Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | Summit Hotel Properties, Inc. | ||
Entity Central Index Key | 1,497,645 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,093,788,481 | ||
Entity Common Stock, Shares Outstanding | 86,794,013 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Investment in hotel properties, net | $ 1,333,407 | $ 1,339,415 |
Investment in hotel properties under development | 253 | |
Land held for development | 5,742 | 8,183 |
Assets held for sale | 133,138 | 300 |
Cash and cash equivalents | 29,326 | 38,581 |
Restricted cash | 23,073 | 34,395 |
Trade receivables | 9,437 | 7,681 |
Prepaid expenses and other | 15,281 | 6,181 |
Derivative financial instruments | 66 | |
Deferred charges, net | 9,188 | 9,641 |
Deferred tax asset, net | 112 | 176 |
Other assets | 22,250 | 14,152 |
Total assets | 1,580,954 | 1,459,024 |
Liabilities: | ||
Debt | 677,096 | 626,533 |
Accounts payable | 2,947 | 7,271 |
Accrued expenses and other | 42,174 | 38,062 |
Derivative financial instruments | 1,811 | 1,957 |
Total liabilities | $ 724,028 | $ 673,823 |
Commitments and contingencies (Note 9) | ||
Preferred stock, $.01 par value per share, 100,000,000 shares authorized: | ||
Common stock, $.01 par value per share, 500,000,000 shares authorized, 86,793,521 and 86,149,720 shares issued and outstanding at December 31, 2015 and 2014, respectively | $ 868 | $ 861 |
Additional paid-in capital | 894,060 | 888,191 |
Accumulated other comprehensive loss | (1,666) | (1,746) |
Accumulated deficit and distributions | (40,635) | (107,779) |
Total stockholders' equity | 852,711 | 779,611 |
Non-controlling interests in operating partnership | 4,215 | 5,590 |
Total equity | 856,926 | 785,201 |
Total liabilities and equity | 1,580,954 | 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 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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, shares issued | 86,793,521 | 86,149,720 |
Common stock, shares outstanding | 86,793,521 | 86,149,720 |
9.25% Series A Preferred Stock | ||
Preferred stock, shares authorized | 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) | $ 50,398 | $ 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) | $ 75,324 | $ 75,324 |
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) | $ 85,522 | $ 85,522 |
Preferred stock, dividend rate (as a percent) | 7.125% | 7.125% |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Room | $ 436,202 | $ 380,472 | $ 283,279 |
Other hotel operations revenue | 27,253 | 22,994 | 15,679 |
Total revenues | 463,455 | 403,466 | 298,958 |
Hotel operating expenses: | |||
Room | 109,844 | 101,150 | 80,391 |
Other direct | 64,010 | 55,388 | 39,815 |
Other indirect | 121,974 | 104,959 | 78,136 |
Total hotel operating expenses | 295,828 | 261,497 | 198,342 |
Depreciation and amortization | 64,052 | 63,763 | 49,330 |
Corporate general and administrative | 21,204 | 19,884 | 12,929 |
Hotel property acquisition costs | 1,246 | 769 | 1,886 |
Loss on impairment of assets | 1,115 | 8,847 | 1,369 |
Total expenses | 383,445 | 354,760 | 263,856 |
Operating income | 80,010 | 48,706 | 35,102 |
Other income (expense): | |||
Interest expense | (30,414) | (28,517) | (21,991) |
Gain on disposal of assets, net | 65,067 | 391 | 363 |
Other income (expense) | 11,146 | 595 | (1,955) |
Total other income (expense) | 45,799 | (27,531) | (23,583) |
Income from continuing operations before income taxes | 125,809 | 21,175 | 11,519 |
Income tax expense | (553) | (744) | (4,894) |
Income from continuing operations | 125,256 | 20,431 | 6,625 |
Income (loss) from discontinued operations | 492 | (728) | |
Net income | 125,256 | 20,923 | 5,897 |
Income (loss) attributable to non-controlling interests: | |||
Operating partnership | 819 | 51 | (297) |
Joint venture | 1 | 316 | |
Net income attributable to Summit Hotel Properties, Inc. | 124,437 | 20,871 | 5,878 |
Preferred dividends | (16,588) | (16,588) | (14,590) |
Net income (loss) attributable to common stockholders | $ 107,849 | $ 4,283 | $ (8,712) |
Earnings (loss) per share - Basic: | |||
Net income (loss) from continuing operations (in dollars per share) | $ 1.25 | $ 0.04 | $ (0.11) |
Net income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.01) | |
Net income (loss) (in dollars per share) | 1.25 | 0.05 | (0.12) |
Earnings (loss) per share - Diluted | |||
Net income (loss) from continuing operations (in dollars per share) | 1.24 | 0.04 | (0.11) |
Net income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.01) | |
Net income (loss) (in dollars per share) | $ 1.24 | $ 0.05 | $ (0.12) |
Weighted average common shares outstanding: | |||
Basic (in shares) | 85,920 | 85,242 | 70,327 |
Diluted (in shares) | 87,144 | 85,566 | 70,327 |
Dividends per share (in dollars per share) | $ 0.47 | $ 0.46 | $ 0.45 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 125,256 | $ 20,923 | $ 5,897 |
Other comprehensive income (loss), net of tax: | |||
Changes in fair value of derivative financial instruments | 81 | (371) | (881) |
Total other comprehensive income (loss) | 81 | (371) | (881) |
Comprehensive income | 125,337 | 20,552 | 5,016 |
Comprehensive income (loss) attributable to non-controlling interest: | |||
Comprehensive income attributable to Summit Hotel Properties, Inc. | 124,517 | 20,504 | 5,027 |
Preferred dividends | (16,588) | (16,588) | (14,590) |
Comprehensive income (loss) attributable to common stockholders | 107,929 | 3,916 | (9,563) |
Operating Partnership | |||
Comprehensive income (loss) attributable to non-controlling interest: | |||
Comprehensive income (loss) attributable to non-controlling interest | $ 820 | 47 | (327) |
Joint Venture | |||
Comprehensive income (loss) attributable to non-controlling interest: | |||
Comprehensive income (loss) attributable to non-controlling interest | $ 1 | $ 316 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Preferred StockPublic offering of preferred stock | Preferred Stock | Common StockUnderwritten public offering of common stock | Common Stock | Additional Paid-in CapitalUnderwritten public offering of common stock | Additional Paid-in CapitalPublic offering of preferred stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit and Distributions | Total Shareholders' EquityUnderwritten public offering of common stock | Total Shareholders' EquityPublic offering of preferred stock | Total Shareholders' Equity | Non-controlling InterestsOperating Partnership | Non-controlling InterestsJoint Venture | Underwritten public offering of common stock | Public offering of preferred stock | Total |
Balance at beginning of year at Dec. 31, 2012 | $ 50 | $ 462 | $ 468,820 | $ (528) | $ (31,985) | $ 436,819 | $ 36,718 | $ 473,537 | |||||||||
Balance (in shares) at Dec. 31, 2012 | 5,000,000 | 46,159,652 | |||||||||||||||
Changes in equity | |||||||||||||||||
Net proceeds from sale of stock | $ 34 | $ 345 | $ 299,727 | $ 81,689 | $ 300,072 | $ 81,723 | $ 300,072 | $ 81,723 | |||||||||
Sale of stock (in shares) | 3,400,000 | 34,500,000 | |||||||||||||||
Common stock redemption of common units | $ 44 | 30,574 | 30,618 | (30,618) | |||||||||||||
Common stock redemption of common units (in shares) | 4,414,950 | ||||||||||||||||
Contribution by non-controlling interests in joint venture | $ 7,500 | 7,500 | |||||||||||||||
Dividends paid | (46,470) | (46,470) | (1,124) | (47,594) | |||||||||||||
Equity-based compensation | $ 3 | 2,048 | 2,051 | 73 | 2,124 | ||||||||||||
Equity-based compensation (in shares) | 327,806 | ||||||||||||||||
Other comprehensive income (loss) | (851) | (851) | (30) | (881) | |||||||||||||
Net income (loss) | 5,878 | 5,878 | (297) | 316 | 5,897 | ||||||||||||
Balance at end 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 | $ 4 | 2,425 | 2,429 | (2,429) | |||||||||||||
Common stock redemption of common units (in shares) | 438,631 | ||||||||||||||||
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 | (56,073) | (56,073) | (477) | (56,550) | |||||||||||||
Equity-based compensation | $ 3 | 3,479 | 3,482 | 42 | 3,524 | ||||||||||||
Equity-based compensation (in shares) | 321,269 | ||||||||||||||||
Other | (156) | (156) | (156) | ||||||||||||||
Other (in shares) | (12,588) | ||||||||||||||||
Other comprehensive income (loss) | (367) | (367) | (4) | (371) | |||||||||||||
Net income (loss) | 20,871 | 20,871 | 51 | $ 1 | 20,923 | ||||||||||||
Balance at end 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 | |||||||||||||||||
Common stock redemption of common units | $ 3 | 1,919 | 1,922 | (1,922) | |||||||||||||
Common stock redemption of common units (in shares) | 268,947 | ||||||||||||||||
Dividends paid | (57,293) | (57,293) | (309) | (57,602) | |||||||||||||
Equity-based compensation | $ 4 | 4,713 | 4,717 | 36 | 4,753 | ||||||||||||
Equity-based compensation (in shares) | 411,239 | ||||||||||||||||
Other | (763) | (763) | (763) | ||||||||||||||
Other (in shares) | (36,385) | ||||||||||||||||
Other comprehensive income (loss) | 80 | 80 | 1 | 81 | |||||||||||||
Net income (loss) | 124,437 | 124,437 | 819 | 125,256 | |||||||||||||
Balance at end of year at Dec. 31, 2015 | $ 84 | $ 868 | $ 894,060 | $ (1,666) | $ (40,635) | $ 852,711 | $ 4,215 | $ 856,926 | |||||||||
Balance (in shares) at Dec. 31, 2015 | 8,400,000 | 86,793,521 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | |||
Net income | $ 125,256 | $ 20,923 | $ 5,897 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 64,052 | 63,776 | 51,289 |
Deferred finance cost amortization | 1,723 | 1,549 | 1,854 |
Loss on impairment of assets | 1,115 | 9,247 | 9,044 |
Equity-based compensation | 4,753 | 3,524 | 2,124 |
Deferred tax asset, net | 64 | (127) | 3,948 |
Gain on disposal of assets, net | (65,067) | (446) | (4,308) |
Other | 1,287 | 48 | 45 |
Changes in operating assets and liabilities: | |||
Restricted cash - operating | 18 | (631) | (1,309) |
Trade receivables, net | (1,727) | (419) | (1,753) |
Prepaid expenses and other | 28 | 3,618 | (3,654) |
Accounts payable and Accrued expenses and other | 714 | 1,077 | 9,259 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 132,216 | 102,139 | 72,436 |
INVESTING ACTIVITIES | |||
Acquisitions of hotel properties | (236,518) | (177,820) | (441,573) |
Acquisition of non-controlling interest in joint venture | (8,232) | ||
Investment in hotel properties under development | (75) | (253) | |
Acquisition of land held for development | (2,800) | ||
Improvements and additions to hotel properties | (43,197) | (42,432) | (53,222) |
Escrow deposits for acquisition | (10,046) | ||
Amounts drawn under note funding obligation | (2,634) | (7,366) | |
Purchases of office furniture and equipment | (398) | ||
Proceeds from asset dispositions, net of closing costs | 150,054 | 19,280 | 52,850 |
Restricted cash - FF&E reserve | 11,304 | 16,275 | (22,291) |
NET CASH USED IN INVESTING ACTIVITIES | (131,112) | (200,548) | (467,434) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of debt | 600,407 | 263,601 | 587,245 |
Principal payments on debt | (550,150) | (115,829) | (497,801) |
Financing fees on debt | (2,250) | (782) | (3,421) |
Proceeds from equity offerings, net of offering costs | 381,795 | ||
Proceeds from contribution by joint venture partner | 7,500 | ||
Dividends paid | (57,602) | (56,550) | (47,594) |
Other | (764) | (156) | |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (10,359) | 90,284 | 427,724 |
Net change in cash and cash equivalents | (9,255) | (8,125) | 32,726 |
CASH AND CASH EQUIVALENTS | |||
Beginning of period | 38,581 | 46,706 | 13,980 |
End of period | 29,326 | 38,581 | 46,706 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash payments for interest | 28,927 | 26,925 | 19,989 |
Capitalized interest | 75 | 253 | 400 |
Cash payments for income taxes, net of refunds | $ 2,436 | 926 | 681 |
Mortgage debt assumed for acquisitions of hotel properties | 43,172 | $ 33,532 | |
Fair value of common units issued for acquisition of hotel | $ 3,685 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 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 December 31, 2015, our portfolio consists of 87 Upscale and Upper-midscale hotels with a total of 11,420 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, all of our hotels are leased to subsidiaries (“TRS Lessees”) of our taxable REIT subsidiary (“TRS”). We indirectly own 100% of the outstanding equity interests in all of our TRS Lessees. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 –– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Consolidated Financial Statements of the Company consolidate the accounts of the Company and all entities that are controlled by ownership of a majority voting interest 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 Consolidated Financial Statements. We prepare our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“GAAP”), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenues and expenses in the reporting period. Actual results could differ from those estimates. 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 The Company allocates the purchase price of acquired hotel properties based on the fair value of the acquired land, land improvements, building, furniture, fixtures and equipment, identifiable intangible assets or liabilities, other assets and assumed liabilities. Intangible assets may include certain value associated with the on-going operations of the hotel business being acquired as part of the hotel property acquisition. Acquired intangible assets that derive their values from real property or an interest in real property, are inseparable from that real property or interest in real property, and do not produce or contribute to the production of income other than consideration for the use or occupancy of space, are recorded as a component of the related real estate asset in our Consolidated Financial Statements. Identifiable intangible assets or liabilities may also arise from assumed contractual arrangements as part of the acquisition of the hotel property, including terms that are above or below market compared to an estimated fair market value of the agreement at the acquisition date. We 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 6 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 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. Intangible Assets We amortize intangible assets with determined finite useful lives using the straight-line method. We do not amortize intangible assets with indefinite useful lives, but we evaluate these assets for impairment annually or at interim periods if events or circumstances indicate that the asset may be impaired. 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 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 (“1031 Exchange”). For reverse transactions under a 1031 Exchange in which we purchase a new property prior to selling the property to be matched in the like-kind exchange (we refer to a new property being acquired by us in the 1031 Exchange prior to the sale of the related property as 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 Exchanges. As such, the Parked Assets are included in our Consolidated Balance Sheets and Consolidated Statements of Operations as VIE’s until legal title is transferred to us upon completion of the 1031 Exchanges. 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 for property taxes, insurance, and certain capital expenditures. Funds may be disbursed from the account upon proof of expenditures and approval from the lenders. 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 guest 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 regularly review the collectability of our trade receivables. A provision for losses is determined on the basis of previous loss experience and current economic conditions. Our allowance for doubtful accounts was $0.1 million at December 31, 2015 and 2014. Bad debt expense was $0.3 million, $0.4 million and $0.6 million for 2015, 2014 and 2013, respectively. 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 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 Consolidated Statements of Operations. Our Consolidated Financial Statements include non-controlling interests related to i) common units of limited partnership interests (“Common Units”) in the Operating Partnership held by unaffiliated third parties, and ii) prior to the second quarter of 2014, a 19% interest in a consolidated joint venture held by our joint venture partner, which we acquired from our joint venture partner in the second quarter of 2014. Revenue Recognition We recognize revenue when guestrooms are occupied and services have been rendered. Revenues are recorded net of any sales and other taxes collected from customers. All rebates or discounts are recorded as a reduction to revenue. Cash received prior to guest arrival is recorded as an advance from the customer and is recognized at the time of occupancy. Sales and Other Taxes We have operations in states and municipalities that impose sales and/or other taxes on certain sales. We collect these taxes from our customers 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 which was amended and restated effective June 15, 2015 (the “Equity Plan”), provides 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 the stock options granted upon completion of our IPO at fair value using the Black-Scholes option-pricing model and we account for all other awards of equity, including time-based and performance-based stock awards, using the grant date fair value of those equity awards. Restricted stock awards with performance-based vesting conditions are market-based awards tied to total stockholder return and are valued using a Monte Carlo simulation model in accordance with ASC Topic 718 “Compensation — Stock Compensation” (formerly SFAS 123R). We expense the fair value of awards under the Equity Plan ratably over the vesting period and market-based awards are not adjusted for performance. 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 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 Consolidated Balance Sheets and reclassified to interest expense in our 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 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 data, 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 and other. With the exception of our fixed-rate debt (See “Note 5 — 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 now include only disposals that represent a strategic shift in operations with a major effect on operations and financial results. ASU 2014-08 is to be applied on a prospective basis and had a required adoption date of January 1, 2015; however, we elected early adoption in the first quarter of 2014, which is permitted for disposals and classifications of assets as “held for sale,” provided such assets had not been reported previously in discontinued operations. On May 28, 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2018 and early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our Consolidated Financial Statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our Consolidated Financial Statements. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. This standard becomes effective for the Company on January 1, 2017. 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 adoption of this accounting standard 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 on 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 our fiscal year beginning 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 adoption of this accounting standard will have a material effect on our consolidated financial position or our consolidated results of operations. In September 2015, the FASB issued ASU No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which illustrates certain guidance governing adjustments to the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. Such adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement amounts initially recognized or would have resulted in the recognition of additional assets and liabilities. ASU No. 2015-16 eliminates the requirement to retrospectively account for such adjustments. ASU No. 2015-16 is effective for our fiscal year commencing on January 1, 2016. We do not anticipate that the adoption of ASU No. 2015-16 will have a material effect on our consolidated financial position or our consolidated results of operations. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires that deferred tax liabilities and assets be classified on our Consolidated Balance Sheets as noncurrent based on an analysis of each taxpaying component within a jurisdiction. ASU No. 2015-17 is effective for our fiscal year commencing on January 1, 2017. We do not anticipate that the adoption of ASU No. 2015-17 will have a material effect on our consolidated financial position or our consolidated results of operations. |
INVESTMENT IN HOTEL PROPERTIES
INVESTMENT IN HOTEL PROPERTIES | 12 Months Ended |
Dec. 31, 2015 | |
INVESTMENT IN HOTEL PROPERTIES | |
INVESTMENT IN HOTEL PROPERTIES | NOTE 3 –– INVESTMENT IN HOTEL PROPERTIES Investment in Hotel Properties, net Investment in hotel properties, net at December 31, 2015 and 2014 are as follows (in thousands): 2015 2014 Land $ $ Hotel buildings and improvements Construction in progress Furniture, fixtures and equipment Less accumulated depreciation $ $ Depreciation expense was $63.7 million, $63.3 million, and $48.9 million for 2015, 2014 and 2013, respectively. Assets Held for Sale Assets held for sale at December 31, 2015 and 2014 include (in thousands): 2015 2014 Land $ $ Hotel building and improvements — Furniture, fixtures and equipment — Construction in progress — Franchise fees — $ $ On June 2, 2015, the Operating Partnership and certain affiliated entities entered into two separate agreements (collectively, the “ARCH Agreement”), as amended on July 15, 2015, to sell a portfolio of 26 hotels containing an aggregate of 2,793 guestrooms to affiliates of American Realty Capital Hospitality Trust, Inc. (“ARCH”) for an aggregate cash purchase price of approximately $347.4 million (the “ARCH Sale”). The hotels were to be sold in three separate closings. As a result, the 26 hotels to be sold were reclassified as Assets Held for Sale upon execution of the ARCH Agreement. The first closing of 10 hotels consisting of 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 $66.6 million that was recorded in the fourth quarter of 2015. The remaining 16 hotel properties are recorded as Assets Held for Sale at December 31, 2015 as follows: Hotel Location Guestrooms Fairfield Inn & Suites Denver, CO (1) Fairfield Inn & Suites Bellevue, WA (1) SpringHill Suites Denver, CO (1) Hilton Garden Inn Fort Collins, CO (1) Fairfield Inn & Suites Spokane, WA (1) Hampton Inn Fort Collins, CO (1) Aloft Jacksonville, FL (2) Holiday Inn Express Vernon Hills, IL (2) Courtyard Jackson, MS (2) Residence Inn Jackson, MS (2) Courtyard Germantown, TN (2) Staybridge Suites Ridgeland, MS (2) Homewood Suites Ridgeland, MS (2) Courtyard El Paso, TX (2) Fairfield Inn & Suites Germantown, TN (2) Residence Inn Germantown, TN (2) (1) These hotel properties were sold on February 11, 2016. See “Note 17 – Subsequent Events” to these Consolidated Financial Statements. (2) These hotel properties are currently under contract to be sold. See “Note 17 – Subsequent Events” to these Consolidated Financial Statements. 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 Balance Sheet and Consolidated Statements 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 16 hotels noted above, assets held for sale at December 31, 2015 includes 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. Hotel Property Acquisitions Hotel property acquisitions in 2015 and 2014 were as follows (in thousands): Date Acquired Franchise/Brand Location Purchase Price Debt Assumed 2015: April 13 Hampton Inn & Suites Minneapolis, MN $ $ — June 18 Hampton Inn Boston (Norwood), MA — June 30 Hotel Indigo Asheville, NC — July 24 Residence Inn Branchburg, NJ — July 24 Residence Inn Baltimore (Hunt Valley), MD — October 19 Hyatt House Miami, FL — October 20 Courtyard by Marriott Atlanta (Decatur), GA (1) — Total 2015 $ $ — 2014: January 9 Hilton Garden Inn Houston, TX $ $ January 10 Hampton Inn Santa Barbara (Goleta), CA (2) January 24 Four Points by Sheraton San Francisco, CA — March 14 DoubleTree by Hilton San Francisco, CA August 15 Hilton Garden Inn Houston (Energy Corridor), TX — September 9 Hampton Inn & Suites Austin, TX — Total 2014 $ $ (1) This hotel was a Parked Asset at December 31, 2015 pending the completion of a reverse 1031 Exchange related to the sale of certain properties to ARCH. See “Note 2 — Summary of Significant Accounting Policies — Variable Interest Entities” and “Note 4 — Supplemental Balance Sheet Information” to these Consolidated Financial Statements. As such, the legal title to this Parked Asset was held by a Qualified Intermediary engaged to execute the 1031 Exchange until the ARCH Sale was consummated on February 11, 2016 and the 1031 Exchange was completed. We retained essentially all of the legal and economic benefits and obligations related to the Parked Asset. As such, the Parked Asset was included in our Consolidated Balance Sheet at December 31, 2015 and Consolidated Statement of Operations for the year then ended as a VIE until legal title was transferred to us upon completion of the 1031 Exchange. (2) The purchase price for this hotel included the issuance by the Operating Partnership of 412,174 Common Units valued at the time of issuance at $3.7 million. As of December 31, 2015, 141,140 of the Common Units issued had been tendered for redemption and were redeemed for an equivalent number of shares of our common stock. The allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired for the above acquisitions is as follows (in thousands): 2015 2014 Land $ $ Hotel buildings and improvements Furniture, fixtures and equipment Other assets Total assets acquired Less debt assumed — ) Less lease liability assumed ) ) Less other liabilities ) ) Net assets acquired $ $ Total revenues and net income for hotel properties acquired in 2015 and 2014, which are included in our Consolidated Statements of Operations for the years ended December 31, 2015 and 2014, are as follows (in thousands): 2015 Acquisitions 2014 Acquisitions 2015 2015 2014 Revenues $ $ $ Net income $ $ $ The results of operations of acquired hotel properties are included in the 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 and all dispositions had occurred prior to that date. Additionally, the unaudited condensed pro forma information excludes the operating results from 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 and dispositions taken place on or before 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 2015 and 2014 is as follows (in thousands, except per share): 2015 2014 (unaudited) Revenues $ $ Net income (1) $ $ Net income attributable to common stockholders, net of amount allocated to participating securities (1) $ $ Net income per share attributable to common stockholders (1): Basic $ $ Diluted $ $ (1) The pro forma amounts exclude the $66.6 million gain on the sale of hotel properties during the year ended December 31, 2015. |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | NOTE 4 — SUPPLEMENTAL BALANCE SHEET INFORMATION Restricted Cash Restricted cash at December 31, 2015 and 2014 includes (in thousands): 2015 2014 Property taxes $ $ Insurance FF&E reserves Other funds in escrow $ $ Prepaid Expenses and Other Prepaid expenses and other at December 31, 2015 and 2014 include (in thousands): 2015 2014 Earnest money and funds in escrow $ $ Prepaid insurance Other $ $ Deferred Charges Deferred charges at December 31, 2015 and 2014 include (in thousands): 2015 2014 Initial franchise fees $ $ Deferred financing costs Less accumulated amortization Total $ $ Amortization expense for for the years ended December 31, 2015, 2014, and 2013 was (in thousands): 2015 2014 2013 Initial franchise fees $ $ $ Deferred financing costs $ $ $ Future amortization expense is expected to be (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter $ Other Assets Other assets at December 31, 2015 and 2014 include (in thousands): 2015 2014 Prepaid land lease $ $ Notes receivable Acquired intangible assets — $ $ At December 31, 2015 and 2014, the notes receivable balance detailed above includes amounts drawn under a note funding obligation carrying an interest rate of 10.0% per annum paid monthly, an initial maturity date of May 31, 2017 and an option to extend the maturity date until May 13, 2018. Of the total $10.0 million note funding obligation, $10.0 million and $7.4 million had been advanced at December 31, 2015 and 2014, respectively. At December 31, 2015, we have notes receivable totaling $2.7 million included in Other Assets on our 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 and proceedings concerning the other property are ongoing. 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. At December 31, 2015, intangible assets consisted of assumed contractual arrangements including terms that were above market compared to an estimated fair market value of the agreement at the acquisition date. These assets are being amortized using the straight-line method over a weighted average amortization period of 30.9 years. Amortization expense is expected to be $0.2 million for each of the next five years. Accrued Expenses and Other Accrued expenses and other at December 31, 2015 and 2014 include the following (in thousands): 2015 2014 Accrued sales, property and income taxes $ $ Accrued salaries and benefits Accrued interest Acquired unfavorable leases Accrued expenses at hotels and other $ $ |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2015 | |
DEBT | |
