Summit Hotel Properties (INN) 10-Q 2 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 28, 2015
Document and Entity Information
Entity Registrant Name	Summit Hotel Properties, Inc.
Entity Central Index Key	1,497,645
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		86,730,009
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Investment in hotel properties, net	$ 1,267,121	$ 1,339,415
Investment in hotel properties under development		253
Land held for development	5,742	8,183
Assets held for sale	216,335	300
Cash and cash equivalents	31,954	38,581
Restricted cash	28,904	34,395
Trade receivables, net	12,370	7,681
Prepaid expenses and other	21,532	6,423
Deferred charges, net	9,592	9,641
Other assets	16,150	14,152
Total assets	1,609,700	1,459,024
Liabilities:
Debt	770,040	626,533
Accounts payable	4,304	7,271
Accrued expenses	47,087	38,062
Other liabilities	3,484	1,957
Total liabilities	$ 824,915	$ 673,823
Commitments and contingencies (Note 7)
Preferred stock, $.01 par value per share, 100,000,000 shares authorized:
Common stock, $.01 par value per share, 500,000,000 shares authorized, 86,595,735 and 86,149,720 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 866	$ 861
Additional paid-in capital	892,621	888,191
Accumulated other comprehensive loss	(2,776)	(1,746)
Accumulated deficit and distributions	(110,366)	(107,779)
Total stockholders' equity	780,429	779,611
Non-controlling interests in operating partnership	4,356	5,590
Total equity	784,785	785,201
Total liabilities and equity	1,609,700	1,459,024
9.25% Series A Preferred Stock
Preferred stock, $.01 par value per share, 100,000,000 shares authorized:
Preferred stock	20	20
7.875% Series B Preferred Stock
Preferred stock, $.01 par value per share, 100,000,000 shares authorized:
Preferred stock	30	30
7.125% Series C Preferred Stock
Preferred stock, $.01 par value per share, 100,000,000 shares authorized:
Preferred stock	$ 34	$ 34

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, issued	86,595,735	86,149,720
Common stock, outstanding	86,595,735	86,149,720
9.25% Series A Preferred Stock
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	2,000,000	2,000,000
Preferred stock, shares outstanding	2,000,000	2,000,000
Preferred stock, aggregate liquidation preference (in dollars)	$ 50,385	$ 50,398
Preferred stock, dividend rate (as a percent)	9.25%	9.25%
7.875% Series B Preferred Stock
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued	3,000,000	3,000,000
Preferred stock, shares outstanding	3,000,000	3,000,000
Preferred stock, aggregate liquidation preference (in dollars)	$ 75,492	$ 75,509
Preferred stock, dividend rate (as a percent)	7.875%	7.875%
7.125% Series C Preferred Stock
Preferred stock, shares authorized	3,400,000	3,400,000
Preferred stock, shares issued	3,400,000	3,400,000
Preferred stock, shares outstanding	3,400,000	3,400,000
Preferred stock, aggregate liquidation preference (in dollars)	$ 85,505	$ 85,522
Preferred stock, dividend rate (as a percent)	7.125%	7.125%

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Room	$ 118,292	$ 103,155	$ 333,431	$ 287,387
Other hotel operations revenue	6,799	6,101	19,985	16,938
Total revenues	125,091	109,256	353,416	304,325
Hotel operating expenses:
Room	29,428	26,365	82,663	76,042
Other direct	17,073	15,376	47,968	40,610
Other indirect	31,893	26,451	92,308	78,068
Total hotel operating expenses	78,394	68,192	222,939	194,720
Depreciation and amortization	15,916	16,435	46,583	47,753
Corporate general and administrative	6,897	5,742	16,775	15,364
Hotel property acquisition costs	837	69	950	778
Loss on impairment of assets	1,115	8,187	1,115	8,847
Total expenses	103,159	98,625	288,362	267,462
Operating income	21,932	10,631	65,054	36,863
Other income (expense):
Interest expense	(8,083)	(7,235)	(22,985)	(21,198)
Other income (expense), net	(59)	797	15	1,083
Total other expense, net	(8,142)	(6,438)	(22,970)	(20,115)
Income from continuing operations before income taxes	13,790	4,193	42,084	16,748
Income tax expense	(184)	(427)	(1,586)	(834)
Income from continuing operations	13,606	3,766	40,498	15,914
Income (loss) from discontinued operations		(59)		278
Net income	13,606	3,707	40,498	16,192
Income (loss) attributable to non-controlling interests:
Operating partnership	66	(6)	220	45
Joint venture				1
Net income attributable to Summit Hotel Properties, Inc.	13,540	3,713	40,278	16,146
Preferred dividends	(4,147)	(4,147)	(12,441)	(12,441)
Net income (loss) attributable to common stockholders	$ 9,393	$ (434)	$ 27,837	$ 3,705
Earnings per share:
Basic and diluted net income (loss) per share from continuing operations (in dollars per share)	$ 0.11	$ (0.01)	$ 0.32	$ 0.04
Basic and diluted net income (loss) (in dollars per share)	$ 0.11	$ (0.01)	$ 0.32	$ 0.04
Weighted average common shares outstanding:
Basic (in Shares)	85,995	85,303	85,844	85,192
Diluted (in Shares)	87,065	85,303	87,000	85,704

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net income	$ 13,606	$ 3,707	$ 40,498	$ 16,192
Other comprehensive loss, net of tax:
Changes in fair value of derivative financial instruments	(742)	855	(1,038)	111
Total other comprehensive loss	(742)	855	(1,038)	111
Comprehensive income	12,864	4,562	39,460	16,303
Comprehensive income attributable to non-controlling interest:
Comprehensive income attributable to Summit Hotel Properties, Inc.	12,804	4,558	39,248	16,256
Preferred dividends	(4,147)	(4,147)	(12,441)	(12,441)
Comprehensive income attributable to common stockholders	8,657	411	26,807	3,815
Operating partnership
Comprehensive income attributable to non-controlling interest:
Comprehensive income attributable to non-controlling interest	$ 60	$ 4	$ 212	46
Joint venture
Comprehensive income attributable to non-controlling interest:
Comprehensive income attributable to non-controlling interest				$ 1

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit and Distributions	Total Shareholders' Equity	Non-controlling InterestOperating partnership	Non-controlling InterestJoint venture	Total
Balance at beginning of year at Dec. 31, 2013	$ 84	$ 854	$ 882,858	$ (1,379)	$ (72,577)	$ 809,840	$ 4,722	$ 7,816	$ 822,378
Balance (in shares) at Dec. 31, 2013	8,400,000	85,402,408
Changes in equity
Common stock redemption of common units		$ 2	581			583	(583)
Common stock redemption of common units (in shares)		198,292
Common units issued for acquisition							3,685		3,685
Acquisition of non-controlling interest in joint venture			(415)			(415)		(7,817)	(8,232)
Dividends paid					(41,822)	(41,822)	(365)		(42,187)
Equity-based compensation		$ 3	2,806			2,809	34		2,843
Equity-based compensation (in shares)		319,590
Other comprehensive loss				110		110	1		111
Net income					16,146	16,146	45	$ 1	16,192
Balance at end of year at Sep. 30, 2014	$ 84	$ 859	885,830	(1,269)	(98,253)	787,251	7,539		794,790
Balance (in shares) at Sep. 30, 2014	8,400,000	85,920,290
Balance at beginning of year at Dec. 31, 2014	$ 84	$ 861	888,191	(1,746)	(107,779)	779,611	5,590		785,201
Balance (in shares) at Dec. 31, 2014	8,400,000	86,149,720
Changes in equity
Net proceeds from sale of common stock			(285)			(285)			(285)
Common stock redemption of common units		$ 2	1,234			1,236	(1,236)
Common stock redemption of common units (in shares)		172,429
Dividends paid					(42,865)	(42,865)	(241)		(43,106)
Equity-based compensation		$ 3	3,934			3,937	31		3,968
Equity-based compensation (in shares)		309,971
Other			(453)			(453)			(453)
Other (in shares)		(36,385)
Other comprehensive loss				(1,030)		(1,030)	(8)		(1,038)
Net income					40,278	40,278	220		40,498
Balance at end of year at Sep. 30, 2015	$ 84	$ 866	$ 892,621	$ (2,776)	$ (110,366)	$ 780,429	$ 4,356		$ 784,785
Balance (in shares) at Sep. 30, 2015	8,400,000	86,595,735

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES
Net income	$ 40,498	$ 16,192
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	46,583	47,766
Deferred finance cost amortization	1,250	1,153
Loss on impairment of assets	1,115	9,247
Equity-based compensation	3,968	2,843
Deferred tax asset	730	(70)
(Gain) loss on disposal of assets	712	(284)
Other	626	36
Changes in operating assets and liabilities:
Restricted cash - operating	(2,386)	(3,437)
Trade receivables, net	(4,660)	(4,646)
Prepaid expenses and other	1,590	3,608
Accounts payable and accrued expenses	6,346	6,605
NET CASH PROVIDED BY OPERATING ACTIVITIES	96,372	79,013
INVESTING ACTIVITIES
Acquisitions of hotel properties	(153,798)	(177,947)
Acquisition of non-controlling interest in joint venture		(8,232)
Improvements and additions to hotel properties	(34,432)	(34,929)
Escrow deposit for acquisition	(17,696)
Amounts drawn under note funding obligation	(2,634)	(2,221)
Proceeds from asset dispositions, net of closing costs	121	11,597
Net release of restricted cash - FF&E reserve	7,877	18,170
NET USED IN INVESTING ACTIVITIES	(200,562)	(193,562)
FINANCING ACTIVITIES
Proceeds from issuance of debt	480,408	216,001
Principal payments on debt	(336,901)	(70,459)
Financing fees on debt	(2,100)	(734)
Dividends paid	(43,106)	(42,187)
Other	(738)
NET CASH PROVIDED BY FINANCING ACTIVITIES	97,563	102,621
Net change in cash and cash equivalents	(6,627)	(11,928)
CASH AND CASH EQUIVALENTS
Beginning of period	38,581	46,706
End of period	31,954	34,778
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest	22,265	19,871
Capitalized interest	76	186
Cash payments for income taxes, net of refunds	$ 1,022	739
Mortgage debt assumed for acquisitions of hotel properties		43,172
Fair value of common units issued for acquisition of hotel		$ 3,685

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	9 Months Ended
	Sep. 30, 2015
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS	NOTE 1 - DESCRIPTION OF BUSINESS Summit Hotel Properties, Inc. (the “Company”) is a self-managed hotel investment company that was organized on June 30, 2010 as a Maryland corporation. The Company holds both general and limited partnership interests in Summit Hotel OP, LP (the “Operating Partnership”), a Delaware limited partnership also organized on June 30, 2010. On February 14, 2011, the Company closed on its initial public offering and completed certain formation transactions, including the merger of Summit Hotel Properties, LLC with and into the Operating Partnership. Unless the context otherwise requires, “we”, “us”, and “our” refer to the Company and its consolidated subsidiaries. At September 30, 2015, our portfolio consists of 95 hotels with a total of 12,175 guestrooms located in 24 states. We have elected to be taxed as a real estate investment trust (“REIT”) for federal income tax purposes commencing with our short taxable year ended December 31, 2011. To qualify as a REIT, we cannot operate or manage our hotels. Accordingly, substantially all of our hotels are leased to subsidiaries (“TRS Lessees”) of our taxable REIT subsidiary (“TRS”) and professionally managed by third-party property managers. We indirectly own 100% of the outstanding equity interests in all of our TRS Lessees.

