Summit Hotel Properties (INN) 10-Q 30 Oct 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 22, 2018
Document and Entity Information
Entity Registrant Name	Summit Hotel Properties, Inc.
Entity Central Index Key	1,497,645
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		104,760,836

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Investment in hotel properties, net	$ 2,082,605	$ 2,059,492
Investment in hotel properties under development	0	23,793
Land held for development	2,942	2,942
Assets held for sale, net	1,193	1,193
Investment in real estate loans, net	29,387	12,356
Cash and cash equivalents	60,533	36,545
Restricted cash	31,567	29,462
Trade receivables, net	23,969	16,985
Prepaid expenses and other	6,254	9,454
Deferred charges, net	4,854	5,221
Other assets	19,627	12,431
Total assets	2,262,931	2,209,874
Liabilities:
Debt, net of debt issuance costs	969,146	868,236
Accounts payable	5,200	7,774
Accrued expenses and other	71,350	56,488
Total liabilities	1,045,696	932,498
Commitments and contingencies (Note 8)
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized:
Common stock, $0.01 par value per share, 500,000,000 shares authorized, 104,745,710 and 104,287,128 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	1,047	1,043
Additional paid-in capital	1,183,694	1,262,679
Accumulated other comprehensive income	8,033	1,451
Retained earnings	21,648	9,201
Total stockholders’ equity	1,214,516	1,274,502
Non-controlling interests in operating partnership	2,719	2,874
Total equity	1,217,235	1,277,376
Total liabilities and equity	2,262,931	2,209,874
7.125% Series C Preferred Stock
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized:
Preferred stock	0	34
6.45% Series D Preferred Stock
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized:
Preferred stock	30	30
6.25% Series E Preferred Stock
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized:
Preferred stock	$ 64	$ 64

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
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	104,745,710	104,287,128
Common stock, shares outstanding	104,745,710	104,287,128
7.125% Series C Preferred Stock
Preferred stock, shares issued		3,400,000
Preferred stock, shares outstanding		3,400,000
Preferred stock, aggregate liquidation preference (in dollars)		$ 85,522
Preferred stock, dividend rate		7.125%
6.45% Series D Preferred Stock
Preferred stock, shares authorized	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)	$ 75,403	$ 75,417
Preferred stock, dividend rate	6.45%	6.45%
6.25% Series E Preferred Stock
Preferred stock, shares authorized	6,400,000
Preferred stock, shares issued	6,400,000	6,400,000
Preferred stock, shares outstanding	6,400,000	6,400,000
Preferred stock, aggregate liquidation preference (in dollars)	$ 160,833	$ 160,861
Preferred stock, dividend rate	6.25%	6.25%

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Revenues	$ 142,340	$ 136,587	$ 434,761	$ 383,632
Expenses:
Property taxes, insurance and other	10,220	10,189	32,250	27,371
Management fees	4,188	4,177	14,928	13,969
Depreciation and amortization	24,941	23,594	75,141	62,052
Corporate general and administrative	4,852	4,550	17,079	14,998
Hotel property acquisition costs	0	0	0	354
Total expenses	120,176	114,214	366,633	318,177
Operating income	22,164	22,373	68,128	65,455
Other income (expense):
Interest expense	(10,848)	(7,768)	(30,579)	(21,486)
Gain on disposal of assets, net	24,826	7,725	42,114	43,531
Other income (expense), net	1,327	(116)	5,586	2,847
Total other income (expense)	15,305	(159)	17,121	24,892
Income from continuing operations before income taxes	37,469	22,214	85,249	90,347
Income tax benefit (expense) (Note 10)	532	231	120	(613)
Net income	38,001	22,445	85,369	89,734
Non-controlling interest in Operating Partnership	(100)	(55)	(204)	(289)
Net income attributable to Summit Hotel Properties, Inc.	37,901	22,390	85,165	89,445
Preferred dividends	(3,710)	(4,200)	(12,962)	(12,600)
Premium on redemption of preferred stock	0	0	(3,277)	0
Net income attributable to common stockholders	$ 34,191	$ 18,190	$ 68,926	$ 76,845
Earnings per share:
Basic (in dollars per share)	$ 0.33	$ 0.18	$ 0.66	$ 0.78
Diluted (in dollars per share)	$ 0.33	$ 0.17	$ 0.66	$ 0.78
Weighted average common shares outstanding:
Basic (in Shares)	103,666	103,253	103,603	98,105
Diluted (in Shares)	103,821	103,632	103,868	98,471
Room
Revenues:
Revenues	$ 131,429	$ 127,246	$ 401,651	$ 358,110
Expenses:
Cost of goods and services sold	30,854	28,976	90,972	80,435
Food and beverage
Revenues:
Revenues	5,817	5,465	18,663	15,718
Expenses:
Cost of goods and services sold	4,684	4,444	14,790	12,277
Other
Revenues:
Revenues	5,094	3,876	14,447	9,804
Expenses:
Cost of goods and services sold	$ 40,437	$ 38,284	$ 121,473	$ 106,721

