57 | 644 |
Distributions to common stockholders | (6,223) | (6,342) |
Net cash used in financing activities | (17,107) | (1,331) |
Net change in cash, cash equivalents and restricted cash | (3,626) | (11,029) |
Cash, cash equivalents and restricted cash, beginning of year | 30,660 | 50,173 |
Cash, cash equivalents and restricted cash, end of period | 27,034 | 39,144 |
Supplemental cash flow information for the periods indicated is as follows: | ||
Cash paid for interest | 4,638 | 3,421 |
Distributions declared but not paid | 3,088 | 3,154 |
Holding gain on marketable securities, available for sale | 771 | 320 |
Investment property acquired but not paid | 316 | 70 |
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: | ||
Cash | 24,214 | 35,390 |
Restricted cash | 2,820 | 3,754 |
Cash, cash equivalents and restricted cash, end of period | $ 27,034 | $ 39,144 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2019 | |
Organization | |
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 and residential real estate properties located principally in North America, as well as other real estate-related securities, such as collateralized debt obligations, commercial mortgage-backed securities and mortgage and mezzanine loans secured, directly or indirectly, by the same types of properties which it may acquire directly. 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, in which Lightstone REIT II as the general partner, held a 99% interest as of June 30, 2019. 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 does not have any employees. The Advisor receives compensation and fees for services related to the investment and management of the Company’s assets. The Sponsor has various majority owned and controlled affiliated property managers, which may manage certain of the properties the Company acquires. However, the Company also contracts with other unaffiliated third-party property managers, principally for the management of its hospitality properties. 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 the Follow-on Offering, which was terminated on September 27, 2014, 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 Partners of Operating Partnership On May 20, 2008, the Advisor contributed $2 to the Operating Partnership in exchange for 200 limited partner units in the Operating Partnership. The limited partner has the right to convert Operating Partnership common units into cash or, at the Company’s option, an equal number of shares of the common stock of the Company, as allowed by the limited partnership agreement. From the Company’s inception through the termination of the Follow-On Offering on September 27, 2014, Lightstone SLP II LLC, which is wholly owned by the Sponsor, contributed (i) cash of approximately $12.9 million and (ii) equity interests totaling 48.6% in Brownmill LLC (“Brownmill”), which were valued at $4.8 million, to the Operating Partnership in exchange for 177.0 subordinated profits interests (the “Subordinated Profits Interests”) in the Operating Partnership with an aggregate value of $17.7 million. See Notes 4 and 9 for additional information. Other Noncontrolling Interests in Consolidated Subsidiaries Other noncontrolling interests consist of (i) a 2.5% membership interest held by Lightstone Value Plus Real Estate Investment Trust, Inc. (“Lightstone I”), a related party REIT also sponsored by the Company’s Sponsor, in a joint venture (the “Joint Venture”) formed between the Company and Lightstone I that currently owns 7 of our hotels as of June 30, 2019 and (ii) the membership interests held by minority owners in certain of our hotels. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies 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 June 30, 2019, the Lightstone REIT II had a 99% general partnership interest in the common units of the Operating Partnership. All inter-company balances and transactions have been eliminated in consolidation. 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, 2018. 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, 2018 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. Revenue Recognition The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenues Room $ 19,648 $ 20,263 $ 36,069 $ 38,510 Food, beverage and other 1,273 1,205 2,616 2,322 Total revenues $ 20,921 $ 21,468 $ 38,685 $ 40,832 Recently Adopted Accounting Pronouncements In August 2018, the Securities and Exchange Commission adopted the final rule amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded. In addition, the amendments expand the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The rule was effective on November 5, 2018 and will be effective for the quarter that begins after the effective date. Since the Company already includes a year to date consolidated statement of stockholders’ equity in our interim financial statement filings, the adoption of this guidance resulted in the inclusion of a quarter to date consolidated statement of stockholders’ equity in our second and third quarter interim financial statement filings and the inclusion of corresponding prior periods statement of stockholders’ equity for all periods presented. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued an accounting standards update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use lease asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. The Company adopted the ASU on January 1, 2019, using the modified retrospective approach, whereby the Company applied the standard at the beginning of the period of adoption and has presented financial information for periods prior to January 1, 2019 in accordance with prior guidance. Upon adoption, the Company elected the following practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, (iii) an entity need not reassess initial direct costs for any existing leases and (iv) the evaluation of lease and non-lease components of a contract. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use lease assets and related lease liabilities for leases with a term greater than one year. The implementation of the ASU had no cumulative effect on accumulated deficit and the adoption resulted in the recognition of right-of-use lease assets of $0.3 million and related lease liabilities of $0.3 million as of January 1, 2019. New Accounting Pronouncements 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. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Leases | 3. Leases On January 1, 2019, the Company adopted the ASU and elected the practical expedients which permitted it to not reassess its prior conclusions about lease identification, classification, and initial direct costs. The Company has operating leases related to land used as a parking lot and vehicles. These leases have remaining terms of 3 months to 3 years, some of which include options to extend the leases for additional years. One of our leases contains renewal options which are solely at the Company’s discretion and are not included in the lease term since it is not considered reasonably certain the Company will exercise those options. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Consequently on January 1, 2019, the Company recognized right-of-use lease assets of $0.3 million and related lease liabilities of $0.3 million. Since most of the Company’s leases do not provide an implicit rate, we used our incremental borrowing rate of 5.7% calculated based on information available at adoption. As of June 30, 2019, the Company’s right-of-use lease assets of $0.3 million are included in accounts receivable and other assets and its related lease liabilities of $0.3 million are presented in accounts payable and accrued expenses on the Company’s consolidated balance sheets. During the three and six months ended June 30, 2019, the Company’s total operating lease cost, which is included in property operating expenses on the Company’s consolidated statements of operations, was $44 and $88, respectively, and during the six months ended June 30, 2019, the operating cash outflows from operating leases was $88. As of June 30, 2019, the weighted average operating lease term was 22 months. The adoption of this standard had minimal impact on the Company’s consolidated statements of operations. The maturities of the lease liabilities as of June 30, 2019 for the Company’s operating leases are as follows: 2019 $ 80 2020 160 2021 50 Thereafter — Total lease payments $ 290 Less: imputed interest $ (28) Present value of lease liabilities $ 262 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliated Entities | 6 Months Ended |
Jun. 30, 2019 | |
Investments in Unconsolidated Affiliated Entities | |
Investments in Unconsolidated Affiliated Entities | 4. 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 over these entities. A summary of the Company’s investments in the unconsolidated affiliated entities is as follows: As of Entity Date of Ownership Ownership % June 30, 2019 December 31, 2018 Brownmill Various % $ 4,868 $ 4,967 Hilton Garden Inn Joint Venture March 27, 2018 % 12,449 12,754 Total investments in unconsolidated affiliated real estate entities $ 17,317 $ 17,721 Brownmill During 2010 through 2012, the Company entered into various 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% equity interest in exchange for the Company issuing an aggregate of 48 units of Subordinated Profits Interests, at $100,000 per unit (at an aggregate total value of $4.8 million), to Lightstone SLP II LLC. As of June 30, 2019, the Company owns a 48.6% membership interest in Brownmill. The Company’s interest in Brownmill is a non-managing interest. An affiliate of the Company’s Sponsor is the majority owner and manager of Brownmill. Profit and cash distributions are allocated in accordance with each investor’s ownership percentage. The Company accounts for its investment in Brownmill in accordance with the equity method of accounting. During the six months ended June 30, 2019, the Company received distributions from Brownmill aggregating $0.2 million. 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 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. The following table represents the condensed income statements for Brownmill for the periods indicated: For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue $ 865 $ 918 $ 1,774 $ 1,879 Property operating expenses 334 333 796 794 Depreciation and amortization 175 179 350 357 Operating income 356 406 628 728 Interest expense and other, net (170) (172) (360) (384) Net income $ 186 $ 234 $ 268 $ 344 Company’s share of net income $ 90 $ 114 $ 130 $ 167 Additional depreciation and amortization expense (1) (31) (33) (63) (65) Company’s earnings from investment $ 59 $ 81 $ 67 $ 102 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. The following table represents the condensed balance sheets for Brownmill: As of As of June 30, 2019 December 31, 2018 Real estate, at cost (net) $ 13,948 $ 14,239 Cash and restricted cash 1,018 1,055 Other assets 1,340 1,226 Total assets $ 16,306 $ 16,520 Mortgage payable $ 14,170 $ 14,278 Other liabilities 498 530 Members’ capital 1,638 1,712 Total liabilities and members’ capital $ 16,306 $ 16,520 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 Avenue, Long Island City, New York (the “Hilton Garden Inn - Long Island City”) from an unrelated third party, for aggregate consideration of approximately $60.0 million, which consisted of $25.0 million of cash and $35.0 million of proceeds from a loan from a financial institution, excluding closing and other related transaction costs. The Company and Lightstone REIT III each have 50.0% joint venture ownership interests, respectively, in the Hilton Garden Inn Joint Venture. The Company paid approximately $12.9 million for a 50.0% membership interest in the Hilton Garden Inn Joint Venture. The Company’s ownership interest in the Hilton Garden Inn Joint Venture is a co-managing interest. The Company accounts for its ownership interest in the Hilton Garden Inn Joint Venture in accordance