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2015
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements of the Company consolidate the accounts of the Company and all entities that are controlled by the Company’s ownership of a majority voting interest in such entities, as well as variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in the condensed consolidated financial statements. We prepare our condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Act of 1934 (the “Exchange Act”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation in accordance with GAAP have been included. Results for the three and nine months ended September 30, 2015 may not be indicative of the results that may be expected for the full year 2015. For further information, please read the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014. Segment Disclosure Accounting Standards Codification (“ASC”), ASC 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. We have determined that we have one reportable segment, with activities related to investing in real estate. Our investments in real estate are geographically diversified and the chief operating decision makers evaluate operating performance on an individual asset level. As each of our assets has similar economic characteristics, the assets have been aggregated into one reportable segment. Investment in Hotel Properties We allocate the purchase price of hotel acquisitions based on the initial estimate of the fair values of the acquired assets and assumed liabilities and make adjustments, if and when necessary, to the recorded amounts of the acquired assets and liabilities within one year of consummation of the transaction in accordance with ASC 805, Business Combinations . We determine the acquisition-date fair values of all assets and assumed liabilities using methods similar to those used by independent appraisers, including using a discounted cash flow analysis that uses appropriate discount or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. Acquisition costs are expensed as incurred. Our hotel properties and related assets are recorded at cost, less accumulated depreciation. We capitalize the costs of significant additions and improvements that materially extend a property’s life. These costs may include hotel refurbishment, renovation, and remodeling expenditures, as well as certain indirect internal costs related to construction projects. We expense the cost of repairs and maintenance as incurred. We generally depreciate our hotel properties and related assets using the straight-line method over their estimated useful lives as follows: Classification Estimated Useful Lives Buildings and improvements 25 to 40 years Furniture, fixtures and equipment 2 to 15 years We periodically re-evaluate asset lives based on current assessments of remaining utilization, which may result in changes in estimated useful lives. Such changes are accounted for prospectively and will increase or decrease future depreciation expense. When depreciable property and equipment is retired or disposed, the related costs and accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in current operations. On a limited basis, we provide financing to developers of hotel properties for development or major renovation projects. We evaluate these arrangements to determine if we participate in residual profits of the hotel property through the loan provisions or other agreements. Where we conclude that these arrangements are more appropriately treated as an investment in the hotel property, we reflect the loan as an investment in hotel properties under development in our condensed consolidated balance sheets. If classified as hotel properties under development, no interest income is recognized on the loan and interest expense is capitalized on our investment in the hotel property during the construction or renovation period. We monitor events and changes in circumstances for indicators that the carrying value of a hotel property or land held for development may be impaired. Additionally, we perform at least annual reviews to monitor the factors that could trigger an impairment. Factors that could trigger an impairment analysis include, among others: i) significant underperformance relative to historical or projected operating results, ii) significant changes in the manner of use of a property or the strategy of our overall business, including changes in the estimated holding periods for hotel properties and land parcels, iii) a significant increase in competition, iv) a significant adverse change in legal factors or regulations, and v) significant negative industry or economic trends. When such factors are identified, we prepare an estimate of the undiscounted future cash flows of the specific property and determine if the investment is recoverable. If impairment is indicated, we estimate the fair value of the property based on discounted cash flows or sales price if the property is under contract and an adjustment is made to reduce the carrying value of the property to fair value. Assets Held for Sale and Discontinued Operations We classify assets as held for sale in the period in which certain criteria are met, including when the sale of the asset within one year is probable. Assets held for sale are no longer depreciated and are carried at the lower of carrying amount or fair value, less selling costs. Historically, we presented the results of operations of hotel properties that had been sold or otherwise qualified as assets held for sale in discontinued operations if the operations and cash flows of the hotel properties had been or would be eliminated from our ongoing operations. We elected for the early adoption of Accounting Standards Update (“ASU”) 2014-08 (see “New Accounting Standards” below) in the first quarter of 2014 and we currently anticipate that the majority of future properties for sale will not be classified as discontinued operations. We periodically review our hotel properties and our land held for development based on established criteria such as age, type of franchise, adverse economic and competitive conditions, and strategic fit to identify properties that we believe are either non-strategic or no longer complement our business. Variable Interest Entities We consolidate variable interest entities (“VIE”) if we determine that we are the primary beneficiary of the entity. When evaluating the accounting for a VIE, we consider the purpose for which the VIE was created, the importance of each of the activities in which it is engaged and our decision-making role, if any, in those activities that significantly determine the entity’s economic performance relative to other economic interest holders. We determine our rights, if any, to receive benefits or the obligation to absorb losses that could potentially be significant to the VIE by considering the economic interest in the entity, regardless of form, which may include debt, equity, management and servicing fees, or other contractual arrangements. We consider other relevant factors including each entity’s capital structure, contractual rights to earnings (losses), subordination of our interests relative to those of other investors, contingent payments, and other contractual arrangements that may be economically significant. Additionally, we have in the past and may in the future enter into purchase and sale transactions in accordance with Section 1031 (“1031 Exchange”) of the Internal Revenue Code of 1986, as amended (“IRC”), for the exchange of like-kind property to defer taxable gains on the sale of properties. For reverse transactions under a 1031 Exchange in which we purchase a property prior to selling the property to be matched in the like-kind exchange (a “Parked Asset”), legal title to the Parked Asset is held by a qualified intermediary engaged to execute the 1031 Exchange until the sale transaction and the 1031 Exchange is completed. We retain essentially all of the legal and economic benefits and obligations related to the Parked Assets prior to completion of the 1031 Exchange. As such, the Parked Assets are included in our consolidated statement of financial position and results of operations as a VIE until legal title is transferred to us upon completion of the 1031 Exchange. See Note 3 — Hotel Property Acquisitions. Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At times, cash on deposit may exceed the federally insured limit. We maintain our cash with high credit quality financial institutions. Restricted Cash Restricted cash consists of certain funds maintained in escrow by various third parties for property taxes, insurance, and certain capital expenditures. Funds may be disbursed from the restricted account by the escrow-holders for specific expenditures such as property taxes and insurance or to us upon proof of expenditures and approval from the escrow-holders. Trade Receivables and Credit Policies We grant credit to qualified customers, generally without collateral, in the form of trade accounts receivable. Trade receivables result from the rental of hotel rooms and the sales of food, beverage, and banquet services and are payable under normal trade terms. Trade receivables are stated at the amount billed to the customer and do not accrue interest. We review the collectability of our trade receivables monthly. A provision for losses is determined on the basis of previous loss experience and current economic conditions. Deferred Charges Deferred charges consist of deferred financing fees and initial franchise fees. Costs incurred to obtain financing are capitalized and amortized as a component of interest expense over the term of the related debt using the straight-line method, which approximates the interest method. Initial franchise fees are capitalized and amortized over the term of the franchise agreement using the straight-line method. Non-controlling Interests Non-controlling interests represent the portion of equity in a consolidated entity held by owners other than the consolidating parent. Non-controlling interests are reported in the condensed consolidated balance sheets within equity, separately from stockholders’ equity. Revenue, expenses and net income (loss) attributable to both the Company and the non-controlling interests are reported in the condensed consolidated statements of operations. Our condensed consolidated financial statements include non-controlling interests related to common units of limited partnership interests (“Common Units”) in the Operating Partnership held by unaffiliated third parties and prior to the second quarter of 2014, third-party ownership of a 19% interest in a consolidated joint venture. Revenue Recognition We recognize revenue when rooms are occupied and services have been rendered. Revenues are recorded net of any sales and other taxes collected from guests. All rebates or discounts are recorded as a reduction to revenue. Cash received from the customer prior to guest arrival is recorded as an advanced deposit liability and is recognized as revenue at the time of occupancy. Sales and Other Taxes We have operations in states and municipalities that impose sales or other taxes on certain sales. We collect these taxes from our guests and remit the entire amount to the various governmental units. The taxes collected and remitted are excluded from revenues and are included in accrued expenses until remitted. Equity-Based Compensation Our 2011 Equity Incentive Plan (the “Equity Plan”) and 2011 Equity Incentive Plan, as amended and restated effective June 15, 2015 (the “Amended Equity Plan”), provide for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, and other stock-based awards. We account for equity-based compensation using the Black-Scholes option-pricing model for stock options and the grant date fair value of our common stock for all other awards. Restricted stock awards with performance-based vesting conditions are market-based awards and are valued using a Monte Carlo simulation model. We expense awards under the Equity Plan and Amended Equity Plan ratably over the vesting period. The amount of stock-based compensation expense may be subject to adjustment in future periods due to a change in forfeiture assumptions or modification of previously granted awards. Derivative Financial Instruments and Hedging All derivative financial instruments are recorded at fair value and reported as a derivative financial instrument asset or liability in our condensed consolidated balance sheets. We use interest rate derivatives to hedge our risks on variable-rate debt. Interest rate derivatives could include swaps, caps and floors. We assess the effectiveness of each hedging relationship by comparing changes in fair value or cash flows of the derivative financial instrument with the changes in fair value or cash flows of the designated hedged item or transaction. For interest rate derivatives designated as cash flow hedges, the effective portion of changes in fair value is initially reported as a component of accumulated other comprehensive income (loss) in the equity section of our condensed consolidated balance sheets and reclassified to interest expense in our condensed consolidated statements of operations in the period in which the hedged item affects earnings. The ineffective portion of changes in fair value is recognized directly in earnings through gain (loss) on derivative financial instruments in the condensed consolidated statements of operations. Income Taxes We have elected to be taxed as a REIT under certain provisions of the IRC. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute annually to our stockholders at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains, which does not necessarily equal net income as calculated in accordance with GAAP. As a REIT, we generally will not be subject to federal income tax (other than taxes paid by our TRS at regular corporate income tax rates) to the extent we distribute 100% of our REIT taxable income to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate income tax rates and generally will be unable to re-elect REIT status until the fifth calendar year after the year in which we failed to qualify as a REIT, unless we satisfy certain relief provisions. We account for federal and state income taxes of our TRS using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between carrying amounts of existing assets and liabilities based on GAAP and respective carrying amounts for tax purposes, and operating losses and tax-credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of the change in tax rates. However, deferred tax assets are recognized only to the extent that it is more likely than not they will be realized based on consideration of available evidence, including future reversals of taxable temporary differences, future projected taxable income and tax planning strategies. Fair Value Measurement Fair value measures are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market information, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). Our estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. We classify assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. We elected not to use the fair value option for cash and cash equivalents, restricted cash, trade receivables, prepaid expenses and other, debt, accounts payable, and accrued expenses. With the exception of our fixed-rate debt (See Note 6 — Debt), the carrying amounts of these financial instruments approximate their fair values due to their short-term nature or variable interest rates. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain amounts reported in previous periods have been reclassified to conform to the current presentation and industry practice. New Accounting Standards In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The ASU changed the criteria for reporting discontinued operations while enhancing related disclosures. Criteria for discontinued operations will now include only disposals that represent a strategic shift in operations with a major effect on operations and financial results. The ASU is to be applied on a prospective basis and would be effective for us beginning January 1, 2015; however, we elected early adoption in the first quarter of 2014, which is permitted for disposals and classifications as held for sale which have not been reported previously. In February 2015, the FASB issued ASU No. 2015-02, “ Consolidation (Topic 810): Amendments to the Consolidation Analysis ,” which changes the way reporting enterprises evaluate the consolidation of limited partnerships, variable interests and similar entities. This standard will be effective for the first annual reporting period beginning after December 15, 2015 with early adoption permitted. We are evaluating the effect that ASU No. 2015-02 will have on our consolidated financial statements and related disclosures, but we do not anticipate that it will have a material effect on our consolidated financial position or our consolidated results of operations. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability. This standard is effective for periods beginning after December 15, 2015 with early adoption permitted and will be applied on a retrospective basis. The new standard will be effective for the Company on January 1, 2016. We are evaluating the effect that ASU No. 2015-03 will have on our consolidated financial statements and related disclosures, but we do not anticipate that it will have a material effect on our consolidated financial position or our consolidated results of operations.

HOTEL PROPERTY ACQUISITIONS

HOTEL PROPERTY ACQUISITIONS	9 Months Ended
	Sep. 30, 2015
HOTEL PROPERTY ACQUISITIONS
HOTEL PROPERTY ACQUISITIONS	NOTE 3 - HOTEL PROPERTY ACQUISITIONS Hotel property acquisitions in the nine months ended September 30, 2015 and 2014 are as follows (in thousands): Date Acquired Franchise/Brand Location Purchase Price Debt Assumed First Nine Months 2015 April 13, 2015 Hampton Inn & Suites Minneapolis, MN $ $ — June 18, 2015 Hampton Inn Boston (Norwood), MA (1) — June 30, 2015 Hotel Indigo Asheville, NC (1) — July 24, 2015 Residence Inn Branchburg, NJ (1) — July 24, 2015 Residence Inn Hunt Valley, MD (1) — Total Nine Months Ended September 30, 2015 $ $ — First Nine Months 2014 January 9, 2014 Hilton Garden Inn Houston (Galleria), TX $ $ January 10, 2014 Hampton Inn Santa Barbara (Goleta), CA (2) January 24, 2014 Four Points by Sheraton San Francisco, CA — March 14, 2014 DoubleTree by Hilton San Francisco, CA August 15, 2014 Hilton Garden Inn Houston (Energy Corridor), TX — September 9, 2014 Hampton Inn & Suites Austin, TX — Total Nine Months Ended September 30, 2014 $ $ (1) These hotels (“Parked Assets”) were purchased as reverse 1031 Exchanges related to the anticipated sale of 26 properties to affiliates of American Realty Capital Hospitality Trust, Inc. (“ARCH”). See Note 2 — Basis of Presentation and Significant Accounting Policies – Variable Interest Entities; and Note 5 — Assets Held For Sale. As such, the legal title to these Parked Assets are held by a qualified intermediary engaged to execute the 1031 Exchanges until the sale transaction with ARCH (the “ARCH Sale”) is consummated and the 1031 Exchanges are completed. We retain essentially all of the legal and economic benefits and obligations related to the Parked Assets. As such, the Parked Assets are included in our condensed consolidated statement of financial position at September 30, 2015 and condensed consolidated results of operations for the three and nine months then ended as VIE’s until legal title is transferred to us upon completion of the 1031 Exchanges. The 1031 Exchanges related to these properties were completed on October 15, 2015. (2) The purchase price for this hotel included the issuance by the Operating Partnership of 412,174 Common Units in our Operating Partnership valued at the time of issuance at $3.7 million. The allocation of the aggregate purchase prices to the fair value of assets acquired and liabilities assumed for the above acquisitions is as follows (in thousands): For the Nine Months Ended September 30, 2015 2014 Land $ $ Hotel buildings and improvements Furniture, fixtures and equipment Other assets (1) Total assets acquired Less debt assumed — ) Less lease liability assumed ) ) Less other liabilities (1) ) ) Net assets acquired $ $ (1) In addition to the total purchase price, the Company also paid additional consideration at closing during the nine months ended September 30, 2015 and 2014 of $0.3 million and $9.0 million, respectively, for net assets acquired at settlement, including restricted cash escrow balances and other working capital items. Total revenues and net income for hotel properties acquired in the three and nine months ended September 30, 2015 and 2014, which are included in our condensed consolidated statements of operations, are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 Acquisitions 2014 Acquisitions 2015 Acquisitions 2014 Acquisitions 2015 2015 2014 2015 2015 2014 Revenues $ $ $ $ $ $ Net income $ $ $ $ $ $ The results of operations of acquired hotel properties are included in the condensed consolidated statements of operations beginning on their respective acquisition dates. The following unaudited condensed pro forma financial information presents the results of operations as if all acquisitions in 2015 and 2014 had taken place on January 1, 2014. The unaudited condensed pro forma information excludes discontinued operations and disposed properties which were not classified as discontinued operations after the adoption of ASU 2014-08. The unaudited condensed pro forma financial information is for comparative purposes only and is not necessarily indicative of what actual results of operations would have been had the hotel acquisitions taken place on January 1, 2014. This information does not purport to be indicative of or represent results of operations for future periods. The unaudited condensed pro forma financial information for the three and nine months ended September 30, 2015 and 2014 is as follows (in thousands, except per share): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 (unaudited) (unaudited) Revenues $ $ $ $ Net income $ $ $ $ Net income attributable to common stockholders, net of amount allocated to participating securities $ $ $ $ Basic and diluted net income per share attributable to common stockholders $ $ $ $