DEBT | NOTE 5 –– DEBT At December 31, 2015, our indebtedness is comprised of borrowings under a $300.0 million senior unsecured credit facility, the 2015 Term Loan (as defined below), and indebtedness secured by first priority mortgage liens on various hotel properties. At December 31, 2015 and 2014 our outstanding indebtedness included (in thousands): Amortization Number of Properties Outstanding Principal Balance Note Period Encumbered at December 31, Lender Reference Interest Rate (a) (Years) Maturity Date December 31, 2015 2015 2014 Senior Unsecured Credit Facility Deutsche Bank AG New York Branch (b) $225 Million Revolver 2.33% Variable n/a October 10, 2017 n/a $ $ $75 Million Term Loan 3.94% Fixed n/a October 10, 2018 n/a Total Senior Unsecured Credit Facility Unsecured Term Loan KeyBank National Association Term Loan (c) 2.38% Variable n/a April 7, 2022 n/a — Voya (formerly known as ING Life Insurance and Annuity) (d) 6.10% Fixed 20 March 1, 2019 n/a — (d) 4.55% Fixed 25 March 1, 2019 n/a — (d) 5.18% Fixed 20 March 1, 2019 2 — (d) 5.18% Fixed 20 March 1, 2019 4 — (d) 5.18% Fixed 20 March 1, 2019 3 — (d) 5.18% Fixed 20 March 1, 2019 1 — KeyBank National Association (e) 4.46% Fixed 30 February 1. 2023 4 (f) 4.52% Fixed 30 April 1, 2023 3 (g) 4.30% Fixed 30 April 1, 2023 3 (h) 4.95% Fixed 30 August 1, 2023 2 Bank of America Commercial Mortgage (i) 6.41% Fixed 25 September 1, 2017 1 Merrill Lynch Mortgage Lending Inc. (j) 6.38% Fixed 30 August 1, 2016 1 GE Capital Financial Inc. (k) 5.39% Fixed 25 April 1, 2020 1 (k) 5.39% Fixed 25 April 1, 2020 1 MetaBank (l) 4.25% Fixed 20 August 1, 2018 1 Bank of Cascades (m) 2.43% Variable 25 December 19, 2024 1 (m) 4.30% Fixed 25 December 19, 2024 — Goldman Sachs (n) 5.67% Fixed 25 July 6, 2016 2 Compass Bank (o) 4.57% Fixed 20 May 17, 2018 — — (p) 2.83% Variable 25 May 6, 2020 3 General Electric Capital Corporation (q) 5.39% Fixed 25 April 1, 2020 1 (q) 5.39% Fixed 25 April 1, 2020 1 (r) 4.11% Variable 20 April 1, 2018 1 (r) 5.03% Fixed 25 March 1, 2019 — — AIG (s) 6.11% Fixed 20 January 1, 2016 — — Greenwich Capital Financial Products, Inc. (t) 6.20% Fixed 30 January 6, 2016 — — Wells Fargo Bank, National Association (u) 5.53% Fixed 25 October 1, 2015 — — (v) 5.57% Fixed 25 January 1, 2016 — — U.S. Bank, NA (w) 6.22% Fixed 30 November 1, 2016 1 (x) 6.13% Fixed 25 November 11, 2021 1 (y) 5.98% Fixed 30 March 8, 2016 — — Total Mortgage Loans 38 Total Debt 38 $ $ Notes: (a) Interest rates at December 31, 2015 give effect to our use of interest rate swaps, where applicable. (b) On October 10, 2013, we replaced our $150.0 million senior secured revolving credit facility with a $300.0 million senior unsecured credit facility. The 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”), and 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. The senior unsecured credit facility requires that no less than 20 of our hotel properties remain unencumbered, as defined in the credit facility documentation, and also requires compliance with covenants customary among our industry peers. The $225 Million Revolver matures on October 10, 2017 and can be extended to October 10, 2018 at our option, subject to certain conditions. The $75 Million Term Loan matures on October 10, 2018. We pay interest on advances at varying rates, based upon, at our option, either (i) 1, 2, 3, or 6-month LIBOR, plus a LIBOR margin between 1.75% and 2.50%, depending upon our leverage ratio (as defined in the credit facility documentation), or (ii) the applicable base rate, which is the greatest of the administrative agent’s prime rate, the federal funds rate plus 0.50%, or 1-month LIBOR plus 1.00%, plus a base rate margin between 0.75% and 1.50%, depending upon our leverage ratio. Unused Fees are payable quarterly and are assessed at 0.30% per annum if the unused portion of the credit facility is equal to or greater than 50%, or 0.20% per annum if the unused portion of the credit facility is less than 50%. On December 27, 2013, we fully drew the $75 Million Term Loan. On September 5, 2013, we entered into an interest rate derivative with a notional value of $75.0 million that became effective on January 2, 2014 and matures on October 1, 2018. This interest rate derivative was designated a cash flow hedge and effectively fixes LIBOR at 2.04%. The interest rate on the $75 Million Term Loan was 3.94% at January 2, 2014. At December 31, 2015, 47 of our unencumbered hotel properties were included in the borrowing base for the senior unsecured credit facility, and are required to remain unencumbered. As a result, the maximum amount of borrowing permitted under the senior unsecured credit facility was $300.0 million, of which, we had $170.0 million borrowed and $130.0 million available to borrow. (c) 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. (d) The First Closing of the ARCH Sale included 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 were a part of the ARCH Sale, we modified the term loans to substitute certain existing collateral with properties that were 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 ten hotel properties encumbered by the Voya mortgage loans are cross-collateralized, and the four mortgage loans are cross-defaulted. (e) On January 25, 2013, we closed on a $29.4 million loan with a fixed rate of 4.46% and a maturity of February 1, 2023. This loan is secured by four of the Hyatt Place hotels we acquired in October 2012. These hotels are located in Chicago (Lombard), IL; Denver (Lone Tree), CO; Denver (Englewood), CO; and Dallas (Arlington), TX. This loan is subject to defeasance if prepaid. (f) On March 7, 2013, we closed on a $22.7 million loan with a fixed rate of 4.52% and a maturity of April 1, 2023. This loan is secured by three of the Hyatt hotels we acquired in October 2012. These hotels include a Hyatt House in Denver (Englewood), CO and Hyatt Place hotels in Baltimore (Owings Mills), MD and Scottsdale, AZ. This loan is subject to defeasance if prepaid. (g) On March 8, 2013, we closed on a $22.0 million loan with a fixed rate of 4.30% and a maturity of April 1, 2023. This loan is secured by the three Hyatt Place hotels we acquired in January 2013. These hotels are located in Chicago (Hoffman Estates), IL; Orlando (Convention), FL; and Orlando (Universal), FL. This loan is subject to defeasance if prepaid. (h) On July 22, 2013, we closed on a $38.7 million loan with a fixed rate of 4.95% and a maturity of August 1, 2023. This loan is secured by two Marriott hotels we acquired in May 2013. These hotels include a Fairfield Inn & Suites and SpringHill Suites in Louisville, KY. This loan is subject to defeasance if prepaid. (i) On May 16, 2012, we assumed a loan in our acquisition of the Hilton Garden Inn in Smyrna, TN. This loan is subject to defeasance if prepaid. (j) On June 21, 2012, we assumed a loan in our acquisition of the Hampton Inn & Suites in Smyrna, TN. This loan is subject to defeasance if prepaid. (k) On March 28, 2014, we amended the loans with GE Capital Financial, which are cross-collateralized by the Courtyard by Marriott and the SpringHill Suites by Marriott, both located in Scottsdale, AZ. The loans were amended to bear interest at a fixed rate of 5.39% and the maturity dates were extended to April 1, 2020. (l) On July 26, 2013, we closed on a $7.4 million loan with a fixed rate of 4.25% and a maturity of August 1, 2018. This loan is secured by the Hyatt Place in Atlanta, GA. This loan has a prepayment penalty of: (i) 3% until July 26, 2015, (ii) 2% until July 26, 2017, and (iii) 1% until February 1, 2018. (m) On December 19, 2014, we refinanced our loan with Bank of the Cascades and increased the amount financed by $7.9 million. As part of the refinance the loan was split into two notes. Note A carries a variable interest rate of 30-day LIBOR plus 200 basis points and Note B carries a fixed interest rate of 4.30%. Both notes have amortization periods of 25 years and maturity dates of December 19, 2024. The Bank of Cascades mortgage loans are cross-collateralized and cross-defaulted. (n) This loan is secured by the SpringHill Suites by Marriott and the Hampton Inn & Suites in Bloomington, MN. This loan is subject to defeasance if prepaid. (o) This loan was secured by the Courtyard by Marriott in Flagstaff, AZ and had a variable interest rate of 30-day LIBOR plus 350 basis points (3.67% at December 31, 2014). On October 11, 2012, we entered into an interest rate derivative that effectively converted 85% of this loan to a fixed rate. This loan was repaid and the interest rate swap was settled in 2015. There were no prepayment penalties incurred in this transaction. (p) On May 6, 2014, we closed on a $25.0 million loan with Compass Bank. The loan carries a variable rate of 30-day LIBOR plus 240 basis points, amortizes over 25 years, and has a May 6, 2020 maturity date. The loan is secured by first mortgage liens on the Hampton Inn & Suites hotels located in San Diego (Poway), CA, Ventura (Camarillo), CA and Fort Worth, TX. (q) On March 28, 2014, we amended two loans with General Electric Capital Corp., which are cross - collateralized by the Hilton Garden Inn (Lakeshore) and the Hilton Garden Inn (Liberty Park), both located in Birmingham, AL. Both loans were amended to bear interest at a fixed rate of 5.39% and the maturity dates were extended to April 1, 2020. (r) These loans are secured by the SpringHill Suites by Marriott in Denver, CO and the Double Tree in Baton Rouge, LA. These loans have a variable interest rate of 90-day LIBOR plus 350 basis points. On May 4, 2012, we entered into interest rate derivatives that effectively converted these loans to a fixed rate. These loans are cross-defaulted and cross-collateralized. In anticipation of the ARCH Sale these interest rate swaps were settled in 2015. Further, the loan secured by the Double Tree in Baton Rouge, LA was repaid in 2015. There were no prepayment penalties incurred in this transaction. (s) On December 20, 2012, we assumed a loan in our acquisition of the Residence Inn by Marriott in Salt Lake City, UT. This loan was repaid in 2015. There were no prepayment penalties incurred in this transaction. (t) On February 11, 2013, we assumed a loan in our acquisition (through a joint venture) of the Holiday Inn Express & Suites in San Francisco, CA. This loan had an interest rate of 6.20% and a maturity date of January 6, 2016. This loan was repaid in 2015. There were no prepayment penalties incurred in this transaction. (u) On May 21, 2013, we assumed a loan in our acquisition of the Holiday Inn Express & Suites in Minneapolis (Minnetonka), MN. This loan had an interest rate of 5.53% and a maturity date of October 1, 2015. This loan was repaid in 2015. There were no prepayment penalties incurred in this transaction. (v) On May 21, 2013, we assumed a loan in our acquisition of the Hilton Garden Inn in Minneapolis (Eden Prairie), MN. This loan had an interest rate of 5.57% and a maturity date of January 1, 2016. This loan was repaid in 2015. There were no prepayment penalties incurred in this transaction. (w) On January 9, 2014, as part of our acquisition of the 182-guestroom Hilton Garden Inn in Houston, TX, we assumed a $17.8 million mortgage loan with a fixed interest rate of 6.22%, an amortization period of 30 years, and a maturity date of November 1, 2016. (x) On January 10, 2014, as part of our acquisition of the 98-guestroom Hampton Inn in Santa Barbara (Goleta), CA, we assumed a $12.0 million mortgage loan with a fixed interest rate of 6.133%, an amortization period of 25 years, and a maturity date of November 11, 2021. (y) On March 14, 2014, as part of our acquisition of the 210-guestroom DoubleTree by Hilton in San Francisco, CA, we assumed a $13.3 million mortgage loan with a fixed interest rate of 5.98%, an amortization period of 30 years, and a maturity date of March 8, 2016. This loan was repaid in 2015. There were no prepayment penalties incurred in this transaction. Our total fixed-rate and variable-rate debt at December 31, 2015 and 2014, after giving effect to our interest rate derivatives, is as follows (in thousands): 2015 2014 Fixed-rate debt $ $ Variable-rate debt $ $ Principal payments for each of the next five years are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter $ The weighted average interest rate for all borrowings was 3.90% and 4.35% at December 31, 2015 and 2014, respectively. Information about the fair value of our fixed-rate debt that is not recorded at fair value is as follows (in thousands): 2015 2014 Carrying Value Fair Value Carrying Value Fair Value Valuation Technique Fixed-rate debt $ $ $ $ Level 2 - Market approach At December 31, 2015 and 2014, we had $75.0 million and $102.6 million, respectively, of debt with variable interest rates that had been converted to fixed interest rates through derivative financial instruments which are carried 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 6 –– Derivative Financial Instruments and Hedging.” |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING | 12 Months Ended |
Dec. 31, 2015 | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING | NOTE 6 — DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING We are exposed to interest rate risk through our variable-rate debt. We manage this risk primarily by managing the amount, sources, and duration of our debt funding and through the use of derivative financial instruments. Specifically, we enter into derivative financial instruments to manage our exposure to known or expected cash payments related to our variable-rate debt. The maximum length of time over which we have hedged our exposure to variable interest rates with our existing derivative financial instruments is approximately six years. Our objectives in using derivative financial instruments are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish these objectives, we primarily use interest rate swaps as part of our interest rate risk management strategy. Our interest rate swaps designated as cash flow hedges involve the receipt of variable-rate payments from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Our agreements with our derivative counterparties contain a provision where if we default, or are capable of being declared in default, on any of our indebtedness, then we could also be declared in default on our derivative financial instruments. During October 2015, we repaid in full mortgage loans secured by two of the 10 hotel properties sold to ARCH on October 15, 2015 and executed the early settlement of three interest rate swaps for a nominal amount. Information about our derivative financial instruments at December 31, 2015 and 2014 follows (dollar amounts in thousands): December 31, 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 December 31, 2015 our remaining interest rate swap was 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 December 31, 2015, we could have been required to settle our obligation under the agreement that was in a liability position at its termination value of $1.9 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). 2015 2014 2013 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) $ ) $ ) $ ) Gain (loss) recognized in gain (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. In 2016, we estimate that an additional $1.0 million will be reclassified from other comprehensive income as an increase to interest expense. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
EQUITY | |
EQUITY | NOTE 7 — 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 year ended December 31, 2015, we issued 268,947 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 under our Equity Plan 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 to management under our Equity Plan 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 year ended December 31, 2015, we issued 6,246 shares of common stock for director fees, an annual grant of 30,440 shares of common stock to our outside directors , and 99,738 shares of common stock upon the cashless exercise of outstanding stock options with an exercise price of $9.75 per share. Upon vesting of outstanding restricted stock, 36,385 shares were withheld to cover employee tax obligations. During the year ended December 31, 2014, we issued 438,631 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 common stock to our executive officers and employees pursuant to our Equity Plan. Of the total shares issued on May 28, 2014, 1,756 were forfeited during 2014. During the year ended December 31, 2014, we issued 32,317 shares of common stock to our directors pursuant to our Equity Plan, 7,539 shares of common stock pursuant to our Equity Plan to one of our independent directors in lieu of cash for director fees, and 4,253 shares of common stock pursuant to our Equity Plan upon the cashless exercise of outstanding stock options with an exercise price of $9.75 per share. Upon vesting of outstanding restricted stock, 12,588 shares were withheld to cover employee tax obligations. At December 31, 2015 and 2014, the Company had reserved 14,691,018 and 9,669,896 shares of common stock, respectively, for the issuance of common stock (i) upon the exercise of stock options, issuance of time-based restricted stock awards, issuance of performance-based restricted stock awards, grants of director stock awards, or other awards issued pursuant to our Equity Plan, (ii) upon redemption of Common Units, or (iii) under the ATM offering. 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 December 31, 2015 and 2014, unaffiliated third parties owned 516,021 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 Consolidated Balance Sheets. The portion of net income (loss) allocated to these Common Units is reported on the Company’s 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 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 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 Consolidated Financial Statements. As such, all of the net assets and operating results of the Leasehold Venture are included in our Consolidated Financial Statements for the periods presented. We will have the option to purchase the remaining interest in the Leasehold Venture in 2016. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE | |
FAIR VALUE | NOTE 8 — FAIR VALUE The following table presents information about our financial instruments measured at fair value on a recurring basis as of December 31, 2015 and 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 December 31, 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: Interest rate swaps $ — $ $ — $ Liabilities: Interest rate swaps $ — $ $ — $ There were no transfers between Level 1 and Level 2 of the fair value hierarchy during 2015 or 2014. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 — COMMITMENTS AND CONTINGENCIES Ground Leases We lease land for one hotel property in Duluth, GA under the terms of an operating ground lease agreement expiring April 1, 2069. We also have two prepaid land leases for two hotel properties in Portland, OR which expire in June of 2084 and have a remaining prepaid balance of $3.3 million and $3.4 million at December 31, 2015 and 2014, respectively. We have one option to extend these leases for an additional 14 years. We lease land for one hotel property in Houston (Galleria Area), TX under the terms of an operating ground lease agreement with an initial termination date of April 20, 2053 with one option to extend for an additional 10 years. We lease land for one hotel property in Austin, TX with an initial lease termination date of May 31, 2050. We lease land for one hotel property in Baltimore (Hunt Valley), MD with a lease termination date of December 31, 2019 and twelve remaining options to extend for five additional years per extension. Total rent expense for these leases for 2015, 2014 and 2013 was $1.2 million, $1.1 million, and $0.5 million, respectively. Future minimum rental payments for noncancelable operating leases with a remaining term in excess of one year are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter $ In addition, we lease land for one hotel property in Garden City, NY under a PILOT (payment in lieu of taxes) lease. We pay a reduced amount of property tax each year of the lease as rent. The lease expires on December 31, 2019. Upon expiration of the lease, we expect to exercise our right to acquire a fee simple interest in the hotel for nominal consideration. Franchise Agreements All of our hotel properties operate under franchise agreements with major hotel franchisors. The terms of our franchise agreements generally range from 10 to 20 years with various extension provisions. Each franchisor receives franchise fees ranging from 2% to 6% of each hotel property’s gross revenue, and some agreements require that we pay marketing fees of up to 4% of gross revenue. In addition, some of these franchise agreements require that we deposit a percentage of the hotel property’s gross revenue, generally not more than 5%, into a reserve fund for capital expenditures. In 2015, 2014, and 2013, we expensed fees related to our franchise agreements of $37.8 million, $33.6 million, and $27.7 million, respectively. Management Agreements Our hotel properties operate pursuant to management agreements with various third-party management companies. The terms of our management agreements range from three to twenty-five years with various extension provisions. Each management company receives a base management fee, generally a percentage of total hotel property revenues. In some cases there are also monthly fees for certain services, such as accounting, based on number of guestrooms. Generally there are also incentive fees based on attaining certain financial thresholds. In 2015, 2014, and 2013, we expensed fees related to our hotel management agreements of $18.6 million, $16.1 million, and $13.5 million, respectively. Litigation We are involved from time to time in litigation arising in the ordinary course of business; however, we are not currently aware of any actions against us that we believe would have a material effect on our financial condition or results of operations. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
EQUITY-BASED COMPENSATION | |
EQUITY-BASED COMPENSATION | NOTE 10 — EQUITY-BASED COMPENSATION Our currently outstanding equity-based awards were issued under our Equity Plan, which was amended and restated on June 15, 2015 and provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, and other equity-based awards or incentive awards. 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. Stock Options Granted Under Our Equity Plan Concurrent with the completion of our IPO and pursuant to our Equity Plan, we granted options to our executive officers to purchase 940,000 shares of common stock. These options have an exercise price of $9.75 per share, the market value of the common stock on the date of grant, and vest ratably over five years based on continued service, or upon a change in control. The fair value of stock options granted was estimated using a Black-Scholes valuation model and the following assumptions: 2011 Expected dividend yield % Expected stock price volatility % Risk-free interest rate % Expected life of options (in years) Weighted average estimated fair value of options at grant date per share $ The expected dividend yield was calculated based on our annual expected dividend payments at the time the options were granted. The expected volatility was based on historical price changes of a peer group of comparable entities based on the expected life of the options at the date of grant. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the date of grant. The expected life of options is the average number of years we estimate that options will be outstanding. The following table summarizes stock option activity under our Equity Plan for 2015 and 2014: 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, 2013 $ Granted — — Exercised ) Forfeited — — Outstanding at December 31, 2014 Granted — — Exercised ) Forfeited — — Outstanding at December 31, 2015 $ $ Exercisable at December 31, 2015 $ $ All stock options outstanding at December 31, 2015 are vested or became vested on February 13, 2016. During the years ended December 31, 2015, 2014, and 2013, the total fair value of stock options that vested was $0.9 million, $0.7 million and $0.6 million, respectively. The intrinsic value of outstanding options and exercisable options at December 31, 2015 was $1.0 million and $0.8 million, respectively. The intrinsic value of outstanding options and exercisable options at December 31, 2014 was $2.3 million and $1.4 million, respectively. At December 31, 2013, the exercise price of our outstanding options exceeded the market price of our common stock, resulting in no intrinsic value. Time-Based Restricted Stock Awards Made Pursuant to Our Equity Plan 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. On May 28, 2014, we awarded time-based restricted stock awards for 116,981 shares of common stock to our executive officers and management. These awards vest over a three year period based on continued service (25% on May 27, 2015 and 2016 and 50% on May 27, 2017), or upon a change in control. On March 1, 2013, we awarded time-based restricted stock awards for 106,518 shares of common stock to our executive officers. These awards vest over a three year period based on continued service (25% on February 28, 2014 and 2015 and 50% on February 28, 2016), or upon a change in control. The holders of these awards 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 granted is calculated based on the market value on the date of grant. The following table summarizes time-based restricted stock activity under our Equity Plan for 2015 and 2014: Number of Shares Weighted Average Grant Date Fair Value Aggregate Current Value (per share) (in thousands) Non-vested December 31, 2013 $ Granted Vested ) Forfeited ) Non-vested December 31, 2014 Granted Vested ) Non-vested December 31, 2015 $ $ During the years ended December 31, 2015, 2014, and 2013, the total fair value of time-based restricted stock awards that vested was $1.0 million, $0.8 million and $0.2 million, respectively. Performance-Based Restricted Stock Awards Made Pursuant to Our Equity Plan 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 generally vest based on 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. On May 28, 2014 and March 1, 2013 we awarded performance-based restricted stock awards for 161,935 and 185,572 shares, respectively, of common stock to our executive officers. These awards vest ratably on January 1 in each year of the three-year period following the grant date subject to the attainment of certain performance goals and continued service, or upon a change in control. The 2014 and 2013 performance-based restricted stock awards are market-based awards and are accounted for based on the grant date fair value of our common stock. These awards vest based on a performance measurement that requires the Company’s total stockholder return (“TSR”) to exceed the TSR for the SNL U.S. Lodging REIT Index for a designated one, two or three year performance period. The holders of these awards have the right to vote the related shares of common stock and any dividends declared will be accumulated and will be subject to the same vesting conditions as the awards. The fair value of performance-based restricted stock awards granted was estimated using a Monte Carlo simulation valuation model and the following assumptions: 2015 2014 Expected dividend yield Expected stock price volatility Risk-free interest rate 0.06 - 0.60% Monte Carlo iterations Weighted average estimated fair value of performance-based restricted stock awards $ $ The expected dividend yield was calculated based on our annual expected dividend payments at the time of grant. The expected volatility was based on historical price changes of our common stock for a period comparable to the performance period. The risk-free interest rates were interpolated from the Federal Reserve Bond Equivalent Yield rates for “on-the-run” U.S. Treasury securities. On January 1, 2015, 128,185 performance-based restricted shares previously granted to management vested based on the achievement of certain performance targets. The remaining 46,030 unvested performance-based restricted shares granted in 2012 were forfeited. Other than the accelerated vesting upon Mr. Becker’s resignation, no performance-based restricted stock awards vested during 2014 or 2013 because performance goals were not met. The following table summarizes performance-based restricted stock activity under our Equity Plan for 2015 and 2014: Number of Shares Weighted Average Grant Date Fair Value Aggregate Current Value (per share) (in thousands) Non-vested December 31, 2013 Granted Vested ) Forfeited — — Non-vested December 31, 2014 $ Granted Vested ) Forfeited ) Non-vested December 31, 2015 $ $ Director Stock Awards Made Pursuant to Our Equity Plan In 2015 and 2014, we granted 30,440 and 32,317 shares of common stock, respectively, to our non-employee directors as a part of our director compensation program. These grants were made pursuant to our Equity Plan and were vested upon grant. Our non-employee directors have the option to receive shares of our common stock in lieu of cash for their director fees. In 2015 and 2014, we issued 6,246 and 7,539 shares of common stock, respectively, for director fees. Equity-Based Compensation Expense Equity-based compensation expense included in corporate general and administrative in the Consolidated Statements of Operations for 2015, 2014, and 2013 was (in thousands): 2015 2014 2013 Stock options $ $ $ Time-based restricted stock Performance-based restricted stock Director stock $ $ $ We recognize equity-based compensation expense ratably over the vesting terms. The amount of expense may be subject to adjustment in future periods due to a change in the forfeiture assumptions. Unrecognized equity-based compensation expense for all non-vested awards pursuant to our Equity Plan was $4.1 million at December 31, 2015 as follows (in thousands): Total 2016 2017 2018 Stock options $ $ $ — $ — Time-based restricted stock Performance-based restricted stock — $ $ $ $ |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2015 | |
BENEFIT PLANS | |
BENEFIT PLANS | NOTE 11 — BENEFIT PLANS On August 1, 2011, we initiated a qualified contributory retirement plan (the “Plan”) under Section 401(k) of the IRC, which covers all full-time employees who meet certain eligibility requirements. Voluntary contributions may be made to the Plan by employees. The Plan is a Safe Harbor Plan and requires a mandatory employer contribution. The employer contribution expense for the years ended December 31, 2015, 2014 and 2013 was $0.2 million, $0.2 million, and $0.1 million, respectively. |
LOSS ON IMPAIRMENT OF ASSETS
LOSS ON IMPAIRMENT OF ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
LOSS ON IMPAIRMENT OF ASSETS | |
LOSS ON IMPAIRMENT OF ASSETS | NOTE 12 — LOSS ON IMPAIRMENT OF ASSETS In 2015, we determined that the value of land parcels in San Antonio, TX, Fort Myers, FL and Flagstaff, AZ were impaired based on market conditions. As such, we recognized a loss on impairment of assets of $1.1 million in our Consolidated Statement of Operations. In 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 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, TX, which was sold in the fourth quarter of 2014, and a loss on impairment of $0.7 million related to a land parcel in Spokane, WA. These losses on impairment of assets were charged to operations. In 2013, we recognized a loss on impairment of assets totaling $7.7 million related to the Courtyard by Marriott in Memphis, TN; the SpringHill Suites in Lithia Springs, GA; the Hampton Inn, the AmericInn Hotel & Suites and the Aspen Hotel & Suites in Fort Smith, AR; the AmericInn Hotel & Suites in Salina, KS and the Fairfield Inn and Holiday Inn Express in Emporia, KS. These hotel properties were sold in 2013 or classified as held for sale at December 31, 2013, and their operating results, including the loss on impairment, are included in discontinued operations. In addition, we recognized a loss on impairment of assets related to a land parcel in El Paso, TX that was sold in 2013 and a land parcel in Spokane, WA that was held for sale at December 31, 2013. As a result, a loss on impairment of assets totaling $1.4 million was charged to operations. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES | |
INCOME TAXES | NOTE 13 — INCOME TAXES Our earnings (losses), other than from our TRS, are not generally subject to federal corporate and state income taxes due to our REIT election. We believe we have met the annual REIT distribution requirement by payment of at least 90% of our taxable income for 2015, 2014, and 2013. For federal income tax purposes, the cash distributions paid to our common and preferred stockholders may be characterized as ordinary income, return of capital (generally non-taxable), or capital gains. The components of income tax expense for for the years ended December 31, 2015, 2014, and 2013 are as follows (in thousands): 2015 2014 2013 Current: Federal $ $ $ — State and local Deferred Federal ) — State and local ) Total provision $ $ $ Income tax expense (benefit) From continuing operations $ $ $ From discontinued operations — ) ) Total provision $ $ $ A reconciliation of the federal statutory rate to the effective income tax rate for the TRS follows (in thousands): 2015 2014 2013 Tax provision (benefit) at U.S. statutory rates on TRS income (loss) subject to tax $ $ $ ) State Income tax, net of federal income tax benefit ) Effect of permanent differences and other ) ) Increase (decrease) in valuation allowance ) ) TRS income tax expense $ $ $ 2015 2014 2013 Total provision (benefit) for TRS and Operating Partnership TRS Income Tax Expense $ $ $ Operating Partnership state income tax expense Total provision $ $ $ Current tax liabilities are included in Accrued expenses and other in the accompanying Consolidated Balance Sheets. Significant components of deferred tax assets (liabilities) are as follows (in thousands): 2015 2014 Tax carryforwards $ $ Investments ) ) Accrued expenses — Other ) Total Valuation Allowance — ) Net Deferred Tax Assets $ $ Gross Deferred Tax Assets $ $ Gross Deferred Tax Liabilities ) ) Valuation Allowance — ) Net Deferred Tax Assets $ $ At December 31, 2014, we had a valuation allowance of $2.4 million to of fset deferred tax assets based o n our assessment of realizability. During the year ended December 31, 2014, the utilization of tax attributes to offset taxable income reduced the overall amount of deferred tax assets subject to the valuation allowance. At December 31, 2015, the Company had gross deferred tax assets of $1.5 million primarily related to net operating loss carryforwards and $1.3 million in deferred tax liabilities related to an investment in a joint venture. We have concluded that it is more-likely-than-not that our deferred tax assets will be realized and therefore, the valuation allowance has been reduced to zero at December 31, 2015. At December 31, 2015, we had (i) U.S. federal net operating losses of $3.2 million which expire in the years 2032 to 2033 (ii) state net operating losses of $2.9 million which expire beginning in 2026 and (iii) federal minimum tax credits of $0.2 million which do not expire. We had no unrecognized tax benefits at December 31, 2015 or in the three year period then ended. The Company recognizes interest expense and penalties associated with uncertain tax positions as a component of income tax expense. We have no material interest or penalties relating to unrecognized tax benefits in the Consolidated Statements of Operations for 2015, 2014 or 2013 or in the Consolidated Balance Sheets as of December 31, 2015 or 2014. We file U.S. and state income tax returns in jurisdictions with varying statutes of limitations. We currently have no open audits related to our income tax returns. In general, we are not subject to tax examinations by tax authorities for years before 2012. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued operations, held for sale or sold | |