with the equity method of accounting because it exerts significant influence over but does not control the Hilton Garden Inn Joint Venture. All capital contributions and distributions of earnings from the Hilton Garden Inn Joint Venture are made on a pro rata basis in proportion to each member’s equity interest percentage. Any distributions in excess of earnings from the Hilton Garden Inn Joint Venture are made to the members pursuant to the terms of the Hilton Garden Inn Joint Venture’s operating agreement. The Company commenced recording its allocated portion of profit/loss and cash distributions beginning as of March 27, 2018 with respect to its membership interest of 50.0% in the Hilton Garden Inn Joint Venture. During the six months ended June 30, 2019, the Company received distributions from the Hilton Garden Inn Joint Venture aggregating $0.1 million. Subsequent to the Company’s acquisition through June 30, 2019, the Company has made an aggregate of $0.7 million (including $0.1 million during the six months ended June 30, 2019) of additional capital contributions to the Hilton Garden Inn Joint Venture. Hilton Garden Inn Joint Venture Financial Information The following table represents the condensed income statement for the Hilton Garden Inn Joint Venture for the period indicated: For the Three Months For the Three Months For the Six Months For the Six Months Ended June 30, 2019 Ended June 30, 2018 Ended June 30, 2019 Ended June 30, 2018 Revenues $ 3,086 $ 3,015 $ 5,094 $ 3,185 Property operating expenses 1,765 1,901 3,270 1,971 General and administrative costs (22) 2 (22) 2 Depreciation and amortization 627 636 1,269 635 Operating (loss)/income 716 476 577 577 Interest expense (520) (463) (1,026) (488) Net (loss)/income $ 196 $ 13 $ (449) $ 89 Company’s share of net (loss)/income (50.00%) $ 98 $ 7 $ (225) $ 45 The following table represents the condensed balance sheet for the Hilton Garden Inn Joint Venture: As of As of June 30, 2019 December 31, 2018 Investment property, net $ 57,716 $ 58,799 Cash 927 554 Other assets 1,524 1,218 Total assets $ 60,167 $ 60,571 Mortgage payable, net $ 34,793 $ 34,766 Other liabilities 1,045 867 Members’ capital 24,329 24,938 Total liabilities and members’ capital $ 60,167 $ 60,571 |
Marketable Securities, Fair Val
Marketable Securities, Fair Value Measurements and Margin Loan | 6 Months Ended |
Jun. 30, 2019 | |
Marketable Securities, Fair Value Measurements and Margin Loan | |
Marketable Securities, Fair Value Measurements and Margin Loan | 5. Marketable Securities, Fair Value Measurements and Margin Loan Marketable Securities The following is a summary of the Company’s available for sale securities as of the dates indicated: As of June 30, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 8,718 $ — $ (46) $ 8,672 As of December 31, 2018 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 8,718 $ — $ (817) $ 7,901 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 June 30, 2019 and December 31, 2018, 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 June 30, 2019 and December 31, 2018, all of the Company’s debt securities were classified as Level 2 assets and there were no transfers between the level classifications during the six months ended June 30, 2019. The fair values of the Company’s investments in Corporate Bonds are measured using readily available quoted prices for similar assets. 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 June 30, 2019 Due in 1 year $ — Due in 1 year through 5 years 5,100 Due in 5 year through 10 years — Due after 10 years 3,572 Total $ 8,672 The Company did not have any other significant financial assets or liabilities, which would require revised valuations that are recognized at fair value. Margin loan 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% (3.25% as of June 30, 2019). As of June 30, 2019 and December 31, 2018, the outstanding balance of the margin loan was approximately $4.9 million and $5.1 million, respectively. |
Disposition of Alabama Hotels
Disposition of Alabama Hotels | 6 Months Ended |
Jun. 30, 2019 | |
Disposition of Alabama Hotels | |
Disposition of Alabama Hotels | 6. Disposition of Alabama Hotels On February 11, 2019, certain wholly owned subsidiaries (collectively, the “Sellers”) of the Company’s operating partnership and VAH Investments, LLC (the “Buyer”), an unaffiliated third party, entered into purchase and sale agreements (collectively, the “Alabama Hotel Agreements”) pursuant to which the Sellers would dispose of two limited services hotels (the “Alabama Hotels”) to the Buyers for an aggregate contractual sales price of $13.3 million. The Alabama Hotels, which had an aggregate of 169 rooms, were comprised of the following properties: · a Holiday Inn Express Hotel & Suites (the “Holiday Inn — Opelika”) located in Opelika, Alabama.; and · a Holiday Inn Express Hotel & Suites (“Holiday Inn Express – Auburn”) located in Auburn, Alabama. On May 9, 2019, pursuant to the terms of the Alabama Hotel Agreements, the Sellers completed the disposition of the Alabama Hotels to the Buyer for an aggregate contractual sales price of $13.3 million. In connection with the disposition of the Alabama Hotels, the Company recognized a net gain on the disposition of real estate of approximately $0.1 million (included in other income/(expense), net on the consolidated statements of operations) during the second quarter of 2019. Approximately $8.2 million of the proceeds were used for a required paydown of the Revolving Credit Facility (See Note 7). The disposition of the Alabama Hotels did not qualify to be reported as discontinued operations since the disposition did not represent a strategic shift in the Company’s operations that had a major effect on the Company’s operations and financial results. Accordingly, the operating results of the Alabama Hotels are reflected in the Company’s results from continuing operations for all periods presented through its respective date of disposition. The Holiday Inn Express – Auburn was wholly owned by the Joint Venture. As a result, as of June 30, 2019, the Joint Venture held membership interests in seven hotels. |