INVESTMENT IN HOTEL PROPERTIES,

INVESTMENT IN HOTEL PROPERTIES, NET	9 Months Ended
	Sep. 30, 2015
INVESTMENT IN HOTEL PROPERTIES, NET
INVESTMENT IN HOTEL PROPERTIES, NET	NOTE 4 - INVESTMENT IN HOTEL PROPERTIES, NET Investment in hotel properties, net is as follows (in thousands): September 30, December 31, 2015 2014 Land $ $ Hotel buildings and improvements Construction in progress Furniture, fixtures and equipment Less accumulated depreciation ) ) $ $

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE	9 Months Ended
	Sep. 30, 2015
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE	NOTE 5 - ASSETS HELD FOR SALE Assets held for sale at September 30, 2015 and December 31, 2014 include (in thousands): September 30, December 31, 2015 2014 Land $ $ Hotel buildings and improvements — Furniture, fixtures and equipment — Construction in progress — Franchise fees — Total $ $ On June 2, 2015, the Operating Partnership and certain affiliated entities entered into two separate agreements, as amended on July 15, 2015, to sell a portfolio of 26 hotels containing an aggregate of 2,793 guestrooms to ARCH for an aggregate cash purchase price of approximately $347.4 million. The hotels are being sold in three separate closings. The first closing of 10 hotels containing 1,090 guestrooms was completed on October 15, 2015 for an aggregate cash payment of $150.1 million (the “First Closing”). The First Closing resulted in a gain on the sale of assets of approximately $65.0 million that will be recorded in the fourth quarter of 2015. The second closing of 10 hotels containing 996 guestrooms is expected to occur before December 31, 2015 for an aggregate sale price of $89.1 million and the third closing of six hotels containing 707 guestrooms is expected to occur in the first quarter of 2016 for an aggregate sale price of $108.2 million. Each remaining closing is subject to the satisfaction of customary closing conditions. None of the closings is conditioned on the sale of the other hotels at that closing or any other closing. If any of the hotels are not sold, then the cash purchase price will be adjusted by the parties in accordance with the applicable agreement. However, we believe that it is probable that all of the closings will occur. We anticipate executing reverse and forward 1031 Exchanges for a substantial portion of the ARCH Sale to defer taxable gains that are expected to result from the sale. As such, certain hotels that we may purchase before the final closing of the ARCH Sale have been or will be consummated in a manner such that legal title is or will be held by a qualified intermediary engaged to execute the 1031 Exchanges until the ARCH Sale is consummated and the 1031 Exchanges are completed. We retain or will retain essentially all of the legal and economic benefits and obligations related to the Parked Assets. As such, the Parked Assets are or will be included in our consolidated financial position and consolidated results of operations as VIE’s until legal title is transferred to us upon completion of the 1031 Exchanges. We completed 1031 Exchanges for four Parked Assets simultaneously with the First Closing. In addition to the assets of the 26 hotels noted above, assets held for sale at September 30, 2015 include land parcels in Spokane, WA, Fort Myers, FL and Flagstaff, AZ, which are being actively marketed for sale. At December 31, 2014, assets held for sale was comprised of a land parcel in Spokane, WA. At September 30, 2015, we have notes receivable totaling $2.7 million included in Other Assets on our Condensed Consolidated Balance Sheet related to seller-financing for the sale in a prior year of two hotel properties in Emporia, KS. The loans have matured and the buyer is currently in payment default under the terms of the loans. We have initiated proceedings to foreclose on the properties and we have received a judgment of foreclosure on one of the properties. We expect to reacquire the properties unless the buyer is able to repay the principal and interest, including default interest and fees, on the notes receivable in full prior to the completion of the foreclosure process. We believe the collateral value is sufficient to recover the carrying amounts of the notes receivable. If we reacquire the properties as a result of a foreclosure, then we will classify the properties as held for sale and market them for re-sale to recover the carrying amounts of our notes receivable.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2015
DEBT
DEBT	NOTE 6 - DEBT At September 30, 2015 and December 31, 2014, our debt is comprised of a senior unsecured credit facility, an unsecured term loan and mortgage loans secured by various hotel properties. The weighted average interest rate, after giving effect to our interest rate derivatives, for all borrowings was 3.97% at September 30, 2015 and 4.35% at December 31, 2014. Our total fixed-rate and variable-rate debt, after giving effect to our interest rate derivatives, is as follows (in thousands): September 30, 2015 December 31, 2014 Fixed-rate debt $ $ Variable-rate debt $ $ Information about the fair value of our fixed-rate debt that is not recorded at fair value is as follows (in thousands): September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Valuation Technique Fixed-rate debt $ $ $ $ Level 2 - Market approach At September 30, 2015 and December 31, 2014, we had $101.5 million and $102.6 million, respectively, of debt with variable interest rates that had been converted to fixed interest rates through interest rate swaps. We carry these derivative financial instruments at fair value. Differences between carrying value and fair value of our fixed-rate debt are primarily due to changes in interest rates. Inherently, fixed-rate debt is subject to fluctuations in fair value as a result of changes in the current market rate of interest on the valuation date. For additional information on our use of derivatives as interest rate hedges, refer to Note 11 — Derivative Financial Instruments and Hedging. Senior Unsecured Credit Facility At September 30, 2015, we have a $300.0 million senior unsecured credit facility. Deutsche Bank AG New York Branch (“Deutsche Bank”) is the administrative agent and Deutsche Bank Securities Inc. is the sole lead arranger. The syndication of lenders includes Deutsche Bank; Bank of America, N.A.; Royal Bank of Canada; Key Bank National Association; Regions Bank; Fifth Third Bank; Raymond James Bank, N.A.; and U.S. Bank, National Association. The Operating Partnership is the borrower. The Company and each of its existing and future subsidiaries that own or lease a hotel property that is included in the unencumbered borrowing base supporting the facility are required to guaranty this credit facility. The senior unsecured credit facility is comprised of a $225.0 million revolving credit facility (the “$225 Million Revolver”) and a $75.0 million term loan (the “$75 Million Term Loan”). This credit facility has an accordion feature which will allow us to increase the commitments by an aggregate of $100.0 million on the $225 Million Revolver and the $75 Million Term Loan prior to October 10, 2017. The $225 Million Revolver will mature on October 10, 2017, but can be extended to October 10, 2018 at our option, subject to certain conditions. The $75 Million Term Loan will mature on October 10, 2018. At September 30, 2015, the maximum amount of borrowing permitted under the senior unsecured credit facility was $300.0 million, of which we had $185.0 million borrowed and $115.0 million available to borrow. Unsecured Term Loan On April 7, 2015, the Operating Partnership, as borrower, the Company, as parent guarantor, and each party executing the term loan documentation as a subsidiary guarantor, entered into a $125.0 million unsecured term loan with KeyBank National Association, as administrative agent, Regions Bank and Raymond James Bank, N.A., as co-syndication agents, KeyBanc Capital Markets, Inc., Regions Capital Markets and Raymond James Bank, N.A., as co-lead arrangers, and a syndicate of lenders including KeyBank National Association, Regions Bank, Raymond James Bank, N.A., Branch Banking and Trust Company, and U.S. Bank National Association (the “2015 Term Loan”). The 2015 Term Loan matures on April 7, 2022 and has an accordion feature which will allow us to increase the total commitments by an aggregate of $75.0 million prior to the maturity date, subject to certain conditions. At closing, we drew the full $125.0 million amount of the 2015 Term Loan and on April 21, 2015, we exercised $15.0 million of the $75.0 million accordion. All proceeds were used to pay down the principal balance of the $225 Million Revolver. The exercise of this feature increased the aggregate unsecured term loan commitments to $140.0 million under the 2015 Term Loan and does not affect any other terms or conditions of the credit agreement. In conjunction with exercising the accordion feature, the Company added American Bank, N.A. as a new lender under the facility. Term Loans At September 30, 2015, we had $660.0 million in secured and unsecured term loans outstanding (including the $75 Million Term Loan and the 2015 Term Loan described above). Term loans totaling $445.0 million are secured primarily by first mortgage liens on certain hotel properties. The ARCH Sale includes eight properties that served as collateral for two term loans with Voya Retirement Insurance and Annuity Company (“Voya”), formerly known as ING Life Insurance and Annuity, totaling $93.4 million. To avoid significant yield maintenance costs associated with an early pay-off of the portion of these term loans related to the sale of the eight properties that are a part of the ARCH Sale, we have modified the term loans to substitute certain existing collateral with properties that are not part of the ARCH Sale. The transaction was completed on September 24, 2015. We now have four term loans with Voya with an aggregate principal amount of $123.4 million, fixed interest rates of 5.18%, and a first call date of March 1, 2019. The loans are cross-collateralized and have cross-default provisions. Debt issuance costs of $0.9 million were capitalized in connection with the transaction and will be amortized over the term of the loan using the straight-line method, which approximates the interest method.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 7 - COMMITMENTS AND CONTINGENCIES We are involved from time to time in litigation arising in the ordinary course of business; however, there are currently no actions pending against us that we believe would have a material effect on our consolidated financial condition or consolidated results of operations.

EQUITY

EQUITY	9 Months Ended
	Sep. 30, 2015
EQUITY
EQUITY	NOTE 8 - EQUITY Common Stock The Company is authorized to issue up to 500,000,000 shares of common stock, $0.01 par value per share. Holders of our common stock are entitled to receive dividends on such stock when, as and if authorized by our board of directors out of assets legally available therefor and declared by us and to share ratably in the assets of our Company legally available for distribution to our stockholders in the event of our liquidation, dissolution or winding up after payment of or adequate provision is made for all known debts and liabilities of our Company. Each outstanding share of our common stock entitles the holder to one vote on all matters submitted to a vote of stockholders, including the election of directors and, except as may be provided with respect to any other class or series of stock, the holders of such shares possess the exclusive voting power. During the nine months ended September 30, 2015, we issued 172,429 shares of common stock to limited partners of the Operating Partnership upon redemption of their Common Units. Additionally, 128,185 performance-based restricted shares previously granted to management vested on January 1, 2015 based on the achievement of certain performance targets. The remaining 46,030 unvested performance-based restricted shares granted in 2012 were forfeited. On March 3, 2015 and April 24, 2015, we issued 303,915 and 16,930 shares of common stock, respectively, to our executive officers and employees pursuant to our Equity Plan. During the nine months ended September 30, 2015, we issued 4,716 shares of common stock for director fees and an annual grant of 30,440 shares of common stock to our outside directors. In the first nine months of 2014, we issued 198,292 shares of common stock to limited partners of the Operating Partnership upon redemption of their Common Units. On May 28, 2014, we issued 278,916 shares of restricted common stock to our executive officers and management pursuant to our Equity Plan. Of the total shares issued on May 28, 2014, 1,756 were forfeited during the third quarter of 2014. During the nine months ended September 30, 2014 , we issued 32,317 shares of common stock to our directors pursuant to our 2011 Equity Incentive Plan, 5,860 shares of common stock to one of our independent directors in lieu of cash for director fees, and 4,253 shares of common stock upon the cashless exercise of outstanding stock options with an exercise price of $9.75 per share. On August 3, 2015, the Company, the Operating Partnership and Robert W. Baird & Co. Incorporated (“Baird”) entered into a sales agreement (the “Sales Agreement”), pursuant to which the Company may issue and sell from time to time up to $125.0 million in shares of its common stock through Baird, acting as agent or principal. In connection with entering into the new sales agreement with Baird, the Company notified each sales agent under its prior $75 million “at the market” offering program (Baird, Deutsche Bank Securities Inc., JMP Securities LLC, MLV & Co. LLC and RBC Capital Markets, LLC) of the Company’s intent to terminate each of the sales agreements relating to the prior program. As of October 28, 2015, we have not sold any shares pursuant to the Sales Agreement. Pursuant to the Sales Agreement, the shares may be offered and sold through Baird in transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on the New York Stock Exchange or sales made to or through a market maker other than on an exchange or, with the prior consent of the Company, in privately negotiated transactions. Baird will be entitled to compensation equal to up to 2.0% of the gross proceeds of the shares sold through Baird from time to time under the Sales Agreement. The Company has no obligation to sell any of the shares under the Sales Agreement and may at any time suspend solicitations and offers under, or terminate, the Sales Agreement. Preferred Stock The Company is authorized to issue up to 100,000,000 shares of preferred stock, $0.01 par value per share, of which 91,600,000 is currently undesignated and 2,000,000 shares have been designated as 9.25% Series A Cumulative Redeemable Preferred Stock (the “Series A preferred shares”), 3,000,000 shares have been designated as 7.875% Series B Cumulative Redeemable Preferred Stock (the “Series B preferred shares”) and 3,400,000 shares have been designated as 7.125% Series C Cumulative Redeemable Preferred Stock (the “Series C preferred shares”). The Series A preferred shares, Series B preferred shares and Series C preferred shares (collectively, the “Preferred Shares”) rank senior to our common stock and on parity with each other with respect to the payment of dividends and distributions of assets in the event of a liquidation, dissolution, or winding up. The Preferred Shares do not have any maturity date and are not subject to mandatory redemption or sinking fund requirements. The Company may not redeem the Series A preferred shares, Series B preferred shares or Series C preferred shares prior to October 28, 2016, December 11, 2017, and March 20, 2018, respectively, except in limited circumstances relating to the Company’s continuing qualification as a REIT or in connection with certain changes in control. After those dates, the Company may, at its option, redeem the applicable Preferred Shares, in whole or from time to time in part, by payment of $25 per share, plus any accumulated, accrued and unpaid distributions up to, but not including, the date of redemption. If the Company does not exercise its rights to redeem the Preferred Shares upon certain changes in control, the holders of the Preferred Shares have the right to convert some or all of their shares into a number of the Company’s common shares based on a defined formula, subject to a share cap, or alternative consideration. The share cap on each Series A preferred share is 5.92417 shares of common stock, each Series B preferred share is 5.6497 shares of common stock, and each Series C preferred share is 5.1440 shares of common stock, subject to certain adjustments. The Company pays dividends at an annual rate of $2.3125 for each Series A preferred share, $1.96875 for each Series B preferred share, and $1.78125 for each Series C preferred share. Dividend payments are made quarterly in arrears on or about the last day of February, May, August and November of each year. Non-controlling Interests in Operating Partnership Pursuant to the limited partnership agreement of our Operating Partnership, beginning on February 14, 2012, the unaffiliated third parties who hold Common Units in our Operating Partnership have the right to cause us to redeem their Common Units in exchange for cash based upon the fair value of an equivalent number of our shares of common stock at the time of redemption; however, the Company has the option to redeem with shares of our common stock on a one-for-one basis. The number of shares of our common stock issuable upon redemption of Common Units may be adjusted upon the occurrence of certain events such as share dividend payments, share subdivisions or combinations. At September 30, 2015 and December 31, 2014, unaffiliated third parties owned 612,539 and 784,968, respectively, of Common Units of the Operating Partnership, representing an approximate 1% limited partnership interest in the Operating Partnership. We classify outstanding Common Units held by unaffiliated third parties as non-controlling interests in the Operating Partnership, a component of equity in the Company’s condensed consolidated balance sheets. The portion of net income (loss) allocated to these Common Units is reported on the Company’s condensed consolidated statement of operations as net income (loss) attributable to non-controlling interests of the Operating Partnership. Non-controlling Interests in Joint Venture On February 11, 2013, we formed a joint venture with an affiliate of IHG to purchase a Holiday Inn Express & Suites in San Francisco, CA. Prior to June 30, 2014, we owned an 81% controlling interest in the joint venture and our partner owned a 19% interest, which we classified as non-controlling interest in joint venture on our condensed consolidated balance sheets. For the periods prior to June 30, 2014, the portion of net income (loss) allocated to our partner was reported on our condensed consolidated statements of operations as net income (loss) attributable to non-controlling interests in joint venture. On June 30, 2014, we acquired the remaining non-controlling interest for $8.2 million and the hotel property became wholly-owned by us. Other Joint Venture Interests We own a majority interest in a joint venture that owns a fee simple interest in a hotel property and we also own a minority interest in a related joint venture (“Leasehold Venture”) that holds a leasehold interest in the property. We control the Leasehold Venture as we are the managing member of the entity. Additionally, the majority of the profits and losses of the Leasehold Venture are absorbed by us. As a result, we have concluded that the Leasehold Venture represents a variable interest entity that should be consolidated into our condensed consolidated financial statements. As such, all of the net assets and operating results of the Leasehold Venture are included in our condensed consolidated financial statements for the periods presented.