Discontinued operations | |
DISCONTINUED OPERATIONS | NOTE 14 — DISCONTINUED OPERATIONS We have adjusted our Consolidated Statements of Operations for 2014 and 2013 to reflect the operations of hotel properties that have been sold or are 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 include the following hotel properties that have been sold: · AmericInn Hotel & Suites in Golden, CO — sold January 2013; · Hampton Inn in Denver, CO — sold February 2013; · Holiday Inn and Holiday Inn Express in Boise, ID — sold May 2013; · Courtyard by Marriott in Memphis, TN — sold May 2013; · SpringHill Suites in Lithia Springs, GA — sold August 2013; · Fairfield Inn in Lewisville, TX — sold August 2013; · Fairfield Inn in Lakewood, CO — sold September 2013; · Fairfield Inn in Emporia, KS — sold October 2013; · SpringHill Suites in Little Rock, AR — sold November 2013; · Fairfield Inn and AmericInn Hotel & Suites in Salina, KS — sold November 2013; · Hampton Inn and Fairfield Inn & Suites in Boise, ID — sold November 2013; · Holiday Inn Express in Emporia, KS — sold December 2013; · AmericInn Hotel & Suites and Aspen Hotel & Suites in Fort Smith, AR - sold on January 17, 2014; and · Hampton Inn in Fort Smith, AR — sold on September 9, 2014. Condensed results for the hotel properties included in discontinued operations follows (in thousands): 2014 2013 Revenues $ $ Hotel operating expenses Depreciation and amortization Loss on impairment of assets Operating income (loss) ) Interest expense — ) Gain on disposal of assets Income (loss) before taxes ) Income tax benefit Income (loss) from discontinued operations $ $ ) Income (loss) from discontinued operations attributable to non-controlling interest $ $ ) Income (loss) from discontinued operations attributable to common stockholders $ $ ) |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | NOTE 15 — EARNINGS (LOSS) 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 December 31, 2014 and 2013, we had 846,000 and 893,000 stock options outstanding, respectively, which were not included in the computation of diluted earnings per share, as the effect would have been anti-dilutive. All outstanding stock options were included in the computation of diluted earnings per share for the year ended December 31, 2015 due to their dilutive effect. In 2013, our basic and diluted earnings per share are based on basic weighted average common shares outstanding due to our loss attributable to common stockholders, net of amount allocated to participating securities. Below is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share amounts): 2015 2014 2013 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 common share - basic: Net income (loss) from continuing operations $ $ $ ) Net income (loss) from discontinued operations — ) Net income (loss) $ $ $ ) Earnings per common share - diluted: Net income (loss) from continuing operations $ $ $ ) Net income (loss) from discontinued operations — ) Net income (loss) $ $ $ ) |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 16 — SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Selected consolidated quarterly financial data for 2015 and 2014 follows (in thousands, except per share amounts): 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total revenues $ $ $ $ Income from continuing operations $ $ $ $ Net income $ $ $ $ Net income attributable to Summit Hotel Properties, Inc. $ $ $ $ Earnings per share - Basic: Net income per share from continuing operations $ $ $ $ Net income per share from discontinued operations — — — — Net income per share $ $ $ $ Earnings per share - Diluted: Net income per share from continuing operations $ $ $ $ Net income per share from discontinued operations — — — — Net income per share $ $ $ $ 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Total revenues $ $ $ $ Income from continuing operations $ $ $ $ Income (loss) from discontinued operations $ $ ) $ ) $ Net income $ $ $ $ Net income attributable to Summit Hotel Properties, Inc. $ $ $ $ Earnings per share: Basic and diluted net income (loss) per share from continuing operations $ ) $ $ ) $ Basic and diluted net income per share from discontinued operations — — — — Basic and diluted net income (loss) per share $ ) $ $ ) $ |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 17 — SUBSEQUENT EVENTS Equity Transactions On January 1, 2016, 113,903 of our outstanding performance-based restricted stock awards granted pursuant to our Equity Plan vested as the Company’s TSR exceeded the TSR for the U.S. Lodging REIT Index. Additionally, accrued dividends of $0.1 million were paid as a result of this vesting. On January 1, 2016, 31,042 Common Units were tendered for redemption and were redeemed for an equivalent number of shares of our common stock. On January 29, 2016, 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 February 29, 2016 to stockholders of record on February 16, 2016. Debt Transactions On January 15, 2016, the Operating Partnership, as borrower, the Company, as parent guarantor, and each party executing the loan documentation as a subsidiary guarantor entered into a $450 million senior unsecured facility (the “2016 Unsecured Credit Facility”) with Deutsche Bank AG New York Branch, as administrative agent, Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Regions Capital Markets as joint lead arrangers and joint bookrunners, and a syndicate of lenders including Deutsche Bank AG New York Branch, Bank of America, N.A., Regions Bank, Royal Bank of Canada, U.S. Bank National Association, PNC Bank, National Association, KeyBank National Association, Raymond James Bank, N.A., and Branch Banking and Trust Company. The 2016 Unsecured Credit Facility is comprised of a $300 million revolving credit facility (the “$300 Million Revolver”) and a $150 million term loan (the “$150 Million Term Loan”) and replaces the former $300 million senior unsecured credit facility. The 2016 Unsecured Credit Facility has an accordion feature which will allow the Company to increase the total commitments by an aggregate of up to $150 million on the $300 Million Revolver and $150 Million Term Loan. The $300 Million Revolver will mature on March 31, 2020 and can be extended to March 31, 2021 at the Company’s option, subject to certain conditions. The $150 Million Term Loan will mature on March 31, 2021. Outstanding borrowings on the 2016 Unsecured Credit Facility are limited to the least of (1) the aggregate commitments of all of the lenders, (2) the aggregate value of the unencumbered assets, multiplied by 60%, less the consolidated unsecured indebtedness of the Company (exclusive of outstanding borrowings under the 2016 Unsecured Credit Facility), all as calculated pursuant to the terms of the 2016 Unsecured Credit Facility agreement, and (3) the principal amount that when drawn under the 2016 Unsecured Credit Facility would result in an unsecured interest expense, calculated on a pro forma basis for the next consecutive four fiscal quarters of the Company after taking such draws into account, equal to 50% of the net operating income of the unencumbered assets, as adjusted pursuant to the 2016 Unsecured Credit Facility agreement. A minimum of 20 of the Company’s hotel properties must qualify as unencumbered assets, as defined in the 2016 Unsecured Credit Facility agreement, or the aggregate value of the unencumbered assets will be deemed to be zero. Payment Terms . The Company is obligated to pay interest at the end of each selected interest period, but not less than quarterly, with all outstanding principal and accrued but unpaid interest due at the maturity of the respective facility. The Company has the right to repay all or any portion of the outstanding borrowings from time to time without penalty or premium, other than customary early payment fees if the Company repays a LIBOR loan before the end of the contract period. In addition, the Company will be required to make earlier principal reduction payments in the event of certain changes in the unencumbered asset availability. The Company pays interest on revolving credit advances at varying rates based upon, at the Company’s option, either (i) 1, 2, 3, or 6-month LIBOR, plus a LIBOR margin between 1.50% and 2.25%, depending upon the Company’s leverage ratio (as defined in the 2016 Unsecured Credit Facility agreement), or (ii) the applicable base rate, which is the greatest of the administrative agent’s prime rate, the federal funds rate plus 0.50%, and 1-month LIBOR plus 1.00%, plus a base rate margin between 0.50% and 1.25%, depending upon the Company’s leverage ratio. The applicable margin for a term loan advance shall be 0.05% less than the revolving credit advances referenced above. In addition, on a quarterly basis, the Company will be required to pay a fee on the unused portion of the 2016 Unsecured Credit Facility equal to the unused amount multiplied by an annual rate of either (i) 0.25%, if the unused amount is greater than 50% of the maximum aggregate amount of the 2016 Unsecured Credit Facility, or (ii) 0.20%, if the unused amount is equal to or less than 50% of the maximum aggregate amount of the 2016 Unsecured Credit Facility. The Company will also be required to pay other fees, including customary arrangement and administrative fees. Financial and Other Covenants . The Company is required to comply with a series of financial and other covenants in order to borrow under this credit facility. The material financial covenants include a maximum leverage ratio, a minimum consolidated tangible net worth, a maximum dividend payout ratio, a minimum consolidated fixed charge coverage ratio, a maximum ratio of secured indebtedness to total asset value, a maximum ratio of secured recourse indebtedness to total asset value, a maximum ratio of consolidated unsecured indebtedness to total unencumbered asset value, and a maximum ratio of unencumbered adjusted net operating income to assumed unsecured interest expense. The Company is also subject to other customary covenants, including restrictions on investment, limitations on liens and maintenance of properties. This credit facility also contains customary events of default, including, among others, the failure to make payments when due under any of the credit facility documentation, breach of any covenant continuing beyond any cure period, and bankruptcy or insolvency. Unencumbered Assets . The 2016 Unsecured Credit Facility is unsecured. However, borrowings under the 2016 Unsecured Credit Facility are limited by the value of hotel assets that qualify as unencumbered assets. Among other conditions, unencumbered assets must not be subject to liens or security interests, and the owner and operating lessee of such unencumbered asset must execute a guaranty supplement pursuant to which the owner and operating lessee become subsidiary guarantors of the 2016 Unsecured Credit Facility. In addition, hotels may be added to or removed from the unencumbered asset pool at any time so long as there is a minimum of 20 hotels in the unencumbered asset pool and the then-current borrowings on the 2016 Unsecured Credit Facility do not exceed the maximum available under the 2016 Unsecured Credit Facility given the availability limitations described above. Further, to be eligible as an unencumbered asset, the anticipated property must: be franchised with a nationally-recognized franchisor; satisfy certain ownership, management and operating lessee criteria; and not be subject to material defects, such as liens, title defects, environmental contamination and other standard lender criteria. At February 19, 2016, 42 of our unencumbered hotel properties are included in the borrowing base supporting the 2016 Unsecured Credit Facility. Thus, none of these properties is available to be leveraged with other indebtedness while included in the borrowing base. The Company transferred to the 2016 Unsecured Credit Facility the outstanding principal balance of $170.0 million on the former $300 million senior unsecured credit facility and the former $300 million senior unsecured credit facility was paid off in full and terminated upon entry into the 2016 Unsecured Credit Facility described above. The interest rate swap entered into on September 5, 2013 with a notional value of $75.0 million, an effective date of January 2, 2014 and a maturity date of October 10, 2018 remains outstanding. This interest rate swap was designated as a cash flow hedge and effectively fixes LIBOR at 2.04% and the interest rate on borrowings under a portion of the $150 Million Term Loan to a fixed rate of 3.64%. Acquisitions On January 19, 2016, we acquired the 226-guestroom Courtyard by Marriott in the West End of Nashville, TN for $71.0 million. On January 20, 2016, we acquired the 160-guestroom Residence Inn in midtown Atlanta, GA for $38.0 million. Both hotels were Parked Assets in anticipation of completing reverse 1031 Exchanges with properties to be sold to ARCH as part of the ARCH Sale. The reverse 1031 Exchange related to the Courtyard by Marriott in the West End of Nashville, TN was completed upon the sale of six hotel properties to ARCH on February 11, 2016. The acquisitions were made using funds drawn on the Company’s revolving line of credit. Dispositions On December 29, 2015, the Company and ARCH agreed to terminate the ARCH Agreement with respect to ARCH’s right to acquire fee simple interests in ten hotels containing a total of 996 guestrooms for an aggregate purchase price of $89.1 million at a closing that had been scheduled to occur on December 29, 2015 (the “Terminated Purchase Agreement”). As a result of the termination, ARCH forfeited and the Company retained, the $9.1 million earnest money deposit made by ARCH under the ARCH Agreement related to the sale of these ten hotels and the parties were released from further obligations, except those which expressly survive the termination of the ARCH Agreement pursuant to its terms. This transaction had not been structured as a 1031 Exchange. On February 11, 2016, the Company and American Realty Capital Hospitality Portfolio SMT ALT, LLC, an affiliate of ARCH, as substitute purchaser (“New ARCH Purchaser”), entered into a letter agreement (the “Reinstatement Agreement”) and agreed, subject to the terms and conditions of the Reinstatement Agreement, to reinstate the Terminated Purchase Agreement in its entirety, except as modified by the Reinstatement Agreement (the Terminated Purchase Agreement, as reinstated and modified by the Reinstatement Agreement, is referred to herein as the “Reinstated Purchase Agreement”), to make null and void the prior termination of the Terminated Purchase Agreement and to proceed with the proposed sale of the ten hotels listed below (the “Reinstated Hotels”) pursuant to the Reinstated Purchase Agreement for an aggregate purchase price of $89.1 million. The Reinstated Hotels are being sold to the New ARCH Purchaser as part of the ARCH Sale. As stated above, the Company previously sold ten of the 26 hotels to ARCH at a closing that occurred on October 15, 2015 for a purchase price of $150.1 million. As disclosed below, the Company sold six of the 26 hotels to ARCH at a closing that occurred on February 11, 2016 for a purchase price of $108.3 million. The 16 hotels previously sold to ARCH were sold pursuant to a separate real estate purchase and sale agreement relating to the sale of those hotels. The Reinstated Hotels are as follows: Hotel Location Guestrooms Aloft Jacksonville, FL Holiday Inn Express Vernon Hills, IL Courtyard by Marriott Jackson, MS Residence Inn Jackson, MS Courtyard by Marriott Germantown, TN Staybridge Suites Ridgeland, MS Homewood Suites Ridgeland, MS Courtyard by Marriott El Paso, TX Fairfield Inn & Suites Germantown, TN Residence Inn Germantown, TN The Reinstatement Agreement requires the New ARCH Purchaser to deposit non-refundable earnest money in the amount of $7.5 million (the “New Deposit”) with an escrow agent to support the closing of the Reinstated Hotels. The New Deposit is non-refundable to the New ARCH Purchaser except in limited circumstances. The prior earnest money deposit in the amount of $9.1 million was retained by us in connection with the termination of the Terminated Purchase Agreement and will not be credited to the New ARCH Purchaser against the purchase price for the Reinstated Hotels. The closing of the sale of the Reinstated Hotels is scheduled to occur on or before December 30, 2016 (the “New Closing Date”), or at such later date as the closing may be adjourned or extended in accordance with the express terms of the Reinstatement Agreement. If the closing of the Reinstated Hotels does not occur as required by the Reinstatement Agreement because of a default by the New ARCH Purchaser, then the ARCH affiliated purchaser will forfeit the New Deposit to the Company as liquidated damages. Prior to the New Closing Date, we have the right to continue to market and ultimately sell, without the consent of the New ARCH Purchaser, any or all of the Reinstated Hotels to a bona fide third-party purchaser that is not an affiliate of the Company. If the Company sells some, but not all, of the Reinstated Hotels to a bona fide third-party purchaser, then the purchase price to be paid by the ARCH affiliated purchaser for the remaining Reinstated Hotels will be reduced accordingly (the “Revised Purchase Price”), but the New Deposit will remain with the escrow agent except in limited circumstances. On February 11, 2016, the Company completed the sale of the following six hotels as part of the ARCH Sale: Hotel Location Guestrooms Fairfield Inn & Suites Denver, CO Fairfield Inn & Suites Bellevue, WA SpringHill Suites Denver, CO Hilton Garden Inn Fort Collins, CO Fairfield Inn & Suites Spokane, WA Hampton Inn Fort Collins, CO The six hotels were sold to ARCH for an aggregate purchase price of $108.3 million, and proceeds from the sale of the six hotels were used to complete certain reverse 1031 Exchanges. The hotels acquired by the Company for the reverse 1031 Exchanges included the 179-guestroom Courtyard by Marriott in Atlanta (Decatur), GA on October 20, 2015 for $44.0 million and the 226-guestroom Courtyard by Marriott in the West End of Nashville, TN for $71.0 million on January 19, 2016. The completion of the reverse 1031 Exchanges resulted in the deferral of taxable gains of approximately $74.0 million and the pay-down of the Company’s unsecured revolving credit facility by $105.0 million, resulting in additional borrowing capacity under the unsecured revolving credit facility. Additionally, the Company repaid a mortgage loan totaling $5.8 million related to sale of the Springhill Suites in Denver, CO to ARCH. On February 11, 2016, the Operating Partnership, entered into a loan agreement with ARCH, as borrower, which provides for a loan by the Operating Partnership to ARCH in the amount of $27.5 million (the “Loan”). The proceeds of the Loan were required to be applied by ARCH as follows: (i) $20.0 million was applied toward the payment of a portion of the $108.3 million purchase price for the six hotels containing 707 guestrooms, which were acquired by an ARCH affiliated purchaser on February 11, 2016 as part of the ARCH Sale; and (ii) the remaining $7.5 million was applied by ARCH to fund the New Deposit under the Reinstated Purchase Agreement. The entire principal amount of the Loan, and any accrued and unpaid interest, will be due and payable on February 11, 2017 (the “Maturity Date”), unless extended pursuant to the Loan agreement. ARCH will repay a portion of the outstanding principal balance of the Loan in an aggregate amount equal to $5.0 million, to be paid in five equal installments of $1.0 million, on the last day of May, June, July, August and September 2016 (the “Amortization Payments”). The Loan may be prepaid in whole or in part at any time by ARCH, without payment of any penalty or premium. ARCH may extend the maturity date of the Loan under certain conditions by up to two years pursuant to two one-year extension options (each an “Extension Option”). Interest will accrue on the unpaid principal balance of the Loan at a rate of 13.0% per annum from the date of the Loan to the initial Maturity Date, 14.0% per annum during the first extension period and 15.0% per annum during the second extension period. An amount equal to 9.0% per annum is to be paid monthly. The remaining 4.0%, 5.0% and 6.0%, as the case may be, will accrue and be compounded monthly (the “PIK”). The PIK must be paid in order to exercise any Extension Option, otherwise the PIK is payable at the initial Maturity Date. The PIK may be paid in cash prior to the initial Maturity Date, or any extension thereof. To secure the payment of the Amortization Payments, ARCH will cause the rents from certain hotel properties or assets of its taxable REIT subsidiaries to be deposited to a separate controlled account (the “Control Account”) and ARCH has granted the Operating Partnership a continuing security interest in all of its right, title and interest in and to the Control Account until the Amortization Payments have been satisfied in full in accordance with the terms of the Loan agreement. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2015 | |
Schedule III - Real Estate and Accumulated Depreciation | |
Schedule III - Real Estate and Accumulated Depreciation | SUMMIT HOTEL PROPERTIES, INC Schedule III - Real Estate and Accumulated Depreciation December 31, 2015 (in thousands) Initial Cost Cost Capitalized Total Cost Total Cost Net of Location Franchise Year Acquired/ Constructed Land Building & Improvements Subsequent to Acquisition Land Building & Improvements Total Accumulated Depreciation Accumulated Depreciation Mortgage Debt Arlington, TX Hyatt Place 2012 $ $ $ $ $ $ $ ) $ $ (1) Arlington, TX Courtyard by Marriott 2012 ) — Arlington, TX Residence Inn by Marriott 2012 ) — Asheville, NC Hotel Indigo 2015 ) — Atlanta, GA Hyatt Place 2006 ) Atlanta, GA Courtyard by Marriott 2012 ) — Atlanta, GA Courtyard by Marriott 2015 ) — Austin, TX Hampton Inn and Suites 2014 — — ) — Baltimore, MD Hyatt Place 2012 ) (4) Baltimore, MD Residence Inn by Marriott 2015 — — ) — Bellevue, WA Fairfield Inn and Suites by Marriott 2004 ) — Birmingham, AL Hilton Garden Inn 2012 ) Birmingham, AL Hilton Garden Inn 2012 ) Bloomington, MN SpringHill Suites by Marriott 2007 ) (2) Bloomington, MN Hampton Inn and Suites 2007 ) — (2) Boston, MA Hampton Inn 2015 ) — Branchburg, NJ Residence Inn by Marriott 2015 ) — Charleston, WV Country Inn & Suites 2004 ) — Charleston, WV Holiday Inn Express 2004 ) — Denver, CO Hyatt Place 2012 ) — (1) Denver, CO Fairfield Inn and Suites by Marriott 2004 ) — Denver, CO SpringHill Suites by Marriott 2007 ) ) Denver, CO Hyatt Place 2012 ) — (1) Denver, CO Hyatt House 2012 ) — (4) Duluth, GA Holiday Inn 2011 — — ) — Duluth, GA Hilton Garden Inn 2011 ) (3) Eden Prairie, MN Hilton Garden Inn 2013 ) — El Paso, TX Courtyard by Marriott 2011 ) — Ft. Collins, CO Hampton Inn 2004 ) — Ft. Collins, CO Hilton Garden Inn 2007 ) ) — Ft. Myers, FL Hyatt Place 2009 ) ) — Ft. Worth, TX Hampton Inn 2007 ) (6) Ft. Worth, TX SpringHill Suites by Marriott 2004 ) — Ft. Worth, TX Hilton Garden Inn 2012 ) — (3) Garden City, NY Hyatt Place 2012 ) — Germantown, TN Courtyard by Marriott 2005 ) — Germantown, TN Fairfield Inn and Suites by Marriott 2005 ) — Germantown, TN Residence Inn by Marriott 2005 ) — Glendale, CO Staybridge Suites 2011 ) — Goleta, CA Hampton Inn 2014 ) Greenville, SC Hilton Garden Inn 2013 ) — (3) Hoffman Estates, IL Hyatt Place 2013 ) (5) Houston, TX Hilton Garden Inn 2014 — — ) Houston, TX Hilton Garden Inn 2014 ) — (3) Indianapolis, IN SpringHill Suites by Marriott 2013 ) — (3) Indianapolis, IN Courtyard by Marriott 2013 ) — (3) Jackson, MS Courtyard by Marriott 2005 ) — Jackson, MS Staybridge Suites 2007 ) — Jacksonville, FL Aloft 2009 ) — Las Colinas, TX Hyatt Place 2007 ) — Las Colinas, TX Holiday Inn Express and Suites 2007 ) — Lombard, IL Hyatt Place 2012 ) — (1) Louisville, KY Fairfield Inn and Suites by Marriott 2013 ) (7) Louisville, KY SpringHill Suites by Marriott 2013 ) — (7) Miami, FL Hyatt House 2015 ) — Minneapolis, MN Hyatt Place 2013 — — ) — Minneapolis, MN Hampton Inn and Suites 2015 ) — Minnetonka, MN Holiday Inn Express and Suites 2013 ) — SUMMIT HOTEL PROPERTIES, INC. Notes to Schedule III - Real Estate and Accumulated Depreciation As of December 31, 2015 (in thousands) Initial Cost Cost Capitalized Total Cost Total Cost Net of Location Franchise Year Acquired/ Constructed Land Building & Improvements Subsequent to Acquisition Land Building & Improvements Total Accumulated Depreciation Accumulated Depreciation Mortgage Debt Nashville, TN SpringHill Suites by Marriott 2004 ) — New Orleans, LA Courtyard by Marriott 2013 ) — New Orleans, LA Courtyard by Marriott 2013 ) — (3) New Orleans, LA Courtyard by Marriott 2013 ) — New Orleans, LA Residence Inn by Marriott 2013 ) — (3) New Orleans, LA SpringHill Suites by Marriott 2013 ) — Orlando, FL Hyatt Place 2013 ) — (5) Orlando, FL Hyatt Place 2013 ) — (5) Phoenix, AZ Hyatt Place 2012 ) — Portland, OR Hyatt Place 2009 — ) — ) — Portland, OR Residence Inn by Marriott 2009 — — ) Provo, UT Hampton Inn 2004 ) — Ridgeland, MS Residence Inn by Marriott 2007 ) ) — Ridgeland, MS Homewood Suites 2011 ) — Salt Lake City, UT Residence Inn by Marriott 2012 ) — San Diego, CA Hampton Inn and Suites 2013 ) — (6) San Francisco, CA Holiday Inn Express and Suites 2013 ) — San Francisco, CA DoubleTree 2014 ) — San Francisco, CA Four Points by Sheraton 2014 ) — Sandy, UT Holiday Inn Express and Suites 2004 ) — (3) Scottsdale, AZ Hyatt Place 2012 ) — (4) Scottsdale, AZ Courtyard by Marriott 2004 ) Scottsdale, AZ SpringHill Suites by Marriott 2004 ) Smyrna, TN Hampton Inn and Suites 2012 ) Smyrna, TN Hilton Garden Inn 2012 ) Spokane, WA Fairfield Inn and Suites by Marriott 2004 ) — Ventura, CA Hampton Inn and Suites 2013 ) — (6) Vernon Hills, IL Holiday Inn Express 2005 ) — Ybor City, FL Hampton Inn and Suites 2012 ) — (3) Austin, TX Corporate Office 2012 — — ) — Land Parcels — ) — — — $ $ $ $ $ $ $ ) $ $ (1) Properties cross-collateralize the related loan. (2) Properties cross-collateralize the related loan. (3) Properties cross-collateralize the related loan. (4) Properties cross-collateralize the related loan. (5) Properties cross-collateralize the related loan. (6) Properties cross-collateralize the related loan. (7) Properties cross-collateralize the related loan. SUMMIT HOTEL PROPERTIES, INC. Notes to Schedule III - Real Estate and Accumulated Depreciation As of December 31, 2015 (in thousands) (a) ASSET BASIS Total Balance at December 31, 2012 $ Additions to land, buildings and improvements Disposition of land, buildings and improvements ) Impairment loss ) Balance at December 31, 2013 $ Additions to land, buildings and improvements Disposition of land, buildings and improvements ) Impairment loss ) Balance at December 31, 2014 $ Additions to land, buildings and improvements Disposition of land, buildings and improvements ) Impairment loss ) Balance at December 31, 2015 $ (b) ACCUMULATED DEPRECIATION Total Balance at December 31, 2012 $ Depreciation for the period ended December 31, 2013 Depreciation on assets sold or disposed ) Balance at December 31, 2013 $ Depreciation for the period ended December 31, 2014 Depreciation on assets sold or disposed ) Balance at December 31, 2014 $ Depreciation for the period ended December 31, 2015 Depreciation on assets sold or disposed ) Balance at December 31, 2015 $ (c) The aggregrate cost of land, buildings, furniture and equipment for Federal income tax purposes is aproximately $1,342 million. (d) Depreciation is computed based upon the following useful lives: Buildings and improvements 6-40 years Furniture and equipment 2-15 years (e) We have mortgages payable on the properties as noted. Additional mortgage information can be found in Note 5 to the consoldiated financial statements. (f) The negative balance for costs capitalized subsequent to acquisition could include out-parcels sold, disposal of assets, and impairment loss that was recorded. (g) The amounts presented in Schedule III exclude capitalized franchise costs that are included in Assets Held for Sale. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements of the Company consolidate the accounts of the Company and all entities that are controlled by ownership of a majority voting interest 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 Consolidated Financial Statements. We prepare our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“GAAP”), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenues and expenses in the reporting period. Actual results could differ from those estimates. |
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 The Company allocates the purchase price of acquired hotel properties based on the fair value of the acquired land, land improvements, building, furniture, fixtures and equipment, identifiable intangible assets or liabilities, other assets and assumed liabilities. Intangible assets may include certain value associated with the on-going operations of the hotel business being acquired as part of the hotel property acquisition. Acquired intangible assets that derive their values from real property or an interest in real property, are inseparable from that real property or interest in real property, and do not produce or contribute to the production of income other than consideration for the use or occupancy of space, are recorded as a component of the related real estate asset in our Consolidated Financial Statements. Identifiable intangible assets or liabilities may also arise from assumed contractual arrangements as part of the acquisition of the hotel property, including terms that are above or below market compared to an estimated fair market value of the agreement at the acquisition date. We 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 6 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 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. |
Intangible Assets | Intangible Assets We amortize intangible assets with determined finite useful lives using the straight-line method. We do not amortize intangible assets with indefinite useful lives, but we evaluate these assets for impairment annually or at interim periods if events or circumstances indicate that the asset may be impaired. |