Mortgages payable, net
Mortgages payable, net | 6 Months Ended |
Jun. 30, 2019 | |
Mortgages payable, net | |
Mortgages payable, net | 7. Mortgages payable, net Mortgages payable, net consisted of the following: Weighted Average Interest Rate Interest as of Maturity Amount Due As of As of Description Rate June 30, 2019 Date at Maturity June 30, 2019 December 31, 2018 Revolving Credit Facility LIBOR + 3.15 % 5.86 % May 2021 $ 131,831 $ 131,831 $ 140,000 Courtyard – Paso Robles % 5.49 % November 2023 13,022 13,895 13,985 Total mortgages payable 5.82 % $ 144,853 145,726 153,985 Less: Deferred financing costs (879) (1,085) Total mortgages payable, net $ 144,847 $ 152,900 Revolving Credit Facility On May 17, 2018, the Company, through certain subsidiaries, entered into a nonrecourse revolving credit facility (the “Revolving Credit Facility”) with a bank of up to $140.0 million. The Revolving Credit Facility bore interest at Libor plus 3.50%, has an initial term of three years, subject to two, one-year extension options at the sole discretion of Western Alliance, and provides for monthly interest-only payments with the unpaid principal balance due at maturity. The Revolving Credit Facility’s maturity may be accelerated upon the occurrence of certain customary events of default. The Revolving Credit Facility provides for borrowings up to 65.0% of the loan-to-value ratio of properties designated as collateral and also requires the maintenance of certain financial ratios, including a minimum debt yield ratio, which may also be achieved through principal paydowns on the outstanding balance of the Revolving Credit Facility. Effective March 31, 2019, the Company entered into a loan modification agreement with the lender for the Revolving Credit Facility, which, among other things, decreased the interest rate to Libor plus 3.15% and modified the requirements under the minimum debt yield ratio. As of December 31, 2018, the Revolving Credit Facility was fully drawn and collateralized by 15 of the Company’s hotels. On May 9, 2019, the Company completed the disposition of the Alabama Hotels, two properties that were previously designated as collateral under the Revolving Credit Facility. Approximately $8.2 million of the proceeds from the disposition of the Alabama Hotels were used for a required paydown of the Revolving Credit Facility. (See Note 6). As a result, as of June 30, 2019, the Revolving Credit Facility had an outstanding balance of $131.8 million, was fully drawn and was collateralized by 13 of the Company’s hotels. 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 June 30, 2019: 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 89 $ 187 $ 132,031 $ 211 $ 13,208 $ — $ 145,726 Less: deferred financing costs (879) Total principal maturities, net $ 144,847 Restricted escrows Pursuant to the Company’s loan agreements, escrows in the amount of $2.8 million and $3.4 million were held in restricted cash accounts as of June 30, 2019 and December 31, 2018, respectively. Such escrows will be released in accordance with the applicable loan agreements for payments of real estate taxes, insurance and capital improvement transactions, as required. Debt Compliance Certain of our debt agreements also contain clauses providing for prepayment penalties and the Revolving Credit Facility requires the maintenance of certain ratios, including a minimum debt yield ratio, which may also be achieved through principal paydowns. As of June 30, 2019, the Company was in compliance with the minimum debt yield ratio for the Revolving Credit Facility. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity | |
Equity | 8. 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 | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions | |
Related Party Transactions | 9. 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. 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 For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Acquisition fees (1) $ — $ — $ — $ Development fees (2) 57 — 62 — Asset management fees (general and administrative costs) 758 755 1,534 1,441 Total $ 815 $ 755 $ 1,596 $ 1,726 (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. (2) Generally, capitalized and amortized over the estimated useful life of the associated asset. In connection with the Company’s Offering and Follow-On Offering, Lightstone SLP II LLC, an affiliate of the Company’s Sponsor, contributed (i) cash of approximately $12.9 million and (ii) equity interests in Brownmill valued at $4.8 million to the Operating Partnership in exchange for 177.0 Subordinated Profits Interests in the Operating Partnership with an aggregate value of $17.7 million, which are included in noncontrolling interests in the consolidated balance sheets. These Subordinated Profit Interests, the purchase price of which will be repaid only after stockholders receive a stated preferred return and their net investment, entitle Lightstone SLP II, LLC to a portion of any regular distributions made by the Operating Partnership. During the three and six months ended June 30, 2019, distributions of $0.3 million and $0.6 million were declared and paid on the Subordinated Profits Interests. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments | |
Financial Instruments | 10. 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 other accrued expenses, margin loan, due to related party, and distributions payable approximated their fair values because of the short maturity of these instruments. The estimated fair value of our mortgages payable is as follows: As of June 30, 2019 As of December 31, 2018 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Mortgages payable $ 145,726 $ 146,231 $ 153,985 $ 154,134 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 | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 11. 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 | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events | |