EQUITY-BASED COMPENSATION

EQUITY-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2015
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION	NOTE 9 - EQUITY-BASED COMPENSATION Our currently outstanding equity-based awards were issued under our Equity Plan, which provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, and other equity-based award or incentive awards. Effective June 15, 2015, we adopted the Amended Equity Plan. The more significant changes to the Equity Plan that are reflected in the Amended Equity Plan are summarized as follows: · The share authorization is amended to provide that the maximum aggregate number of shares of common stock that may be issued under awards granted pursuant to the Amended Equity Plan is 3,500,000 shares. · The Amended Equity Plan is designed so that awards granted thereunder can qualify as “performance-based compensation” under Section 162(m) of the IRC. · The Amended Equity Plan generally provides that awards will not be fully vested or exercisable for at least three years after their grant unless the award will be earned on account of meeting performance objectives in which case the period will be at least one year. No equity-based awards have been issued under the Amended Equity Plan. Stock options granted may be either incentive stock options or non-qualified stock options. Vesting terms may vary with each grant, and stock option terms are generally five to ten years. We have outstanding equity-based awards in the form of stock options and restricted stock awards. All of our existing equity-based awards are classified as equity awards. Resignation of Executive Chairman of the Board of Directors On July 30, 2015, Kerry W. Boekelheide, Executive Chairman of the Board of Directors (“Board”) of the Company informed the Board that he was stepping down from his position with the Company effective July 30, 2015. In connection with Mr. Boekelheide’s departure, the Company entered into a severance and release agreement with Mr. Boekelheide, which included accelerated vesting of all restricted shares of common stock and options previously granted to Mr. Boekelheide (all of the options will remain exercisable, in whole or in part, until October 29, 2015 and, if not exercised on or prior to that date, will be forfeited). In accordance with this agreement, 75,200 stock options, 56,481 performance-based restricted shares and 46,673 time-based restricted shares vested during the quarter ended September 30, 2015. On October 28, 2015, Mr. Boekelheide exercised the vested stock options on a cashless basis resulting in a net issuance of 99,738 shares of our common stock. Additional stock-based compensation expense of $1.1 million was recorded during the quarter ended September 30, 2015 related to these award modifications. Stock Options Stock option activity for the nine months ended September 30, 2015 is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Terms Aggregate Intrinsic Value (Current Value Less Exercise Price) (per share) (in years) (in thousands) Outstanding at December 31, 2014 $ $ Granted — — Exercised — — Forfeited — — Outstanding at September 30, 2015 $ (1) $ Exercisable at September 30, 2015 $ $ (1) The accelerated vesting of Mr. Boekelheide’s stock options resulted in a significant decrease in the weighted average remaining contract ual terms of outstanding stock options at September 30, 2015. Time-Based Restricted Stock Awards On March 3, 2015, we granted time-based restricted stock awards for 149,410 shares of common stock to our executive officers and management. Of the total awards issued, 37,230 vest based on continued service on March 9, 2018, or upon a change in control. The remaining awards vest over a three year period based on continued service (25% on March 9, 2016 and 2017 and 50% on March 9, 2018), or upon a change in control. On April 24, 2015, we granted a time-based restricted stock award for 16,930 shares of common stock to one of our executive officers. The award vests ratably over a three year period based on continued service on the first, second and third anniversaries of the grant date. The holders of these grants have the right to vote the related shares of common stock and receive all dividends declared and paid whether or not vested. The fair value of time-based restricted stock awards is calculated based on the market value of our common stock on the date of grant. The following table summarizes time-based restricted stock award activity under our Equity Plan for the nine months ended September 30, 2015: Number of Shares Weighted Average Grant Date Fair Value Aggregate Current Value (per share) (in thousands) Non-vested December 31, 2014 $ $ Granted Vested ) Forfeited — — Outstanding at September 30, 2015 $ $ Performance-Based Restricted Stock Awards On March 3, 2015, we granted performance-based restricted stock awards for 154,505 shares of common stock to certain of our executive officers. Our performance-based restricted stock awards are market-based awards and are accounted for based on the fair value of our common stock on the grant date. The fair value of the performance-based restricted stock awards granted was estimated using a Monte Carlo simulation valuation model. These awards vest based the Company’s percentile ranking within the SNL U.S. REIT Hotel Index at the end of the period beginning on January 1, 2015 and ending on the earlier of December 31, 2017, or upon a change in control. The awards require continued service during the measurement period and are subject to the other conditions described in the Equity Plan or award document. The number of shares the executive officers may earn under these awards range from zero shares to twice the number of shares granted based on the Company’s percentile ranking within the index at the end of the measurement period. The holders of these grants have the right to vote the granted shares of common stock and any dividends declared will be accumulated and will be subject to the same vesting conditions as the awards. Further, if additional shares are earned based on the Company’s percentile ranking within the index, dividend payments will be issued as if the additional shares had been held throughout the measurement period. The following table summarizes performance-based restricted stock activity under the Equity Plan for the nine months ended September 30, 2015: Number of Shares Weighted Average Grant Date Fair Value Aggregate Current Value (per share) (in thousands) Non-vested December 31, 2014 $ $ Granted Vested ) Forfeited ) Outstanding at September 30, 2015 $ $ Director Stock Awards Our non-employee directors have the option to receive shares of our common stock in lieu of cash for their director fees. In the nine months ended September 30, 2015, we issued 4,716 shares of our common stock in lieu of cash for director fees, and we made an annual grant of 30,440 shares of common stock to our non-employee directors. The fair value of director stock awards is calculated based on the market value of our common stock on the date of grant. Equity-Based Compensation Expense Equity-based compensation expense included in Corporate General and Administrative expenses in the condensed consolidated statements of operations for the three and nine months ended September 30, 2015 and 2014 were as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Stock options $ $ $ $ Time-based restricted stock Performance-based restricted stock Director stock $ $ $ $ We recognize equity-based compensation expense ratably over the vesting period of the equity awards granted. The amount of expense may be subject to adjustment in future periods due to a change in the forfeiture assumptions or modification of previously granted awards. Unrecognized equity-based compensation expense for all non-vested awards was $4.9 million at September 30, 2015 as follows (in thousands): Total 2015 2016 2017 2018 Stock options $ $ $ $ — $ — Time-based restricted stock Performance-based restricted stock — $ $ $ $ $

LOSS ON IMPAIRMENT OF ASSETS

LOSS ON IMPAIRMENT OF ASSETS	9 Months Ended
	Sep. 30, 2015
LOSS ON IMPAIRMENT OF ASSETS
LOSS ON IMPAIRMENT OF ASSETS	NOTE 10 — LOSS ON IMPAIRMENT OF ASSETS During the three months ended September 30, 2015, we determined that the value of land parcels in San Antonio, Texas, Fort Myers, Florida and Flagstaff, Arizona were impaired based on market conditions. As such, we recognized a loss on impairment of assets of $1.1 million in our Condensed Consolidated Statement of Operations during the three months ended September 30, 2015. During the nine months ended September 30, 2014, we recognized a loss on impairment of assets of $0.4 million related to the Hampton Inn in Fort Smith, AR. This property was classified as held for sale prior to the Company’s adoption of ASU No. 2014-08 and its operating results, including impairment charges, were included in discontinued operations. In addition, during the three months ended September 30, 2014, we recognized a loss on impairment of assets of $8.2 million related to the Country Inn & Suites and three adjacent land parcels totaling 5.64 acres in San Antonio, Texas, which were sold in the fourth quarter of 2014. During the nine months ended September 30, 2014, we also recognized a loss on impairment of $0.7 million related to a land parcel in Spokane, WA.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING	9 Months Ended
	Sep. 30, 2015
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING	NOTE 11 - DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING Information about our derivative financial instruments at September 30, 2015 and December 31, 2014 is as follows (dollars in thousands): September 30, 2015 December 31, 2014 Number of Instruments Notional Amount Fair Value Number of Instruments Notional Amount Fair Value Interest rate swaps (asset) — $ — $ — $ $ Interest rate swaps (liability) ) ) $ $ ) $ $ ) All of our interest rate swaps have been designated as cash flow hedges and are valued using a market approach, which is a Level 2 valuation technique. At September 30, 2015, all of our interest rate swaps were in a liability position. At December 31, 2014, three of our interest rate swaps were in an asset position and one was in a liability position. We have not posted any collateral related to these agreements and are not in breach of any financial provisions of the agreements. If we had breached any agreement provisions at September 30, 2015, we could have been required to settle our obligation under the agreements that were in a liability position at their termination value of $3.1 million. The table below details the location in the financial statements of the gain or loss recognized on derivative financial instruments designated as cash flow hedges (in thousands). For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Loss recognized in accumulated other comprehensive income on derivative financial instruments (effective portion) $ ) $ $ ) $ ) Loss reclassified from accumulated other comprehensive income to interest expense (effective portion) $ ) $ ) $ ) $ ) Income (loss) recognized in loss on derivative financial instruments (ineffective portion) $ — $ $ ) $ — Amounts reported in accumulated other comprehensive income related to derivative financial instruments will be reclassified to interest expense as interest payments are made on the hedged variable-rate debt. Upon completion of the First Closing, we repaid mortgages on certain properties sold to ARCH and executed the early settlement of three interest rate swaps related to those mortgages for a nominal amount.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2015
INCOME TAXES
INCOME TAXES	NOTE 12 - INCOME TAXES Income taxes for the interim periods presented have been included in our consolidated financial statements on the basis of an estimated annual effective tax rate. Our effective tax rate is affected by the mix of earnings and losses by taxing jurisdictions. Our earnings (losses), other than in our TRS, are not generally subject to federal corporate and state income taxes due to our REIT election. Deferred tax assets and liabilities are established for net operating loss carryforwards and temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the net operating loss carryforwards are utilized and when the temporary differences reverse. At December 31, 2014, we had a valuation allowance of $2.4 million against our net deferred tax assets of $2.6 million. The deferred tax assets primarily related to net operating loss carryforwards in our TRS. The likelihood of realizing the benefit of deferred tax assets and the related need for a valuation allowance is assessed on an ongoing basis. This assessment requires estimates and significant management judgment. Because we are no longer in a cumulative loss and have forecasted income for our TRS for the year ended December 31, 2015, we have concluded that it is more likely than not that our net deferred tax assets will be realized and a valuation allowance is no longer necessary in whole or in part. For the third quarter of 2015 and 2014, we recorded an income tax provision attributable to continuing operations of $0.2 million and $0.4 million, respectively and $1.6 million and $0.8 million, respectively, for the nine months ended September 30, 2015 and 2014. We had no unrecognized tax benefits at September 30, 2015. We expect no significant changes in unrecognized tax benefits within the next year.