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 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 (“1031 Exchange”). For reverse transactions under a 1031 Exchange in which we purchase a new property prior to selling the property to be matched in the like-kind exchange (we refer to a new property being acquired by us in the 1031 Exchange prior to the sale of the related property as 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 Exchanges. As such, the Parked Assets are included in our Consolidated Balance Sheets and Consolidated Statements of Operations as VIE’s until legal title is transferred to us upon completion of the 1031 Exchanges. |
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 for property taxes, insurance, and certain capital expenditures. Funds may be disbursed from the account upon proof of expenditures and approval from the lenders. |
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 guest 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 regularly review the collectability of our trade receivables. A provision for losses is determined on the basis of previous loss experience and current economic conditions. Our allowance for doubtful accounts was $0.1 million at December 31, 2015 and 2014. Bad debt expense was $0.3 million, $0.4 million and $0.6 million for 2015, 2014 and 2013, respectively. |
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 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 Consolidated Statements of Operations. Our Consolidated Financial Statements include non-controlling interests related to i) common units of limited partnership interests (“Common Units”) in the Operating Partnership held by unaffiliated third parties, and ii) prior to the second quarter of 2014, a 19% interest in a consolidated joint venture held by our joint venture partner, which we acquired from our joint venture partner in the second quarter of 2014. |
Revenue Recognition | Revenue Recognition We recognize revenue when guestrooms are occupied and services have been rendered. Revenues are recorded net of any sales and other taxes collected from customers. All rebates or discounts are recorded as a reduction to revenue. Cash received prior to guest arrival is recorded as an advance from the customer and is recognized at the time of occupancy. |
Sales and Other Taxes | Sales and Other Taxes We have operations in states and municipalities that impose sales and/or other taxes on certain sales. We collect these taxes from our customers 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 which was amended and restated effective June 15, 2015 (the “Equity Plan”), provides 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 the stock options granted upon completion of our IPO at fair value using the Black-Scholes option-pricing model and we account for all other awards of equity, including time-based and performance-based stock awards, using the grant date fair value of those equity awards. Restricted stock awards with performance-based vesting conditions are market-based awards tied to total stockholder return and are valued using a Monte Carlo simulation model in accordance with ASC Topic 718 “Compensation — Stock Compensation” (formerly SFAS 123R). We expense the fair value of awards under the Equity Plan ratably over the vesting period and market-based awards are not adjusted for performance. 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 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 Consolidated Balance Sheets and reclassified to interest expense in our 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 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 data, 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 and other. With the exception of our fixed-rate debt (See “Note 5 — 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 now include only disposals that represent a strategic shift in operations with a major effect on operations and financial results. ASU 2014-08 is to be applied on a prospective basis and had a required adoption date of January 1, 2015; however, we elected early adoption in the first quarter of 2014, which is permitted for disposals and classifications of assets as “held for sale,” provided such assets had not been reported previously in discontinued operations. On May 28, 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2018 and early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our Consolidated Financial Statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our Consolidated Financial Statements. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. This standard becomes effective for the Company on January 1, 2017. 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 adoption of this accounting standard 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 on 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 our fiscal year beginning 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 adoption of this accounting standard will have a material effect on our consolidated financial position or our consolidated results of operations. In September 2015, the FASB issued ASU No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which illustrates certain guidance governing adjustments to the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. Such adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement amounts initially recognized or would have resulted in the recognition of additional assets and liabilities. ASU No. 2015-16 eliminates the requirement to retrospectively account for such adjustments. ASU No. 2015-16 is effective for our fiscal year commencing on January 1, 2016. We do not anticipate that the adoption of ASU No. 2015-16 will have a material effect on our consolidated financial position or our consolidated results of operations. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires that deferred tax liabilities and assets be classified on our Consolidated Balance Sheets as noncurrent based on an analysis of each taxpaying component within a jurisdiction. ASU No. 2015-17 is effective for our fiscal year commencing on January 1, 2017. We do not anticipate that the adoption of ASU No. 2015-17 will have a material effect on our consolidated financial position or our consolidated results of operations. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful lives of hotel properties and related assets | Classification Estimated Useful Lives Buildings and improvements 6 to 40 years Furniture, fixtures and equipment 2 to 15 years |
INVESTMENT IN HOTEL PROPERTIES
INVESTMENT IN HOTEL PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of investment in hotel properties, net | Investment in hotel properties, net at December 31, 2015 and 2014 are as follows (in thousands): 2015 2014 Land $ $ Hotel buildings and improvements Construction in progress Furniture, fixtures and equipment Less accumulated depreciation $ $ |
Schedule of hotel property acquisitions | Hotel property acquisitions in 2015 and 2014 were as follows (in thousands): Date Acquired Franchise/Brand Location Purchase Price Debt Assumed 2015: April 13 Hampton Inn & Suites Minneapolis, MN $ $ — June 18 Hampton Inn Boston (Norwood), MA — June 30 Hotel Indigo Asheville, NC — July 24 Residence Inn Branchburg, NJ — July 24 Residence Inn Baltimore (Hunt Valley), MD — October 19 Hyatt House Miami, FL — October 20 Courtyard by Marriott Atlanta (Decatur), GA (1) — Total 2015 $ $ — 2014: January 9 Hilton Garden Inn Houston, TX $ $ January 10 Hampton Inn Santa Barbara (Goleta), CA (2) January 24 Four Points by Sheraton San Francisco, CA — March 14 DoubleTree by Hilton San Francisco, CA August 15 Hilton Garden Inn Houston (Energy Corridor), TX — September 9 Hampton Inn & Suites Austin, TX — Total 2014 $ $ (1) This hotel was a Parked Asset at December 31, 2015 pending the completion of a reverse 1031 Exchange related to the sale of certain properties to ARCH. See “Note 2 — Summary of Significant Accounting Policies — Variable Interest Entities” and “Note 4 — Supplemental Balance Sheet Information” to these Consolidated Financial Statements. As such, the legal title to this Parked Asset was held by a Qualified Intermediary engaged to execute the 1031 Exchange until the ARCH Sale was consummated on February 11, 2016 and the 1031 Exchange was completed. We retained essentially all of the legal and economic benefits and obligations related to the Parked Asset. As such, the Parked Asset was included in our Consolidated Balance Sheet at December 31, 2015 and Consolidated Statement of Operations for the year then ended as a VIE until legal title was transferred to us upon completion of the 1031 Exchange. (2) The purchase price for this hotel included the issuance by the Operating Partnership of 412,174 Common Units valued at the time of issuance at $3.7 million. As of December 31, 2015, 141,140 of the Common Units issued had been tendered for redemption and were redeemed for an equivalent number of shares of our common stock. |
Schedule of allocation of aggregate purchase prices to fair value of assets and liabilities acquired | The allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired for the above acquisitions is as follows (in thousands): 2015 2014 Land $ $ Hotel buildings and improvements Furniture, fixtures and equipment Other assets Total assets acquired Less debt assumed — ) Less lease liability assumed ) ) Less other liabilities ) ) Net assets acquired $ $ |
Schedule of total revenues and net income for hotel properties acquired | Total revenues and net income for hotel properties acquired in 2015 and 2014, which are included in our Consolidated Statements of Operations for the years ended December 31, 2015 and 2014, are as follows (in thousands): 2015 Acquisitions 2014 Acquisitions 2015 2015 2014 Revenues $ $ $ Net income $ $ $ |
Schedule of unaudited condensed pro forma financial information | The unaudited condensed pro forma financial information for 2015 and 2014 is as follows (in thousands, except per share): 2015 2014 (unaudited) Revenues $ $ Net income (1) $ $ Net income attributable to common stockholders, net of amount allocated to participating securities (1) $ $ Net income per share attributable to common stockholders (1): Basic $ $ Diluted $ $ (1) The pro forma amounts exclude the $66.6 million gain on the sale of hotel properties during the year ended December 31, 2015. |
Assets held for sale | Hotel properties and land parcels | |
Schedule of assets held for sale | Assets held for sale at December 31, 2015 and 2014 include (in thousands): 2015 2014 Land $ $ Hotel building and improvements — Furniture, fixtures and equipment — Construction in progress — Franchise fees — $ $ |
Assets held for sale | Portfolio of Hotels, ARCH Agreements | |
Schedule of assets held for sale | The remaining 16 hotel properties are recorded as Assets Held for Sale at December 31, 2015 as follows: Hotel Location Guestrooms Fairfield Inn & Suites Denver, CO (1) Fairfield Inn & Suites Bellevue, WA (1) SpringHill Suites Denver, CO (1) Hilton Garden Inn Fort Collins, CO (1) Fairfield Inn & Suites Spokane, WA (1) Hampton Inn Fort Collins, CO (1) Aloft Jacksonville, FL (2) Holiday Inn Express Vernon Hills, IL (2) Courtyard Jackson, MS (2) Residence Inn Jackson, MS (2) Courtyard Germantown, TN (2) Staybridge Suites Ridgeland, MS (2) Homewood Suites Ridgeland, MS (2) Courtyard El Paso, TX (2) Fairfield Inn & Suites Germantown, TN (2) Residence Inn Germantown, TN (2) (1) These hotel properties were sold on February 11, 2016. See “Note 17 – Subsequent Events” to these Consolidated Financial Statements. (2) These hotel properties are currently under contract to be sold. See “Note 17 – Subsequent Events” to these Consolidated Financial Statements. |
SUPPLEMENTAL BALANCE SHEET IN29
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | |
Schedule of restricted cash | Restricted cash at December 31, 2015 and 2014 includes (in thousands): 2015 2014 Property taxes $ $ Insurance FF&E reserves Other funds in escrow $ $ |
Schedule of prepaid expenses and other | Prepaid expenses and other at December 31, 2015 and 2014 include (in thousands): 2015 2014 Earnest money and funds in escrow $ $ Prepaid insurance Other $ $ |
Schedule of deferred charges | Deferred charges at December 31, 2015 and 2014 include (in thousands): 2015 2014 Initial franchise fees $ $ Deferred financing costs Less accumulated amortization Total $ $ |
Schedule of amortization expense | Amortization expense for for the years ended December 31, 2015, 2014, and 2013 was (in thousands): 2015 2014 2013 Initial franchise fees $ $ $ Deferred financing costs $ $ $ |
Schedule of future amortization expense | Future amortization expense is expected to be (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter $ |
Schedule of other assets | Other assets at December 31, 2015 and 2014 include (in thousands): 2015 2014 Prepaid land lease $ $ Notes receivable Acquired intangible assets — $ $ |
Schedule of accrued expenses | Accrued expenses and other at December 31, 2015 and 2014 include the following (in thousands): 2015 2014 Accrued sales, property and income taxes $ $ Accrued salaries and benefits Accrued interest Acquired unfavorable leases Accrued expenses at hotels and other $ $ |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DEBT | |
Schedule of outstanding indebtedness | At December 31, 2015 and 2014 our outstanding indebtedness included (in thousands): Amortization Number of Properties Outstanding Principal Balance Note Period Encumbered at December 31, Lender Reference Interest Rate (a) (Years) Maturity Date December 31, 2015 2015 2014 Senior Unsecured Credit Facility Deutsche Bank AG New York Branch (b) $225 Million Revolver 2.33% Variable n/a October 10, 2017 n/a $ $ $75 Million Term Loan 3.94% Fixed n/a October 10, 2018 n/a Total Senior Unsecured Credit Facility Unsecured Term Loan KeyBank National Association Term Loan (c) 2.38% Variable n/a April 7, 2022 n/a — Voya (formerly known as ING Life Insurance and Annuity) (d) 6.10% Fixed 20 March 1, 2019 n/a — (d) 4.55% Fixed 25 March 1, 2019 n/a — (d) 5.18% Fixed 20 March 1, 2019 2 — (d) 5.18% Fixed 20 March 1, 2019 4 — (d) 5.18% Fixed 20 March 1, 2019 3 — (d) 5.18% Fixed 20 March 1, 2019 1 — KeyBank National Association (e) 4.46% Fixed 30 February 1. 2023 4 (f) 4.52% Fixed 30 April 1, 2023 3 (g) 4.30% Fixed 30 April 1, 2023 3 (h) 4.95% Fixed 30 August 1, 2023 2 Bank of America Commercial Mortgage (i) 6.41% Fixed 25 September 1, 2017 1 Merrill Lynch Mortgage Lending Inc. (j) 6.38% Fixed 30 August 1, 2016 1 GE Capital Financial Inc. (k) 5.39% Fixed 25 April 1, 2020 1 (k) 5.39% Fixed 25 April 1, 2020 1 MetaBank (l) 4.25% Fixed 20 August 1, 2018 1 Bank of Cascades (m) 2.43% Variable 25 December 19, 2024 1 (m) 4.30% Fixed 25 December 19, 2024 — Goldman Sachs (n) 5.67% Fixed 25 July 6, 2016 2 Compass Bank (o) 4.57% Fixed 20 May 17, 2018 — — (p) 2.83% Variable 25 May 6, 2020 3 General Electric Capital Corporation (q) 5.39% Fixed 25 April 1, 2020 1 (q) 5.39% Fixed 25 April 1, 2020 1 (r) 4.11% Variable 20 April 1, 2018 1 (r) 5.03% Fixed 25 March 1, 2019 — — AIG (s) 6.11% Fixed 20 January 1, 2016 — — Greenwich Capital Financial Products, Inc. (t) 6.20% Fixed 30 January 6, 2016 — — Wells Fargo Bank, National Association (u) 5.53% Fixed 25 October 1, 2015 — — (v) 5.57% Fixed 25 January 1, 2016 — — U.S. Bank, NA (w) 6.22% Fixed 30 November 1, 2016 1 (x) 6.13% Fixed 25 November 11, 2021 1 (y) 5.98% Fixed 30 March 8, 2016 — — Total Mortgage Loans 38 Total Debt 38 $ $ Notes: (a) Interest rates at December 31, 2015 give effect to our use of interest rate swaps, where applicable. (b) On October 10, 2013, we replaced our $150.0 million senior secured revolving credit facility with a $300.0 million senior unsecured credit facility. The 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”), and 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. The senior unsecured credit facility requires that no less than 20 of our hotel properties remain unencumbered, as defined in the credit facility documentation, and also requires compliance with covenants customary among our industry peers. The $225 Million Revolver matures on October 10, 2017 and can be extended to October 10, 2018 at our option, subject to certain conditions. The $75 Million Term Loan matures on October 10, 2018. We pay interest on advances at varying rates, based upon, at our option, either (i) 1, 2, 3, or 6-month LIBOR, plus a LIBOR margin between 1.75% and 2.50%, depending upon our leverage ratio (as defined in the credit facility documentation), or (ii) the applicable base rate, which is the greatest of the administrative agent’s prime rate, the federal funds rate plus 0.50%, or 1-month LIBOR plus 1.00%, plus a base rate margin between 0.75% and 1.50%, depending upon our leverage ratio. Unused Fees are payable quarterly and are assessed at 0.30% per annum if the unused portion of the credit facility is equal to or greater than 50%, or 0.20% per annum if the unused portion of the credit facility is less than 50%. On December 27, 2013, we fully drew the $75 Million Term Loan. On September 5, 2013, we entered into an interest rate derivative with a notional value of $75.0 million that became effective on January 2, 2014 and matures on October 1, 2018. This interest rate derivative was designated a cash flow hedge and effectively fixes LIBOR at 2.04%. The interest rate on the $75 Million Term Loan was 3.94% at January 2, 2014. At December 31, 2015, 47 of our unencumbered hotel properties were included in the borrowing base for the senior unsecured credit facility, and are required to remain unencumbered. As a result, the maximum amount of borrowing permitted under the senior unsecured credit facility was $300.0 million, of which, we had $170.0 million borrowed and $130.0 million available to borrow. (c) 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. (d) The First Closing of the ARCH Sale included 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 were a part of the ARCH Sale, we modified the term loans to substitute certain existing collateral with properties that were 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 ten hotel properties encumbered by the Voya mortgage loans are cross-collateralized, and the four mortgage loans are cross-defaulted. (e) On January 25, 2013, we closed on a $29.4 million loan with a fixed rate of 4.46% and a maturity of February 1, 2023. This loan is secured by four of the Hyatt Place hotels we acquired in October 2012. These hotels are located in Chicago (Lombard), IL; Denver (Lone Tree), CO; Denver (Englewood), CO; and Dallas (Arlington), TX. This loan is subject to defeasance if prepaid. (f) On March 7, 2013, we closed on a $22.7 million loan with a fixed rate of 4.52% and a maturity of April 1, 2023. This loan is secured by three of the Hyatt hotels we acquired in October 2012. These hotels include a Hyatt House in Denver (Englewood), CO and Hyatt Place hotels in Baltimore (Owings Mills), MD and Scottsdale, AZ. This loan is subject to defeasance if prepaid. (g) On March 8, 2013, we closed on a $22.0 million loan with a fixed rate of 4.30% and a maturity of April 1, 2023. This loan is secured by the three Hyatt Place hotels we acquired in January 2013. These hotels are located in Chicago (Hoffman Estates), IL; Orlando (Convention), FL; and Orlando (Universal), FL. This loan is subject to defeasance if prepaid. (h) On July 22, 2013, we closed on a $38.7 million loan with a fixed rate of 4.95% and a maturity of August 1, 2023. This loan is secured by two Marriott hotels we acquired in May 2013. These hotels include a Fairfield Inn & Suites and SpringHill Suites in Louisville, KY. This loan is subject to defeasance if prepaid. (i) On May 16, 2012, we assumed a loan in our acquisition of the Hilton Garden Inn in Smyrna, TN. This loan is subject to defeasance if prepaid. (j) On June 21, 2012, we assumed a loan in our acquisition of the Hampton Inn & Suites in Smyrna, TN. This loan is subject to defeasance if prepaid. (k) On March 28, 2014, we amended the loans with GE Capital Financial, which are cross-collateralized by the Courtyard by Marriott and the SpringHill Suites by Marriott, both located in Scottsdale, AZ. The loans were amended to bear interest at a fixed rate of 5.39% and the maturity dates were extended to April 1, 2020. (l) On July 26, 2013, we closed on a $7.4 million loan with a fixed rate of 4.25% and a maturity of August 1, 2018. This loan is secured by the Hyatt Place in Atlanta, GA. This loan has a prepayment penalty of: (i) 3% until July 26, 2015, (ii) 2% until July 26, 2017, and (iii) 1% until February 1, 2018. (m) On December 19, 2014, we refinanced our loan with Bank of the Cascades and increased the amount financed by $7.9 million. As part of the refinance the loan was split into two notes. Note A carries a variable interest rate of 30-day LIBOR plus 200 basis points and Note B carries a fixed interest rate of 4.30%. Both notes have amortization periods of 25 years and maturity dates of December 19, 2024. The Bank of Cascades mortgage loans are cross-collateralized and cross-defaulted. (n) This loan is secured by the SpringHill Suites by Marriott and the Hampton Inn & Suites in Bloomington, MN. This loan is subject to defeasance if prepaid. (o) This loan was secured by the Courtyard by Marriott in Flagstaff, AZ and had a variable interest rate of 30-day LIBOR plus 350 basis points (3.67% at December 31, 2014). On October 11, 2012, we entered into an interest rate derivative that effectively converted 85% of this loan to a fixed rate. This loan was repaid and the interest rate swap was settled in 2015. There were no prepayment penalties incurred in this transaction. (p) On May 6, 2014, we closed on a $25.0 million loan with Compass Bank. The loan carries a variable rate of 30-day LIBOR plus 240 basis points, amortizes over 25 years, and has a May 6, 2020 maturity date. The loan is secured by first mortgage liens on the Hampton Inn & Suites hotels located in San Diego (Poway), CA, Ventura (Camarillo), CA and Fort Worth, TX. (q) On March 28, 2014, we amended two loans with General Electric Capital Corp., which are cross - collateralized by the Hilton Garden Inn (Lakeshore) and the Hilton Garden Inn (Liberty Park), both located in Birmingham, AL. Both loans were amended to bear interest at a fixed rate of 5.39% and the maturity dates were extended to April 1, 2020. (r) These loans are secured by the SpringHill Suites by Marriott in Denver, CO and the Double Tree in Baton Rouge, LA. These loans have a variable interest rate of 90-day LIBOR plus 350 basis points. On May 4, 2012, we entered into interest rate derivatives that effectively converted these loans to a fixed rate. These loans are cross-defaulted and cross-collateralized. In anticipation of the ARCH Sale these interest rate swaps were settled in 2015. Further, the loan secured by the Double Tree in Baton Rouge, LA was repaid in 2015. There were no prepayment penalties incurred in this transaction. (s) On December 20, 2012, we assumed a loan in our acquisition of the Residence Inn by Marriott in Salt Lake City, UT. This loan was repaid in 2015. There were no prepayment penalties incurred in this transaction. (t) On February 11, 2013, we assumed a loan in our acquisition (through a joint venture) of the Holiday Inn Express & Suites in San Francisco, CA. This loan had an interest rate of 6.20% and a maturity date of January 6, 2016. This loan was repaid in 2015. There were no prepayment penalties incurred in this transaction. (u) On May 21, 2013, we assumed a loan in our acquisition of the Holiday Inn Express & Suites in Minneapolis (Minnetonka), MN. This loan had an interest rate of 5.53% and a maturity date of October 1, 2015. This loan was repaid in 2015. There were no prepayment penalties incurred in this transaction. (v) On May 21, 2013, we assumed a loan in our acquisition of the Hilton Garden Inn in Minneapolis (Eden Prairie), MN. This loan had an interest rate of 5.57% and a maturity date of January 1, 2016. This loan was repaid in 2015. There were no prepayment penalties incurred in this transaction. (w) On January 9, 2014, as part of our acquisition of the 182-guestroom Hilton Garden Inn in Houston, TX, we assumed a $17.8 million mortgage loan with a fixed interest rate of 6.22%, an amortization period of 30 years, and a maturity date of November 1, 2016. (x) On January 10, 2014, as part of our acquisition of the 98-guestroom Hampton Inn in Santa Barbara (Goleta), CA, we assumed a $12.0 million mortgage loan with a fixed interest rate of 6.133%, an amortization period of 25 years, and a maturity date of November 11, 2021. (y) On March 14, 2014, as part of our acquisition of the 210-guestroom DoubleTree by Hilton in San Francisco, CA, we assumed a $13.3 million mortgage loan with a fixed interest rate of 5.98%, an amortization period of 30 years, and a maturity date of March 8, 2016. This loan was repaid in 2015. There were no prepayment penalties incurred in this transaction. |
Schedule of total fixed-rate and variable-rate debt, after giving effect to interest rate derivatives | Our total fixed-rate and variable-rate debt at December 31, 2015 and 2014, after giving effect to our interest rate derivatives, is as follows (in thousands): 2015 2014 Fixed-rate debt $ $ Variable-rate debt $ $ |
Schedule of principal payments for each of the next five years | Principal payments for each of the next five years are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter $ |
Schedule of the fair value of fixed-rate debt that is 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): 2015 2014 Carrying Value Fair Value Carrying Value Fair Value Valuation Technique Fixed-rate debt $ $ $ $ Level 2 - Market approach |
DERIVATIVE FINANCIAL INSTRUME31
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING | |
Schedule of derivative financial instruments | Information about our derivative financial instruments at December 31, 2015 and 2014 follows (dollar amounts in thousands): December 31, 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 location in financial statements of 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). 2015 2014 2013 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) $ ) $ ) $ ) Gain (loss) recognized in gain (loss) on derivative financial instruments (ineffective portion) $ ) $ ) $ |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE | |
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 December 31, 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: Interest rate swaps $ — $ $ — $ Liabilities: Interest rate swaps $ — $ $ — $ |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of future minimum rental payments for noncancelable operating leases with a remaining term in excess of one year | Future minimum rental payments for noncancelable operating leases with a remaining term in excess of one year are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter $ |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity-based compensation | |
Schedule of assumptions used to estimate fair value of stock options granted | 2011 Expected dividend yield % Expected stock price volatility % Risk-free interest rate % Expected life of options (in years) Weighted average estimated fair value of options at grant date per share $ |
Summary 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, 2013 $ Granted — — Exercised ) Forfeited — — Outstanding at December 31, 2014 Granted — — Exercised ) Forfeited — — Outstanding at December 31, 2015 $ $ Exercisable at December 31, 2015 $ $ |
Schedule of equity-based compensation expense | Equity-based compensation expense included in corporate general and administrative in the Consolidated Statements of Operations for 2015, 2014, and 2013 was (in thousands): 2015 2014 2013 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 pursuant to our Equity Plan was $4.1 million at December 31, 2015 as follows (in thousands): Total 2016 2017 2018 Stock options $ $ $ — $ — Time-based restricted stock Performance-based restricted stock — $ $ $ $ |
Restricted Stock Awards | Time-Based | |
Equity-based compensation | |
Summary of restricted stock activity | Number of Shares Weighted Average Grant Date Fair Value Aggregate Current Value (per share) (in thousands) Non-vested December 31, 2013 $ Granted Vested ) Forfeited ) Non-vested December 31, 2014 Granted Vested ) Non-vested December 31, 2015 $ $ |
Restricted Stock Awards | Performance-Based | |
Equity-based compensation | |
Schedule of assumptions used estimate fair value of performance-based restricted stock awards granted | 2015 2014 Expected dividend yield Expected stock price volatility Risk-free interest rate 0.06 - 0.60% Monte Carlo iterations Weighted average estimated fair value of performance-based restricted stock awards $ $ |
Summary of restricted stock activity | Number of Shares Weighted Average Grant Date Fair Value Aggregate Current Value (per share) (in thousands) Non-vested December 31, 2013 Granted Vested ) Forfeited — — Non-vested December 31, 2014 $ Granted Vested ) Forfeited ) Non-vested December 31, 2015 $ $ |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income taxes | |
Schedule of components of income tax expense and total provision (benefit) for TRS and Operating Partnership | The components of income tax expense for for the years ended December 31, 2015, 2014, and 2013 are as follows (in thousands): 2015 2014 2013 Current: Federal $ $ $ — State and local Deferred Federal ) — State and local ) Total provision $ $ $ Income tax expense (benefit) From continuing operations $ $ $ From discontinued operations — ) ) Total provision $ $ $ |
Schedule of significant components of deferred tax assets (liabilities) | Significant components of deferred tax assets (liabilities) are as follows (in thousands): 2015 2014 Tax carryforwards $ $ Investments ) ) Accrued expenses — Other ) Total Valuation Allowance — ) Net Deferred Tax Assets $ $ Gross Deferred Tax Assets $ $ Gross Deferred Tax Liabilities ) ) Valuation Allowance — ) Net Deferred Tax Assets $ $ |
TRS | |
Income taxes | |
Schedule of reconciliation of federal statutory rate to effective income tax rate for TRS | A reconciliation of the federal statutory rate to the effective income tax rate for the TRS follows (in thousands): 2015 2014 2013 Tax provision (benefit) at U.S. statutory rates on TRS income (loss) subject to tax $ $ $ ) State Income tax, net of federal income tax benefit ) Effect of permanent differences and other ) ) Increase (decrease) in valuation allowance ) ) TRS income tax expense $ $ $ |
TRS and Operating Partnership | |
Income taxes | |
Schedule of components of income tax expense and total provision (benefit) for TRS and Operating Partnership | 2015 2014 2013 Total provision (benefit) for TRS and Operating Partnership TRS Income Tax Expense $ $ $ Operating Partnership state income tax expense Total provision $ $ $ |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued operations, held for sale or sold | Hotel properties | |
Discontinued operations | |
Schedule of condensed results for hotel properties included in discontinued operations | Condensed results for the hotel properties included in discontinued operations follows (in thousands): 2014 2013 Revenues $ $ Hotel operating expenses Depreciation and amortization Loss on impairment of assets Operating income (loss) ) Interest expense — ) Gain on disposal of assets Income (loss) before taxes ) Income tax benefit Income (loss) from discontinued operations $ $ ) Income (loss) from discontinued operations attributable to non-controlling interest $ $ ) Income (loss) from discontinued operations attributable to common stockholders $ $ ) |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS (LOSS) PER SHARE | |
Summary of 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 amounts): 2015 2014 2013 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 common share - basic: Net income (loss) from continuing operations $ $ $ ) Net income (loss) from discontinued operations — ) Net income (loss) $ $ $ ) Earnings per common share - diluted: Net income (loss) from continuing operations $ $ $ ) Net income (loss) from discontinued operations — ) Net income (loss) $ $ $ ) |
SELECTED QUARTERLY FINANCIAL 38