Subsequent Events | 12. Subsequent Events Distribution Payments On July 15, 2019, the distribution for the three-month period ending June 30, 2019 of $3.1 million was paid in cash. Distribution Declaration On August 13, 2019, the Company’s Board of Directors authorized and it declared a distribution of $0.175 per share for the quarterly period ending September 30, 2019. The quarterly distribution is the pro rata equivalent of an annual distribution of $0.70 per share, or an annualized rate of 7.0% assuming a purchase price of $10.00 per share. The distribution will be paid on or about the 15th day of the month following the quarter-end to stockholders of record at the close of business on the last day of the quarter-end. Future distributions declared will be at the discretion of the Board of Directors based on their analysis of our performance over the previous periods and expectations of performance for future periods and may differ from the amount of the distribution determined for this period. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, current rental revenues, operating and interest expenses and our ability to refinance near-term debt. In addition, the Company currently intends to continue to comply with the REIT distribution requirement that it annually distribute no less than 90% of its taxable income. The Company cannot assure that regular distributions will continue to be made or that it will maintain any particular level of distributions that it has established or may establish. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Significant Accounting Policies | |
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 June 30, 2019, the Lightstone REIT II had a 99% general partnership interest in the common units of the Operating Partnership. All inter-company balances and transactions have been eliminated in consolidation. 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, 2018. 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, 2018 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. |
Revenue Recognition | Revenue Recognition The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenues Room $ 19,648 $ 20,263 $ 36,069 $ 38,510 Food, beverage and other 1,273 1,205 2,616 2,322 Total revenues $ 20,921 $ 21,468 $ 38,685 $ 40,832 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the Securities and Exchange Commission adopted the final rule amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded. In addition, the amendments expand the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The rule was effective on November 5, 2018 and will be effective for the quarter that begins after the effective date. Since the Company already includes a year to date consolidated statement of stockholders’ equity in our interim financial statement filings, the adoption of this guidance resulted in the inclusion of a quarter to date consolidated statement of stockholders’ equity in our second and third quarter interim financial statement filings and the inclusion of corresponding prior periods statement of stockholders’ equity for all periods presented. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued an accounting standards update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use lease asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. The Company adopted the ASU on January 1, 2019, using the modified retrospective approach, whereby the Company applied the standard at the beginning of the period of adoption and has presented financial information for periods prior to January 1, 2019 in accordance with prior guidance. Upon adoption, the Company elected the following practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, (iii) an entity need not reassess initial direct costs for any existing leases and (iv) the evaluation of lease and non-lease components of a contract. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use lease assets and related lease liabilities for leases with a term greater than one year. The implementation of the ASU had no cumulative effect on accumulated deficit and the adoption resulted in the recognition of right-of-use lease assets of $0.3 million and related lease liabilities of $0.3 million as of January 1, 2019. New Accounting Pronouncements 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 Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Significant Accounting Policies | |
Schedule of total revenues from hotel operations on a disaggregated basis | The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenues Room $ 19,648 $ 20,263 $ 36,069 $ 38,510 Food, beverage and other 1,273 1,205 2,616 2,322 Total revenues $ 20,921 $ 21,468 $ 38,685 $ 40,832 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Schedule of maturities of the lease liabilities for the Company's operating leases | The maturities of the lease liabilities as of June 30, 2019 for the Company’s operating leases are as follows: 2019 $ 80 2020 160 2021 50 Thereafter — Total lease payments $ 290 Less: imputed interest $ (28) Present value of lease liabilities $ 262 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliated Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 % June 30, 2019 December 31, 2018 Brownmill Various % $ 4,868 $ 4,967 Hilton Garden Inn Joint Venture March 27, 2018 % 12,449 12,754 Total investments in unconsolidated affiliated real estate entities $ 17,317 $ 17,721 |
Brownmill, LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of condensed income statements | The following table represents the condensed income statements for Brownmill for the periods indicated: For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue $ 865 $ 918 $ 1,774 $ 1,879 Property operating expenses 334 333 796 794 Depreciation and amortization 175 179 350 357 Operating income 356 406 628 728 Interest expense and other, net (170) (172) (360) (384) Net income $ 186 $ 234 $ 268 $ 344 Company’s share of net income $ 90 $ 114 $ 130 $ 167 Additional depreciation and amortization expense (1) (31) (33) (63) (65) Company’s earnings from investment $ 59 $ 81 $ 67 $ 102 |