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 38,001	$ 22,445	$ 85,369	$ 89,734
Other comprehensive income, net of tax:
Changes in fair value of derivative financial instruments	2,495	157	6,601	680
Comprehensive income	40,496	22,602	91,970	90,414
Comprehensive income attributable to non-controlling interests:
Less - Comprehensive income attributable to non-controlling interest in Operating Partnership	(107)	(56)	(223)	(292)
Comprehensive income attributable to Summit Hotel Properties, Inc.	40,389	22,546	91,747	90,122
Preferred dividends	(3,710)	(4,200)	(12,962)	(12,600)
Premium on redemption of preferred stock	0	0	(3,277)	0
Comprehensive income attributable to common stockholders	$ 36,679	$ 18,346	$ 75,508	$ 77,522

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings (Deficit) and Distributions	Total Stockholders’ Equity	Non-controlling Interests in Operating Partnership
Balance at beginning of year at Dec. 31, 2016	$ 1,013,470	$ 94	$ 935	$ 1,011,412	$ (977)	$ (1,422)	$ 1,010,042	$ 3,428
Balance (in shares) at Dec. 31, 2016		9,400,000	93,525,469
Changes in equity
Net proceeds from sale of common stock	$ 163,620		$ 104	163,516			163,620
Net proceeds from sale of common stock (in shares)	10,350,000		10,350,000
Common stock redemption of common units			$ 1	466			467	(467)
Common stock redemption of common units (in shares)	52,808		52,808
Dividends	$ (63,424)					(63,240)	(63,240)	(184)
Equity-based compensation	4,483		$ 4	4,462			4,466	17
Equity-based compensation (in shares)			397,421
Shares acquired for employee withholding requirements	$ (961)		$ (1)	(960)			(961)
Shares acquired for employee withholding requirements (in shares)	(59,111)		(59,111)
Other comprehensive income	$ 680				677		677	3
Net income	89,734					89,445	89,445	289
Balance at end of year at Sep. 30, 2017	1,207,602	$ 94	$ 1,043	1,178,896	(300)	24,783	1,204,516	3,086
Balance (in shares) at Sep. 30, 2017		9,400,000	104,266,587
Balance at beginning of year at Dec. 31, 2017	$ 1,277,376	$ 128	$ 1,043	1,262,679	1,451	9,201	1,274,502	2,874
Balance (in shares) at Dec. 31, 2017		12,800,000	104,287,128
Changes in equity
Net proceeds from sale of common stock (in shares)	0
Redemption of preferred stock	$ (85,000)	$ (34)		(81,689)		(3,277)	(85,000)
Redemption of preferred stock (in shares)		(3,400,000)
Common stock redemption of common units				227			227	(227)
Common stock redemption of common units (in shares)	25,839		25,839
Dividends	$ (69,608)					(69,441)	(69,441)	(167)
Equity-based compensation	5,367		$ 6	5,345			5,351	16
Equity-based compensation (in shares)			620,593
Shares acquired for employee withholding requirements	$ (2,724)		$ (2)	(2,722)			(2,724)
Shares acquired for employee withholding requirements (in shares)	(187,850)		(187,850)
Other	$ (146)			(146)			(146)
Other comprehensive income	6,601				6,582		6,582	19
Net income	85,369					85,165	85,165	204
Balance at end of year at Sep. 30, 2018	$ 1,217,235	$ 94	$ 1,047	$ 1,183,694	$ 8,033	$ 21,648	$ 1,214,516	$ 2,719
Balance (in shares) at Sep. 30, 2018		9,400,000	104,745,710