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Schedule of selected consolidated quarterly financial data | Selected consolidated quarterly financial data for 2015 and 2014 follows (in thousands, except per share amounts): 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total revenues $ $ $ $ Income from continuing operations $ $ $ $ Net income $ $ $ $ Net income attributable to Summit Hotel Properties, Inc. $ $ $ $ Earnings per share - Basic: Net income per share from continuing operations $ $ $ $ Net income per share from discontinued operations — — — — Net income per share $ $ $ $ Earnings per share - Diluted: Net income per share from continuing operations $ $ $ $ Net income per share from discontinued operations — — — — Net income per share $ $ $ $ 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Total revenues $ $ $ $ Income from continuing operations $ $ $ $ Income (loss) from discontinued operations $ $ ) $ ) $ Net income $ $ $ $ Net income attributable to Summit Hotel Properties, Inc. $ $ $ $ Earnings per share: Basic and diluted net income (loss) per share from continuing operations $ ) $ $ ) $ Basic and diluted net income per share from discontinued operations — — — — Basic and diluted net income (loss) per share $ ) $ $ ) $ |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |
Schedule of assets held for sale | Hotel Location Guestrooms Aloft Jacksonville, FL Holiday Inn Express Vernon Hills, IL Courtyard by Marriott Jackson, MS Residence Inn Jackson, MS Courtyard by Marriott Germantown, TN Staybridge Suites Ridgeland, MS Homewood Suites Ridgeland, MS Courtyard by Marriott El Paso, TX Fairfield Inn & Suites Germantown, TN Residence Inn Germantown, TN |
Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | |
Schedule of assets held for sale | On February 11, 2016, the Company completed the sale of the following six hotels as part of the ARCH Sale: Hotel Location Guestrooms Fairfield Inn & Suites Denver, CO Fairfield Inn & Suites Bellevue, WA SpringHill Suites Denver, CO Hilton Garden Inn Fort Collins, CO Fairfield Inn & Suites Spokane, WA Hampton Inn Fort Collins, CO |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) | Dec. 31, 2015roomstateproperty |
Properties | |
Number of states in which hotel properties are located | state | 24 |
Hotels | |
Properties | |
Number of upscale and upper midscale hotel properties owned | property | 87 |
Number of guestrooms | room | 11,420 |
Operating Partnership | TRS Lessees | |
Properties | |
Ownership interest (as a percent) | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reportable Segment (Details) | 12 Months Ended |
Dec. 31, 2015segment | |
Segment Disclosure | |
Number of reportable segments | 1 |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives of Hotel Properties and Related Assets (Details 2) | 12 Months Ended |
Dec. 31, 2015 | |
Buildings and improvements | Minimum | |
INVESTMENT IN HOTEL PROPERTIES, NET | |
Estimated Useful Lives | 6 years |
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 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Allowance for Doubtful Accounts and Bad Debt Expense (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Trade Receivables and Credit Policies | |||
Allowance for Doubtful Accounts Receivable | $ 0.1 | $ 0.1 | |
Bad debt expense | $ 0.3 | $ 0.4 | $ 0.6 |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non-controlling Interest in Consolidated Joint Venture Expense (Details 4) | Mar. 31, 2014 |
Joint Venture | |
Non-controlling interests | |
Non-controlling interest held by joint venture partner (as a percent) | 19.00% |
INVESTMENT IN HOTEL PROPERTIE45
INVESTMENT IN HOTEL PROPERTIES - Investment in Hotel Properties, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment in Hotel Properties, net | |||
Investment in hotel properties at cost | $ 1,501,900 | $ 1,519,086 | |
Less accumulated depreciation | 168,493 | 179,671 | |
Investment in hotel properties, net | 1,333,407 | 1,339,415 | |
Depreciation expense | 63,700 | 63,300 | $ 48,900 |
Land | |||
Investment in Hotel Properties, net | |||
Investment in hotel properties at cost | 149,996 | 164,570 | |
Buildings and improvements | |||
Investment in Hotel Properties, net | |||
Investment in hotel properties at cost | 1,222,017 | 1,202,451 | |
Construction in progress | |||
Investment in Hotel Properties, net | |||
Investment in hotel properties at cost | 6,555 | 15,609 | |
Furniture, fixtures and equipment | |||
Investment in Hotel Properties, net | |||
Investment in hotel properties at cost | $ 123,332 | $ 136,456 |
INVESTMENT IN HOTEL PROPERTIE46
INVESTMENT IN HOTEL PROPERTIES - Assets Held for Sale (Details 2) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015USD ($)roomitem | Dec. 31, 2015USD ($)roomitem | Oct. 15, 2015USD ($)roomproperty | Jun. 02, 2015USD ($)roomcontractClosingproperty | Dec. 31, 2014USD ($) | |
Assets held for sale | |||||
Assets held for sale | $ | $ 133,138 | $ 133,138 | $ 300 | ||
Assets held for sale | Hotel properties and land parcels | |||||
Assets held for sale | |||||
Assets held for sale | $ | $ 133,138 | $ 133,138 | 300 | ||
Assets held for sale | Portfolio of Hotels, ARCH Agreements | |||||
Assets held for sale | |||||
Number of agreements | contract | 2 | ||||
Number of closings | Closing | 3 | ||||
Number of hotels | 16 | 16 | 26 | ||
Number of guestrooms | 1,703 | 1,703 | 2,793 | ||
Aggregate price | $ | $ 347,400 | ||||
Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | |||||
Assets held for sale | |||||
Number of guestrooms | 707 | 707 | |||
Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |||||
Assets held for sale | |||||
Number of guestrooms | 996 | 996 | |||
Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, October 15, 2015 closing | |||||
Assets held for sale | |||||
Number of hotels | property | 10 | ||||
Number of guestrooms | 1,090 | ||||
Aggregate price | $ | $ 150,100 | ||||
Gain on sale | $ | $ 66,600 | $ 66,600 | |||
Land | Assets held for sale | Hotel properties and land parcels | |||||
Assets held for sale | |||||
Assets held for sale | $ | 24,250 | 24,250 | $ 300 | ||
Buildings and improvements | Assets held for sale | Hotel properties and land parcels | |||||
Assets held for sale | |||||
Assets held for sale | $ | 97,249 | 97,249 | |||
Furniture, fixtures and equipment | Assets held for sale | Hotel properties and land parcels | |||||
Assets held for sale | |||||
Assets held for sale | $ | 10,906 | 10,906 | |||
Construction in progress | Assets held for sale | Hotel properties and land parcels | |||||
Assets held for sale | |||||
Assets held for sale | $ | 42 | 42 | |||
Franchise fees | Assets held for sale | Hotel properties and land parcels | |||||
Assets held for sale | |||||
Assets held for sale | $ | $ 691 | $ 691 | |||
Reverse and forward 1031 Exchanges | |||||
Assets held for sale | |||||
Number of hotels | property | 4 | ||||
Fairfield Inn and Suites | Denver, CO | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | |||||
Assets held for sale | |||||
Number of guestrooms | 160 | 160 | |||
Fairfield Inn and Suites | Bellevue, WA | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | |||||
Assets held for sale | |||||
Number of guestrooms | 144 | 144 | |||
Fairfield Inn and Suites | Spokane, WA | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | |||||
Assets held for sale | |||||
Number of guestrooms | 84 | 84 | |||
Fairfield Inn and Suites | Germantown, TN | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |||||
Assets held for sale | |||||
Number of guestrooms | 80 | 80 | |||
SpringHill Suites | Denver, CO | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | |||||
Assets held for sale | |||||
Number of guestrooms | 124 | 124 | |||
Hilton Garden Inn | Ft. Collins, CO | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | |||||
Assets held for sale | |||||
Number of guestrooms | 120 | 120 | |||
Hampton Inn | Ft. Collins, CO | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | |||||
Assets held for sale | |||||
Number of guestrooms | 75 | 75 | |||
Aloft | Jacksonville, FL | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |||||
Assets held for sale | |||||
Number of guestrooms | 136 | 136 | |||
Holiday Inn Express | Vernon Hills, IL | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |||||
Assets held for sale | |||||
Number of guestrooms | 119 | 119 | |||
Courtyard by Marriott | Jackson, MS | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |||||
Assets held for sale | |||||
Number of guestrooms | 117 | 117 | |||
Courtyard by Marriott | Germantown, TN | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |||||
Assets held for sale | |||||
Number of guestrooms | 93 | 93 | |||
Courtyard by Marriott | El Paso, TX | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |||||
Assets held for sale | |||||
Number of guestrooms | 90 | 90 | |||
Residence Inn | Jackson, MS | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |||||
Assets held for sale | |||||
Number of guestrooms | 100 | 100 | |||
Residence Inn | Germantown, TN | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |||||
Assets held for sale | |||||
Number of guestrooms | 78 | 78 | |||
Staybridge Suites | Ridgeland, MS | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |||||
Assets held for sale | |||||
Number of guestrooms | 92 | 92 | |||
Homewood Suites | Ridgeland, MS | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | |||||
Assets held for sale | |||||
Number of guestrooms | 91 | 91 |
INVESTMENT IN HOTEL PROPERTIE47
INVESTMENT IN HOTEL PROPERTIES - Hotel Property Acquisitions in 2015 and 2014 (Details 3) $ in Thousands | Oct. 20, 2015USD ($) | Jan. 10, 2014USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015shares | Oct. 15, 2015property |
Reverse and forward 1031 Exchanges | ||||||
Hotel property acquisitions | ||||||
Number of hotels | property | 4 | |||||
2015 acquisitions | ||||||
Hotel property acquisitions | ||||||
Purchase Price | $ 237,751 | |||||
2015 acquisitions | Hampton Inn and 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 | Baltimore (Hunt Valley), MD | ||||||
Hotel property acquisitions | ||||||
Purchase Price | 31,100 | |||||
2015 acquisitions | Hyatt House | Miami, FL | ||||||
Hotel property acquisitions | ||||||
Purchase Price | 39,000 | |||||
2015 acquisitions | Courtyard by Marriott | Atlanta (Decatur), GA | Reverse and forward 1031 Exchanges | ||||||
Hotel property acquisitions | ||||||
Purchase Price | $ 44,000 | $ 44,000 | ||||
2014 acquisitions | ||||||
Hotel property acquisitions | ||||||
Purchase Price | $ 214,710 | |||||
2014 acquisitions | Mortgage loans | ||||||
Hotel property acquisitions | ||||||
Debt Assumed | 43,172 | |||||
2014 acquisitions | Hampton Inn and 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 | |||||
2014 acquisitions | Hampton Inn | Santa Barbara (Goleta), CA | Mortgage loans | ||||||
Hotel property acquisitions | ||||||
Debt Assumed | 12,037 | |||||
2014 acquisitions | Hilton Garden Inn | Houston, TX | ||||||
Hotel property acquisitions | ||||||
Purchase Price | 37,500 | |||||
2014 acquisitions | Hilton Garden Inn | Houston, TX | Mortgage loans | ||||||
Hotel property acquisitions | ||||||
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 | San Francisco, CA | ||||||
Hotel property acquisitions | ||||||
Purchase Price | 21,250 | |||||
2014 acquisitions | DoubleTree by Hilton | San Francisco, CA | ||||||
Hotel property acquisitions | ||||||
Purchase Price | 39,060 | |||||
2014 acquisitions | DoubleTree by Hilton | San Francisco, CA | Mortgage loans | ||||||
Hotel property acquisitions | ||||||
Debt Assumed | $ 13,289 | |||||
Operating Partnership | Limited partner | ||||||
Hotel property acquisitions | ||||||
Common units redeemed (in units) | shares | 141,140 | |||||
Operating Partnership | 2014 acquisitions | Hampton Inn | Santa Barbara (Goleta), CA | Partnership interest | ||||||
Hotel property acquisitions | ||||||
Common units issued for acquisition (in units) | shares | 412,174 | |||||
Common units issued for acquisition | $ 3,700 |
INVESTMENT IN HOTEL PROPERTIE48
INVESTMENT IN HOTEL PROPERTIES - Hotel Property Acquisitions - Allocation of aggregate purchase price (Details 4) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
2015 acquisitions | ||
Allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired | ||
Land | $ 18,947 | |
Hotel buildings and improvements | 208,864 | |
Furniture, fixtures and equipment | 6,803 | |
Other assets | 7,072 | |
Total assets acquired | 241,686 | |
Less lease liability assumed | (3,250) | |
Less other liabilities | (577) | |
Net assets acquired | $ 237,859 | |
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 |
INVESTMENT IN HOTEL PROPERTIE49
INVESTMENT IN HOTEL PROPERTIES - Hotel Property Acquisitions - Revenue and Income (Details 5) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
2015 acquisitions | ||
Hotel property acquisitions | ||
Revenues | $ 22,811 | |
Net income | 3,317 | |
2014 acquisitions | ||
Hotel property acquisitions | ||
Revenues | 53,876 | $ 37,655 |
Net income | $ 7,927 | $ 4,977 |
INVESTMENT IN HOTEL PROPERTIE50
INVESTMENT IN HOTEL PROPERTIES - Hotel Property Acquisitions - Proforma Information (Details 6) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, October 15, 2015 closing | |||
Excluded from pro forma amounts | |||
Gain on sale | $ 66,600 | $ 66,600 | |
All 2014 and 2015 Acquisitions | |||
Pro forma financial information | |||
Revenues | 461,454 | $ 424,553 | |
Net income | 58,268 | 35,345 | |
Net income attributable to common stockholders, net of amount allocated to participating securities | $ 41,248 | $ 18,442 | |
Net income per share attributable to common stockholders: | |||
Basic (in dollars per share) | $ 0.48 | $ 0.22 | |
Diluted (in dollars per share) | $ 0.47 | $ 0.22 |
SUPPLEMENTAL BALANCE SHEET IN51
SUPPLEMENTAL BALANCE SHEET INFORMATION - Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted cash | ||
Restricted cash | $ 23,073 | $ 34,395 |
Property taxes | ||
Restricted cash | ||
Restricted cash | 2,758 | 2,600 |
Insurance | ||
Restricted cash | ||
Restricted cash | 322 | 508 |
Furniture, fixtures and equipment reserves | ||
Restricted cash | ||
Restricted cash | 18,997 | 30,301 |
Other funds in escrow | ||
Restricted cash | ||
Restricted cash | $ 996 | $ 986 |
SUPPLEMENTAL BALANCE SHEET IN52
SUPPLEMENTAL BALANCE SHEET INFORMATION - Prepaid Expenses and Other (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid expenses and other | ||
Earnest money and funds in escrow | $ 10,046 | $ 1,738 |
Prepaid insurance | 813 | 1,122 |
Other | 4,422 | 3,321 |
Prepaid expenses and other | $ 15,281 | $ 6,181 |
SUPPLEMENTAL BALANCE SHEET IN53
SUPPLEMENTAL BALANCE SHEET INFORMATION - Deferred Charges (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred charges | |||
Initial franchise fees | $ 4,760 | $ 6,435 | |
Deferred financing costs | 9,804 | 8,628 | |
Deferred charges, gross | 14,564 | 15,063 | |
Less accumulated amortization | 5,376 | 5,422 | |
Deferred charges, net | 9,188 | 9,641 | |
Amortization expense | |||
Initial franchise fees | 377 | 485 | $ 411 |
Deferred financing costs | 1,723 | 1,549 | 1,854 |
Amortization expense | 2,100 | 2,034 | $ 2,265 |
Future amortization expense | |||
2,016 | 2,056 | ||
2,017 | 1,747 | ||
2,018 | 1,255 | ||
2,019 | 757 | ||
2,020 | 647 | ||
Thereafter | 2,726 | ||
Deferred charges, net | $ 9,188 | $ 9,641 |
SUPPLEMENTAL BALANCE SHEET IN54
SUPPLEMENTAL BALANCE SHEET INFORMATION - Other Assets (Details 4) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)property | Dec. 31, 2014USD ($) | |
Other assets | ||
Prepaid land lease | $ 3,325 | $ 3,373 |
Notes receivable | 12,803 | 10,779 |
Acquired intangible assets | 6,122 | |
Total | $ 22,250 | $ 14,152 |
Assumed contractual arrangements | ||
Intangible assets | ||
Weighted average amortization period (in years) | 30 years 10 months 24 days | |
Expected amortization expenses: | ||
2,016 | $ 200 | |
2,017 | 200 | |
2,018 | 200 | |
2,019 | 200 | |
2,020 | $ 200 | |
Note funding obligation receivable | ||
Notes receivable | ||
Interest rate (as a percent) | 10.00% | 10.00% |
Note funding obligation | $ 10,000 | $ 10,000 |
Amount advanced | $ 10,000 | $ 7,400 |
Emporia, KS | Foreclosed property | ||
Notes receivable | ||
Number of hotels | property | 1 | |
Emporia, KS | Hotel properties | Assets held for sale, sold | ||
Notes receivable | ||
Number of hotels | property | 2 | |
Emporia, KS | Hotel properties | Other Assets | Payment default | Assets held for sale, sold | ||
Other assets | ||
Notes receivable | $ 2,700 |
SUPPLEMENTAL BALANCE SHEET IN55
SUPPLEMENTAL BALANCE SHEET INFORMATION - Accrued expenses and Other (Details 5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued expenses and other | ||
Accrued sales, property and income taxes | $ 12,901 | $ 13,346 |
Accrued salaries and benefits | 9,366 | 8,863 |
Accrued interest | 1,862 | 2,095 |
Acquired unfavorable leases | 4,907 | 1,722 |
Accrued expenses at hotels and other | 13,138 | 12,036 |
Total | $ 42,174 | $ 38,062 |
DEBT - Summary outstanding inde
DEBT - Summary outstanding indebtedness (Details) | Dec. 19, 2014 | May. 06, 2014 | Mar. 14, 2014 | Jan. 10, 2014 | Jan. 09, 2014 | Dec. 31, 2015USD ($)itemproperty | Dec. 31, 2014USD ($) | Jan. 02, 2014 | Oct. 10, 2013USD ($) | Jul. 22, 2013property | Mar. 08, 2013property | Mar. 07, 2013property | Jan. 25, 2013property |
Debt | |||||||||||||
Number of Properties Encumbered | item | 38 | ||||||||||||
Outstanding Principal Balance | $ 677,096,000 | $ 626,533,000 | |||||||||||
Senior Unsecured Credit Facility dated October 10, 2013 | |||||||||||||
Debt | |||||||||||||
Maximum borrowing capacity | 300,000,000 | ||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | |||||||||||||
Debt | |||||||||||||
Maximum borrowing capacity | 300,000,000 | $ 300,000,000 | |||||||||||
Outstanding Principal Balance | $ 170,000,000 | 200,000,000 | |||||||||||
Unsecured debt | KeyBank National Association Term Loan due April 7, 2022 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 2.38% | ||||||||||||
Outstanding Principal Balance | $ 140,000,000 | ||||||||||||
Unsecured debt | Revolving credit facility | Senior Unsecured Credit Facility dated October 10, 2013 | |||||||||||||
Debt | |||||||||||||
Maximum borrowing capacity | $ 225,000,000 | 225,000,000 | |||||||||||
Interest Rate (as a percent) | 2.33% | ||||||||||||
Outstanding Principal Balance | $ 95,000,000 | 125,000,000 | |||||||||||
Unsecured debt | Term loan | Senior Unsecured Credit Facility dated October 10, 2013 | |||||||||||||
Debt | |||||||||||||
Maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | |||||||||||
Interest Rate (as a percent) | 3.94% | 3.94% | |||||||||||
Outstanding Principal Balance | $ 75,000,000 | 75,000,000 | |||||||||||
Mortgage loans | |||||||||||||
Debt | |||||||||||||
Number of Properties Encumbered | property | 38 | ||||||||||||
Outstanding Principal Balance | $ 367,096,000 | $ 426,533,000 | |||||||||||
Mortgage loans | Voya (formerly known as ING Life Insurance and Annuity) 6.10% Fixed due March 1, 2019 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 6.10% | ||||||||||||
Amortization Period | 20 years | ||||||||||||
Outstanding Principal Balance | $ 62,327,000 | ||||||||||||
Mortgage loans | Voya (formerly known as ING Life Insurance and Annuity) 4.55% Fixed due March 1, 2019 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 4.55% | ||||||||||||
Amortization Period | 25 years | ||||||||||||
Outstanding Principal Balance | $ 32,995,000 | ||||||||||||
Mortgage loans | Voya (formerly known as ING Life Insurance and Annuity) 5.18% Fixed due March 1, 2019 One | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.18% | ||||||||||||
Amortization Period | 20 years | ||||||||||||
Number of Properties Encumbered | property | 2 | ||||||||||||
Outstanding Principal Balance | $ 42,574,000 | ||||||||||||
Mortgage loans | Voya (formerly known as ING Life Insurance and Annuity) 5.18% Fixed due March 1, 2019 Two | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.18% | ||||||||||||
Amortization Period | 20 years | ||||||||||||
Number of Properties Encumbered | property | 4 | ||||||||||||
Outstanding Principal Balance | $ 38,159,000 | ||||||||||||
Mortgage loans | Voya (formerly known as ING Life Insurance and Annuity) 5.18% Fixed due March 1, 2019 Three | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.18% | ||||||||||||
Amortization Period | 20 years | ||||||||||||
Number of Properties Encumbered | property | 3 | ||||||||||||
Outstanding Principal Balance | $ 24,610,000 | ||||||||||||
Mortgage loans | Voya (formerly known as ING Life Insurance and Annuity) 5.18% Fixed due March 1, 2019 Four | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.18% | ||||||||||||
Amortization Period | 20 years | ||||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 17,482,000 | ||||||||||||
Mortgage loans | KeyBank National Association 4.46% Fixed due February 1, 2023 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 4.46% | ||||||||||||
Amortization Period | 30 years | ||||||||||||
Number of Properties Encumbered | property | 4 | 4 | |||||||||||
Outstanding Principal Balance | $ 27,991,000 | 28,489,000 | |||||||||||
Mortgage loans | KeyBank National Association 4.52% Fixed due April 1, 2023 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 4.52% | ||||||||||||
Amortization Period | 30 years | ||||||||||||
Number of Properties Encumbered | property | 3 | 3 | |||||||||||
Outstanding Principal Balance | $ 21,683,000 | 22,061,000 | |||||||||||
Mortgage loans | KeyBank National Association 4.30% Fixed due April 1, 2023 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 4.30% | ||||||||||||
Amortization Period | 30 years | ||||||||||||
Number of Properties Encumbered | property | 3 | 3 | |||||||||||
Outstanding Principal Balance | $ 21,022,000 | 21,403,000 | |||||||||||
Mortgage loans | KeyBank National Association 4.95% Fixed due August 1, 2023 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 4.95% | ||||||||||||
Amortization Period | 30 years | ||||||||||||
Number of Properties Encumbered | property | 2 | 2 | |||||||||||
Outstanding Principal Balance | $ 37,352,000 | 37,939,000 | |||||||||||
Mortgage loans | Bank of America Commercial Mortgage 6.41% Fixed due September 1, 2017 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 6.41% | ||||||||||||
Amortization Period | 25 years | ||||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 7,916,000 | 8,157,000 | |||||||||||
Mortgage loans | Merrill Lynch Mortgage Lending Inc. 6.38% Fixed due August 1, 2016 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 6.38% | ||||||||||||
Amortization Period | 30 years | ||||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 5,047,000 | 5,151,000 | |||||||||||
Mortgage loans | GE Capital Financial Inc. 5.39% Fixed due April 1, 2020 one | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.39% | ||||||||||||
Amortization Period | 25 years | ||||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 9,110,000 | 9,300,000 | |||||||||||
Mortgage loans | GE Capital Financial Inc. 5.39% Fixed due April 1, 2020 two | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.39% | ||||||||||||
Amortization Period | 25 years | ||||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 4,905,000 | 5,007,000 | |||||||||||
Mortgage loans | MetaBank 4.25% Fixed due August 1, 2018 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 4.25% | ||||||||||||
Amortization Period | 20 years | ||||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 6,852,000 | 7,104,000 | |||||||||||
Mortgage loans | Bank Of Cascades Variable due December 19, 2024, Note A | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 2.43% | ||||||||||||
Amortization Period | 25 years | 25 years | |||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 9,556,000 | 9,800,000 | |||||||||||
Mortgage loans | Bank Of Cascades 4.30% Fixed due December 19, 2024, Note B | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 4.30% | ||||||||||||
Amortization Period | 25 years | 25 years | |||||||||||
Outstanding Principal Balance | $ 9,556,000 | 9,800,000 | |||||||||||
Mortgage loans | Goldman Sachs 5.67% Fixed due July 6, 2016 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.67% | ||||||||||||
Amortization Period | 25 years | ||||||||||||
Number of Properties Encumbered | property | 2 | ||||||||||||
Outstanding Principal Balance | $ 13,467,000 | $ 13,787,000 | |||||||||||
Mortgage loans | Compass Bank 4.57% Fixed due May 17, 2018 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 4.57% | ||||||||||||
Amortization Period | 20 years | ||||||||||||
Outstanding Principal Balance | $ 12,505,000 | ||||||||||||
Mortgage loans | Compass Bank Variable due May 6, 2020 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 2.83% | ||||||||||||
Amortization Period | 25 years | 25 years | |||||||||||
Number of Properties Encumbered | property | 3 | ||||||||||||
Outstanding Principal Balance | $ 24,015,000 | 24,637,000 | |||||||||||
Mortgage loans | General Electric Capital Corporation 5.39% Fixed due April 1, 2020, one | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.39% | ||||||||||||
Amortization Period | 25 years | ||||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 5,160,000 | 5,266,000 | |||||||||||
Mortgage loans | General Electric Capital Corporation 5.39% Fixed due April 1, 2020, two | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.39% | ||||||||||||
Amortization Period | 25 years | ||||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 6,041,000 | 6,167,000 | |||||||||||
Mortgage loans | General Electric Capital Corporation Variable due April 1, 2018 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 4.11% | ||||||||||||
Amortization Period | 20 years | ||||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 5,852,000 | $ 7,213,000 | |||||||||||
Mortgage loans | General Electric Capital Corporation 5.03% Fixed due March 1, 2019 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.03% | ||||||||||||
Amortization Period | 25 years | ||||||||||||
Outstanding Principal Balance | $ 9,775,000 | ||||||||||||
Mortgage loans | AIG 6.11% Fixed due January 1, 2016 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 6.11% | ||||||||||||
Amortization Period | 20 years | ||||||||||||
Outstanding Principal Balance | $ 12,938,000 | ||||||||||||
Mortgage loans | Greenwich Capital Financial Products, Inc. 6.20% Fixed due January 6, 2016 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 6.20% | ||||||||||||
Amortization Period | 30 years | ||||||||||||
Outstanding Principal Balance | $ 22,711,000 | ||||||||||||
Mortgage loans | Wells Fargo Bank National Association 5.53% Fixed due October 1, 2015 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.53% | ||||||||||||
Amortization Period | 25 years | ||||||||||||
Outstanding Principal Balance | $ 3,523,000 | ||||||||||||
Mortgage loans | Wells Fargo Bank National Association 5.57% due January 1, 2016 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.57% | ||||||||||||
Amortization Period | 25 years | ||||||||||||
Outstanding Principal Balance | $ 6,038,000 | ||||||||||||
Mortgage loans | U.S. Bank, NA 6.22% Fixed due November 1, 2016 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 6.22% | ||||||||||||
Amortization Period | 30 years | 30 years | |||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 17,179,000 | 17,536,000 | |||||||||||
Mortgage loans | U.S. Bank, NA 6.13% Fixed due November 11, 2021 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 6.13% | ||||||||||||
Amortization Period | 25 years | 25 years | |||||||||||
Number of Properties Encumbered | property | 1 | ||||||||||||
Outstanding Principal Balance | $ 11,567,000 | $ 11,819,000 | |||||||||||
Mortgage loans | U.S. Bank, NA 5.98% Fixed due March 8, 2016 | |||||||||||||
Debt | |||||||||||||
Interest Rate (as a percent) | 5.98% | ||||||||||||
Amortization Period | 30 years | 30 years | |||||||||||
Outstanding Principal Balance | $ 13,085,000 |
DEBT - Information about Credit
DEBT - Information about Credit Facilities, 2015 Term Loan and Mortgage Term Loans (Details 2) | Sep. 24, 2015USD ($)loanproperty | Sep. 23, 2015USD ($)loan | Apr. 21, 2015USD ($) | Apr. 07, 2015USD ($) | Dec. 19, 2014USD ($)loan | May. 06, 2014USD ($) | Mar. 28, 2014loan | Mar. 14, 2014USD ($)room | Jan. 10, 2014USD ($)room | Jan. 09, 2014USD ($)room | Jan. 02, 2014USD ($) | Dec. 27, 2013USD ($) | Jul. 26, 2013USD ($) | Dec. 31, 2015USD ($)roomitemproperty | Dec. 31, 2014USD ($) | Jun. 02, 2015roomproperty | Oct. 10, 2013USD ($) | Oct. 09, 2013USD ($) | Jul. 22, 2013USD ($)property | Mar. 08, 2013USD ($)property | Mar. 07, 2013USD ($)property | Jan. 25, 2013USD ($)property | Oct. 11, 2012 |
Debt | |||||||||||||||||||||||
Number of hotel properties securing debt | item | 38 | ||||||||||||||||||||||
Portfolio of Hotels, ARCH Agreements | Assets held for sale | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Number of guestrooms | room | 1,703 | 2,793 | |||||||||||||||||||||
Designated as hedges | Interest rate swaps | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Notional value of derivative | $ 75,000,000 | $ 75,000,000 | $ 103,002,000 | ||||||||||||||||||||
LIBOR | Interest rate swaps | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Derivative fixed rate (as a percent) | 2.04% | ||||||||||||||||||||||
Senior Unsecured Credit Facility dated October 10, 2013 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Maximum borrowing capacity | $ 300,000,000 | ||||||||||||||||||||||
Senior Unsecured Credit Facility dated October 10, 2013 | Term loan | LIBOR | Interest rate swaps | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | LIBOR | ||||||||||||||||||||||
GE Capital Financial Inc. 5.39% Fixed due April 1, 2020 two | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Fixed interest rate (as a percent) | 5.39% | ||||||||||||||||||||||
General Electric Capital Corporation Variable due April 1, 2018 | LIBOR | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | 90-day LIBOR | ||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 3.50% | ||||||||||||||||||||||
Secured debt | $150.0 million Senior Secured Revolving Credit Facility | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Maximum borrowing capacity | $ 150,000,000 | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | |||||||||||||||||||||
Maximum increase in borrowing capacity available through accordion feature option | 100,000,000 | ||||||||||||||||||||||
Unused fees payable, if unused portion of credit facility is equal to or greater than 50% (as a percent) | 0.30% | ||||||||||||||||||||||
Unused fees payable, if unused portion of credit facility is less than 50% (as a percent) | 0.20% | ||||||||||||||||||||||
Threshold for determining unused fees payable (as a percent) | 50.00% | ||||||||||||||||||||||
Number of unencumbered hotel properties | property | 47 | ||||||||||||||||||||||
Line of credit current permitted borrowing capacity | $ 300,000,000 | ||||||||||||||||||||||
Line of credit outstanding | 170,000,000 | ||||||||||||||||||||||
Amount available for borrowing | $ 130,000,000 | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | Minimum | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Number of hotel properties to remain unencumbered | property | 20 | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | Revolving credit facility | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Maximum borrowing capacity | $ 225,000,000 | 225,000,000 | |||||||||||||||||||||
Effective interest rate (as a percent) | 2.33% | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | Term loan | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | |||||||||||||||||||||
Amount drawn | $ 75,000,000 | ||||||||||||||||||||||