Schedule of condensed balance sheets | The following table represents the condensed balance sheets for Brownmill: As of As of June 30, 2019 December 31, 2018 Real estate, at cost (net) $ 13,948 $ 14,239 Cash and restricted cash 1,018 1,055 Other assets 1,340 1,226 Total assets $ 16,306 $ 16,520 Mortgage payable $ 14,170 $ 14,278 Other liabilities 498 530 Members’ capital 1,638 1,712 Total liabilities and members’ capital $ 16,306 $ 16,520 |
Hilton Garden Inn Joint Venture [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of condensed income statements | The following table represents the condensed income statement for the Hilton Garden Inn Joint Venture for the period indicated: For the Three Months For the Three Months For the Six Months For the Six Months Ended June 30, 2019 Ended June 30, 2018 Ended June 30, 2019 Ended June 30, 2018 Revenues $ 3,086 $ 3,015 $ 5,094 $ 3,185 Property operating expenses 1,765 1,901 3,270 1,971 General and administrative costs (22) 2 (22) 2 Depreciation and amortization 627 636 1,269 635 Operating (loss)/income 716 476 577 577 Interest expense (520) (463) (1,026) (488) Net (loss)/income $ 196 $ 13 $ (449) $ 89 Company’s share of net (loss)/income (50.00%) $ 98 $ 7 $ (225) $ 45 |
Schedule of condensed balance sheets | The following table represents the condensed balance sheet for the Hilton Garden Inn Joint Venture: As of As of June 30, 2019 December 31, 2018 Investment property, net $ 57,716 $ 58,799 Cash 927 554 Other assets 1,524 1,218 Total assets $ 60,167 $ 60,571 Mortgage payable, net $ 34,793 $ 34,766 Other liabilities 1,045 867 Members’ capital 24,329 24,938 Total liabilities and members’ capital $ 60,167 $ 60,571 |
Marketable Securities, Fair V_2
Marketable Securities, Fair Value Measurements and Margin Loan (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Marketable Securities, Fair Value Measurements and Margin Loan | |
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 June 30, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 8,718 $ — $ (46) $ 8,672 As of December 31, 2018 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 8,718 $ — $ (817) $ 7,901 |
Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates | 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 June 30, 2019 Due in 1 year $ — Due in 1 year through 5 years 5,100 Due in 5 year through 10 years — Due after 10 years 3,572 Total $ 8,672 |
Mortgages payable, net (Tables)
Mortgages payable, net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Mortgages payable, net | |
Schedule of Mortgages Payable | Mortgages payable, net consisted of the following: Weighted Average Interest Rate Interest as of Maturity Amount Due As of As of Description Rate June 30, 2019 Date at Maturity June 30, 2019 December 31, 2018 Revolving Credit Facility LIBOR + 3.15 % 5.86 % May 2021 $ 131,831 $ 131,831 $ 140,000 Courtyard – Paso Robles % 5.49 % November 2023 13,022 13,895 13,985 Total mortgages payable 5.82 % $ 144,853 145,726 153,985 Less: Deferred financing costs (879) (1,085) Total mortgages payable, net $ 144,847 $ 152,900 |
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 June 30, 2019: 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 89 $ 187 $ 132,031 $ 211 $ 13,208 $ — $ 145,726 Less: deferred financing costs (879) Total principal maturities, net $ 144,847 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions | |
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 For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Acquisition fees (1) $ — $ — $ — $ Development fees (2) 57 — 62 — Asset management fees (general and administrative costs) 758 755 1,534 1,441 Total $ 815 $ 755 $ 1,596 $ 1,726 (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. (2) Generally, capitalized and amortized over the estimated useful life of the associated asset. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments | |
Summary of Estimated Fair Value of Debt | The estimated fair value of our mortgages payable is as follows: As of June 30, 2019 As of December 31, 2018 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Mortgages payable $ 145,726 $ 146,231 $ 153,985 $ 154,134 |
Organization (Details)
Organization (Details) $ in Thousands | 1 Months Ended | 6 Months Ended |
May 20, 2008USD ($) | Jun. 30, 2019USD ($)itemshares | |
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 | |
Sponsor's cash contribution | $ 12,900 | |
Number of Hotels | item | 7 | |
Brownmill, LLC [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Ownership interest | 48.60% | |
Value of ownership interest | $ 4,800 | |
Subordinate profit interest units | shares | 177,000 | |
Aggregate value of subordinate profits | $ 17,700 | |
Lightstone SLP II LLC [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Ownership interest | 2.50% | |
Number of Hotels | item | 7 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues [Abstract] | ||||
Revenues | $ 20,921 | $ 21,468 | $ 38,685 | $ 40,832 |
Room | ||||
Revenues [Abstract] | ||||
Revenues | 19,648 | 20,263 | 36,069 | 38,510 |
Food, beverage and other | ||||
Revenues [Abstract] | ||||
Revenues | $ 1,273 | $ 1,205 | $ 2,616 | $ 2,322 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jan. 01, 2019 | |
Summary of Significant Accounting Policies [Line Items] | ||
Percentage of general partnership interest in common units of the operating partnership | 99.00% | |
Operating Lease, Right-of-Use Asset | $ 300 | $ 300 |
Operating Lease, Liability | $ 262 | 300 |
Accounting Standards Update 2016-02 [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Operating Lease, Right-of-Use Asset | 300 | |
Operating Lease, Liability | $ 300 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Leases | ||
2019 | $ 80 | |
2020 | 160 | |
2021 | 50 | |
Thereafter | 0 | |
Total lease payments | 290 | |
Less: imputed interest | (28) | |