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
OPERATING ACTIVITIES
Net income	$ 85,369	$ 89,734
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	75,141	62,052
Amortization of deferred financing costs	1,495	1,553
Equity-based compensation	5,367	4,483
Realization of deferred gain	0	(15,000)
Gain on disposal of assets, net	(42,114)	(28,531)
Other	(1,386)	51
Changes in operating assets and liabilities:
Trade receivables, net	(7,054)	(9,140)
Prepaid expenses and other	2,729	1,817
Accounts payable	(627)	(233)
Accrued expenses and other	10,040	9,780
NET CASH PROVIDED BY OPERATING ACTIVITIES	128,960	116,566
INVESTING ACTIVITIES
Acquisitions of hotel properties	(71,002)	(424,734)
Investment in hotel properties under development	(12,208)	(15,954)
Improvements to hotel properties	(49,523)	(25,252)
Proceeds from asset dispositions, net of closing costs	103,587	120,901
Funding of real estate loans	(15,245)	0
Proceeds from collection of real estate loans	0	32,500
NET CASH USED IN INVESTING ACTIVITIES	(44,391)	(312,539)
FINANCING ACTIVITIES
Proceeds from issuance of debt	470,000	485,000
Principal payments on debt	(369,147)	(365,087)
Proceeds from equity offerings, net of issuance costs	0	163,620
Redemption of preferred stock	(85,000)	0
Dividends paid	(69,755)	(63,148)
Financing fees on debt and other issuance costs	(1,850)	(1,642)
Repurchase of common shares for withholding requirements	(2,724)	(961)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(58,476)	217,782
Net change in cash, cash equivalents and restricted cash	26,093	21,809
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Beginning of period	66,007	59,575
End of period	92,100	81,384
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for interest	29,038	20,242
Accrued acquisition costs and improvements to hotel properties	7,853	3,482
Capitalized interest	446	172
Cash payments for income taxes, net of refunds	$ 749	$ 600

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	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. Unless the context otherwise requires, “we,” “us,” and “our” refer to the Company and its consolidated subsidiaries. We focus on owning primarily premium-branded, select-service hotels. At September 30, 2018 , our portfolio consisted of 77 hotels with a total of 11,659 guestrooms located in 26 states. We have elected to be taxed as a real estate investment trust (“REIT”) for federal income tax purposes. 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.