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	9 Months Ended
	Sep. 30, 2015
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT	NOTE 13 - FAIR VALUE MEASUREMENT The following table presents information about our financial instruments measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, we classify assets and liabilities based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Disclosures concerning financial instruments measured at fair value are as follows (in thousands): Fair Value Measurements at September 30, 2015 using Level 1 Level 2 Level 3 Total Liabilities: Interest rate swaps — — Fair Value Measurements at December 31, 2014 using Level 1 Level 2 Level 3 Total Assets: Assets held for sale $ — $ $ — $ Interest rate swaps — — Liabilities: Interest rate swaps — — We classify assets as held for sale in the period in which certain criteria are met, including when the sale of the asset within one year is probable. Assets held for sale are no longer depreciated and are carried at the lower of carrying amount or fair value, less selling costs. In determining the fair value of our interest rate swap derivatives, we use the present value of expected cash flows based on market observable interest rate yield curves commensurate with the term of each instrument. In addition to the assets and liabilities described above, our financial instruments also include cash and cash equivalents, restricted cash, trade receivables, prepaid expenses and other, debt, accounts payable, and accrued expenses. With the exception of our fixed-rate debt (See Note 6 — Debt), the carrying amounts of these financial instruments approximate their fair values due to their short-term nature or variable interest rates. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended September 30, 2015 or 2014.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	9 Months Ended
	Sep. 30, 2015
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS	NOTE 14 - DISCONTINUED OPERATIONS We have adjusted our Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2014 to reflect the operations of hotel properties sold or classified as held for sale in discontinued operations. No such adjustment was made in 2015 due to the adoption of ASU 2014-08. Discontinued operations for the three and nine months ended September 30, 2014 include the following hotel properties that have been sold: · AmericInn and Aspen Hotel & Suites in Fort Smith, AR — sold on January 17, 2014; and · Hampton Inn in Fort Smith, AR — sold September 9, 2014. Condensed results for the hotel properties included in discontinued operations are as follows (in thousands): For the Three Months Ended September 30, 2014 For the Nine Months Ended September 30, 2014 Revenues $ $ Hotel operating expenses Depreciation and amortization Loss on impairment of assets — Operating income Other expense ) ) Income (loss) before taxes ) Income tax benefit Income (loss) from discontinued operations $ ) $ Income (loss) from discontinued operations attributable to non-controlling interests $ ) $ Income (loss) from discontinued operations attributable to common stockholders $ ) $

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2015
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 15 - EARNINGS PER SHARE We apply the two-class method of computing earnings per share, which requires the calculation of separate earnings per share amounts for our non-vested time-based restricted stock awards with non-forfeitable dividends and for our common stock. Our non-vested time-based restricted stock awards with non-forfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. Our non-vested time-based restricted stock awards with non-forfeitable dividends do not have such an obligation so they are not allocated losses. At September 30, 2014, we had 846,000 stock options outstanding which were not included in the computation of diluted earnings per share because inclusion of these stock options would have been anti-dilutive. Below is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Income from continuing operations $ $ $ $ Less: Preferred dividends Allocation to participating securities Attributable to non-controlling interest ) Income (loss) from continuing operations attributable to common stockholders ) Income (loss) from discontinued operations attributable to common stockholders — ) — Net income (loss) attributable to common stockholders, net of amount allocated to participating securities $ $ ) $ $ Denominator: Weighted average common shares outstanding - basic Dilutive effect of equity-based compensation awards — Weighted average common shares outstanding - diluted Earnings per share: Basic net income from continuing operations $ $ ) $ $ Basic net income from discontinued operations — — — — Basic net income $ $ ) $ $

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 16 - SUBSEQUENT EVENTS Acquisitions On October 19, 2015, the Company closed on the purchase of the Hyatt House Airport in Miami, Florida from Noble I/HY Miami, LLC (“Noble I”) for an aggregate purchase price of $39.0 million. The hotel contains 156 guestrooms. The purchase from Noble I was executed through a qualified intermediary under a 1031 Exchange primarily using cash proceeds from the First Closing of the ARCH Sale on October 15, 2015. On October 20, 2015, the Company closed on the purchase of the Courtyard Atlanta Decatur Downtown from Noble I Decatur, LLC (“Noble II”) for an aggregate purchase price of $44.0 million. The hotel contains 179 guestrooms. The purchase from Noble II was completed through a qualified intermediary under a reverse 1031 Exchange using funds drawn on the Company’s revolving line of credit. We anticipate completion of the 1031 Exchange upon the sale of the hotels to be sold to ARCH in the first quarter of 2016. Dispositions On October 15, 2015 we completed the First Closing of the ARCH Sale. We expect to complete the second closing of the ARCH Sale prior to December 31, 2015 and the third closing in the first quarter of 2016. Equity Transactions On October 1, 2015, 34,536 Common Units were tendered for redemption and were redeemed for an equivalent number of shares of our common stock. Dividends On October 30, 2015, our Board of Directors declared cash dividends of $0.1175 per share of common stock, $0.578125 per share of 9.25% Series A Cumulative Redeemable Preferred Stock, $0.4921875 per share of 7.875% Series B Cumulative Redeemable Preferred Stock, and $0.4453125 per share of 7.125% Series C Cumulative Redeemable Preferred Stock. These dividends are payable on November 30, 2015 to stockholders of record on November 16, 2015.

BASIS OF PRESENTATION AND SIG24

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2015
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of the Company consolidate the accounts of the Company and all entities that are controlled by the Company’s ownership of a majority voting interest in such entities, as well as variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in the condensed consolidated financial statements. We prepare our condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Act of 1934 (the “Exchange Act”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation in accordance with GAAP have been included. Results for the three and nine months ended September 30, 2015 may not be indicative of the results that may be expected for the full year 2015. For further information, please read the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014.
Segment Disclosure	Segment Disclosure Accounting Standards Codification (“ASC”), ASC 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. We have determined that we have one reportable segment, with activities related to investing in real estate. Our investments in real estate are geographically diversified and the chief operating decision makers evaluate operating performance on an individual asset level. As each of our assets has similar economic characteristics, the assets have been aggregated into one reportable segment.
Investment in Hotel Properties	Investment in Hotel Properties We allocate the purchase price of hotel acquisitions based on the initial estimate of the fair values of the acquired assets and assumed liabilities and make adjustments, if and when necessary, to the recorded amounts of the acquired assets and liabilities within one year of consummation of the transaction in accordance with ASC 805, Business Combinations . We determine the acquisition-date fair values of all assets and assumed liabilities using methods similar to those used by independent appraisers, including using a discounted cash flow analysis that uses appropriate discount or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. Acquisition costs are expensed as incurred. Our hotel properties and related assets are recorded at cost, less accumulated depreciation. We capitalize the costs of significant additions and improvements that materially extend a property’s life. These costs may include hotel refurbishment, renovation, and remodeling expenditures, as well as certain indirect internal costs related to construction projects. We expense the cost of repairs and maintenance as incurred. We generally depreciate our hotel properties and related assets using the straight-line method over their estimated useful lives as follows: Classification Estimated Useful Lives Buildings and improvements 25 to 40 years Furniture, fixtures and equipment 2 to 15 years We periodically re-evaluate asset lives based on current assessments of remaining utilization, which may result in changes in estimated useful lives. Such changes are accounted for prospectively and will increase or decrease future depreciation expense. When depreciable property and equipment is retired or disposed, the related costs and accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in current operations. On a limited basis, we provide financing to developers of hotel properties for development or major renovation projects. We evaluate these arrangements to determine if we participate in residual profits of the hotel property through the loan provisions or other agreements. Where we conclude that these arrangements are more appropriately treated as an investment in the hotel property, we reflect the loan as an investment in hotel properties under development in our condensed consolidated balance sheets. If classified as hotel properties under development, no interest income is recognized on the loan and interest expense is capitalized on our investment in the hotel property during the construction or renovation period. We monitor events and changes in circumstances for indicators that the carrying value of a hotel property or land held for development may be impaired. Additionally, we perform at least annual reviews to monitor the factors that could trigger an impairment. Factors that could trigger an impairment analysis include, among others: i) significant underperformance relative to historical or projected operating results, ii) significant changes in the manner of use of a property or the strategy of our overall business, including changes in the estimated holding periods for hotel properties and land parcels, iii) a significant increase in competition, iv) a significant adverse change in legal factors or regulations, and v) significant negative industry or economic trends. When such factors are identified, we prepare an estimate of the undiscounted future cash flows of the specific property and determine if the investment is recoverable. If impairment is indicated, we estimate the fair value of the property based on discounted cash flows or sales price if the property is under contract and an adjustment is made to reduce the carrying value of the property to fair value.
Assets Held for Sale and Discontinued Operations	Assets Held for Sale and Discontinued Operations We classify assets as held for sale in the period in which certain criteria are met, including when the sale of the asset within one year is probable. Assets held for sale are no longer depreciated and are carried at the lower of carrying amount or fair value, less selling costs. Historically, we presented the results of operations of hotel properties that had been sold or otherwise qualified as assets held for sale in discontinued operations if the operations and cash flows of the hotel properties had been or would be eliminated from our ongoing operations. We elected for the early adoption of Accounting Standards Update (“ASU”) 2014-08 (see “New Accounting Standards” below) in the first quarter of 2014 and we currently anticipate that the majority of future properties for sale will not be classified as discontinued operations. We periodically review our hotel properties and our land held for development based on established criteria such as age, type of franchise, adverse economic and competitive conditions, and strategic fit to identify properties that we believe are either non-strategic or no longer complement our business.
Variable Interest Entities	Variable Interest Entities We consolidate variable interest entities (“VIE”) if we determine that we are the primary beneficiary of the entity. When evaluating the accounting for a VIE, we consider the purpose for which the VIE was created, the importance of each of the activities in which it is engaged and our decision-making role, if any, in those activities that significantly determine the entity’s economic performance relative to other economic interest holders. We determine our rights, if any, to receive benefits or the obligation to absorb losses that could potentially be significant to the VIE by considering the economic interest in the entity, regardless of form, which may include debt, equity, management and servicing fees, or other contractual arrangements. We consider other relevant factors including each entity’s capital structure, contractual rights to earnings (losses), subordination of our interests relative to those of other investors, contingent payments, and other contractual arrangements that may be economically significant. Additionally, we have in the past and may in the future enter into purchase and sale transactions in accordance with Section 1031 (“1031 Exchange”) of the Internal Revenue Code of 1986, as amended (“IRC”), for the exchange of like-kind property to defer taxable gains on the sale of properties. For reverse transactions under a 1031 Exchange in which we purchase a property prior to selling the property to be matched in the like-kind exchange (a “Parked Asset”), legal title to the Parked Asset is held by a qualified intermediary engaged to execute the 1031 Exchange until the sale transaction and the 1031 Exchange is completed. We retain essentially all of the legal and economic benefits and obligations related to the Parked Assets prior to completion of the 1031 Exchange. As such, the Parked Assets are included in our consolidated statement of financial position and results of operations as a VIE until legal title is transferred to us upon completion of the 1031 Exchange. See Note 3 — Hotel Property Acquisitions.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At times, cash on deposit may exceed the federally insured limit. We maintain our cash with high credit quality financial institutions.
Restricted Cash	Restricted Cash Restricted cash consists of certain funds maintained in escrow by various third parties for property taxes, insurance, and certain capital expenditures. Funds may be disbursed from the restricted account by the escrow-holders for specific expenditures such as property taxes and insurance or to us upon proof of expenditures and approval from the escrow-holders.
Trade Receivables and Credit Policies	Trade Receivables and Credit Policies We grant credit to qualified customers, generally without collateral, in the form of trade accounts receivable. Trade receivables result from the rental of hotel rooms and the sales of food, beverage, and banquet services and are payable under normal trade terms. Trade receivables are stated at the amount billed to the customer and do not accrue interest. We review the collectability of our trade receivables monthly. A provision for losses is determined on the basis of previous loss experience and current economic conditions.
Deferred Charges	Deferred Charges Deferred charges consist of deferred financing fees and initial franchise fees. Costs incurred to obtain financing are capitalized and amortized as a component of interest expense over the term of the related debt using the straight-line method, which approximates the interest method. Initial franchise fees are capitalized and amortized over the term of the franchise agreement using the straight-line method .
Non-controlling Interests	Non-controlling Interests Non-controlling interests represent the portion of equity in a consolidated entity held by owners other than the consolidating parent. Non-controlling interests are reported in the condensed consolidated balance sheets within equity, separately from stockholders’ equity. Revenue, expenses and net income (loss) attributable to both the Company and the non-controlling interests are reported in the condensed consolidated statements of operations. Our condensed consolidated financial statements include non-controlling interests related to common units of limited partnership interests (“Common Units”) in the Operating Partnership held by unaffiliated third parties and prior to the second quarter of 2014, third-party ownership of a 19% interest in a consolidated joint venture.
Revenue Recognition	Revenue Recognition We recognize revenue when rooms are occupied and services have been rendered. Revenues are recorded net of any sales and other taxes collected from guests. All rebates or discounts are recorded as a reduction to revenue. Cash received from the customer prior to guest arrival is recorded as an advanced deposit liability and is recognized as revenue at the time of occupancy.
Sales and Other Taxes	Sales and Other Taxes We have operations in states and municipalities that impose sales or other taxes on certain sales. We collect these taxes from our guests and remit the entire amount to the various governmental units. The taxes collected and remitted are excluded from revenues and are included in accrued expenses until remitted.
Equity-Based Compensation	Equity-Based Compensation Our 2011 Equity Incentive Plan (the “Equity Plan”) and 2011 Equity Incentive Plan, as amended and restated effective June 15, 2015 (the “Amended Equity Plan”), provide for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, and other stock-based awards. We account for equity-based compensation using the Black-Scholes option-pricing model for stock options and the grant date fair value of our common stock for all other awards. Restricted stock awards with performance-based vesting conditions are market-based awards and are valued using a Monte Carlo simulation model. We expense awards under the Equity Plan and Amended Equity Plan ratably over the vesting period. The amount of stock-based compensation expense may be subject to adjustment in future periods due to a change in forfeiture assumptions or modification of previously granted awards.
Derivative Financial Instruments and Hedging	Derivative Financial Instruments and Hedging All derivative financial instruments are recorded at fair value and reported as a derivative financial instrument asset or liability in our condensed consolidated balance sheets. We use interest rate derivatives to hedge our risks on variable-rate debt. Interest rate derivatives could include swaps, caps and floors. We assess the effectiveness of each hedging relationship by comparing changes in fair value or cash flows of the derivative financial instrument with the changes in fair value or cash flows of the designated hedged item or transaction. For interest rate derivatives designated as cash flow hedges, the effective portion of changes in fair value is initially reported as a component of accumulated other comprehensive income (loss) in the equity section of our condensed consolidated balance sheets and reclassified to interest expense in our condensed consolidated statements of operations in the period in which the hedged item affects earnings. The ineffective portion of changes in fair value is recognized directly in earnings through gain (loss) on derivative financial instruments in the condensed consolidated statements of operations.
Income Taxes	Income Taxes We have elected to be taxed as a REIT under certain provisions of the IRC. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute annually to our stockholders at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains, which does not necessarily equal net income as calculated in accordance with GAAP. As a REIT, we generally will not be subject to federal income tax (other than taxes paid by our TRS at regular corporate income tax rates) to the extent we distribute 100% of our REIT taxable income to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate income tax rates and generally will be unable to re-elect REIT status until the fifth calendar year after the year in which we failed to qualify as a REIT, unless we satisfy certain relief provisions. We account for federal and state income taxes of our TRS using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between carrying amounts of existing assets and liabilities based on GAAP and respective carrying amounts for tax purposes, and operating losses and tax-credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of the change in tax rates. However, deferred tax assets are recognized only to the extent that it is more likely than not they will be realized based on consideration of available evidence, including future reversals of taxable temporary differences, future projected taxable income and tax planning strategies.
Fair Value Measurement	Fair Value Measurement Fair value measures are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market information, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). Our estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. We classify assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. We elected not to use the fair value option for cash and cash equivalents, restricted cash, trade receivables, prepaid expenses and other, debt, accounts payable, and accrued expenses. With the exception of our fixed-rate debt (See Note 6 — Debt), the carrying amounts of these financial instruments approximate their fair values due to their short-term nature or variable interest rates.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Reclassifications	Reclassifications Certain amounts reported in previous periods have been reclassified to conform to the current presentation and industry practice.
New Accounting Standards	New Accounting Standards In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The ASU changed the criteria for reporting discontinued operations while enhancing related disclosures. Criteria for discontinued operations will now include only disposals that represent a strategic shift in operations with a major effect on operations and financial results. The ASU is to be applied on a prospective basis and would be effective for us beginning January 1, 2015; however, we elected early adoption in the first quarter of 2014, which is permitted for disposals and classifications as held for sale which have not been reported previously. In February 2015, the FASB issued ASU No. 2015-02, “ Consolidation (Topic 810): Amendments to the Consolidation Analysis ,” which changes the way reporting enterprises evaluate the consolidation of limited partnerships, variable interests and similar entities. This standard will be effective for the first annual reporting period beginning after December 15, 2015 with early adoption permitted. We are evaluating the effect that ASU No. 2015-02 will have on our consolidated financial statements and related disclosures, but we do not anticipate that it will have a material effect on our consolidated financial position or our consolidated results of operations. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability. This standard is effective for periods beginning after December 15, 2015 with early adoption permitted and will be applied on a retrospective basis. The new standard will be effective for the Company on January 1, 2016. We are evaluating the effect that ASU No. 2015-03 will have on our consolidated financial statements and related disclosures, but we do not anticipate that it will have a material effect on our consolidated financial position or our consolidated results of operations.