Effective interest rate (as a percent) | 3.94% | 3.94% | |||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | LIBOR advances | LIBOR | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | 1, 2, 3, or 6-month LIBOR | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | LIBOR advances | LIBOR | Minimum | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 1.75% | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | LIBOR advances | LIBOR | Maximum | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 2.50% | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | Base rate advances | LIBOR | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | 1-month LIBOR | ||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 1.00% | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | Base rate advances | Base rate | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | base rate | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | Base rate advances | Base rate | Minimum | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 0.75% | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | Base rate advances | Base rate | Maximum | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 1.50% | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | Base rate advances | Prime rate | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | prime rate | ||||||||||||||||||||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | Base rate advances | Federal funds rate | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | federal funds rate | ||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 0.50% | ||||||||||||||||||||||
Unsecured debt | KeyBank National Association Term Loan due April 7, 2022 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Amount drawn | $ 15,000,000 | $ 125,000,000 | |||||||||||||||||||||
Effective interest rate (as a percent) | 2.38% | ||||||||||||||||||||||
Loan amount | $ 140,000,000 | 125,000,000 | |||||||||||||||||||||
Accordion feature increase to total commitment | $ 75,000,000 | ||||||||||||||||||||||
Mortgage loans | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Number of hotel properties securing debt | property | 38 | ||||||||||||||||||||||
Mortgage loans | 2014 acquisitions | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Debt Assumed | $ 43,172,000 | ||||||||||||||||||||||
Mortgage loans | Voya (formerly known as ING Life Insurance and Annuity) term loans | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Number of unencumbered hotel properties | property | 10 | ||||||||||||||||||||||
Number of loans | loan | 4 | 2 | |||||||||||||||||||||
Debt outstanding | $ 123,400,000 | $ 93,400,000 | |||||||||||||||||||||
Fixed interest rate (as a percent) | 5.18% | ||||||||||||||||||||||
Mortgage loans | Voya (formerly known as ING Life Insurance and Annuity) term loans | Portfolio of Hotels, ARCH Agreements, October 15, 2015 closing | Assets held for sale | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Number of hotel properties securing debt | property | 8 | ||||||||||||||||||||||
Mortgage loans | KeyBank National Association 4.46% Fixed due February 1, 2023 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 4.46% | ||||||||||||||||||||||
Loan amount | $ 29,400,000 | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 4 | 4 | |||||||||||||||||||||
Amortization Period | 30 years | ||||||||||||||||||||||
Fixed interest rate (as a percent) | 4.46% | ||||||||||||||||||||||
Mortgage loans | KeyBank National Association 4.52% Fixed due April 1, 2023 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 4.52% | ||||||||||||||||||||||
Loan amount | $ 22,700,000 | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 3 | 3 | |||||||||||||||||||||
Amortization Period | 30 years | ||||||||||||||||||||||
Fixed interest rate (as a percent) | 4.52% | ||||||||||||||||||||||
Mortgage loans | KeyBank National Association 4.30% Fixed due April 1, 2023 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 4.30% | ||||||||||||||||||||||
Loan amount | $ 22,000,000 | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 3 | 3 | |||||||||||||||||||||
Amortization Period | 30 years | ||||||||||||||||||||||
Fixed interest rate (as a percent) | 4.30% | ||||||||||||||||||||||
Mortgage loans | KeyBank National Association 4.95% Fixed due August 1, 2023 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 4.95% | ||||||||||||||||||||||
Loan amount | $ 38,700,000 | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 2 | 2 | |||||||||||||||||||||
Amortization Period | 30 years | ||||||||||||||||||||||
Fixed interest rate (as a percent) | 4.95% | ||||||||||||||||||||||
Mortgage loans | GE Capital Financial Inc. 5.39% Fixed due April 1, 2020 one | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 5.39% | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 1 | ||||||||||||||||||||||
Amortization Period | 25 years | ||||||||||||||||||||||
Fixed interest rate (as a percent) | 5.39% | ||||||||||||||||||||||
Mortgage loans | GE Capital Financial Inc. 5.39% Fixed due April 1, 2020 two | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 5.39% | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 1 | ||||||||||||||||||||||
Amortization Period | 25 years | ||||||||||||||||||||||
Mortgage loans | MetaBank 4.25% Fixed due August 1, 2018 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 4.25% | ||||||||||||||||||||||
Loan amount | $ 7,400,000 | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 1 | ||||||||||||||||||||||
Amortization Period | 20 years | ||||||||||||||||||||||
Fixed interest rate (as a percent) | 4.25% | ||||||||||||||||||||||
Mortgage loans | MetaBank 4.25% Fixed due August 1, 2018 | Prepayment penalty period until July 26, 2015 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Prepayment penalties (as a percent) | 3.00% | ||||||||||||||||||||||
Mortgage loans | MetaBank 4.25% Fixed due August 1, 2018 | Prepayment penalty period after July 26, 2015 until July 26 2017 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Prepayment penalties (as a percent) | 2.00% | ||||||||||||||||||||||
Mortgage loans | MetaBank 4.25% Fixed due August 1, 2018 | Prepayment penalty period after July 26, 2017 until February 1, 2018 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Prepayment penalties (as a percent) | 1.00% | ||||||||||||||||||||||
Mortgage loans | Bank of Cascades loan(s) | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Number of loans | loan | 2 | ||||||||||||||||||||||
Loan increase | $ 7,900,000 | ||||||||||||||||||||||
Mortgage loans | Bank Of Cascades Variable due December 19, 2024, Note A | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 2.43% | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 1 | ||||||||||||||||||||||
Amortization Period | 25 years | 25 years | |||||||||||||||||||||
Mortgage loans | Bank Of Cascades Variable due December 19, 2024, Note A | LIBOR | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | 30-day LIBOR | ||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 2.00% | ||||||||||||||||||||||
Mortgage loans | Bank Of Cascades 4.30% Fixed due December 19, 2024, Note B | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 4.30% | ||||||||||||||||||||||
Amortization Period | 25 years | 25 years | |||||||||||||||||||||
Fixed interest rate (as a percent) | 4.30% | ||||||||||||||||||||||
Mortgage loans | Compass Bank 4.57% Fixed due May 17, 2018 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 4.57% | ||||||||||||||||||||||
Variable rate debt converted to fixed rate debt (as a percent) | 85.00% | ||||||||||||||||||||||
Prepayment penalties | $ 0 | ||||||||||||||||||||||
Amortization Period | 20 years | ||||||||||||||||||||||
Mortgage loans | Compass Bank 4.57% Fixed due May 17, 2018 | LIBOR | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | 30-day LIBOR | ||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 3.50% | ||||||||||||||||||||||
Variable interest rate (as a percent) | 3.67% | ||||||||||||||||||||||
Mortgage loans | Compass Bank Variable due May 6, 2020 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 2.83% | ||||||||||||||||||||||
Loan amount | $ 25,000,000 | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 3 | ||||||||||||||||||||||
Amortization Period | 25 years | 25 years | |||||||||||||||||||||
Mortgage loans | Compass Bank Variable due May 6, 2020 | LIBOR | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | 30-day LIBOR | ||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 2.40% | ||||||||||||||||||||||
Mortgage loans | Mortgage Loans with General Electric Capital Corporation | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Number of loans | loan | 2 | ||||||||||||||||||||||
Mortgage loans | General Electric Capital Corporation 5.39% Fixed due April 1, 2020, one | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 5.39% | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 1 | ||||||||||||||||||||||
Amortization Period | 25 years | ||||||||||||||||||||||
Fixed interest rate (as a percent) | 5.39% | ||||||||||||||||||||||
Mortgage loans | General Electric Capital Corporation 5.39% Fixed due April 1, 2020, two | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 5.39% | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 1 | ||||||||||||||||||||||
Amortization Period | 25 years | ||||||||||||||||||||||
Fixed interest rate (as a percent) | 5.39% | ||||||||||||||||||||||
Mortgage loans | General Electric Capital Corporation Variable due April 1, 2018 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 4.11% | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 1 | ||||||||||||||||||||||
Amortization Period | 20 years | ||||||||||||||||||||||
Mortgage loans | General Electric Capital Corporation Variable due April 1, 2018 | LIBOR | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | 90-day LIBOR | ||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 3.50% | ||||||||||||||||||||||
Mortgage loans | General Electric Capital Corporation 5.03% Fixed due March 1, 2019 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 5.03% | ||||||||||||||||||||||
Prepayment penalties | $ 0 | ||||||||||||||||||||||
Amortization Period | 25 years | ||||||||||||||||||||||
Mortgage loans | General Electric Capital Corporation 5.03% Fixed due March 1, 2019 | LIBOR | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Variable rate basis | 90-day LIBOR | ||||||||||||||||||||||
Interest rate margin on variable rate basis (as a percent) | 0.035% | ||||||||||||||||||||||
Mortgage loans | AIG 6.11% Fixed due January 1, 2016 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 6.11% | ||||||||||||||||||||||
Prepayment penalties | $ 0 | ||||||||||||||||||||||
Amortization Period | 20 years | ||||||||||||||||||||||
Mortgage loans | Greenwich Capital Financial Products, Inc. 6.20% Fixed due January 6, 2016 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 6.20% | ||||||||||||||||||||||
Prepayment penalties | 0 | ||||||||||||||||||||||
Amortization Period | 30 years | ||||||||||||||||||||||
Fixed interest rate (as a percent) | 6.20% | ||||||||||||||||||||||
Mortgage loans | Wells Fargo Bank National Association 5.53% Fixed due October 1, 2015 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 5.53% | ||||||||||||||||||||||
Prepayment penalties | 0 | ||||||||||||||||||||||
Amortization Period | 25 years | ||||||||||||||||||||||
Fixed interest rate (as a percent) | 5.53% | ||||||||||||||||||||||
Mortgage loans | Wells Fargo Bank National Association 5.57% due January 1, 2016 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 5.57% | ||||||||||||||||||||||
Prepayment penalties | $ 0 | ||||||||||||||||||||||
Amortization Period | 25 years | ||||||||||||||||||||||
Fixed interest rate (as a percent) | 5.57% | ||||||||||||||||||||||
Mortgage loans | U.S. Bank, NA 6.22% Fixed due November 1, 2016 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 6.22% | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 1 | ||||||||||||||||||||||
Amortization Period | 30 years | 30 years | |||||||||||||||||||||
Fixed interest rate (as a percent) | 6.22% | ||||||||||||||||||||||
Mortgage loans | U.S. Bank, NA 6.13% Fixed due November 11, 2021 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 6.13% | ||||||||||||||||||||||
Number of hotel properties securing debt | property | 1 | ||||||||||||||||||||||
Amortization Period | 25 years | 25 years | |||||||||||||||||||||
Fixed interest rate (as a percent) | 6.133% | ||||||||||||||||||||||
Mortgage loans | U.S. Bank, NA 5.98% Fixed due March 8, 2016 | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Effective interest rate (as a percent) | 5.98% | ||||||||||||||||||||||
Prepayment penalties | $ 0 | ||||||||||||||||||||||
Amortization Period | 30 years | 30 years | |||||||||||||||||||||
Fixed interest rate (as a percent) | 5.98% | ||||||||||||||||||||||
Houston, TX | Hilton Garden Inn | 2014 acquisitions | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Number of guestrooms | room | 182 | ||||||||||||||||||||||
Houston, TX | Mortgage loans | Hilton Garden Inn | 2014 acquisitions | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Debt Assumed | $ 17,846,000 | ||||||||||||||||||||||
Houston, TX | Mortgage loans | U.S. Bank, NA 6.22% Fixed due November 1, 2016 | Hilton Garden Inn | 2014 acquisitions | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Debt Assumed | $ 17,800,000 | ||||||||||||||||||||||
Santa Barbara (Goleta), CA | Hampton Inn | 2014 acquisitions | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Number of guestrooms | room | 98 | ||||||||||||||||||||||
Santa Barbara (Goleta), CA | Mortgage loans | Hampton Inn | 2014 acquisitions | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Debt Assumed | 12,037,000 | ||||||||||||||||||||||
Santa Barbara (Goleta), CA | Mortgage loans | U.S. Bank, NA 6.13% Fixed due November 11, 2021 | Hampton Inn | 2014 acquisitions | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Debt Assumed | $ 12,000,000 | ||||||||||||||||||||||
San Francisco, CA | DoubleTree by Hilton | 2014 acquisitions | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Number of guestrooms | room | 210 | ||||||||||||||||||||||
San Francisco, CA | Mortgage loans | DoubleTree by Hilton | 2014 acquisitions | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Debt Assumed | $ 13,289,000 | ||||||||||||||||||||||
San Francisco, CA | Mortgage loans | U.S. Bank, NA 5.98% Fixed due March 8, 2016 | DoubleTree by Hilton | 2014 acquisitions | |||||||||||||||||||||||
Debt | |||||||||||||||||||||||
Debt Assumed | $ 13,300,000 |
DEBT - Fixed-Rate and Variable-
DEBT - Fixed-Rate and Variable-Rate Debt, after Giving Effect to Interest Rate Derivatives (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
DEBT | ||
Fixed-rate debt | $ 402,673 | $ 465,220 |
Variable-rate debt | 274,423 | 161,313 |
Total | $ 677,096 | $ 626,533 |
DEBT - Principal Payments for E
DEBT - Principal Payments for Each of the Next Five Years and Weighted Average Interest Rate (Details 4) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Principal payments for each of the next five years | ||
2,015 | $ 44,193 | |
2,016 | 111,275 | |
2,017 | 94,408 | |
2,018 | 8,568 | |
2,019 | 51,870 | |
Thereafter | 366,782 | |
Long-term Debt | $ 677,096 | $ 626,533 |
All borrowings | ||
Weighted average interest rate for all borrowings (as a percent) | 3.90% | 4.35% |
DEBT - Fair Value of Fixed-Rate
DEBT - Fair Value of Fixed-Rate Debt not Recorded at Fair Value (Details 5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Interest rate swaps | ||
Debt | ||
Variable rate debt converted to fixed rate debt | $ 75,000 | $ 102,600 |
Carrying value | Fixed-rate debt | ||
Debt | ||
Debt | 327,673 | 362,602 |
Fair Value | Level 2 | Fixed-rate debt | ||
Debt | ||
Debt | $ 321,841 | $ 349,517 |
DERIVATIVE FINANCIAL INSTRUME61
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING - Early Settlement of Interest Rate Swaps and Information about Derivative Financial Instruments Outstanding (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2015instrumentproperty | Dec. 31, 2015USD ($)instrument | Oct. 15, 2015property | Dec. 31, 2014USD ($)instrument | Jan. 02, 2014USD ($) | |
Derivative financial instruments and hedging | |||||
Maximum length of time over which instruments are hedged | 6 years | ||||
Fair Value | |||||
Derivative asset | $ 66 | ||||
Derivative liability | $ (1,811) | $ (1,957) | |||
Interest rate swaps | |||||
Derivative financial instruments and hedging | |||||
Number of derivative instruments for which early settlement was executed | instrument | 3 | ||||
Derivatives in a liability position | |||||
Termination value of derivative agreements in a liability position | $ 1,900 | ||||
Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, October 15, 2015 closing | |||||
Derivative financial instruments and hedging | |||||
Number of hotel properties that secured mortgage loans repaid | property | 2 | ||||
Number of hotels | property | 10 | ||||
Designated as hedges | Interest rate swaps | |||||
Number of Instruments | |||||
Asset | instrument | 3 | ||||
Liability | instrument | 1 | 1 | |||
Total | instrument | 1 | 4 | |||
Notional Amount | |||||
Assets | $ 28,002 | ||||
Liability | $ 75,000 | 75,000 | |||
Total | 75,000 | 103,002 | $ 75,000 | ||
Fair Value | |||||
Derivative asset | 66 | ||||
Derivative liability | (1,811) | (1,957) | |||
Derivative asset (liability), net | $ 1,811 | $ 1,891 |
DERIVATIVE FINANCIAL INSTRUME62
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING - Gain or Loss Recognized (Details 2) - Interest rate swaps - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative instruments, gain (loss) recognized | |||
Estimated reclassification from other comprehensive income as an increase to interest expense in 2016 | $ 1,000 | ||
Cash flow hedges | |||
Derivative instruments, gain (loss) recognized | |||
Loss recognized in accumulated other comprehensive income on derivative financial instruments (effective portion) | (1,846) | $ (2,112) | $ (1,240) |
Gain (loss) recognized in gain (loss) on derivative financial instruments (ineffective portion) | (1) | (1) | 2 |
Cash flow hedges | Interest expense | |||
Derivative instruments, gain (loss) recognized | |||
Loss reclassified from accumulated other comprehensive income to interest expense (effective portion) | $ (1,927) | $ (1,741) | $ (359) |
EQUITY - Common Stock and Prefe
EQUITY - Common Stock and Preferred Stock (Details) | Apr. 24, 2015shares | Mar. 03, 2015shares | Jan. 01, 2015shares | May. 28, 2014shares | Dec. 31, 2015Vote$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013shares |
Equity | |||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Number of votes a share of outstanding common stock is entitled | Vote | 1 | ||||||
Shares reserved for issuance | 14,691,018 | 9,669,896 | |||||
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 | $ 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 | ||||||
Preferred stock, dividend rate (as a percent) | 9.25% | 9.25% | |||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 25 | $ 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 | $ 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 | $ 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 | 268,947 | 438,631 | 4,414,950 | ||||
Stock issued, net on cashless exercise (in shares) | 411,239 | 321,269 | 327,806 | ||||
Common Stock | Restricted Stock Awards | |||||||
Equity | |||||||
Restricted stock, shares withheld to cover employee tax obligations | 36,385 | 12,588 | |||||
Common Stock | Stock options | |||||||
Equity | |||||||
Stock issued, net on cashless exercise (in shares) | 99,738 | 4,253 | |||||
Common Stock | Executive officers and employees | |||||||
Equity | |||||||
Stock issued (in shares) | 16,930 | 303,915 | 278,916 | ||||
Stock forfeited (in shares) | 1,756 | ||||||
Common Stock | Outside directors | |||||||
Equity | |||||||
Stock issued in lieu of cash for director fees (in shares) | 6,246 | 7,539 | |||||
Stock issued (in shares) | 30,440 | 32,317 | |||||
Performance-Based | Restricted Stock Awards | |||||||
Equity | |||||||
Vested (in shares) | 184,666 | 45,551 | 0 | ||||
Forfeited (in shares) | 46,030 | ||||||
Performance-Based | Management | Restricted Stock Awards | |||||||
Equity | |||||||
Vested (in shares) | 128,185 | ||||||
Forfeited (in shares) | 46,030 |
EQUITY - Non-controlling Intere
EQUITY - Non-controlling Interests and Other Joint Venture Interests (Details 2) $ in Thousands | Jun. 30, 2014USD ($) | Dec. 31, 2015shares | Dec. 31, 2014USD ($)shares | Mar. 31, 2014 |
Non-controlling Interests and Other Joint Venture Interests | ||||
Remaining non-controlling interest acquired | $ 8,232 | |||
Operating Partnership | Unaffiliated third parties | ||||
Non-controlling Interests and Other Joint Venture Interests | ||||
Conversion ratio of limited partner common units into common stock | 1 | |||
Number of common units of operating partnership owned by unaffiliated third parties | shares | 516,021 | 784,968 | ||
Percentage of limited partnership interest in operating partnership | 1.00% | 1.00% | ||
Joint Venture | ||||
Non-controlling Interests and Other Joint Venture Interests | ||||
Non-controlling interest held by joint venture partner (as a percent) | 19.00% | |||
Remaining non-controlling interest acquired | $ 8,200 | |||
Non-controlling Interests | Joint Venture | ||||
Non-controlling Interests and Other Joint Venture Interests | ||||
Ownership interest (as a percent) | 81.00% | |||
Non-controlling interest held by joint venture partner (as a percent) | 19.00% |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Derivative asset | $ 66 | |
Liabilities: | ||
Derivative Liability | $ 1,811 | 1,957 |
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 | Interest rate swaps | ||
Assets: | ||
Derivative asset | 66 | |
Liabilities: | ||
Derivative Liability | 1,811 | 1,957 |
Recurring basis | Level 2 | Interest rate swaps | ||
Assets: | ||
Derivative asset | 66 | |
Liabilities: | ||
Derivative Liability | $ 1,811 | $ 1,957 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Ground Leases and Future Minimum Rental Payments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Optionproperty | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Ground Leases | |||
Prepaid rent | $ 3,325 | $ 3,373 | |
Future minimum rental payments for noncancelable operating leases with a remaining term in excess of one year | |||
2,016 | 1,241 | ||
2,017 | 1,247 | ||
2,018 | 1,138 | ||
2,019 | 1,129 | ||
2,020 | 1,198 | ||
Thereafter | 106,928 | ||
Total | 112,881 | ||
Ground operating leases | |||
Ground Leases | |||
Total rent expense | $ 1,200 | 1,100 | $ 500 |
Ground operating leases | Duluth, GA | |||
Ground Leases | |||
Number of hotel properties for which land is leased | property | 1 | ||
Ground operating leases | Portland, OR | |||
Ground Leases | |||
Number of hotel properties for which land is leased | property | 2 | ||
Prepaid rent | $ 3,300 | $ 3,400 | |
Number of options to extend lease | Option | 1 | ||
Lease renewal period | 14 years | ||
Ground operating leases | Houston (Galleria Area), TX | |||
Ground Leases | |||
Number of hotel properties for which land is leased | property | 1 | ||
Number of options to extend lease | Option | 1 | ||
Lease renewal period | 10 years | ||
Ground operating leases | Austin, TX | |||
Ground Leases | |||
Number of hotel properties for which land is leased | property | 1 | ||
Ground operating leases | Baltimore (Hunt Valley), MD | |||
Ground Leases | |||
Number of hotel properties for which land is leased | property | 1 | ||
Number of options to extend lease | Option | 12 | ||
Lease renewal period | 5 years | ||
Ground operating leases | Garden City, NY | |||
Ground Leases | |||
Number of hotel properties for which land is leased | property | 1 |
COMMITMENTS AND CONTINGENCIES67
COMMITMENTS AND CONTINGENCIES - Franchise Agreements and Management Agreements (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Franchise Agreements | |||
Commitments and contingencies | |||
Fees related to the agreement | $ 37.8 | $ 33.6 | $ 27.7 |
Franchise Agreements | Minimum | |||
Commitments and contingencies | |||
Agreement term | 10 years | ||
Franchise fees received by each franchisor as a percentage of each hotel property's gross revenue | 2.00% | ||
Franchise Agreements | Maximum | |||
Commitments and contingencies | |||
Agreement term | 20 years | ||
Franchise fees received by each franchisor as a percentage of each hotel property's gross revenue | 6.00% | ||
Marketing fees payable as a percentage of gross revenue | 4.00% | ||
Deposits required under the agreement as a percentage of the hotel property's gross revenue, into a reserve fund for capital expenditures | 5.00% | ||
Management Agreements | |||
Commitments and contingencies | |||
Fees related to the agreement | $ 18.6 | $ 16.1 | $ 13.5 |
Management Agreements | Minimum | |||
Commitments and contingencies | |||
Agreement term | 3 years | ||
Management Agreements | Maximum | |||
Commitments and contingencies | |||
Agreement term | 25 years |
EQUITY-BASED COMPENSATION - Ame
EQUITY-BASED COMPENSATION - Amended and Restated Equity Plan (Details) - Stock options | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Equity-based compensation | |
Term of award | 5 years |
Maximum | |
Equity-based compensation | |
Term of award | 10 years |
EQUITY-BASED COMPENSATION - Sto
EQUITY-BASED COMPENSATION - Stock Options Granted under Equity Plan (Details 2) - Stock options - USD ($) $ / shares in Units, $ in Thousands | Feb. 14, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
Equity-based compensation | |||||
Granted (in shares) | 940,000 | ||||
Exercise price of options granted (in dollars per share) | $ 9.75 | ||||
Vesting period | 5 years | ||||
Assumptions used to estimate the fair value of options granted | |||||
Expected dividend yield (as a percent) | 5.09% | ||||
Expected stock price volatility (as a percent) | 56.60% | ||||
Risk-free interest rate (as a percent) | 2.57% | ||||
Expected life of options | 6 years 6 months | ||||
Weighted average estimated fair value of options at grant date per share (in dollars per share) | $ 3.48 | ||||
Number of Options | |||||
Outstanding at the beginning of year (in shares) | 846,000 | 893,000 | |||
Exercised (in shares) | (376,000) | (47,000) | |||
Outstanding at end of year (in shares) | 470,000 | 846,000 | 893,000 | ||
Exercisable at end of year (in shares) | 376,000 | ||||
Weighted Average Exercise Price | |||||
Outstanding at beginning of year (in dollars per share) | $ 9.75 | $ 9.75 | |||
Exercised (in dollars per share) | 9.75 | 9.75 | |||
Outstanding at end of year (in dollars per share) | 9.75 | $ 9.75 | $ 9.75 | ||
Exercisable at end of year (in dollars per share) | $ 9.75 | ||||
Weighted Average Remaining Contractual Terms | |||||
Outstanding | 5 years 2 months 12 days | ||||
Exercisable | 5 years 2 months 12 days | ||||
Aggregate Intrinsic Value (Current Value Less Exercise Price) | |||||
Outstanding | $ 1,034 | $ 2,300 | $ 0 | ||
Exercisable | 827 | 1,400 | |||
Stock options | |||||
Total fair value of options vested | $ 900 | $ 700 | $ 600 |
EQUITY-BASED COMPENSATION - Tim
EQUITY-BASED COMPENSATION - Time-Based Restricted Stock Awards (Details 3) - Restricted Stock Awards - Time-Based - USD ($) $ / shares in Units, $ in Thousands | Apr. 24, 2015 | Mar. 03, 2015 | May. 28, 2014 | Mar. 01, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Number of Shares | |||||||
Non-vested at the beginning of year (in shares) | 181,116 | 161,587 | |||||
Granted (in shares) | 166,340 | 116,981 | |||||
Vested (in shares) | (97,445) | (95,696) | |||||
Forfeited (in shares) | (1,756) | ||||||
Non-vested at end of year (in shares) | 250,011 | 181,116 | 161,587 | ||||
Weighted Average Grant Date Fair Value | |||||||
Non-vested at beginning of year (in dollars per share) | $ 9.81 | $ 9.10 | |||||
Granted (in dollars per share) | 13.53 | 9.82 | |||||
Vested (in dollars per share) | 10.46 | 8.63 | |||||
Forfeited (in dollars per share) | 9.82 | ||||||
Non-vested at end of year (in dollars per share) | $ 12.03 | $ 9.81 | $ 9.10 | ||||
Aggregate Current Value | |||||||
Non-vested outstanding | $ 2,988 | ||||||
Total fair value of awards vested | $ 1,000 | $ 800 | $ 200 | ||||
Executive officers and management | |||||||
Equity-based compensation | |||||||
Vesting period | 3 years | 3 years | |||||
Number of Shares | |||||||
Granted (in shares) | 149,410 | 116,981 | |||||
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% | 25.00% | 25.00% | ||||
Executive officers and management | Period two | |||||||
Equity-based compensation | |||||||
Vesting percentage | 25.00% | 25.00% | 25.00% | ||||
Executive officers and management | Period three | |||||||
Equity-based compensation | |||||||
Vesting percentage | 50.00% | 50.00% | 50.00% | ||||
Executive officers | |||||||
Equity-based compensation | |||||||
Vesting period | 3 years | 3 years | |||||
Number of Shares | |||||||
Granted (in shares) | 16,930 | 106,518 |
EQUITY-BASED COMPENSATION - Per
EQUITY-BASED COMPENSATION - Performance-Based Restricted Stock Awards (Details 4) - Restricted Stock Awards - Performance-Based $ / shares in Units, $ in Thousands | Mar. 03, 2015shares | Jan. 01, 2015$ / sharesshares | May. 28, 2014shares | Mar. 01, 2013shares | Dec. 31, 2015USD ($)item$ / sharesshares | Dec. 31, 2014item$ / sharesshares | Dec. 31, 2013$ / sharesshares | May. 28, 2014 |
Assumptions used to estimate the fair value of options granted | ||||||||
Expected dividend yield (as a percent) | 3.42% | 4.48% | ||||||
Expected stock price volatility (as a percent) | 22.20% | 27.90% | ||||||
Risk-free interest rate (as a percent) | 1.02% | |||||||
Risk-free interest rate, minimum (as a percent) | 0.06% | |||||||
Risk-free interest rate, maximum (as a percent) | 0.60% | |||||||
Monte Carlo iterations | item | 100,000 | 100,000 | ||||||
Weighted average estimated fair value of awards granted | $ / shares | $ 18.78 | $ 7.12 | ||||||
Number of Shares | ||||||||
Non-vested at the beginning of year (in shares) | 384,558 | 384,558 | 268,174 | |||||
Granted (in shares) | 154,505 | 161,935 | ||||||
Vested (in shares) | (184,666) | (45,551) | 0 | |||||
Forfeited (in shares) | (46,030) | |||||||
Non-vested at end of year (in shares) | 308,367 | 384,558 | 268,174 | |||||
Weighted Average Grant Date Fair Value | ||||||||
Non-vested at beginning of year (in dollars per share) | $ / shares | $ 6.75 | $ 6.75 | $ 6.48 | |||||
Granted (in dollars per share) | $ / shares | 18.78 | 7.12 | ||||||
Vested (in dollars per share) | $ / shares | 6.86 | 6.50 | ||||||
Forfeited (in dollars per share) | $ / shares | 5.10 | |||||||
Non-vested at end of year (in dollars per share) | $ / shares | $ 12.95 | $ 6.75 | $ 6.48 | |||||
Aggregate Current Value | ||||||||
Non-vested outstanding | $ | $ 3,685 | |||||||
Executive officers | ||||||||
Equity-based compensation | ||||||||
Vesting period | 3 years | 3 years | ||||||
Number of Shares | ||||||||
Granted (in shares) | 154,505 | 161,935 | 185,572 | |||||
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% | |||||||
Executive officers | Period one | ||||||||
Equity-based compensation | ||||||||
Designated performance period to measure performance based on which share based awards vests | 1 year | 1 year | ||||||
Executive officers | Period two | ||||||||
Equity-based compensation | ||||||||
Designated performance period to measure performance based on which share based awards vests | 2 years | |||||||
Executive officers | Period three | ||||||||
Equity-based compensation | ||||||||
Designated performance period to measure performance based on which share based awards vests | 3 years | |||||||
Management | ||||||||
Number of Shares | ||||||||
Vested (in shares) | (128,185) | |||||||
Forfeited (in shares) | (46,030) |
EQUITY-BASED COMPENSATION - Dir
EQUITY-BASED COMPENSATION - Director Stock Awards (Details 5) - Common Stock - Outside directors - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equity-based compensation | ||
Grant of stock (in shares) | 30,440 | 32,317 |
Stock issued in lieu of cash for director fees (in shares) | 6,246 | 7,539 |
EQUITY-BASED COMPENSATION - Equ
EQUITY-BASED COMPENSATION - Equity-Based Compensation Expense (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unrecognized compensation expense | |||
Unrecognized compensation costs related to non-vested awards | $ 4,131 | ||
Compensation expense to be recognized | |||
2,016 | 2,196 | ||
2,017 | 1,823 | ||
2,018 | 112 | ||
Stock options | |||
Unrecognized compensation expense | |||