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Condensed Consolidated Financial Statements of the Company consolidate the accounts of the Company and all entities that are controlled by the Company’s ownership of a majority voting interest in such entities, as well as variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in the Condensed Consolidated Financial Statements. We prepare our Condensed Consolidated Financial Statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Act of 1934 (the “Exchange Act”). Accordingly, the Condensed Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation in accordance with GAAP have been included. Results for the three and nine months ended September 30, 2018 may not be indicative of the results that may be expected for the full year of 2018 . For further information, please read the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 . 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. 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. If substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or group of similar identifiable assets, the asset or asset group is not considered a business. When we conclude that an acquisition meets this threshold, acquisition costs will be capitalized as part of our allocation of the purchase price of the acquired hotel properties. Our hotel properties and related assets are recorded at cost, less accumulated depreciation. We capitalize hotel development costs and the costs of significant additions and improvements that materially upgrade, increase the value or extend the useful life of the property. These costs may include hotel development, refurbishment, renovation, and remodeling expenditures, as well as certain indirect internal costs related to construction projects. If an asset requires a period of time in which to carry out the activities necessary to bring it to the condition necessary for its intended use, the interest cost incurred during that period as a result of expenditures for the asset is capitalized as part of the cost of the asset. We expense the cost of repairs and maintenance as incurred. 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 we consider for an impairment analysis include, among others: i) significant underperformance relative to historical or anticipated 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 carrying amount of the asset is recoverable. If an impairment is identified, 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 its estimated fair value. In certain circumstances, we provide loan financing to developers of hotel properties for development projects. We record these loans as Investment in real estate loans, net unless we determine that we are the primary beneficiary of a variable interest entity through the loan provisions or other agreements. If we are the primary beneficiary of a variable interest entity, then the loan is recorded in Investment in hotel properties under development in our Condensed Consolidated Balance Sheets. If classified as Investment in hotel properties under development, no interest income is recognized on the loan and interest expense is capitalized as part of our investment in the hotel property during the construction period. 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 lender or other party requiring the restricted cash reserves. On January 1, 2018, we adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . As a result, we report changes in cash, cash equivalents and restricted cash on our Condensed Consolidated Statement of Cash Flows. Revenue Recognition On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers . In accordance with ASU No. 2014-09, revenues from the operation of our hotels are recognized when guestrooms are occupied, services have been rendered or fees have been earned. Revenues are recorded net of any discounts and sales and other taxes collected from customers. Revenues consist of room sales, food and beverage sales, and other hotel revenues and are presented on a disaggregated basis on our Condensed Consolidated Statements of Operations. Room revenue is generated through short-term contracts with customers whereby customers agree to pay a daily rate for the right to occupy hotel rooms for one or more nights. Our performance obligations are fulfilled at the end of each night that the customers have the right to occupy the rooms. Room revenues are recognized daily at the contracted room rate in effect for each room night. Food and beverage revenues are generated when customers purchase food and beverage at a hotel's restaurant, bar or other facilities. Our performance obligations are fulfilled at the time that food and beverage is purchased and provided to our customers. Other revenues such as for parking, meeting space or telephone services are recognized at the point in time or over the time period that the associated good or service is provided. Ancillary services such as parking at certain hotels are provided by third parties and we assesses whether we are the principal or agent in such arrangements. If we are determined to be the agent, revenue is recognized based upon the commission paid to us by the third party for the services rendered to our customers. If we are determined to be the principal, revenues are recognized based upon the gross contract price of the service provided. Certain of our hotels have retail spaces, restaurants or other spaces that we lease to third parties. Lease revenues are recognized on a straight­ line basis over the respective lease terms and are included in Other income on our Condensed Consolidated Statement of Operations. Cash received prior to customer arrival is recorded as an advance deposit from the customer and is recognized as revenue at the time of occupancy. Equity-Based Compensation Our 2011 Equity Incentive Plan, which was amended and restated effective June 15, 2015 (as amended, 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 . 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. On January 1, 2018, we adopted ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . As such, we account for certain changes to share-based payment awards using modification accounting, which may result in incremental stock-based compensation expense based on the remeasurement of the award on the modification date. Derivative Financial Instruments and Hedging 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. All derivative financial instruments are recorded at fair value as a net asset or liability in our Condensed Consolidated Balance Sheets. During 2017, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. Accordingly, beginning in 2017, the change in the fair value of the hedging instruments is recorded in Other comprehensive income. Amounts deferred in Other comprehensive income will be reclassified to Interest expense in our Condensed Consolidated Statements of Operations in the period in which the hedged item affects earnings. Income Taxes We have elected to be taxed as a REIT under certain provisions of the Internal Revenue Code. 