Present value of lease liabilities | $ 262 | $ 300 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | |
Operating Lease, Right-of-Use Asset | $ 300 | $ 300 | $ 300 |
Operating Lease, Liability | 262 | 262 | $ 300 |
Operating Lease, Payments | $ 44 | 88 | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.70% | ||
Lease, Cost | $ 88 | ||
Operating Lease, Weighted Average Remaining Lease Term | 22 months | 22 months | |
Maximum [Member] | |||
Operating Lease Remaining Lease Term | 3 years | ||
Minimum [Member] | |||
Operating Lease Remaining Lease Term | 3 months |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliated Entities (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Mar. 27, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 17,317 | $ 17,721 | |
Brownmill, LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Date of Ownership | Various | ||
Ownership % | 48.58% | ||
Equity Method Investments | $ 4,868 | 4,967 | |
Hilton Garden Inn Joint Venture [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Date of Ownership | March 27, 2018 | ||
Ownership % | 50.00% | 50.00% | |
Equity Method Investments | $ 12,449 | $ 12,754 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliated Entities - Condensed Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Schedule of Equity Method Investments [Line Items] | |||||
Company's share of net (loss)/income (50.00%) | $ 157 | $ 88 | $ (157) | $ 147 | |
Brownmill, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenue | 865 | 918 | 1,774 | 1,879 | |
Property operating expenses | 334 | 333 | 796 | 794 | |
Depreciation and amortization | 175 | 179 | 350 | 357 | |
Operating (loss)/income | 356 | 406 | 628 | 728 | |
Interest expense and other, net | (170) | (172) | (360) | (384) | |
Net (loss)/income | 186 | 234 | 268 | 344 | |
Company's share of net (loss)/income (50.00%) | 90 | 114 | 130 | 167 | |
Additional depreciation and amortization expense | [1] | (31) | (33) | (63) | (65) |
Company's earnings from investment | 59 | 81 | 67 | 102 | |
Hilton Garden Inn Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenue | 3,086 | 3,015 | 5,094 | 3,185 | |
Property operating expenses | 1,765 | 1,901 | 3,270 | 1,971 | |
General and administrative costs | (22) | 2 | (22) | 2 | |
Depreciation and amortization | 627 | 636 | 1,269 | 635 | |
Operating (loss)/income | 716 | 476 | 577 | 577 | |
Interest expense and other, net | (520) | (463) | (1,026) | (488) | |
Net (loss)/income | 196 | 13 | (449) | 89 | |
Company's share of net (loss)/income (50.00%) | $ 98 | $ 7 | $ (225) | $ 45 | |
[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 Unconsolidated_5
Investments in Unconsolidated Affiliated Entities - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Brownmill, LLC [Member] | ||
Equity method investment, assets | $ 16,306 | $ 16,520 |
Members' capital | 1,638 | 1,712 |
Total liabilities and members' capital | 16,306 | 16,520 |
Brownmill, LLC [Member] | Real estate, at cost (net) [Member] | ||
Equity method investment, assets | 13,948 | 14,239 |
Brownmill, LLC [Member] | Cash and restricted cash [Member] | ||
Equity method investment, assets | 1,018 | 1,055 |
Brownmill, LLC [Member] | Other assets [Member] | ||
Equity method investment, assets | 1,340 | 1,226 |
Brownmill, LLC [Member] | Mortgages payable [Member] | ||
Equity method investment, liabilities | 14,170 | 14,278 |
Brownmill, LLC [Member] | Other liabilities [Member] | ||
Equity method investment, liabilities | 498 | 530 |
Hilton Garden Inn Joint Venture [Member] | ||
Equity method investment, assets | 60,167 | 60,571 |
Members' capital | 24,329 | 24,938 |
Total liabilities and members' capital | 60,167 | 60,571 |
Hilton Garden Inn Joint Venture [Member] | Real estate, at cost (net) [Member] | ||
Equity method investment, assets | 57,716 | 58,799 |
Hilton Garden Inn Joint Venture [Member] | Cash and restricted cash [Member] | ||
Equity method investment, assets | 927 | 554 |
Hilton Garden Inn Joint Venture [Member] | Other assets [Member] | ||
Equity method investment, assets | 1,524 | 1,218 |
Hilton Garden Inn Joint Venture [Member] | Mortgages payable [Member] | ||
Equity method investment, liabilities | 34,793 | 34,766 |
Hilton Garden Inn Joint Venture [Member] | Other liabilities [Member] | ||
Equity method investment, liabilities | $ 1,045 | $ 867 |
Investments in Unconsolidated_6
Investments in Unconsolidated Affiliated Entities - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | 15 Months Ended | 36 Months Ended | |
Mar. 27, 2018 | Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2012 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 17,317 | $ 17,317 | $ 17,721 | ||
Brownmill, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity investment, percentage ownership purchased | 48.60% | ||||
Subordinated general partner participation, per unit cost | $ 100,000 | ||||
Subordinated General Partner Participation Units | 177,000 | 48,000 | |||
Subordinate Profit Interest Value | $ 4,800 | ||||
Equity Method Investment, Ownership Percentage | 48.58% | 48.58% | |||
Equity Method Investments | $ 4,868 | $ 4,868 | 4,967 | ||
Proceeds from Distributions Received from Real Estate Partnerships | $ 200 | ||||
Hilton Garden Inn Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 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 | ||||
Equity Method Investments | $ 12,449 | $ 12,449 | $ 12,754 | ||
Proceeds from Distributions Received from Real Estate Partnerships | 100 | ||||
Hilton Garden Inn Joint Venture [Member] | Additional Contribution [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Business Combination, Consideration Transferred | $ 100 | $ 700 |
Marketable Securities, Fair V_3
Marketable Securities, Fair Value Measurements and Margin Loan - Available for sale securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 8,672 | $ 7,901 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 8,718 | 8,718 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (46) | (817) |
Fair Value | $ 8,672 | $ 7,901 |
Marketable Securities, Fair V_4