Unrecognized compensation costs related to non-vested awards | 55 | ||
Compensation expense to be recognized | |||
2,016 | 55 | ||
Restricted Stock Awards | Time-Based | |||
Unrecognized compensation expense | |||
Unrecognized compensation costs related to non-vested awards | 1,919 | ||
Compensation expense to be recognized | |||
2,016 | 1,008 | ||
2,017 | 799 | ||
2,018 | 112 | ||
Restricted Stock Awards | Performance-Based | |||
Unrecognized compensation expense | |||
Unrecognized compensation costs related to non-vested awards | 2,157 | ||
Compensation expense to be recognized | |||
2,016 | 1,133 | ||
2,017 | 1,024 | ||
Corporate general and administrative | |||
Equity-based compensation expense | |||
Share based compensation expense | 4,753 | $ 3,524 | $ 2,124 |
Corporate general and administrative | Stock options | |||
Equity-based compensation expense | |||
Share based compensation expense | 633 | 675 | 622 |
Corporate general and administrative | Restricted Stock Awards | Time-Based | |||
Equity-based compensation expense | |||
Share based compensation expense | 1,691 | 960 | 611 |
Corporate general and administrative | Restricted Stock Awards | Performance-Based | |||
Equity-based compensation expense | |||
Share based compensation expense | 1,957 | 1,483 | 548 |
Corporate general and administrative | Stock compensation | Outside directors | |||
Equity-based compensation expense | |||
Share based compensation expense | $ 472 | $ 406 | $ 343 |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
BENEFIT PLANS | |||
Employer contribution expense | $ 0.2 | $ 0.2 | $ 0.1 |
LOSS ON IMPAIRMENT OF ASSETS (D
LOSS ON IMPAIRMENT OF ASSETS (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)aproperty | Dec. 31, 2013USD ($) | |
Properties | |||
Loss on impairment of assets | $ 1,115 | $ 8,847 | $ 1,369 |
Land | San Antonio, TX, Ft. Myers, Fl, and Flagstaff, AZ | |||
Properties | |||
Impairment of assets | $ 1,100 | ||
Discontinued operations, held for sale | Hampton Inn | Hotel properties | Fort Smith, AR | |||
Properties | |||
Discontinued operations, loss on impairment of assets | 400 | ||
Assets held for sale, sold | Hotel properties and land parcels | San Antonio, TX | |||
Properties | |||
Loss on impairment of assets | $ 8,200 | ||
Assets held for sale, sold | Land parcels | San Antonio, TX | |||
Properties | |||
Number of properties | property | 3 | ||
Area of land parcel | a | 5.64 | ||
Assets held for sale | Land parcels | Spokane, WA | |||
Properties | |||
Loss on impairment of assets | $ 700 | ||
Discontinued operations, held for sale or sold | Hotel properties | |||
Properties | |||
Discontinued operations, loss on impairment of assets | $ 400 | 7,675 | |
Assets held for sale or sold | Land parcels | |||
Properties | |||
Loss on impairment of assets | $ 1,400 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 81 | $ 133 | |
State and local | 408 | 712 | $ 408 |
Deferred: | |||
Federal | (159) | 3,352 | |
State and local | 223 | (127) | 597 |
Total provision (benefit) | 553 | 718 | 4,357 |
Income tax expense (benefit) | |||
From continuing operations | 553 | 744 | 4,894 |
From discontinued operations | (26) | (537) | |
Total provision (benefit) | $ 553 | $ 718 | $ 4,357 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Tax Rate for TRS and Total Provision for TRS and Operating Partnership (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of the federal statutory rate to the effective income tax rate for the TRSs | |||
Income tax expense (benefit) | $ 553 | $ 744 | $ 4,894 |
Income Tax Expense (Benefit), Combined Operating Partnership And TRSs Abstract | |||
Total provision | 553 | 718 | 4,357 |
TRS | |||
Reconciliation of the federal statutory rate to the effective income tax rate for the TRSs | |||
Tax provision (benefit) at U.S. statutory rates on TRSs income (loss) subject to tax | 2,345 | 2,024 | (809) |
State income tax, net of federal income tax benefit | 486 | 77 | (120) |
Effect of permanent differences and other | (161) | 727 | (152) |
Increase (decrease) in valuation allowance | (2,448) | (2,580) | 5,029 |
Income tax expense (benefit) | 222 | 248 | 3,948 |
Income Tax Expense (Benefit), Combined Operating Partnership And TRSs Abstract | |||
Total provision | 222 | 248 | 3,948 |
Operating Partnership | State | |||
Income Tax Expense (Benefit), Combined Operating Partnership And TRSs Abstract | |||
Total provision | $ 331 | $ 470 | $ 409 |
INCOME TAXES - Significant Comp
INCOME TAXES - Significant Components of Deferred Tax Assets (Liabilities) (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Significant components of the Company's deferred tax assets and liabilities | ||
Tax carryforwards | $ 1,481 | $ 3,187 |
Investments | (1,349) | (1,298) |
Accrued expenses | 580 | |
Other | (20) | |
Other | 155 | |
Total | 112 | 2,624 |
Valuation allowance | (2,448) | |
Net Deferred Tax Assets | 112 | 176 |
Net Deferred Tax Assets | ||
Gross Deferred Tax Assets | 1,515 | 3,943 |
Gross Deferred Tax Liabilities | (1,403) | (1,319) |
Valuation allowance | (2,448) | |
Net Deferred Tax Assets | $ 112 | $ 176 |
INCOME TAXES - Net Operating Lo
INCOME TAXES - Net Operating Loss Carryforwards and Unrecognized Tax Benefits (Details 4) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Income taxes | ||
Valuation allowance | $ 2,448,000 | |
Unrecognized tax benefits | $ 0 | |
State | ||
Income taxes | ||
Operating loss carryforwards | 2,900,000 | |
U.S. Federal | ||
Income taxes | ||
Operating loss carryforwards | 3,200,000 | |
U.S. Federal | Minimum tax credit carryforwards | ||
Income taxes | ||
Tax credit amount | $ 200,000 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued operations | ||||||
Income tax benefit | $ 26 | $ 537 | ||||
Income (loss) from discontinued operations | $ 214 | $ (59) | $ (41) | $ 378 | 492 | (728) |
Income (loss) from discontinued operations attributable to common stockholders | 486 | (703) | ||||
Discontinued operations, held for sale or sold | Hotel properties | ||||||
Discontinued operations | ||||||
Revenues | 3,128 | 19,458 | ||||
Hotel operating expenses | 2,304 | 14,859 | ||||
Depreciation and amortization | 13 | 1,960 | ||||
Loss on impairment of assets | 400 | 7,675 | ||||
Operating income (loss) | 411 | (5,036) | ||||
Interest expense | (174) | |||||
Gain on disposal of assets | 55 | 3,945 | ||||
Income (loss) before taxes | 466 | (1,265) | ||||
Income tax benefit | 26 | 537 | ||||
Income (loss) from discontinued operations | 492 | (728) | ||||
Income (loss) from discontinued operations attributable to non-controlling interest | 6 | (25) | ||||
Income (loss) from discontinued operations attributable to common stockholders | $ 486 | $ (703) |
EARNINGS PER SHARE - Anti-Dilut
EARNINGS PER SHARE - Anti-Dilutive Stock Options (Details) - shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 893,000 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Components Used to Calculate Basic and Diluted (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||||||||||
Income from continuing operations | $ 84,758 | $ 13,606 | $ 16,301 | $ 10,591 | $ 4,517 | $ 3,766 | $ 9,201 | $ 2,947 | $ 125,256 | $ 20,431 | $ 6,625 |
Less: Preferred dividends | 16,588 | 16,588 | 14,590 | ||||||||
Allocation to participating securities | 118 | 94 | 73 | ||||||||
Attributable to non-controlling interest | 819 | 46 | 44 | ||||||||
Income (loss) from continuing operations attributable to common stockholders | 107,731 | 3,703 | (8,082) | ||||||||
Income (loss) from discontinued operations attributable to common stockholders | 486 | (703) | |||||||||
Net income (loss) attributable to common stockholders, net of amount allocated to participating securities | $ 107,731 | $ 4,189 | $ (8,785) | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding - basic | 85,920 | 85,242 | 70,327 | ||||||||
Dilutive effect of equity-based compensation awards (in shares) | 1,224 | 324 | |||||||||
Weighted average common shares outstanding - diluted | 87,144 | 85,566 | 70,327 | ||||||||
Earnings per common share - basic: | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | $ 0.93 | $ 0.11 | $ 0.14 | $ 0.07 | $ 1.25 | $ 0.04 | $ (0.11) | ||||
Net income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.01) | |||||||||
Net income (loss) (in dollars per share) | 0.93 | 0.11 | 0.14 | 0.07 | 1.25 | 0.05 | (0.12) | ||||
Earnings per common share - diluted: | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | 0.92 | 0.11 | 0.14 | 0.07 | 1.24 | 0.04 | (0.11) | ||||
Net income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.01) | |||||||||
Net income (loss) (in dollars per share) | $ 0.92 | $ 0.11 | $ 0.14 | $ 0.07 | $ 1.24 | $ 0.05 | $ (0.12) |
SELECTED QUARTERLY FINANCIAL 83
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||
Total revenues | $ 110,039 | $ 125,091 | $ 120,677 | $ 107,648 | $ 99,141 | $ 109,256 | $ 105,525 | $ 89,544 | $ 463,455 | $ 403,466 | $ 298,958 |
Income from continuing operations | 84,758 | 13,606 | 16,301 | 10,591 | 4,517 | 3,766 | 9,201 | 2,947 | 125,256 | 20,431 | 6,625 |
Income (loss) from discontinued operations | 214 | (59) | (41) | 378 | 492 | (728) | |||||
Net income | 84,758 | 13,606 | 16,301 | 10,591 | 4,731 | 3,707 | 9,160 | 3,325 | 125,256 | 20,923 | 5,897 |
Net income attributable to Summit Hotel Properties, Inc. | $ 84,159 | $ 13,540 | $ 16,204 | $ 10,534 | $ 4,725 | $ 3,713 | $ 8,975 | $ 3,458 | $ 124,437 | $ 20,871 | $ 5,878 |
Earnings (loss) per share - Basic: | |||||||||||
Net income per share from continuing operations (in dollars per share) | $ 0.93 | $ 0.11 | $ 0.14 | $ 0.07 | $ 1.25 | $ 0.04 | $ (0.11) | ||||
Net income per share from discontinued operations (in dollars per share) | 0.01 | (0.01) | |||||||||
Net income per share (in dollars per share) | 0.93 | 0.11 | 0.14 | 0.07 | 1.25 | 0.05 | (0.12) | ||||
Earnings (loss) per share - Diluted | |||||||||||
Net income per share from continuing operations (in dollars per share) | 0.92 | 0.11 | 0.14 | 0.07 | 1.24 | 0.04 | (0.11) | ||||
Net income per share from discontinued operations (in dollars per share) | 0.01 | (0.01) | |||||||||
Net income per share (in dollars per share) | $ 0.92 | $ 0.11 | $ 0.14 | $ 0.07 | $ 1.24 | $ 0.05 | $ (0.12) | ||||
Earnings per share - Basic and diluted: | |||||||||||
Basic and diluted net income (loss) per share from continuing operations (in dollars per share) | $ 0.01 | $ (0.01) | $ 0.06 | $ (0.01) | |||||||
Basic and diluted net income (loss) per share (in dollars per share) | $ 0.01 | $ (0.01) | $ 0.06 | $ (0.01) |
SUBSEQUENT EVENTS - Equity Tran
SUBSEQUENT EVENTS - Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 29, 2016 | Jan. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent events | |||||
Dividend paid | $ 57,602 | $ 56,550 | $ 47,594 | ||
Restricted Stock Awards | Performance-Based | |||||
Subsequent events | |||||
Vested (in shares) | 184,666 | 45,551 | 0 | ||
9.25% Series A Preferred Stock | |||||
Subsequent events | |||||
Preferred stock, dividend rate (as a percent) | 9.25% | 9.25% | |||
7.875% Series B Preferred Stock | |||||
Subsequent events | |||||
Preferred stock, dividend rate (as a percent) | 7.875% | 7.875% | |||
7.125% Series C Preferred Stock | |||||
Subsequent events | |||||
Preferred stock, dividend rate (as a percent) | 7.125% | 7.125% | |||
Common Stock | |||||
Subsequent events | |||||
Common stock redemption of common units (in shares) | 268,947 | 438,631 | 4,414,950 | ||
Subsequent events | |||||
Subsequent events | |||||
Dividend paid | $ 100 | ||||
Cash dividends declared, common stock (in dollars per share) | $ 0.1175 | ||||
Subsequent events | Restricted Stock Awards | Performance-Based | |||||
Subsequent events | |||||
Vested (in shares) | 113,903 | ||||
Subsequent events | 9.25% Series A Preferred Stock | |||||
Subsequent events | |||||
Cash dividends declared, preferred stock (in dollars per share) | 0.578125 | ||||
Subsequent events | 7.875% Series B Preferred Stock | |||||
Subsequent events | |||||
Cash dividends declared, preferred stock (in dollars per share) | 0.4921875 | ||||
Subsequent events | 7.125% Series C Preferred Stock | |||||
Subsequent events | |||||
Cash dividends declared, preferred stock (in dollars per share) | $ 0.4453125 | ||||
Subsequent events | Common Stock | |||||
Subsequent events | |||||
Common stock redemption of common units (in shares) | 31,042 |
SUBSEQUENT EVENTS - Debt Transa
SUBSEQUENT EVENTS - Debt Transactions (Details 2) | Feb. 19, 2016property | Jan. 15, 2016USD ($)property | Jan. 02, 2014USD ($) | Dec. 31, 2015USD ($)property | Dec. 31, 2014USD ($) | Oct. 10, 2013USD ($) |
Interest rate swaps | Designated as hedges | ||||||
Subsequent events | ||||||
Notional value of derivative | $ 75,000,000 | $ 75,000,000 | $ 103,002,000 | |||
LIBOR | Interest rate swaps | ||||||
Subsequent events | ||||||
Derivative fixed rate (as a percent) | 2.04% | |||||
Senior Unsecured Credit Facility dated October 10, 2013 | ||||||
Subsequent events | ||||||
Maximum borrowing capacity | 300,000,000 | |||||
Term loan | Senior Unsecured Credit Facility dated October 10, 2013 | LIBOR | Interest rate swaps | ||||||
Subsequent events | ||||||
Variable rate basis | LIBOR | |||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | ||||||
Subsequent events | ||||||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | ||||
Maximum increase in borrowing capacity available through accordion feature option | 100,000,000 | |||||
Unused fees payable, if unused portion of credit facility is equal to or greater than 50% (as a percent) | 0.30% | |||||
Unused fees payable, if unused portion of credit facility is less than 50% (as a percent) | 0.20% | |||||
Threshold for determining unused fees payable (as a percent) | 50.00% | |||||
Number of Real Estate Properties Unencumbered | property | 47 | |||||
Number of unencumbered hotel properties | property | 47 | |||||
Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | Minimum | ||||||
Subsequent events | ||||||
Number of hotel properties to remain unencumbered | property | 20 | |||||
Unsecured debt | Revolving credit facility | Senior Unsecured Credit Facility dated October 10, 2013 | ||||||
Subsequent events | ||||||
Maximum borrowing capacity | $ 225,000,000 | 225,000,000 | ||||
Effective interest rate (as a percent) | 2.33% | |||||
Unsecured debt | Term loan | Senior Unsecured Credit Facility dated October 10, 2013 | ||||||
Subsequent events | ||||||
Maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | ||||
Effective interest rate (as a percent) | 3.94% | 3.94% | ||||
Unsecured debt | LIBOR advances | Senior Unsecured Credit Facility dated October 10, 2013 | LIBOR | ||||||
Subsequent events | ||||||
Variable rate basis | 1, 2, 3, or 6-month LIBOR | |||||
Unsecured debt | LIBOR advances | Senior Unsecured Credit Facility dated October 10, 2013 | LIBOR | Minimum | ||||||
Subsequent events | ||||||
Interest rate margin on variable rate basis (as a percent) | 1.75% | |||||
Unsecured debt | LIBOR advances | Senior Unsecured Credit Facility dated October 10, 2013 | LIBOR | Maximum | ||||||
Subsequent events | ||||||
Interest rate margin on variable rate basis (as a percent) | 2.50% | |||||
Unsecured debt | Base rate advances | Senior Unsecured Credit Facility dated October 10, 2013 | LIBOR | ||||||
Subsequent events | ||||||
Variable rate basis | 1-month LIBOR | |||||
Interest rate margin on variable rate basis (as a percent) | 1.00% | |||||
Unsecured debt | Base rate advances | Senior Unsecured Credit Facility dated October 10, 2013 | Prime rate | ||||||
Subsequent events | ||||||
Variable rate basis | prime rate | |||||
Unsecured debt | Base rate advances | Senior Unsecured Credit Facility dated October 10, 2013 | Federal funds rate | ||||||
Subsequent events | ||||||
Variable rate basis | federal funds rate | |||||
Interest rate margin on variable rate basis (as a percent) | 0.50% | |||||
Unsecured debt | Base rate advances | Senior Unsecured Credit Facility dated October 10, 2013 | Base rate | ||||||
Subsequent events | ||||||
Variable rate basis | base rate | |||||
Unsecured debt | Base rate advances | Senior Unsecured Credit Facility dated October 10, 2013 | Base rate | Minimum | ||||||
Subsequent events | ||||||
Interest rate margin on variable rate basis (as a percent) | 0.75% | |||||
Unsecured debt | Base rate advances | Senior Unsecured Credit Facility dated October 10, 2013 | Base rate | Maximum | ||||||
Subsequent events | ||||||
Interest rate margin on variable rate basis (as a percent) | 1.50% | |||||
Subsequent events | Unsecured debt | 2016 Unsecured Credit Facility | ||||||
Subsequent events | ||||||
Maximum increase in borrowing capacity available through accordion feature option | $ 150,000,000 | |||||
Multiplying factor on unencumbered assets | 60.00% | |||||
Percent on net operating income of unencumbered assets | 50.00% | |||||
Number of hotel properties to remain unencumbered | property | 42 | |||||
Unused fees payable, if unused portion of credit facility is equal to or greater than 50% (as a percent) | 0.25% | |||||
Unused fees payable, if unused portion of credit facility is less than 50% (as a percent) | 0.20% | |||||
Threshold for determining unused fees payable (as a percent) | 50.00% | |||||
Number of Real Estate Properties Unencumbered | property | 42 | |||||
Number of unencumbered hotel properties | property | 42 | |||||
Outstanding principal balance transferred to new credit facility | $ 170,000,000 | |||||
Subsequent events | Unsecured debt | 2016 Unsecured Credit Facility | Minimum | ||||||
Subsequent events | ||||||
Number of hotel properties to remain unencumbered | property | 20 | |||||
Subsequent events | Unsecured debt | Senior Unsecured Credit Facility dated October 10, 2013 | ||||||
Subsequent events | ||||||
Principal balance paid off with transfer to new credit facility | $ 170,000,000 | |||||
Subsequent events | Unsecured debt | Revolving credit facility | 2016 Unsecured Credit Facility | ||||||
Subsequent events | ||||||
Maximum borrowing capacity | 300,000,000 | |||||
Subsequent events | Unsecured debt | Term loan | ||||||
Subsequent events | ||||||
Maximum borrowing capacity | 150,000,000 | |||||
Subsequent events | Unsecured debt | Term loan | 2016 Unsecured Credit Facility | ||||||
Subsequent events | ||||||
Maximum borrowing capacity | $ 150,000,000 | |||||
Reduction from revolving credit advance margin for tem loan margin (as a percent) | 0.05% | |||||
Subsequent events | Unsecured debt | Term loan | 2016 Unsecured Credit Facility | Interest rate swaps | ||||||
Subsequent events | ||||||
Effective interest rate (as a percent) | 3.64% | |||||
Subsequent events | Unsecured debt | Term loan | 2016 Unsecured Credit Facility | Base rate | Maximum | ||||||
Subsequent events | ||||||
Interest rate margin on variable rate basis (as a percent) | 1.25% | |||||
Subsequent events | Unsecured debt | LIBOR advances | 2016 Unsecured Credit Facility | LIBOR | ||||||
Subsequent events | ||||||
Variable rate basis | 1, 2, 3, or 6-month LIBOR | |||||
Subsequent events | Unsecured debt | LIBOR advances | 2016 Unsecured Credit Facility | LIBOR | Minimum | ||||||
Subsequent events | ||||||
Interest rate margin on variable rate basis (as a percent) | 1.50% | |||||
Subsequent events | Unsecured debt | LIBOR advances | 2016 Unsecured Credit Facility | LIBOR | Maximum | ||||||
Subsequent events | ||||||
Interest rate margin on variable rate basis (as a percent) | 2.25% | |||||
Subsequent events | Unsecured debt | Base rate advances | 2016 Unsecured Credit Facility | LIBOR | ||||||
Subsequent events | ||||||
Variable rate basis | 1-month LIBOR | |||||
Interest rate margin on variable rate basis (as a percent) | 1.00% | |||||
Subsequent events | Unsecured debt | Base rate advances | 2016 Unsecured Credit Facility | Prime rate | ||||||
Subsequent events | ||||||
Variable rate basis | prime rate | |||||
Subsequent events | Unsecured debt | Base rate advances | 2016 Unsecured Credit Facility | Federal funds rate | ||||||
Subsequent events | ||||||
Variable rate basis | federal funds | |||||
Interest rate margin on variable rate basis (as a percent) | 0.50% | |||||
Subsequent events | Unsecured debt | Base rate advances | 2016 Unsecured Credit Facility | Base rate | ||||||
Subsequent events | ||||||
Variable rate basis | base rate | |||||
Subsequent events | Unsecured debt | Base rate advances | 2016 Unsecured Credit Facility | Base rate | Minimum | ||||||
Subsequent events | ||||||
Interest rate margin on variable rate basis (as a percent) | 0.50% | |||||
Operating Partnership | Subsequent events | Unsecured debt | 2016 Unsecured Credit Facility | ||||||
Subsequent events | ||||||
Maximum borrowing capacity | $ 450,000,000 |
SUBSEQUENT EVENTS - Acquisition
SUBSEQUENT EVENTS - Acquisitions and Dispositions (Details 3) $ in Thousands | Feb. 11, 2016USD ($)roominstallmentitemproperty | Jan. 20, 2016USD ($)room | Jan. 19, 2016USD ($)room | Dec. 29, 2015USD ($)roomproperty | Oct. 20, 2015USD ($)room | Dec. 31, 2015USD ($)roomitem | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Oct. 15, 2015USD ($)roomproperty | Jun. 02, 2015USD ($)roomproperty |
Subsequent events | ||||||||||
Proceeds from sale of hotels | $ | $ 150,054 | $ 19,280 | $ 52,850 | |||||||
Unsecured debt | 2016 Unsecured Credit Facility | ||||||||||
Subsequent events | ||||||||||
Pay-down of credit facility | $ | $ 105,000 | |||||||||
Mortgage loans | ||||||||||
Subsequent events | ||||||||||
Mortgage loan repaid | $ | 5,800 | |||||||||
Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, October 15, 2015 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 1,090 | |||||||||
Number of hotels | property | 10 | |||||||||
Aggregate price | $ | $ 150,100 | |||||||||
Assets held for sale | Portfolio of Hotels, ARCH Agreements | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 1,703 | 2,793 | ||||||||
Number of hotels | 16 | 26 | ||||||||
Aggregate price | $ | $ 347,400 | |||||||||
Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 707 | |||||||||
Assets held for sale | Terminated Purchase Agreement | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 996 | |||||||||
Number of hotels | property | 10 | |||||||||
Aggregate price | $ | $ 89,100 | |||||||||
Earnest money forfeited by ARCH | $ | $ 9,100 | |||||||||
Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 996 | |||||||||
Assets held for sale or sold | Portfolio of Hotels, ARCH Agreements | ||||||||||
Subsequent events | ||||||||||
Number of hotels | property | 26 | |||||||||
Reverse and forward 1031 Exchanges | ||||||||||
Subsequent events | ||||||||||
Number of hotels | property | 4 | |||||||||
Aloft | Jacksonville, FL | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 136 | |||||||||
Holiday Inn Express | Vernon Hills, IL | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 119 | |||||||||
Courtyard by Marriott | Jackson, MS | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 117 | |||||||||
Courtyard by Marriott | Germantown, TN | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 93 | |||||||||
Courtyard by Marriott | El Paso, TX | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 90 | |||||||||
Staybridge Suites | Ridgeland, MS | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 92 | |||||||||
Homewood Suites | Ridgeland, MS | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 91 | |||||||||
Fairfield Inn and Suites | Germantown, TN | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 80 | |||||||||
Fairfield Inn and Suites | Denver, CO | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 160 | |||||||||
Fairfield Inn and Suites | Bellevue, WA | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 144 | |||||||||
Fairfield Inn and Suites | Spokane, WA | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 84 | |||||||||
SpringHill Suites | Denver, CO | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 124 | |||||||||
Hilton Garden Inn | Ft. Collins, CO | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 120 | |||||||||
Hampton Inn | Ft. Collins, CO | Assets held for sale | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 75 | |||||||||
2015 acquisitions | ||||||||||
Subsequent events | ||||||||||
Purchase consideration | $ | $ 237,751 | |||||||||
2015 acquisitions | Courtyard by Marriott | Atlanta (Decatur), GA | Reverse and forward 1031 Exchanges | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 179 | |||||||||
Purchase consideration | $ | $ 44,000 | $ 44,000 | ||||||||
Subsequent events | ARCH | Loans | ||||||||||
Loan receivable | ||||||||||
Repayment of loan | $ | $ 5,000 | |||||||||
Number of installments for repayment of loan | installment | 5 | |||||||||
Loan maturity, repayments | $ | $ 1,000 | |||||||||
Maximum maturity date extension | 2 years | |||||||||
Number of extension option | item | 2 | |||||||||
Term of extension option | 1 year | |||||||||
Accrued interest rate on unpaid principal balance from loan date to initial maturity date (as a percent) | 13.00% | |||||||||
Accrued interest rate on unpaid principal balance for first extension period (as a percent) | 14.00% | |||||||||
Accrued interest rate on unpaid principal balance for second extension period (as a percent) | 15.00% | |||||||||
Interest rate on outstanding loan balance required to be paid monthly (as a percent) | 9.00% | |||||||||
Subsequent events | Assets held for sale, sold | Portfolio of Hotels, one separate ARCH agreement | ||||||||||
Subsequent events | ||||||||||
Number of hotels | property | 16 | |||||||||
Subsequent events | Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 707 | |||||||||
Number of hotels | property | 6 | |||||||||
Aggregate price | $ | $ 108,300 | |||||||||
Subsequent events | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 996 | |||||||||
Number of hotels | property | 10 | |||||||||
Aggregate price | $ | $ 89,100 | |||||||||
Subsequent events | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ARCH | ||||||||||
Subsequent events | ||||||||||
Earnest money deposits | $ | 7,500 | |||||||||
Subsequent events | Reverse and forward 1031 Exchanges | ||||||||||
Subsequent events | ||||||||||
Deferral of taxable gains | $ | $ 74,000 | |||||||||
Subsequent events | Reverse and forward 1031 Exchanges | Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ARCH | ||||||||||
Subsequent events | ||||||||||
Proceeds from sale of hotels | $ | $ 20,000 | |||||||||
Subsequent events | Aloft | Jacksonville, FL | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 136 | |||||||||
Subsequent events | Holiday Inn Express | Vernon Hills, IL | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 119 | |||||||||
Subsequent events | Courtyard by Marriott | Jackson, MS | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 117 | |||||||||
Subsequent events | Courtyard by Marriott | Germantown, TN | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 93 | |||||||||
Subsequent events | Courtyard by Marriott | El Paso, TX | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 90 | |||||||||
Subsequent events | Residence Inn | Jackson, MS | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 100 | |||||||||
Subsequent events | Residence Inn | Germantown, TN | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 78 | |||||||||
Subsequent events | Staybridge Suites | Ridgeland, MS | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 92 | |||||||||
Subsequent events | Homewood Suites | Ridgeland, MS | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 91 | |||||||||
Subsequent events | Fairfield Inn and Suites | Germantown, TN | Assets held for sale | Portfolio of Hotels, Reinstatement Agreement, New ARCH Purchaser | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 80 | |||||||||
Subsequent events | Fairfield Inn and Suites | Denver, CO | Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 160 | |||||||||
Subsequent events | Fairfield Inn and Suites | Bellevue, WA | Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 144 | |||||||||
Subsequent events | Fairfield Inn and Suites | Spokane, WA | Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 84 | |||||||||
Subsequent events | SpringHill Suites | Denver, CO | Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 124 | |||||||||
Subsequent events | Hilton Garden Inn | Ft. Collins, CO | Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 120 | |||||||||
Subsequent events | Hampton Inn | Ft. Collins, CO | Assets held for sale, sold | Portfolio of Hotels, ARCH Agreements, February 11, 2016 closing | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 75 | |||||||||
Subsequent events | 2016 acquisitions | Courtyard by Marriott | West End of Nashville, TN | Reverse and forward 1031 Exchanges | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 226 | |||||||||
Purchase consideration | $ | $ 71,000 | |||||||||
Subsequent events | 2016 acquisitions | Residence Inn | Midtown Atlanta, GA | Reverse and forward 1031 Exchanges | ||||||||||
Subsequent events | ||||||||||
Number of guestrooms | 160 | |||||||||
Purchase consideration | $ | $ 38,000 | |||||||||
Operating Partnership | Subsequent events | ARCH | Loans | ||||||||||
Subsequent events | ||||||||||
Loan amount | $ | $ 27,500 | |||||||||
First Scenario | Subsequent events | ARCH | Loans | ||||||||||
Loan receivable | ||||||||||
Remaining percentage of amount to be compounded monthly of accrued interest (as a percent) | 4.00% | |||||||||
Second Scenario | Subsequent events | ARCH | Loans | ||||||||||
Loan receivable | ||||||||||
Remaining percentage of amount to be compounded monthly of accrued interest (as a percent) | 5.00% | |||||||||
Third Scenario | Subsequent events | ARCH | Loans | ||||||||||
Loan receivable | ||||||||||
Remaining percentage of amount to be compounded monthly of accrued interest (as a percent) | 6.00% |
Schedule III - Real Estate an87
Schedule III - Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Initial Cost | ||||
Land | $ 181,103 | |||
Building & Improvements | 1,363,945 | |||
Cost Capitalized Subsequent to Acquisition | 138,755 | |||
Total Cost | ||||
Land | $ 179,988 | |||
Building & Improvements | 1,503,815 | |||
Total | 1,683,803 | 1,527,569 | $ 1,349,088 | $ 901,207 |
Accumulated Depreciation | (212,207) | (179,455) | $ (173,149) | $ (146,207) |
Total Cost Net of Accumulated Depreciation | 1,471,596 | |||
Debt | 367,096 | |||
Land parcels | ||||
Initial Cost | ||||
Land | 6,675 | |||
Cost Capitalized Subsequent to Acquisition | (1,115) | |||
Total Cost | ||||
Land | 5,560 | |||
Total | 5,560 | |||
Total Cost Net of Accumulated Depreciation | 5,560 | |||
Arlington, TX | Courtyard by Marriott | ||||
Initial Cost | ||||
Land | 1,497 | |||
Building & Improvements | 13,503 | |||
Cost Capitalized Subsequent to Acquisition | 1,451 | |||
Total Cost | ||||
Land | 1,497 | |||
Building & Improvements | 14,954 | |||
Total | 16,451 | |||
Accumulated Depreciation | (1,688) | |||
Total Cost Net of Accumulated Depreciation | 14,763 | |||
Arlington, TX | Hyatt Place | ||||
Initial Cost | ||||
Land | 650 | |||
Building & Improvements | 8,405 | |||
Cost Capitalized Subsequent to Acquisition | 1,535 | |||
Total Cost | ||||
Land | 650 | |||
Building & Improvements | 9,940 | |||
Total | 10,590 | |||
Accumulated Depreciation | (2,165) | |||
Total Cost Net of Accumulated Depreciation | 8,425 | |||
Debt | 27,991 | |||
Arlington, TX | Residence Inn | ||||
Initial Cost | ||||
Land | 1,646 | |||
Building & Improvements | 13,854 | |||
Cost Capitalized Subsequent to Acquisition | 908 | |||
Total Cost | ||||
Land | 1,646 | |||
Building & Improvements | 14,762 | |||
Total | 16,408 | |||
Accumulated Depreciation | (1,845) | |||
Total Cost Net of Accumulated Depreciation | 14,563 | |||
Asheville, NC | Hotel Indigo | ||||
Initial Cost | ||||
Land | 2,100 | |||
Building & Improvements | 32,783 | |||
Cost Capitalized Subsequent to Acquisition | 89 | |||
Total Cost | ||||
Land | 2,100 | |||
Building & Improvements | 32,872 | |||
Total | 34,972 | |||
Accumulated Depreciation | (1,195) | |||
Total Cost Net of Accumulated Depreciation | 33,777 | |||
Atlanta, GA | Courtyard by Marriott | ||||
Initial Cost | ||||
Land | 2,050 | |||
Building & Improvements | 26,850 | |||
Cost Capitalized Subsequent to Acquisition | 594 | |||
Total Cost | ||||
Land | 2,050 | |||
Building & Improvements | 27,444 | |||