BASIS OF PRESENTATION AND SIG25

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2015
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Schedule of estimated useful lives of hotel properties	Classification Estimated Useful Lives Buildings and improvements 25 to 40 years Furniture, fixtures and equipment 2 to 15 years

HOTEL PROPERTY ACQUISITIONS (Ta

HOTEL PROPERTY ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2015
HOTEL PROPERTY ACQUISITIONS
Schedule of hotel property acquisitions	Hotel property acquisitions in the nine months ended September 30, 2015 and 2014 are as follows (in thousands): Date Acquired Franchise/Brand Location Purchase Price Debt Assumed First Nine Months 2015 April 13, 2015 Hampton Inn & Suites Minneapolis, MN $ $ — June 18, 2015 Hampton Inn Boston (Norwood), MA (1) — June 30, 2015 Hotel Indigo Asheville, NC (1) — July 24, 2015 Residence Inn Branchburg, NJ (1) — July 24, 2015 Residence Inn Hunt Valley, MD (1) — Total Nine Months Ended September 30, 2015 $ $ — First Nine Months 2014 January 9, 2014 Hilton Garden Inn Houston (Galleria), TX $ $ January 10, 2014 Hampton Inn Santa Barbara (Goleta), CA (2) January 24, 2014 Four Points by Sheraton San Francisco, CA — March 14, 2014 DoubleTree by Hilton San Francisco, CA August 15, 2014 Hilton Garden Inn Houston (Energy Corridor), TX — September 9, 2014 Hampton Inn & Suites Austin, TX — Total Nine Months Ended September 30, 2014 $ $ (1) These hotels (“Parked Assets”) were purchased as reverse 1031 Exchanges related to the anticipated sale of 26 properties to affiliates of American Realty Capital Hospitality Trust, Inc. (“ARCH”). See Note 2 — Basis of Presentation and Significant Accounting Policies – Variable Interest Entities; and Note 5 — Assets Held For Sale. As such, the legal title to these Parked Assets are held by a qualified intermediary engaged to execute the 1031 Exchanges until the sale transaction with ARCH (the “ARCH Sale”) is consummated and the 1031 Exchanges are completed. We retain essentially all of the legal and economic benefits and obligations related to the Parked Assets. As such, the Parked Assets are included in our condensed consolidated statement of financial position at September 30, 2015 and condensed consolidated results of operations for the three and nine months then ended as VIE’s until legal title is transferred to us upon completion of the 1031 Exchanges. The 1031 Exchanges related to these properties were completed on October 15, 2015. (2) The purchase price for this hotel included the issuance by the Operating Partnership of 412,174 Common Units in our Operating Partnership valued at the time of issuance at $3.7 million.
Schedule of allocation of the aggregate purchase prices to the fair value of assets acquired and liabilities assumed	The allocation of the aggregate purchase prices to the fair value of assets acquired and liabilities assumed for the above acquisitions is as follows (in thousands): For the Nine Months Ended September 30, 2015 2014 Land $ $ Hotel buildings and improvements Furniture, fixtures and equipment Other assets (1) Total assets acquired Less debt assumed — ) Less lease liability assumed ) ) Less other liabilities (1) ) ) Net assets acquired $ $ (1) In addition to the total purchase price, the Company also paid additional consideration at closing during the nine months ended September 30, 2015 and 2014 of $0.3 million and $9.0 million, respectively, for net assets acquired at settlement, including restricted cash escrow balances and other working capital items.
Schedule of total revenues and net income for hotel properties acquired	Total revenues and net income for hotel properties acq uired in the three and nine months ended September 30, 2015 and 2014, which are included in our condensed consolidated statements of operations, are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 Acquisitions 2014 Acquisitions 2015 Acquisitions 2014 Acquisitions 2015 2015 2014 2015 2015 2014 Revenues $ $ $ $ $ $ Net income $ $ $ $ $ $
Schedule of unaudited condensed pro forma financial information	The unaudited condensed pro forma financial information for the three and nine months ended September 30, 2015 and 2014 is as follows (in thousands, except per share): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 (unaudited) (unaudited) Revenues $ $ $ $ Net income $ $ $ $ Net income attributable to common stockholders, net of amount allocated to participating securities $ $ $ $ Basic and diluted net income per share attributable to common stockholders $ $ $ $

INVESTMENT IN HOTEL PROPERTIE27

INVESTMENT IN HOTEL PROPERTIES, NET (Tables)	9 Months Ended
	Sep. 30, 2015
INVESTMENT IN HOTEL PROPERTIES, NET
Schedule of investment in hotel properties, net	Investment in hotel properties, net is as follows (in thousands): September 30, December 31, 2015 2014 Land $ $ Hotel buildings and improvements Construction in progress Furniture, fixtures and equipment Less accumulated depreciation ) ) $ $

ASSETS HELD FOR SALE (Tables)

ASSETS HELD FOR SALE (Tables)	9 Months Ended
	Sep. 30, 2015
ASSETS HELD FOR SALE
Schedule of assets held for sale	Assets held for sale at September 30, 2015 and December 31, 2014 include (in thousands): September 30, December 31, 2015 2014 Land $ $ Hotel buildings and improvements — Furniture, fixtures and equipment — Construction in progress — Franchise fees — Total $ $

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2015
DEBT
Schedule of total fixed-rate and variable-rate debt, after giving effect to interest rate derivatives	Our total fixed-rate and variable-rate debt, after giving effect to our interest rate derivatives, is as follows (in thousands): September 30, 2015 December 31, 2014 Fixed-rate debt $ $ Variable-rate debt $ $
Schedule of the fair value of fixed-rate that is debt not recorded at fair value	Information about the fair value of our fixed-rate debt that is not recorded at fair value is as follows (in thousands): September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Valuation Technique Fixed-rate debt $ $ $ $ Level 2 - Market approach

EQUITY-BASED COMPENSATION (Tabl

EQUITY-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2015
Equity-based compensation
Schedule of stock option activity	Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Terms Aggregate Intrinsic Value (Current Value Less Exercise Price) (per share) (in years) (in thousands) Outstanding at December 31, 2014 $ $ Granted — — Exercised — — Forfeited — — Outstanding at September 30, 2015 $ (1) $ Exercisable at September 30, 2015 $ $ (1) The accelerated vesting of Mr. Boekelheide’s stock options resulted in a significant decrease in the weighted average remaining contract ual terms of outstanding stock options at September 30, 2015.
Schedule of equity-based compensation expense	Equity-based compensation expense included in Corporate General and Administrative expenses in the condensed consolidated statements of operations for the three and nine months ended September 30, 2015 and 2014 were as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Stock options $ $ $ $ Time-based restricted stock Performance-based restricted stock Director stock $ $ $ $
Schedule of unrecognized equity-based compensation expense for all non-vested awards	Unrecognized equity-based compensation expense for all non-vested awards was $4.9 million at September 30, 2015 as follows (in thousands): Total 2015 2016 2017 2018 Stock options $ $ $ $ — $ — Time-based restricted stock Performance-based restricted stock — $ $ $ $ $
Restricted Stock Awards | Time-Based
Equity-based compensation
Schedule of restricted stock awards	Number of Shares Weighted Average Grant Date Fair Value Aggregate Current Value (per share) (in thousands) Non-vested December 31, 2014 $ $ Granted Vested ) Forfeited — — Outstanding at September 30, 2015 $ $
Restricted Stock Awards | Performance-Based
Equity-based compensation
Schedule of restricted stock awards	Number of Shares Weighted Average Grant Date Fair Value Aggregate Current Value (per share) (in thousands) Non-vested December 31, 2014 $ $ Granted Vested ) Forfeited ) Outstanding at September 30, 2015 $ $

DERIVATIVE FINANCIAL INSTRUME31

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING (Tables)	9 Months Ended
	Sep. 30, 2015
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING
Schedule of derivative financial instruments	Information about our derivative financial instruments at September 30, 2015 and December 31, 2014 is as follows (dollars in thousands): September 30, 2015 December 31, 2014 Number of Instruments Notional Amount Fair Value Number of Instruments Notional Amount Fair Value Interest rate swaps (asset) — $ — $ — $ $ Interest rate swaps (liability) ) ) $ $ ) $ $ )
Schedule of the location in the financial statements of the gain or loss recognized on derivative financial instruments designated as cash flow hedges	The table below details the location in the financial statements of the gain or loss recognized on derivative financial instruments designated as cash flow hedges (in thousands). For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Loss recognized in accumulated other comprehensive income on derivative financial instruments (effective portion) $ ) $ $ ) $ ) Loss reclassified from accumulated other comprehensive income to interest expense (effective portion) $ ) $ ) $ ) $ ) Income (loss) recognized in loss on derivative financial instruments (ineffective portion) $ — $ $ ) $ —

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	9 Months Ended
	Sep. 30, 2015
FAIR VALUE MEASUREMENT
Schedule of disclosures concerning financial instruments measured at fair value	Disclosures concerning financial instruments measured at fair value are as follows (in thousands): Fair Value Measurements at September 30, 2015 using Level 1 Level 2 Level 3 Total Liabilities: Interest rate swaps — — Fair Value Measurements at December 31, 2014 using Level 1 Level 2 Level 3 Total Assets: Assets held for sale $ — $ $ — $ Interest rate swaps — — Liabilities: Interest rate swaps — —

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2015
DISCONTINUED OPERATIONS
Schedule of condensed results for the hotel properties included in discontinued operations	Condensed results for the hotel properties included in discontinued operations are as follows (in thousands): For the Three Months Ended September 30, 2014 For the Nine Months Ended September 30, 2014 Revenues $ $ Hotel operating expenses Depreciation and amortization Loss on impairment of assets — Operating income Other expense ) ) Income (loss) before taxes ) Income tax benefit Income (loss) from discontinued operations $ ) $ Income (loss) from discontinued operations attributable to non-controlling interests $ ) $ Income (loss) from discontinued operations attributable to common stockholders $ ) $

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2015
EARNINGS PER SHARE
Summary of the components used to calculate basic and diluted earnings per share	Below is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Income from continuing operations $ $ $ $ Less: Preferred dividends Allocation to participating securities Attributable to non-controlling interest ) Income (loss) from continuing operations attributable to common stockholders ) Income (loss) from discontinued operations attributable to common stockholders — ) — Net income (loss) attributable to common stockholders, net of amount allocated to participating securities $ $ ) $ $ Denominator: Weighted average common shares outstanding - basic Dilutive effect of equity-based compensation awards — Weighted average common shares outstanding - diluted Earnings per share: Basic net income from continuing operations $ $ ) $ $ Basic net income from discontinued operations — — — — Basic net income $ $ ) $ $

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details)	Sep. 30, 2015roomstateproperty
Properties
Number of states in which hotel properties are located | state	24
Hotels
Properties
Number of upscale and upper midscale hotel properties owned	95
Number of guestrooms | room	12,175
Operating partnership | TRS Lessees
Properties
Ownership interest in joint venture (as a percent)	100.00%

BASIS OF PRESENTATION AND SIG36

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended
	Sep. 30, 2015item
Segment Disclosure
Number of reportable segments	1

BASIS OF PRESENTATION AND SIG37

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details 2)	9 Months Ended
	Sep. 30, 2015
Hotel buildings and improvements | Minimum
INVESTMENT IN HOTEL PROPERTIES, NET
Estimated Useful Lives	25 years
Hotel buildings and improvements | Maximum
INVESTMENT IN HOTEL PROPERTIES, NET
Estimated Useful Lives	40 years
Furniture, fixtures and equipment | Minimum
INVESTMENT IN HOTEL PROPERTIES, NET
Estimated Useful Lives	2 years
Furniture, fixtures and equipment | Maximum
INVESTMENT IN HOTEL PROPERTIES, NET
Estimated Useful Lives	15 years