Marketable Securities, Fair Value Measurements and Margin Loan - Classification by contractual maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Marketable Securities, Fair Value Measurements and Margin Loan | ||
Due in 1 year | $ 0 | |
Due in 1 year through 5 years | 5,100 | |
Due in 5 year through 10 years | 0 | |
Due after 10 years | 3,572 | |
Total | $ 8,672 | $ 7,901 |
Marketable Securities, Fair V_5
Marketable Securities, Fair Value Measurements and Margin Loan - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Interest rate, Libor plus | 3.15% | ||
Other Loans Payable | $ 4,908 | $ 5,060 | |
Margin Loan [Member] | |||
Debt Instrument [Line Items] | |||
Libor | 3.25% | ||
Interest rate, Libor plus | 0.85% | ||
Other Loans Payable | $ 4,900 | $ 5,100 |
Disposition of Alabama Hotels (
Disposition of Alabama Hotels (Details) $ in Millions | 1 Months Ended | 6 Months Ended | |
May 09, 2019USD ($) | Feb. 11, 2019USD ($) | Jun. 30, 2019item | |
Number of Hotels | item | 7 | ||
Revolving Credit Facility [Member] | |||
Repayments of Lines of Credit | $ 8.2 | ||
Alabama Hotel Agreements [Member] | |||
Proceeds from Sale of Investment Projects | 13.3 | $ 13.3 | |
Net gain on disposition of real estate | $ 0.1 |
Mortgages payable, net (Details
Mortgages payable, net (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 5.82% | |
Amount Due at Maturity | $ 144,853 | |
Total mortgages payable | 145,726 | $ 153,985 |
Less: Deferred financing costs | (879) | (1,085) |
Total mortgages payable, net | $ 144,847 | 152,900 |
Revolving Loan, secured by thirteen properties [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate basis | LIBOR + 3.15 | |
Weighted Average Interest Rate | 5.86% | |
Maturity Date | May 1, 2021 | |
Amount Due at Maturity | $ 131,831 | |
Total mortgages payable | $ 131,831 | 140,000 |
Courtyard - Paso Robles [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.49% | |
Weighted Average Interest Rate | 5.49% | |
Maturity Date | Nov. 1, 2023 | |
Amount Due at Maturity | $ 13,022 | |
Total mortgages payable | $ 13,895 | $ 13,985 |
Mortgages payable, net - Princi
Mortgages payable, net - Principal maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Mortgages payable, net | ||
2019 | $ 89 | |
2020 | 187 | |
2021 | 132,031 | |
2022 | 211 | |
2023 | 13,208 | |
Thereafter | 0 | |
Total | 145,726 | $ 153,985 |
Less: Deferred financing costs | (879) | (1,085) |
Total mortgages payable, net | $ 144,847 | $ 152,900 |
Mortgages payable, net - Additi
Mortgages payable, net - Additional information (Details) $ in Millions | May 09, 2019item | Mar. 31, 2019 | May 17, 2019 | May 09, 2019USD ($) | May 17, 2018USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Covenant Terms | The Revolving Credit Facility provides for borrowings up to 65.0% of the loan-to-value ratio of properties designated as collateral and also requires the maintenance of certain financial ratios, including a minimum debt yield ratio, which may also be achieved through principal paydowns on the outstanding balance of the Revolving Credit Facility | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.15% | ||||||
Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Restricted escrows | $ 2.8 | $ 3.4 | |||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 140 | ||||||
Number of Properties Previously Designated as Collateral | item | 2 | ||||||
Repayments of Lines of Credit | $ 8.2 | ||||||
Line of credit facility, outstanding balance | $ 131.8 | ||||||
Western Alliance [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Description | initial term of three years, subject to two, one-year extension options at the sole discretion of Western Alliance | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||||
Debt Instrument, Term | 3 years |
Related Party Transactions (Det
Related Party Transactions (Details) - Related Party [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Related Party Transaction [Line Items] | |||||
Acquisition fees | [1] | $ 0 | $ 0 | $ 0 | $ 285 |
Development fees | [2] | 57 | 0 | 62 | 0 |
Asset management fees (general and administrative costs) | 758 | 755 | 1,534 | 1,441 | |
Total | $ 815 | $ 755 | $ 1,596 | $ 1,726 | |
[1] | The acquisition fee for the Hilton Garden Inn Joint Venture of $285 was capitalized and included in investment in unconsolidated affiliated entities on the consolidated balance sheets. | ||||
[2] | Generally, capitalized and amortized over the estimated useful life of the associated asset. |
Related Party Transactions - Ad
Related Party Transactions - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 36 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2012 | ||
Related Party Transaction [Line Items] | ||||||
Dividends, Cash | [1] | $ 3,088 | $ 3,154 | $ 6,157 | $ 6,285 | |
Brownmill, LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Subordinated General Partner Participation Units | 177,000 | 48,000 | ||||
Subordinate Profit Interest Value | $ 4,800 | |||||
Lightstone SLP II LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Subordinate Profit Interest Value | $ 17,700 | |||||
Proceeds from Contributions from Affiliates | 12,900 | |||||
Contributions From Affiliates In Kind | 4,800 | 4,800 | ||||
Related Party [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Business Combination, Acquisition Related Costs | [2] | $ 0 | $ 0 | $ 0 | $ 285 | |
[1] | Distributions per share were $0.175. | |||||
[2] | 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 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Carrying Amount | $ 145,726 | $ 153,985 |
Mortgages payable [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Amount | 145,726 | 153,985 |
Estimated Fair Value | $ 146,231 | $ 154,134 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | Aug. 13, 2019 | Jul. 15, 2019 |
Subsequent Event [Line Items] | ||
Distribution payment | $ 3.1 | |
Quarterly Dividend Declared | $ 0.175 | |
Annualized Dividend | $ 0.70 | |
Annualized rate of dividend | 7.00% | |
Share price | $ 10 |