Total | 29,494 | |||
Accumulated Depreciation | (3,904) | |||
Total Cost Net of Accumulated Depreciation | 25,590 | |||
Atlanta, GA | Hyatt Place | ||||
Initial Cost | ||||
Land | 1,154 | |||
Building & Improvements | 9,605 | |||
Cost Capitalized Subsequent to Acquisition | 2,555 | |||
Total Cost | ||||
Land | 1,154 | |||
Building & Improvements | 12,160 | |||
Total | 13,314 | |||
Accumulated Depreciation | (3,228) | |||
Total Cost Net of Accumulated Depreciation | 10,086 | |||
Debt | 6,852 | |||
Atlanta (Decatur), GA | Courtyard by Marriott | ||||
Initial Cost | ||||
Land | 4,046 | |||
Building & Improvements | 33,795 | |||
Cost Capitalized Subsequent to Acquisition | 23 | |||
Total Cost | ||||
Land | 4,046 | |||
Building & Improvements | 33,818 | |||
Total | 37,864 | |||
Accumulated Depreciation | (254) | |||
Total Cost Net of Accumulated Depreciation | 37,610 | |||
Austin, TX | Hampton Inn and Suites | ||||
Initial Cost | ||||
Building & Improvements | 53,760 | |||
Cost Capitalized Subsequent to Acquisition | 2,072 | |||
Total Cost | ||||
Building & Improvements | 55,832 | |||
Total | 55,832 | |||
Accumulated Depreciation | (1,998) | |||
Total Cost Net of Accumulated Depreciation | 53,834 | |||
Austin, TX | Corporate Office | ||||
Initial Cost | ||||
Building & Improvements | 210 | |||
Cost Capitalized Subsequent to Acquisition | 1,531 | |||
Total Cost | ||||
Building & Improvements | 1,741 | |||
Total | 1,741 | |||
Accumulated Depreciation | (306) | |||
Total Cost Net of Accumulated Depreciation | 1,435 | |||
Baltimore, MD | Hyatt Place | ||||
Initial Cost | ||||
Land | 2,100 | |||
Building & Improvements | 8,135 | |||
Cost Capitalized Subsequent to Acquisition | 1,581 | |||
Total Cost | ||||
Land | 2,100 | |||
Building & Improvements | 9,716 | |||
Total | 11,816 | |||
Accumulated Depreciation | (1,756) | |||
Total Cost Net of Accumulated Depreciation | 10,060 | |||
Debt | 21,683 | |||
Baltimore (Hunt Valley), MD | Residence Inn | ||||
Initial Cost | ||||
Building & Improvements | 34,350 | |||
Cost Capitalized Subsequent to Acquisition | 233 | |||
Total Cost | ||||
Building & Improvements | 34,583 | |||
Total | 34,583 | |||
Accumulated Depreciation | (1,153) | |||
Total Cost Net of Accumulated Depreciation | 33,430 | |||
Bellevue, WA | Fairfield Inn and Suites | ||||
Initial Cost | ||||
Land | 2,705 | |||
Building & Improvements | 12,944 | |||
Cost Capitalized Subsequent to Acquisition | 3,174 | |||
Total Cost | ||||
Land | 2,705 | |||
Building & Improvements | 16,118 | |||
Total | 18,823 | |||
Accumulated Depreciation | (5,915) | |||
Total Cost Net of Accumulated Depreciation | 12,908 | |||
Birmingham Liberty Park, AL | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 1,400 | |||
Building & Improvements | 10,100 | |||
Cost Capitalized Subsequent to Acquisition | 1,836 | |||
Total Cost | ||||
Land | 1,400 | |||
Building & Improvements | 11,936 | |||
Total | 13,336 | |||
Accumulated Depreciation | (1,511) | |||
Total Cost Net of Accumulated Depreciation | 11,825 | |||
Debt | 6,041 | |||
Birmingham Lakeshore, AL | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 1,400 | |||
Building & Improvements | 7,225 | |||
Cost Capitalized Subsequent to Acquisition | 1,818 | |||
Total Cost | ||||
Land | 1,400 | |||
Building & Improvements | 9,043 | |||
Total | 10,443 | |||
Accumulated Depreciation | (2,009) | |||
Total Cost Net of Accumulated Depreciation | 8,434 | |||
Debt | 5,160 | |||
Bloomington, MN | Hampton Inn and Suites | ||||
Initial Cost | ||||
Land | 1,658 | |||
Building & Improvements | 14,596 | |||
Cost Capitalized Subsequent to Acquisition | 654 | |||
Total Cost | ||||
Land | 1,658 | |||
Building & Improvements | 15,250 | |||
Total | 16,908 | |||
Accumulated Depreciation | (3,671) | |||
Total Cost Net of Accumulated Depreciation | 13,237 | |||
Bloomington, MN | SpringHill Suites | ||||
Initial Cost | ||||
Land | 1,658 | |||
Building & Improvements | 14,071 | |||
Cost Capitalized Subsequent to Acquisition | 731 | |||
Total Cost | ||||
Land | 1,658 | |||
Building & Improvements | 14,802 | |||
Total | 16,460 | |||
Accumulated Depreciation | (3,505) | |||
Total Cost Net of Accumulated Depreciation | 12,955 | |||
Debt | 13,467 | |||
Boston (Norwood), MA | Hampton Inn | ||||
Initial Cost | ||||
Land | 2,000 | |||
Building & Improvements | 22,000 | |||
Cost Capitalized Subsequent to Acquisition | 48 | |||
Total Cost | ||||
Land | 2,000 | |||
Building & Improvements | 22,048 | |||
Total | 24,048 | |||
Accumulated Depreciation | (1,049) | |||
Total Cost Net of Accumulated Depreciation | 22,999 | |||
Branchburg, NJ | Residence Inn | ||||
Initial Cost | ||||
Land | 2,374 | |||
Building & Improvements | 23,326 | |||
Cost Capitalized Subsequent to Acquisition | 244 | |||
Total Cost | ||||
Land | 2,374 | |||
Building & Improvements | 23,570 | |||
Total | 25,944 | |||
Accumulated Depreciation | (869) | |||
Total Cost Net of Accumulated Depreciation | 25,075 | |||
Charleston, WV | Country Inn and Suites | ||||
Initial Cost | ||||
Land | 1,042 | |||
Building & Improvements | 3,489 | |||
Cost Capitalized Subsequent to Acquisition | 1,594 | |||
Total Cost | ||||
Land | 1,042 | |||
Building & Improvements | 5,083 | |||
Total | 6,125 | |||
Accumulated Depreciation | (1,822) | |||
Total Cost Net of Accumulated Depreciation | 4,303 | |||
Charleston, WV | Holiday Inn Express | ||||
Initial Cost | ||||
Land | 907 | |||
Building & Improvements | 2,903 | |||
Cost Capitalized Subsequent to Acquisition | 2,149 | |||
Total Cost | ||||
Land | 907 | |||
Building & Improvements | 5,052 | |||
Total | 5,959 | |||
Accumulated Depreciation | (2,058) | |||
Total Cost Net of Accumulated Depreciation | 3,901 | |||
Denver, CO | Fairfield Inn and Suites | ||||
Initial Cost | ||||
Land | 1,566 | |||
Building & Improvements | 6,783 | |||
Cost Capitalized Subsequent to Acquisition | 3,607 | |||
Total Cost | ||||
Land | 1,566 | |||
Building & Improvements | 10,390 | |||
Total | 11,956 | |||
Accumulated Depreciation | (3,766) | |||
Total Cost Net of Accumulated Depreciation | 8,190 | |||
Denver, CO | Hyatt House | ||||
Initial Cost | ||||
Land | 2,700 | |||
Building & Improvements | 10,780 | |||
Cost Capitalized Subsequent to Acquisition | 5,250 | |||
Total Cost | ||||
Land | 2,700 | |||
Building & Improvements | 16,030 | |||
Total | 18,730 | |||
Accumulated Depreciation | (2,269) | |||
Total Cost Net of Accumulated Depreciation | 16,461 | |||
Denver, CO | SpringHill Suites | ||||
Initial Cost | ||||
Land | 1,076 | |||
Building & Improvements | 11,079 | |||
Cost Capitalized Subsequent to Acquisition | (1,482) | |||
Total Cost | ||||
Land | 1,076 | |||
Building & Improvements | 9,597 | |||
Total | 10,673 | |||
Accumulated Depreciation | (1,918) | |||
Total Cost Net of Accumulated Depreciation | 8,755 | |||
Debt | 5,852 | |||
Denver (Englewood), CO | Hyatt Place | ||||
Initial Cost | ||||
Land | 2,000 | |||
Building & Improvements | 9,515 | |||
Cost Capitalized Subsequent to Acquisition | 2,417 | |||
Total Cost | ||||
Land | 2,000 | |||
Building & Improvements | 11,932 | |||
Total | 13,932 | |||
Accumulated Depreciation | (2,289) | |||
Total Cost Net of Accumulated Depreciation | 11,643 | |||
Denver (Lone Tree), CO | Hyatt Place | ||||
Initial Cost | ||||
Land | 1,300 | |||
Building & Improvements | 9,230 | |||
Cost Capitalized Subsequent to Acquisition | 2,453 | |||
Total Cost | ||||
Land | 1,300 | |||
Building & Improvements | 11,683 | |||
Total | 12,983 | |||
Accumulated Depreciation | (2,350) | |||
Total Cost Net of Accumulated Depreciation | 10,633 | |||
Duluth, GA | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 2,200 | |||
Building & Improvements | 11,150 | |||
Cost Capitalized Subsequent to Acquisition | 1,307 | |||
Total Cost | ||||
Land | 2,200 | |||
Building & Improvements | 12,457 | |||
Total | 14,657 | |||
Accumulated Depreciation | (2,502) | |||
Total Cost Net of Accumulated Depreciation | 12,155 | |||
Debt | 122,825 | |||
Duluth, GA | Holiday Inn | ||||
Initial Cost | ||||
Building & Improvements | 7,000 | |||
Cost Capitalized Subsequent to Acquisition | 437 | |||
Total Cost | ||||
Building & Improvements | 7,437 | |||
Total | 7,437 | |||
Accumulated Depreciation | (1,614) | |||
Total Cost Net of Accumulated Depreciation | 5,823 | |||
Minneapolis (Eden Prairie), MN | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 1,800 | |||
Building & Improvements | 8,400 | |||
Cost Capitalized Subsequent to Acquisition | 2,628 | |||
Total Cost | ||||
Land | 1,800 | |||
Building & Improvements | 11,028 | |||
Total | 12,828 | |||
Accumulated Depreciation | (1,364) | |||
Total Cost Net of Accumulated Depreciation | 11,464 | |||
El Paso, TX | Courtyard by Marriott | ||||
Initial Cost | ||||
Land | 1,640 | |||
Building & Improvements | 10,710 | |||
Cost Capitalized Subsequent to Acquisition | 897 | |||
Total Cost | ||||
Land | 1,640 | |||
Building & Improvements | 11,607 | |||
Total | 13,247 | |||
Accumulated Depreciation | (1,911) | |||
Total Cost Net of Accumulated Depreciation | 11,336 | |||
Ft. Collins, CO | Hampton Inn | ||||
Initial Cost | ||||
Land | 738 | |||
Building & Improvements | 4,363 | |||
Cost Capitalized Subsequent to Acquisition | 1,725 | |||
Total Cost | ||||
Land | 738 | |||
Building & Improvements | 6,088 | |||
Total | 6,826 | |||
Accumulated Depreciation | (1,985) | |||
Total Cost Net of Accumulated Depreciation | 4,841 | |||
Ft. Collins, CO | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 1,300 | |||
Building & Improvements | 11,804 | |||
Cost Capitalized Subsequent to Acquisition | (560) | |||
Total Cost | ||||
Land | 1,300 | |||
Building & Improvements | 11,244 | |||
Total | 12,544 | |||
Accumulated Depreciation | (1,932) | |||
Total Cost Net of Accumulated Depreciation | 10,612 | |||
Ft. Myers, FL | Hyatt Place | ||||
Initial Cost | ||||
Land | 1,878 | |||
Building & Improvements | 16,583 | |||
Cost Capitalized Subsequent to Acquisition | (3,830) | |||
Total Cost | ||||
Land | 1,878 | |||
Building & Improvements | 12,753 | |||
Total | 14,631 | |||
Accumulated Depreciation | (2,174) | |||
Total Cost Net of Accumulated Depreciation | 12,457 | |||
Ft. Worth, TX | Hampton Inn | ||||
Initial Cost | ||||
Land | 1,500 | |||
Building & Improvements | 8,184 | |||
Cost Capitalized Subsequent to Acquisition | 1,356 | |||
Total Cost | ||||
Land | 1,500 | |||
Building & Improvements | 9,540 | |||
Total | 11,040 | |||
Accumulated Depreciation | (3,093) | |||
Total Cost Net of Accumulated Depreciation | 7,947 | |||
Debt | 24,015 | |||
Ft. Worth, TX | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 903 | |||
Building & Improvements | 6,226 | |||
Cost Capitalized Subsequent to Acquisition | 3,340 | |||
Total Cost | ||||
Land | 903 | |||
Building & Improvements | 9,566 | |||
Total | 10,469 | |||
Accumulated Depreciation | (1,612) | |||
Total Cost Net of Accumulated Depreciation | 8,857 | |||
Ft. Worth, TX | SpringHill Suites | ||||
Initial Cost | ||||
Land | 553 | |||
Building & Improvements | 2,698 | |||
Cost Capitalized Subsequent to Acquisition | 2,849 | |||
Total Cost | ||||
Land | 553 | |||
Building & Improvements | 5,547 | |||
Total | 6,100 | |||
Accumulated Depreciation | (2,123) | |||
Total Cost Net of Accumulated Depreciation | 3,977 | |||
Garden City, NY | Hyatt Place | ||||
Initial Cost | ||||
Land | 4,200 | |||
Building & Improvements | 26,800 | |||
Cost Capitalized Subsequent to Acquisition | 997 | |||
Total Cost | ||||
Land | 4,200 | |||
Building & Improvements | 27,797 | |||
Total | 31,997 | |||
Accumulated Depreciation | (2,704) | |||
Total Cost Net of Accumulated Depreciation | 29,293 | |||
Germantown, TN | Courtyard by Marriott | ||||
Initial Cost | ||||
Land | 1,860 | |||
Building & Improvements | 5,448 | |||
Cost Capitalized Subsequent to Acquisition | 2,490 | |||
Total Cost | ||||
Land | 1,860 | |||
Building & Improvements | 7,938 | |||
Total | 9,798 | |||
Accumulated Depreciation | (2,822) | |||
Total Cost Net of Accumulated Depreciation | 6,976 | |||
Germantown, TN | Fairfield Inn and Suites | ||||
Initial Cost | ||||
Land | 767 | |||
Building & Improvements | 2,700 | |||
Cost Capitalized Subsequent to Acquisition | 2,188 | |||
Total Cost | ||||
Land | 767 | |||
Building & Improvements | 4,888 | |||
Total | 5,655 | |||
Accumulated Depreciation | (1,221) | |||
Total Cost Net of Accumulated Depreciation | 4,434 | |||
Germantown, TN | Residence Inn | ||||
Initial Cost | ||||
Land | 1,083 | |||
Building & Improvements | 5,200 | |||
Cost Capitalized Subsequent to Acquisition | 2,337 | |||
Total Cost | ||||
Land | 1,083 | |||
Building & Improvements | 7,537 | |||
Total | 8,620 | |||
Accumulated Depreciation | (2,107) | |||
Total Cost Net of Accumulated Depreciation | 6,513 | |||
Glendale, CO | Staybridge Suites | ||||
Initial Cost | ||||
Land | 2,100 | |||
Building & Improvements | 7,900 | |||
Cost Capitalized Subsequent to Acquisition | 1,693 | |||
Total Cost | ||||
Land | 2,100 | |||
Building & Improvements | 9,593 | |||
Total | 11,693 | |||
Accumulated Depreciation | (2,193) | |||
Total Cost Net of Accumulated Depreciation | 9,500 | |||
Greenville, SC | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 1,200 | |||
Building & Improvements | 14,050 | |||
Cost Capitalized Subsequent to Acquisition | 217 | |||
Total Cost | ||||
Land | 1,200 | |||
Building & Improvements | 14,267 | |||
Total | 15,467 | |||
Accumulated Depreciation | (1,490) | |||
Total Cost Net of Accumulated Depreciation | 13,977 | |||
Chicago (Hoffman Estates), IL | Hyatt Place | ||||
Initial Cost | ||||
Land | 1,900 | |||
Building & Improvements | 7,330 | |||
Cost Capitalized Subsequent to Acquisition | 1,533 | |||
Total Cost | ||||
Land | 1,900 | |||
Building & Improvements | 8,863 | |||
Total | 10,763 | |||
Accumulated Depreciation | (1,587) | |||
Total Cost Net of Accumulated Depreciation | 9,176 | |||
Debt | 21,022 | |||
Houston (Energy Corridor), TX | Hilton Garden Inn | ||||
Initial Cost | ||||
Building & Improvements | 38,492 | |||
Cost Capitalized Subsequent to Acquisition | 3,221 | |||
Total Cost | ||||
Building & Improvements | 41,713 | |||
Total | 41,713 | |||
Accumulated Depreciation | (3,179) | |||
Total Cost Net of Accumulated Depreciation | 38,534 | |||
Debt | 17,179 | |||
Houston, TX | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 2,800 | |||
Building & Improvements | 33,200 | |||
Cost Capitalized Subsequent to Acquisition | 111 | |||
Total Cost | ||||
Land | 2,800 | |||
Building & Improvements | 33,311 | |||
Total | 36,111 | |||
Accumulated Depreciation | (1,327) | |||
Total Cost Net of Accumulated Depreciation | 34,784 | |||
Indianapolis, IN | Courtyard by Marriott | ||||
Initial Cost | ||||
Land | 7,788 | |||
Building & Improvements | 50,846 | |||
Cost Capitalized Subsequent to Acquisition | 186 | |||
Total Cost | ||||
Land | 7,788 | |||
Building & Improvements | 51,032 | |||
Total | 58,820 | |||
Accumulated Depreciation | (4,886) | |||
Total Cost Net of Accumulated Depreciation | 53,934 | |||
Indianapolis, IN | SpringHill Suites | ||||
Initial Cost | ||||
Land | 4,012 | |||
Building & Improvements | 26,193 | |||
Cost Capitalized Subsequent to Acquisition | 62 | |||
Total Cost | ||||
Land | 4,012 | |||
Building & Improvements | 26,255 | |||
Total | 30,267 | |||
Accumulated Depreciation | (2,513) | |||
Total Cost Net of Accumulated Depreciation | 27,754 | |||
Jackson, MS | Courtyard by Marriott | ||||
Initial Cost | ||||
Land | 1,301 | |||
Building & Improvements | 7,322 | |||
Cost Capitalized Subsequent to Acquisition | 2,456 | |||
Total Cost | ||||
Land | 1,301 | |||
Building & Improvements | 9,778 | |||
Total | 11,079 | |||
Accumulated Depreciation | (3,737) | |||
Total Cost Net of Accumulated Depreciation | 7,342 | |||
Jackson, MS | Staybridge Suites | ||||
Initial Cost | ||||
Land | 698 | |||
Building & Improvements | 8,454 | |||
Cost Capitalized Subsequent to Acquisition | 2,333 | |||
Total Cost | ||||
Land | 698 | |||
Building & Improvements | 10,787 | |||
Total | 11,485 | |||
Accumulated Depreciation | (3,050) | |||
Total Cost Net of Accumulated Depreciation | 8,435 | |||
Jacksonville, FL | Aloft | ||||
Initial Cost | ||||
Land | 1,700 | |||
Building & Improvements | 15,775 | |||
Cost Capitalized Subsequent to Acquisition | 338 | |||
Total Cost | ||||
Land | 1,700 | |||
Building & Improvements | 16,113 | |||
Total | 17,813 | |||
Accumulated Depreciation | (5,322) | |||
Total Cost Net of Accumulated Depreciation | 12,491 | |||
Las Colinas, TX | Holiday Inn Express and Suites | ||||
Initial Cost | ||||
Land | 898 | |||
Building & Improvements | 6,689 | |||
Cost Capitalized Subsequent to Acquisition | 1,423 | |||
Total Cost | ||||
Land | 898 | |||
Building & Improvements | 8,112 | |||
Total | 9,010 | |||
Accumulated Depreciation | (3,416) | |||
Total Cost Net of Accumulated Depreciation | 5,594 | |||
Las Colinas, TX | Hyatt Place | ||||
Initial Cost | ||||
Land | 781 | |||
Building & Improvements | 5,729 | |||
Cost Capitalized Subsequent to Acquisition | 3,053 | |||
Total Cost | ||||
Land | 781 | |||
Building & Improvements | 8,782 | |||
Total | 9,563 | |||
Accumulated Depreciation | (3,278) | |||
Total Cost Net of Accumulated Depreciation | 6,285 | |||
Lombard, ILL | Hyatt Place | ||||
Initial Cost | ||||
Land | 1,550 | |||
Building & Improvements | 15,475 | |||
Cost Capitalized Subsequent to Acquisition | 1,846 | |||
Total Cost | ||||
Land | 1,550 | |||
Building & Improvements | 17,321 | |||
Total | 18,871 | |||
Accumulated Depreciation | (2,991) | |||
Total Cost Net of Accumulated Depreciation | 15,880 | |||
Louisville, KY | Fairfield Inn and Suites | ||||
Initial Cost | ||||
Land | 3,120 | |||
Building & Improvements | 21,903 | |||
Cost Capitalized Subsequent to Acquisition | 2,129 | |||
Total Cost | ||||
Land | 3,120 | |||
Building & Improvements | 24,032 | |||
Total | 27,152 | |||
Accumulated Depreciation | (2,498) | |||
Total Cost Net of Accumulated Depreciation | 24,654 | |||
Debt | 37,352 | |||
Louisville, KY | SpringHill Suites | ||||
Initial Cost | ||||
Land | 4,880 | |||
Building & Improvements | 34,258 | |||
Cost Capitalized Subsequent to Acquisition | 2,964 | |||
Total Cost | ||||
Land | 4,880 | |||
Building & Improvements | 37,222 | |||
Total | 42,102 | |||
Accumulated Depreciation | (4,081) | |||
Total Cost Net of Accumulated Depreciation | 38,021 | |||
Miami, FL | Hyatt House | ||||
Initial Cost | ||||
Land | 4,926 | |||
Building & Improvements | 34,074 | |||
Cost Capitalized Subsequent to Acquisition | 21 | |||
Total Cost | ||||
Land | 4,926 | |||
Building & Improvements | 34,095 | |||
Total | 39,021 | |||
Accumulated Depreciation | (487) | |||
Total Cost Net of Accumulated Depreciation | 38,534 | |||
Minneapolis, MN | Hampton Inn and Suites | ||||
Initial Cost | ||||
Land | 3,500 | |||
Building & Improvements | 35,339 | |||
Cost Capitalized Subsequent to Acquisition | 71 | |||
Total Cost | ||||
Land | 3,500 | |||
Building & Improvements | 35,410 | |||
Total | 38,910 | |||
Accumulated Depreciation | (1,223) | |||
Total Cost Net of Accumulated Depreciation | 37,687 | |||
Minneapolis, MN | Hyatt Place | ||||
Initial Cost | ||||
Building & Improvements | 32,506 | |||
Cost Capitalized Subsequent to Acquisition | 834 | |||
Total Cost | ||||
Building & Improvements | 33,340 | |||
Total | 33,340 | |||
Accumulated Depreciation | (2,624) | |||
Total Cost Net of Accumulated Depreciation | 30,716 | |||
Minneapolis (Minnetonka), MN | Holiday Inn Express and Suites | ||||
Initial Cost | ||||
Land | 1,000 | |||
Building & Improvements | 5,900 | |||
Cost Capitalized Subsequent to Acquisition | 1,729 | |||
Total Cost | ||||
Land | 1,000 | |||
Building & Improvements | 7,629 | |||
Total | 8,629 | |||
Accumulated Depreciation | (1,124) | |||
Total Cost Net of Accumulated Depreciation | 7,505 | |||
Nashville, TN | SpringHill Suites | ||||
Initial Cost | ||||
Land | 777 | |||
Building & Improvements | 3,576 | |||
Cost Capitalized Subsequent to Acquisition | 1,907 | |||
Total Cost | ||||
Land | 777 | |||
Building & Improvements | 5,483 | |||
Total | 6,260 | |||
Accumulated Depreciation | (2,237) | |||
Total Cost Net of Accumulated Depreciation | 4,023 | |||
New Orleans, LA | Residence Inn | ||||
Initial Cost | ||||
Land | 1,790 | |||
Building & Improvements | 18,099 | |||
Cost Capitalized Subsequent to Acquisition | 1,484 | |||
Total Cost | ||||
Land | 1,790 | |||
Building & Improvements | 19,583 | |||
Total | 21,373 | |||
Accumulated Depreciation | (2,436) | |||
Total Cost Net of Accumulated Depreciation | 18,937 | |||
New Orleans, LA | SpringHill Suites | ||||
Initial Cost | ||||
Land | 2,046 | |||
Building & Improvements | 31,049 | |||
Cost Capitalized Subsequent to Acquisition | 1,073 | |||
Total Cost | ||||
Land | 2,046 | |||
Building & Improvements | 32,122 | |||
Total | 34,168 | |||
Accumulated Depreciation | (3,629) | |||
Total Cost Net of Accumulated Depreciation | 30,539 | |||
New Orleans (French Quarter), LA | Courtyard by Marriott | ||||
Initial Cost | ||||
Land | 1,944 | |||
Building & Improvements | 23,739 | |||
Cost Capitalized Subsequent to Acquisition | 974 | |||
Total Cost | ||||
Land | 1,944 | |||
Building & Improvements | 24,713 | |||
Total | 26,657 | |||
Accumulated Depreciation | (3,446) | |||
Total Cost Net of Accumulated Depreciation | 23,211 | |||
New Orleans (Metairie), LA | Courtyard by Marriott | ||||
Initial Cost | ||||
Land | 1,860 | |||
Building & Improvements | 21,679 | |||
Cost Capitalized Subsequent to Acquisition | 3,310 | |||
Total Cost | ||||
Land | 1,860 | |||
Building & Improvements | 24,989 | |||
Total | 26,849 | |||
Accumulated Depreciation | (3,180) | |||
Total Cost Net of Accumulated Depreciation | 23,669 | |||
New Orleans (Convention), LA | Courtyard by Marriott | ||||
Initial Cost | ||||
Land | 2,490 | |||
Building & Improvements | 28,337 | |||
Cost Capitalized Subsequent to Acquisition | 5,772 | |||
Total Cost | ||||
Land | 2,490 | |||
Building & Improvements | 34,109 | |||
Total | 36,599 | |||
Accumulated Depreciation | (3,925) | |||
Total Cost Net of Accumulated Depreciation | 32,674 | |||
Orlando (Convention), FL | Hyatt Place | ||||
Initial Cost | ||||
Land | 3,100 | |||
Building & Improvements | 9,152 | |||
Cost Capitalized Subsequent to Acquisition | 2,131 | |||
Total Cost | ||||
Land | 3,100 | |||
Building & Improvements | 11,283 | |||
Total | 14,383 | |||
Accumulated Depreciation | (2,664) | |||
Total Cost Net of Accumulated Depreciation | 11,719 | |||
Orlando (Universal), FL | Hyatt Place | ||||
Initial Cost | ||||
Land | 5,516 | |||
Building & Improvements | 9,043 | |||
Cost Capitalized Subsequent to Acquisition | 2,108 | |||
Total Cost | ||||
Land | 5,516 | |||
Building & Improvements | 11,151 | |||
Total | 16,667 | |||
Accumulated Depreciation | (2,630) | |||
Total Cost Net of Accumulated Depreciation | 14,037 | |||
Phoenix, AZ | Hyatt Place | ||||
Initial Cost | ||||
Land | 582 | |||
Building & Improvements | 4,438 | |||
Cost Capitalized Subsequent to Acquisition | 195 | |||
Total Cost | ||||
Land | 582 | |||
Building & Improvements | 4,633 | |||
Total | 5,215 | |||
Accumulated Depreciation | (868) | |||
Total Cost Net of Accumulated Depreciation | 4,347 | |||
Portland, OR | Hyatt Place | ||||
Initial Cost | ||||
Building & Improvements | 16,713 | |||
Cost Capitalized Subsequent to Acquisition | (2,506) | |||
Total Cost | ||||
Building & Improvements | 14,207 | |||
Total | 14,207 | |||
Accumulated Depreciation | (2,263) | |||
Total Cost Net of Accumulated Depreciation | 11,944 | |||
Portland, OR | Residence Inn | ||||
Initial Cost | ||||
Building & Improvements | 16,409 | |||
Cost Capitalized Subsequent to Acquisition | 1,356 | |||
Total Cost | ||||
Building & Improvements | 17,765 | |||
Total | 17,765 | |||
Accumulated Depreciation | (4,627) | |||
Total Cost Net of Accumulated Depreciation | 13,138 | |||
Debt | 19,112 | |||
Provo, UT | Hampton Inn | ||||
Initial Cost | ||||
Land | 909 | |||
Building & Improvements | 2,862 | |||
Cost Capitalized Subsequent to Acquisition | 2,146 | |||
Total Cost | ||||
Land | 909 | |||
Building & Improvements | 5,008 | |||
Total | 5,917 | |||
Accumulated Depreciation | (2,150) | |||
Total Cost Net of Accumulated Depreciation | 3,767 | |||
Ridgeland, MS | Homewood Suites | ||||
Initial Cost | ||||
Land | 1,314 | |||
Building & Improvements | 6,036 | |||
Cost Capitalized Subsequent to Acquisition | 1,737 | |||
Total Cost | ||||
Land | 1,314 | |||
Building & Improvements | 7,773 | |||
Total | 9,087 | |||
Accumulated Depreciation | (1,615) | |||
Total Cost Net of Accumulated Depreciation | 7,472 | |||
Ridgeland, MS | Residence Inn | ||||
Initial Cost | ||||
Land | 1,050 | |||
Building & Improvements | 10,040 | |||
Cost Capitalized Subsequent to Acquisition | (304) | |||
Total Cost | ||||
Land | 1,050 | |||
Building & Improvements | 9,736 | |||
Total | 10,786 | |||
Accumulated Depreciation | (1,965) | |||
Total Cost Net of Accumulated Depreciation | 8,821 | |||
Salt Lake City, UT | Residence Inn | ||||
Initial Cost | ||||
Land | 2,392 | |||
Building & Improvements | 17,567 | |||
Cost Capitalized Subsequent to Acquisition | 7,006 | |||
Total Cost | ||||
Land | 2,392 | |||
Building & Improvements | 24,573 | |||
Total | 26,965 | |||
Accumulated Depreciation | (3,561) | |||
Total Cost Net of Accumulated Depreciation | 23,404 | |||
San Diego (Poway) CA | Hampton Inn and Suites | ||||
Initial Cost | ||||
Land | 2,300 | |||
Building & Improvements | 12,850 | |||
Cost Capitalized Subsequent to Acquisition | 230 | |||
Total Cost | ||||
Land | 2,300 | |||
Building & Improvements | 13,080 | |||
Total | 15,380 | |||
Accumulated Depreciation | (1,263) | |||
Total Cost Net of Accumulated Depreciation | 14,117 | |||
San Francisco, CA | DoubleTree by Hilton | ||||
Initial Cost | ||||
Land | 3,300 | |||
Building & Improvements | 35,760 | |||
Cost Capitalized Subsequent to Acquisition | 3,485 | |||
Total Cost | ||||
Land | 3,300 | |||
Building & Improvements | 39,245 | |||
Total | 42,545 | |||
Accumulated Depreciation | (3,082) | |||
Total Cost Net of Accumulated Depreciation | 39,463 | |||
San Francisco, CA | Four Points by Sheraton | ||||
Initial Cost | ||||
Land | 1,200 | |||
Building & Improvements | 20,050 | |||
Cost Capitalized Subsequent to Acquisition | 1,281 | |||
Total Cost | ||||
Land | 1,200 | |||
Building & Improvements | 21,331 | |||
Total | 22,531 | |||
Accumulated Depreciation | (1,827) | |||
Total Cost Net of Accumulated Depreciation | 20,704 | |||
San Francisco, CA | Holiday Inn Express and Suites | ||||
Initial Cost | ||||
Land | 15,545 | |||
Building & Improvements | 44,955 | |||
Cost Capitalized Subsequent to Acquisition | 4,619 | |||
Total Cost | ||||
Land | 15,545 | |||
Building & Improvements | 49,574 | |||
Total | 65,119 | |||
Accumulated Depreciation | (6,247) | |||
Total Cost Net of Accumulated Depreciation | 58,872 | |||
Sandy. UT | Holiday Inn Express and Suites | ||||
Initial Cost | ||||
Land | 720 | |||
Building & Improvements | 1,768 | |||
Cost Capitalized Subsequent to Acquisition | 1,379 | |||
Total Cost | ||||
Land | 720 | |||
Building & Improvements | 3,147 | |||
Total | 3,867 | |||
Accumulated Depreciation | (1,212) | |||
Total Cost Net of Accumulated Depreciation | 2,655 | |||
Santa Barbara (Goleta), CA | Hampton Inn | ||||
Initial Cost | ||||
Land | 4,100 | |||
Building & Improvements | 23,800 | |||
Cost Capitalized Subsequent to Acquisition | 628 | |||
Total Cost | ||||
Land | 4,100 | |||
Building & Improvements | 24,428 | |||
Total | 28,528 | |||
Accumulated Depreciation | (1,683) | |||
Total Cost Net of Accumulated Depreciation | 26,845 | |||
Debt | 11,567 | |||
Scottsdale, AZ | Courtyard by Marriott | ||||
Initial Cost | ||||
Land | 3,225 | |||
Building & Improvements | 10,152 | |||
Cost Capitalized Subsequent to Acquisition | 2,316 | |||
Total Cost | ||||
Land | 3,225 | |||
Building & Improvements | 12,468 | |||
Total | 15,693 | |||
Accumulated Depreciation | (4,738) | |||
Total Cost Net of Accumulated Depreciation | 10,955 | |||
Debt | 9,110 | |||
Scottsdale, AZ | Hyatt Place | ||||
Initial Cost | ||||
Land | 1,500 | |||
Building & Improvements | 9,030 | |||
Cost Capitalized Subsequent to Acquisition | 1,100 | |||
Total Cost | ||||
Land | 1,500 | |||
Building & Improvements | 10,130 | |||
Total | 11,630 | |||
Accumulated Depreciation | (1,998) | |||
Total Cost Net of Accumulated Depreciation | 9,632 | |||
Scottsdale, AZ | SpringHill Suites | ||||
Initial Cost | ||||
Land | 2,195 | |||
Building & Improvements | 7,120 | |||
Cost Capitalized Subsequent to Acquisition | 2,350 | |||
Total Cost | ||||
Land | 2,195 | |||
Building & Improvements | 9,470 | |||
Total | 11,665 | |||
Accumulated Depreciation | (3,864) | |||
Total Cost Net of Accumulated Depreciation | 7,801 | |||
Debt | 4,905 | |||
Smyrna, TN | Hampton Inn and Suites | ||||
Initial Cost | ||||
Land | 1,145 | |||
Building & Improvements | 6,855 | |||
Cost Capitalized Subsequent to Acquisition | 2,406 | |||
Total Cost | ||||
Land | 1,145 | |||
Building & Improvements | 9,261 | |||
Total | 10,406 | |||
Accumulated Depreciation | (1,132) | |||
Total Cost Net of Accumulated Depreciation | 9,274 | |||
Debt | 5,047 | |||
Smyrna, TN | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 1,188 | |||
Building & Improvements | 10,312 | |||
Cost Capitalized Subsequent to Acquisition | 2,037 | |||
Total Cost | ||||
Land | 1,188 | |||
Building & Improvements | 12,349 | |||
Total | 13,537 | |||
Accumulated Depreciation | (1,528) | |||
Total Cost Net of Accumulated Depreciation | 12,009 | |||
Debt | 7,916 | |||
Spokane, WA | Fairfield Inn and Suites | ||||
Initial Cost | ||||
Land | 1,637 | |||
Building & Improvements | 3,669 | |||
Cost Capitalized Subsequent to Acquisition | 2,295 | |||
Total Cost | ||||
Land | 1,637 | |||
Building & Improvements | 5,964 | |||
Total | 7,601 | |||
Accumulated Depreciation | (2,531) | |||
Total Cost Net of Accumulated Depreciation | 5,070 | |||
Ventura (Camarillo) CA | Hampton Inn and Suites | ||||
Initial Cost | ||||
Land | 2,200 | |||
Building & Improvements | 13,550 | |||
Cost Capitalized Subsequent to Acquisition | 3,599 | |||
Total Cost | ||||
Land | 2,200 | |||
Building & Improvements | 17,149 | |||
Total | 19,349 | |||
Accumulated Depreciation | (1,228) | |||
Total Cost Net of Accumulated Depreciation | 18,121 | |||
Vernon Hills, IL | Holiday Inn Express | ||||
Initial Cost | ||||
Land | 1,198 | |||
Building & Improvements | 6,099 | |||
Cost Capitalized Subsequent to Acquisition | 257 | |||
Total Cost | ||||
Land | 1,198 | |||
Building & Improvements | 6,356 | |||
Total | 7,554 | |||
Accumulated Depreciation | (1,920) | |||
Total Cost Net of Accumulated Depreciation | 5,634 | |||
Ybor City, FL | Hampton Inn and Suites | ||||
Initial Cost | ||||
Land | 3,600 | |||
Building & Improvements | 17,244 | |||
Cost Capitalized Subsequent to Acquisition | $ 2,053 | |||
Total Cost | ||||
Land | 3,600 | |||
Building & Improvements | 19,297 | |||
Total | 22,897 | |||
Accumulated Depreciation | (2,095) | |||
Total Cost Net of Accumulated Depreciation | $ 20,802 |
Schedule III - Real Estate an88
Schedule III - Real Estate and Accumulated Depreciation (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
ASSET BASIS | |||
Balance at the beginning of the period | $ 1,527,569 | $ 1,349,088 | $ 901,207 |
Additions to land, buildings and improvements | 273,902 | 263,182 | 531,207 |
Disposition of land, buildings and improvements | (116,553) | (75,454) | (74,282) |
Impairment loss | (1,115) | (9,247) | (9,044) |
Balance at the end of the period | 1,683,803 | 1,527,569 | 1,349,088 |
ACCUMULATED DEPRECIATION | |||
Balance at the beginning of the period | 179,455 | 173,149 | 146,207 |
Depreciation | 63,675 | 63,669 | 50,445 |
Depreciation on assets sold or disposed | (30,923) | (57,363) | (23,503) |
Balance at the end of the period | 212,207 | $ 179,455 | $ 173,149 |
Aggregate cost of land, buildings, furniture and equipment for federal income tax purposes | $ 1,342,000 | ||
Buildings and improvements | Minimum | |||
ACCUMULATED DEPRECIATION | |||
Useful lives | 6 years | ||
Buildings and improvements | Maximum | |||
ACCUMULATED DEPRECIATION | |||
Useful lives | 40 years | ||
Furniture, fixtures and equipment | Minimum | |||
ACCUMULATED DEPRECIATION | |||
Useful lives | 2 years | ||
Furniture, fixtures and equipment | Maximum | |||
ACCUMULATED DEPRECIATION | |||
Useful lives | 15 years |