BASIS OF PRESENTATION AND SIG38

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details 3)	Mar. 31, 2014
Joint venture | Non-controlling Interest
Non-controlling interests
Third-party ownership (as a percent)	19.00%

HOTEL PROPERTY ACQUISITIONS (De

HOTEL PROPERTY ACQUISITIONS (Details) $ in Thousands	Jan. 10, 2014USD ($)shares	Sep. 30, 2015USD ($)property	Sep. 30, 2014USD ($)	Jun. 02, 2015property
Hotels
Hotel property acquisitions
Number of hotels | property		95
Portfolio of Hotels, ARCH Agreements
Hotel property acquisitions
Number of hotels | property				26
2015 acquisitions
Hotel property acquisitions
Purchase Price		$ 154,751
2015 acquisitions | Hampton Inn & Suites | Minneapolis, MN
Hotel property acquisitions
Purchase Price		38,951
2015 acquisitions | Hampton Inn | Boston (Norwood), MA
Hotel property acquisitions
Purchase Price		24,000
2015 acquisitions | Hotel Indigo | Asheville, NC
Hotel property acquisitions
Purchase Price		35,000
2015 acquisitions | Residence Inn | Branchburg, NJ
Hotel property acquisitions
Purchase Price		25,700
2015 acquisitions | Residence Inn | Hunt Valley, MD
Hotel property acquisitions
Purchase Price		$ 31,100
2014 acquisitions
Hotel property acquisitions
Purchase Price			$ 214,710
Debt Assumed			43,172
2014 acquisitions | Hampton Inn & Suites | Austin, TX
Hotel property acquisitions
Purchase Price			53,000
2014 acquisitions | Hampton Inn | Santa Barbara (Goleta), CA
Hotel property acquisitions
Purchase Price			27,900
Debt Assumed			12,037
2014 acquisitions | Hilton Garden Inn | Houston (Galleria), Texas
Hotel property acquisitions
Purchase Price			37,500
Debt Assumed			17,846
2014 acquisitions | Hilton Garden Inn | Houston (Energy Corridor), TX
Hotel property acquisitions
Purchase Price			36,000
2014 acquisitions | Four Points by Sheraton | South San Francisco, CA
Hotel property acquisitions
Purchase Price			21,250
2014 acquisitions | Double Tree by Hilton | San Francisco, CA
Hotel property acquisitions
Purchase Price			39,060
Debt Assumed			$ 13,289
Operating partnership | 2014 acquisitions | Hampton Inn | Santa Barbara (Goleta), CA | Partnership interest
Hotel property acquisitions
Common units issued for acquisition (in shares) | shares	412,174
Common units issued for acquisition	$ 3,700

HOTEL PROPERTY ACQUISITIONS (40

HOTEL PROPERTY ACQUISITIONS (Details 2) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
2015 acquisitions
Allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired
Land	$ 9,975
Hotel buildings and improvements	134,109
Furniture, fixtures and equipment	13,690
Other assets	700
Total assets acquired	158,474
Less lease liability assumed	(3,250)
Less other liabilities	(160)
Net assets acquired	155,064
Additional consideration transferred	$ 300
2014 acquisitions
Allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired
Land		$ 11,400
Hotel buildings and improvements		199,573
Furniture, fixtures and equipment		5,489
Other assets		11,625
Total assets acquired		228,087
Less debt assumed		(43,172)
Less lease liability assumed		(1,752)
Less other liabilities		(2,671)
Net assets acquired		180,492
Additional consideration transferred		$ 9,000

HOTEL PROPERTY ACQUISITIONS (41

HOTEL PROPERTY ACQUISITIONS (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
2015 acquisitions
Hotel property acquisitions
Revenues	$ 8,936		$ 10,848
Net income	1,636		1,826
2014 acquisitions
Hotel property acquisitions
Revenues	14,497	$ 11,358	41,080	$ 24,808
Net income	$ 2,660	$ 2,897	$ 7,535	$ 3,999

HOTEL PROPERTY ACQUISITIONS (42

HOTEL PROPERTY ACQUISITIONS (Details 4) - All 2014 and 2015 Acquisitions - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Hotel property acquisitions
Revenues	$ 125,904	$ 118,165	$ 365,846	$ 335,771
Net income	13,936	9,940	44,603	27,969
Net income attributable to common stockholders, net of amount allocated to participating securities	$ 9,691	$ 5,968	$ 31,820	$ 15,272
Basic net income per share attributable to common shareholders (in dollars per share)	$ 0.11	$ 0.07	$ 0.37	$ 0.18
Diluted net income per share attributable to common shareholders (in dollars per share)	$ 0.11	$ 0.07	$ 0.37	$ 0.18

INVESTMENT IN HOTEL PROPERTIE43

INVESTMENT IN HOTEL PROPERTIES, NET (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Investment in Hotel Properties
Investment in hotel properties at cost	$ 1,418,819	$ 1,519,086
Less accumulated depreciation	(151,698)	(179,671)
Investment in hotel properties, net	1,267,121	1,339,415
Land
Investment in Hotel Properties
Investment in hotel properties at cost	141,024	164,570
Hotel buildings and improvements
Investment in Hotel Properties
Investment in hotel properties at cost	1,126,104	1,202,451
Construction in progress
Investment in Hotel Properties
Investment in hotel properties at cost	8,638	15,609
Furniture, fixtures and equipment
Investment in Hotel Properties
Investment in hotel properties at cost	$ 143,053	$ 136,456

ASSETS HELD FOR SALE (Details)

ASSETS HELD FOR SALE (Details) $ in Thousands	Oct. 15, 2015USD ($)roomproperty	Sep. 30, 2015USD ($)itemproperty	Jun. 02, 2015USD ($)roomcontractClosingproperty	Dec. 31, 2014USD ($)
Assets held for sale
Assets held for sale		$ 216,335		$ 300
Portfolio of Hotels, ARCH Agreements
Assets held for sale
Number of agreements | contract			2
Number of closings | Closing			3
Number of hotels | property			26
Number of guestrooms | room			2,793
Aggregate sales price			$ 347,400
Portfolio of Hotels, ARCH Agreements, First Closing | Subsequent Event
Assets held for sale
Number of hotels | property	10
Number of guestrooms | room	1,090
Aggregate sales price	$ 150,100
Gain on sale	$ 65,000
Portfolio of Hotels, ARCH Agreements, Second Closing
Assets held for sale
Number of hotels | property			10
Number of guestrooms | room			996
Aggregate sales price			$ 89,100
Portfolio of Hotels, ARCH Agreements, Third Closing
Assets held for sale
Number of hotels | property			6
Number of guestrooms | room			707
Aggregate sales price			$ 108,200
Emporia, KS | Assets held-for-sale
Assets held for sale
Number of properties judgement received | item		1
Emporia, KS | Hotel properties
Assets held for sale
Number of hotels | property		2
Emporia, KS | Hotel properties | Other Assets.
Assets held for sale
Notes receivable		$ 2,700
Land
Assets held for sale
Assets held for sale		35,146		$ 300
Hotel buildings and improvements
Assets held for sale
Assets held for sale		159,073
Furniture, fixtures and equipment
Assets held for sale
Assets held for sale		20,774
Construction in progress
Assets held for sale
Assets held for sale		54
Franchise fees
Assets held for sale
Assets held for sale		$ 1,288
Reverse and forward 1031 Exchanges | 2015 acquisitions | Subsequent Event
Assets held for sale
Number of hotel properties acquired | property	4

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
DEBT
Weighted average interest rate for all borrowings, after giving effect to interest rate derivatives (as a percent)	3.97%	4.35%
Fixed-rate debt	$ 484,463	$ 465,220
Variable-rate debt	285,577	161,313
Total	$ 770,040	$ 626,533

DEBT (Details 2)

DEBT (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt
Fixed-rate debt	$ 484,463	$ 465,220
Variable-rate debt	285,577	161,313
Not recorded at fair value
Debt
Fixed-rate debt	382,929	362,602
Fair Value | Level 2
Debt
Fixed-rate debt	379,926	349,517
Carried at fair value
Debt
Variable-rate debt	$ 101,500	$ 102,600

DEBT (Details 3)

DEBT (Details 3) $ in Thousands	Sep. 24, 2015USD ($)loan	Jun. 02, 2015USD ($)loanproperty	Apr. 21, 2015USD ($)	Apr. 07, 2015USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Debt
Debt					$ 770,040	$ 626,533
Secured and unsecured term loans
Debt
Debt					660,000
Secured term loans
Debt
Debt					445,000
Unsecured term loan
Debt
Loan amount			$ 140,000	$ 125,000
Accordion feature additional commitment				75,000
Amount drawn			$ 15,000	$ 125,000
Collateralized term loan with Voya
Debt
Number of term loans | loan	4	2
Secured debt	$ 123,400	$ 93,400
Fixed interest rate (as a percent)	5.18%
Debt issuance costs	$ 900
Collateralized term loan with Voya | Portfolio of Hotels, ARCH Agreements
Debt
Number of properties that served as collateral for loans | property		8
Senior Unsecured Credit Facility
Debt
Maximum borrowing capacity					300,000
Maximum increase in borrowing capacity available through accordion feature option					100,000
Line of credit current maximum borrowing capacity					300,000
Line of credit outstanding					185,000
Amount available for borrowing					115,000
Senior Unsecured Credit Facility | $225 Million Revolver
Debt
Maximum borrowing capacity					225,000
Senior Unsecured Credit Facility | $75 Million Term Loan
Debt
Maximum borrowing capacity					$ 75,000

EQUITY (Details)

EQUITY (Details) $ / shares in Units, $ in Millions	Aug. 03, 2015USD ($)	Apr. 24, 2015shares	Mar. 03, 2015shares	Jan. 01, 2015shares	May. 28, 2014shares	Sep. 30, 2014shares	Sep. 30, 2015$ / sharesshares	Sep. 30, 2014$ / sharesshares	Dec. 31, 2014$ / sharesshares	Aug. 02, 2015USD ($)
Equity
Common stock, shares authorized							500,000,000		500,000,000
Common stock, par value (in dollars per share) | $ / shares							$ 0.01		$ 0.01
Preferred stock, shares authorized							100,000,000		100,000,000
Preferred stock, par value (in dollars per share) | $ / shares							$ 0.01		$ 0.01
Stock Options
Equity
Exercise price (in dollars per share) | $ / shares								$ 9.75
Undesignated preferred stock
Equity
Preferred stock, shares authorized							91,600,000
9.25% Series A Preferred Stock
Equity
Preferred stock, shares authorized							2,000,000		2,000,000
Preferred stock, dividend rate (as a percent)							9.25%		9.25%
Preferred stock, liquidation preference (in dollars per share) | $ / shares							$ 25
Annual dividend rate per share (in dollars per share) | $ / shares							$ 2.3125
9.25% Series A Preferred Stock | Maximum | Change in control provision
Equity
Ratio for conversion							5.92417
7.875% Series B Preferred Stock
Equity
Preferred stock, shares authorized							3,000,000		3,000,000
Preferred stock, dividend rate (as a percent)							7.875%		7.875%
Preferred stock, liquidation preference (in dollars per share) | $ / shares							$ 25
Annual dividend rate per share (in dollars per share) | $ / shares							$ 1.96875
7.875% Series B Preferred Stock | Maximum | Change in control provision
Equity
Ratio for conversion							5.6497
7.125% Series C Preferred Stock
Equity
Preferred stock, shares authorized							3,400,000		3,400,000
Preferred stock, dividend rate (as a percent)							7.125%		7.125%
Preferred stock, liquidation preference (in dollars per share) | $ / shares							$ 25
Annual dividend rate per share (in dollars per share) | $ / shares							$ 1.78125
7.125% Series C Preferred Stock | Maximum | Change in control provision
Equity
Ratio for conversion							5.1440
Common Stock
Equity
Shares of common stock issued to redeem common units							172,429	198,292
Equity-based compensation (in shares)							309,971	319,590
Common Stock | Stock Options
Equity
Equity-based compensation (in shares)								4,253
Common Stock | Executive officers and employees
Equity
Restricted issued (in shares)		16,930	303,915
Common Stock | Directors
Equity
Stock issued (in shares)							30,440	32,317
Shares issued in lieu of cash for director fees							4,716	5,860
Grant of stock (in shares)							30,440	32,317
Common Stock | Executive officers and management
Equity
Restricted issued (in shares)					278,916
Restricted stock forfeited (in shares)						1,756
Common Stock | Sales Agreement, August 2015
Equity
Authorized amount | $	$ 125
Common Stock | Sales Agreement, August 2015 | Maximum
Equity
Sales agent commission (as a percent)	2.00%
Common Stock | Sales Agreement, Prior
Equity
Authorized amount | $										$ 75
Performance-Based | Restricted Stock Awards
Equity
Vested (in shares)							184,666
Performance-Based | Management | Restricted Stock Awards
Equity
Vested (in shares)				128,185
Forfeited (in shares)				46,030

EQUITY (Details 2)

EQUITY (Details 2) $ in Thousands	Jun. 30, 2014USD ($)	Sep. 30, 2015shares	Sep. 30, 2014USD ($)	Dec. 31, 2014shares	Mar. 31, 2014
Remaining non-controlling interest acquired			$ 8,232
Non-controlling Interest | Operating partnership
Number of shares of common stock issuable upon conversion of common units		1
Number of common units of operating partnership owned by unaffiliated third parties | shares		612,539		784,968
Percentage of limited partnership interest in operating partnership		1.00%		1.00%
Non-controlling Interest | Joint venture
Ownership interest in joint venture (as a percent)					81.00%
Ownership interest in joint venture by partners (as a percent)					19.00%
Remaining non-controlling interest acquired	$ 8,200

EQUITY-BASED COMPENSATION (Deta

EQUITY-BASED COMPENSATION (Details) - USD ($) $ in Millions	Oct. 28, 2015	Jun. 15, 2015	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2015
Stock Options
Equity-based compensation
Equity-based awards issued, stock options (in shares)
Stock Options | Minimum
Equity-based compensation
Term of award					5 years
Stock Options | Maximum
Equity-based compensation
Term of award					10 years
Amended Equity Plan, effective June 15, 2015
Equity-based compensation
Maximum number of shares authorized under the plan (in shares)		3,500,000
Amended Equity Plan, effective June 15, 2015 | Minimum
Equity-based compensation
Vesting period		3 years
Amended Equity Plan, effective June 15, 2015 | Stock Options
Equity-based compensation
Equity-based awards issued, stock options (in shares)				0
Amended Equity Plan, effective June 15, 2015 | Restricted Stock Awards
Equity-based compensation
Equity-based awards issued, other than stock options (in shares)				0
Performance-Based | Restricted Stock Awards
Equity-based compensation
Equity-based awards issued, other than stock options (in shares)					154,505
Vested (in shares)					184,666
Performance-Based | Amended Equity Plan, effective June 15, 2015 | Minimum
Equity-based compensation
Vesting period		1 year
Time-Based | Restricted Stock Awards
Equity-based compensation
Equity-based awards issued, other than stock options (in shares)					166,340
Vested (in shares)					97,445
Severance and release agreement | Executive Chairman of Board of Directors
Equity-based compensation
Additional stock-based compensation expense related to award modifications			$ 1.1
Severance and release agreement | Executive Chairman of Board of Directors | Stock Options
Equity-based compensation
Vested (in shares)			75,200
Stock issued, net on cashless exercise (in shares)	99,738
Severance and release agreement | Executive Chairman of Board of Directors | Performance-Based | Restricted Stock Awards
Equity-based compensation
Vested (in shares)			56,481
Severance and release agreement | Executive Chairman of Board of Directors | Time-Based | Restricted Stock Awards
Equity-based compensation
Vested (in shares)			46,673

EQUITY-BASED COMPENSATION (De51

EQUITY-BASED COMPENSATION (Details 2) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Number of Options
Outstanding at the beginning of period (in shares)	846,000
Granted (in shares)
Outstanding at the end of period (in shares)	846,000		846,000
Exercisable at the end of period (in shares)	752,000
Weighted Average Exercise Price
Outstanding at the beginning of period (in dollars per share)	$ 9.75
Granted (in dollars per share)
Exercised (in dollars per share)		$ 9.75
Outstanding at the end of period (in dollars per share)	$ 9.75		$ 9.75
Exercisable at the end of period (in dollars per share)	$ 9.75
Weighted Average Remaining Contractual Terms
Outstanding	3 years		6 years 2 months 12 days
Exercisable at the end of period	2 years 8 months 12 days
Aggregate Intrinsic Value (Current Value Less Exercise Price)
Outstanding	$ 1,624		$ 2,276
Exercisable at the end of period	$ 1,444

EQUITY-BASED COMPENSATION (De52

EQUITY-BASED COMPENSATION (Details 3) - Restricted Stock Awards - Time-Based - USD ($) $ / shares in Units, $ in Thousands	Apr. 24, 2015	Mar. 03, 2015	Sep. 30, 2015	Dec. 31, 2014
Number of Shares
Non-vested at the beginning of period (in shares)			181,116
Granted (in shares)			166,340
Vested (in shares)			(97,445)
Non-vested at the end of period (in shares)			250,011
Weighted Average Grant Date Fair Value
Non-vested at the beginning of period (in dollars per share)			$ 9.81
Granted (in dollars per share)			13.53
Vested (in dollars per share)			10.46
Non-vested at the end of period (in dollars per share)			$ 12.03
Aggregate Current Value
Non-vested outstanding			$ 2,918	$ 2,253
Executive officers and management
Equity-based compensation
Vesting period		3 years
Number of Shares
Granted (in shares)		149,410
Executive officers and management | Continued service on March 9, 2018, or upon a change in control
Number of Shares
Granted (in shares)		37,230
Executive officers and management | Period one
Equity-based compensation
Vesting percentage		25.00%
Executive officers and management | Period two
Equity-based compensation
Vesting percentage		25.00%
Executive officers and management | Period three
Equity-based compensation
Vesting percentage		50.00%
Executive officers
Equity-based compensation
Vesting period	3 years
Number of Shares
Granted (in shares)	16,930

EQUITY-BASED COMPENSATION (De53

EQUITY-BASED COMPENSATION (Details 4) - Restricted Stock Awards - Performance-Based $ / shares in Units, $ in Thousands	Mar. 03, 2015shares	Sep. 30, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)
Number of Shares
Non-vested at the beginning of period (in shares)		384,558
Granted (in shares)		154,505
Vested (in shares)		(184,666)
Forfeited (in shares)		(46,030)
Non-vested at the end of period (in shares)		308,367
Weighted Average Grant Date Fair Value
Non-vested at the beginning of period (in dollars per share) | $ / shares		$ 6.75
Granted (in dollars per share) | $ / shares		18.78
Vested (in dollars per share) | $ / shares		6.86
Forfeited (in dollars per share) | $ / shares		5.10
Non-vested at the end of period (in dollars per share) | $ / shares		$ 12.95
Aggregate Current Value
Non-vested outstanding | $		$ 3,599	$ 4,784
Executive officers
Number of Shares
Granted (in shares)	154,505
Executive officers | Minimum
Equity-based compensation
Shares earned (as a percent)	0.00%
Executive officers | Maximum
Equity-based compensation
Shares earned (as a percent)	200.00%

EQUITY-BASED COMPENSATION (De54

EQUITY-BASED COMPENSATION (Details 5) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Unrecognized compensation expense
Unrecognized compensation costs related to non-vested awards	$ 4,897		$ 4,897
Compensation expense to be recognized
2,015	766		766
2,016	2,196		2,196
2,017	1,823		1,823
2,018	112		112
Stock Options
Unrecognized compensation expense
Unrecognized compensation costs related to non-vested awards	136		136
Compensation expense to be recognized
2,015	82		82
2,016	54		54
Restricted Stock Awards | Time-Based
Unrecognized compensation expense
Unrecognized compensation costs related to non-vested awards	2,215		2,215
Compensation expense to be recognized
2,015	295		295
2,016	1,009		1,009
2,017	799		799
2,018	112		112
Restricted Stock Awards | Performance-Based
Unrecognized compensation expense
Unrecognized compensation costs related to non-vested awards	2,546		2,546
Compensation expense to be recognized
2,015	389		389
2,016	1,133		1,133
2,017	1,024		1,024
Corporate general and administrative
Equity-based compensation
Share based compensation expense	1,960	$ 1,075	3,968	$ 2,843
Corporate general and administrative | Stock Options
Equity-based compensation
Share based compensation expense	256	146	551	527
Corporate general and administrative | Restricted Stock Awards | Time-Based
Equity-based compensation
Share based compensation expense	820	233	1,396	727
Corporate general and administrative | Restricted Stock Awards | Performance-Based
Equity-based compensation
Share based compensation expense	864	548	1,568	1,202
Corporate general and administrative | Stock awards | Directors
Equity-based compensation
Share based compensation expense	$ 20	$ 148	$ 453	$ 387
Common Stock | Directors
Equity-based compensation
Shares issued in lieu of cash for director fees			4,716	5,860
Grant of stock (in shares)			30,440	32,317

LOSS ON IMPAIRMENT OF ASSETS (D

LOSS ON IMPAIRMENT OF ASSETS (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)aproperty	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)aproperty
Properties
Loss on impairment of assets	$ 1,115	$ 8,187	$ 1,115	$ 8,847
Hotel properties
Properties
Discontinued operations, loss on impairment of assets				400
Hotel properties and land parcels | San Antonio, Texas
Properties
Loss on impairment of assets		$ 8,200
Land | Spokane, WA
Properties
Loss on impairment of assets				$ 700
Land | San Antonio, Texas
Properties
Number of properties | property		3		3
Area of land parcel | a		5.64		5.64
Hampton Inn | Hotel properties | Ft. Smith, AR
Properties
Discontinued operations, loss on impairment of assets				$ 400
Land | San Antonio, TX, Ft. Myers, Fl, and Flagstaff, AZ
Properties
Impairment of assets	$ 1,100

DERIVATIVE FINANCIAL INSTRUME56

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING (Details) - Interest rate swaps $ in Thousands	Sep. 30, 2015USD ($)instrument	Dec. 31, 2014USD ($)instrument
Derivatives in a liability position
Termination value of derivative agreements in a liability position	$ 3,100
Designated as hedges
Number of Instruments
Asset | instrument		3
Liability | instrument	4	1
Total | instrument	4	4
Notional Amount
Assets		$ 28,002
Liability	$ 102,034	75,000
Total	102,034	103,002
Fair Value
Asset		66
Liability	(2,930)	(1,957)
Net liability	$ (2,930)	$ (1,891)

DERIVATIVE FINANCIAL INSTRUME57

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING (Details 2) - Interest rate swaps $ in Thousands	Oct. 15, 2015instrument	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Subsequent Event
Interest rate cash flow hedges
Number of derivative agreements for which an early settlement was executed | instrument	3
Cash flow hedges
Derivative instruments, gain (loss) recognized
Loss recognized in accumulated other comprehensive income on derivative financial instruments (effective portion)		$ (1,168)	$ 414	$ (2,314)	$ (1,192)
Income (loss) recognized in loss on derivative financial instruments (ineffective portion)			1	(1)
Cash flow hedges | Interest expense
Derivative instruments, gain (loss) recognized
Loss reclassified from accumulated other comprehensive income to interest expense (effective portion)		$ (426)	$ (441)	$ (1,276)	$ (1,303)

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
INCOME TAXES
Valuation allowance against net deferred tax assets					$ 2,400
Net deferred tax asset					$ 2,600
Income tax provision	$ 184	$ 427	$ 1,586	$ 834
Unrecognized tax benefits	$ 0		$ 0

FAIR VALUE MEASUREMENT (Details

FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2004
Transfers between Level 1 and Level 2
Asset transfers between Level 2 to Level 1	$ 0		$ 0
Asset transfers between Level 1 to Level 2	0		0
Liability transfers between Level 1 to Level 2	0		0
Liability transfers between Level 2 to Level 1	0		$ 0
Recurring basis
Assets:
Assets held for sale		$ 300
Recurring basis | Interest rate swaps
Assets:
Derivative		66
Liabilities:
Derivative	2,930	1,957
Recurring basis | Level 2
Assets:
Assets held for sale		300
Recurring basis | Level 2 | Interest rate swaps
Assets:
Derivative		66
Liabilities:
Derivative	$ 2,930	$ 1,957

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Discontinued operations
Income (loss) from discontinued operations	$ (59)	$ 278
Income (loss) from discontinued operations attributable to common stockholders	(58)	275
Hotel properties
Discontinued operations
Revenues	847	3,128
Hotel operating expenses	746	2,304
Depreciation and amortization	4	13
Loss on impairment of assets		400
Operating income	97	411
Other expense	(188)	(171)
Income (loss) before taxes	(91)	240
Income tax benefit	32	38
Income (loss) from discontinued operations	(59)	278
Income (loss) from discontinued operations attributable to non-controlling interest	(1)	3
Income (loss) from discontinued operations attributable to common stockholders	$ (58)	$ 275

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details)	Sep. 30, 2014shares
Stock Options
Anti-dilutive options excluded from computation of diluted earnings per share
Anti-dilutive options excluded from computation of diluted earnings per share (in shares)	846,000

EARNINGS PER SHARE (Details 2)

EARNINGS PER SHARE (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Income from continuing operations	$ 13,606	$ 3,766	$ 40,498	$ 15,914
Less: Preferred dividends	4,147	4,147	12,441	12,441
Allocation to participating securities	29	27	89	68
Attributable to non-controlling interest	66	(5)	220	43
Income (loss) from continuing operations attributable to common stockholders	9,364	(403)	27,748	3,362
Income (loss) from discontinued operations attributable to common stockholders		(58)		275
Net income (loss) attributable to common stockholders, net of amount allocated to participating securities	$ 9,364	$ (461)	$ 27,748	$ 3,637
Denominator:
Weighted average common shares outstanding - basic	85,995	85,303	85,844	85,192
Dilutive effect of equity-based compensation awards (in shares)	1,070		1,156	512
Weighted average common shares outstanding - diluted	87,065	85,303	87,000	85,704
Earnings per share:
Basic net income from continuing operations	$ 0.11	$ (0.01)	$ 0.32	$ 0.04
Basic and diluted net income (loss) (in dollars per share)	$ 0.11	$ (0.01)	$ 0.32	$ 0.04

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands	Oct. 30, 2015$ / shares	Oct. 20, 2015USD ($)room	Oct. 19, 2015USD ($)room	Oct. 01, 2015shares	Sep. 30, 2015USD ($)	Dec. 31, 2014
2015 acquisitions
Subsequent events
Aggregate purchase price | $					$ 154,751
Subsequent Event
Subsequent events
Cash dividends declared, common stock (in dollars per share)	$ 0.1175
Subsequent Event | Non-controlling Interest | Operating partnership | Common units
Subsequent events
Common units redeemed | shares				34,536
Subsequent Event | Hyatt House Airport | 2015 acquisitions | Miami, Florida
Subsequent events
Aggregate purchase price | $			$ 39,000
Number of guestrooms | room			156
Subsequent Event | Courtyard by Marriott | 2015 acquisitions | Atlanta Decatur Downtown
Subsequent events
Aggregate purchase price | $		$ 44,000
Number of guestrooms | room		179
9.25% Series A Preferred Stock
Subsequent events
Preferred stock, dividend rate (as a percent)					9.25%	9.25%
9.25% Series A Preferred Stock | Subsequent Event
Subsequent events
Cash dividends declared, preferred stock (in dollars per share)	0.578125
7.875% Series B Preferred Stock
Subsequent events
Preferred stock, dividend rate (as a percent)					7.875%	7.875%
7.875% Series B Preferred Stock | Subsequent Event
Subsequent events
Cash dividends declared, preferred stock (in dollars per share)	0.4921875
7.125% Series C Preferred Stock
Subsequent events
Preferred stock, dividend rate (as a percent)					7.125%	7.125%
7.125% Series C Preferred Stock | Subsequent Event
Subsequent events
Cash dividends declared, preferred stock (in dollars per share)	$ 0.4453125