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. Fair Value Measurement Fair value measures are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market information, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). Our estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. We classify assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. On January 1, 2018, we adopted ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . Accordingly, we have elected a measurement alternative for equity investments, such as our purchase options, that do not have readily determinable fair values. Under the alternative, our purchase options are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer, if any. Use of Estimates The preparation of financial statements in conformity with 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 the Condensed Consolidated Statements of Operations in previous periods have been disaggregated and reclassified to conform to the current period presentation. Revenues have been disaggregated into Rooms, Food and beverage, and Other. Direct and Indirect expense has been reclassified into Room, Food and beverage, and Other hotel operating expenses. Property taxes, insurance and other, and Management expenses are also separately reported. We have also reclassified certain intangible assets related to our acquisitions of hotel properties from Other assets to Investment in hotel properties, net, on the Condensed Consolidated Balance Sheet. See "Note 3 - Investment in Hotel Properties, net" for further details. These reclassifications, made at September 30, 2018 and for the three and nine months then ended, had no net effect on the previously reported financial position or results of operations. New Accounting Standards In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which enhances the reporting requirements for the measurement of financial instruments and requires equity securities to be measured at fair value with changes in the fair value recognized through net income for the period. We adopted ASU No. 2016-01 for our fiscal year commencing on January 1, 2018. The adoption of ASU No. 2016-01 did not have a material effect on our consolidated financial position or our results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which changes lessee accounting to reflect the financial liability and right-of-use assets that are inherent to leasing an asset on the balance sheet. ASU No. 2016-02 is effective for our fiscal year commencing on January 1, 2019, but early adoption is permitted. We anticipate that we will adopt ASU No. 2016-02 for our fiscal year commencing on January 1, 2019. We expect to apply the modified retrospective approach such that we will account for leases that commenced before the effective date of ASU No. 2016-02 in accordance with previous GAAP unless the lease is modified, except we will recognize right-of-use assets and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. We are currently in the process of analyzing our leases. We expect that the adoption of ASU No. 2016-02 will result in the recognition of right-of-use assets and related lease liability accounts on the consolidated balance sheet but is not expected to have a material effect on our consolidated financial position or our results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which addresses the Statement of Cash Flows classification and presentation of certain cash transactions. We adopted ASU No. 2016-15 for our fiscal year commencing on January 1, 2018. The effect of this amendment has been applied retrospectively. The adoption of ASU No. 2016-15 did not have a material effect on our consolidated financial position or our results of operations. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which clarifies how companies should present restricted cash and restricted cash equivalents in the Statement of Cash Flows. This guidance requires companies to show the changes in the total of cash, cash equivalents and restricted cash in the Statement of Cash Flows. We retrospectively adopted ASU No. 2016-18 for our fiscal year commencing on January 1, 2018. The adoption of ASU No. 2016-18 did not have a material effect on our consolidated financial position or our results of operations. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in accordance with ASC No. 718, Compensation - Stock Compensation. We adopted ASC No. 2017-09 for our fiscal year commencing on January 1, 2018. This guidance is to be applied prospectively to an award modified on or after the adoption date. We applied the requirements of ASU No. 2017-09 to the modification of certain stock awards as described in "Note 9 - Equity-Based Compensation." In February 2018, the FASB issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which clarifies how an entity should measure certain equity securities. ASU 2018-03 is effective for our fiscal year commencing on January 1, 2019, but we have early adopted ASU No. 2018-03 for our fiscal year commencing on January 1, 2018. The adoption of ASU No. 2018-03 did not have a material effect on our consolidated financial position or results of operations.

INVESTMENT IN HOTEL PROPERTIES,

INVESTMENT IN HOTEL PROPERTIES, NET	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
INVESTMENT IN HOTEL PROPERTIES, NET	INVESTMENT IN HOTEL PROPERTIES, NET Investment in Hotel Properties, net Investment in hotel properties, net at September 30, 2018 and December 31, 2017 is as follows (in thousands): September 30, 2018 December 31, 2017 Land $ 290,782 $ 272,932 Hotel buildings and improvements 1,899,906 1,868,273 Intangible assets 22,064 22,764 Construction in progress 20,219 12,464 Furniture, fixtures and equipment 189,457 174,126 2,422,428 2,350,559 Less - accumulated depreciation and amortization (339,823 ) (291,067 ) $ 2,082,605 $ 2,059,492 Recently Developed Properties We completed the development and commenced operations of the new 168 -guestroom Hyatt House Across From Orlando Universal Resort™ on June 27, 2018. The total construction cost for this hotel was $32.7 million , excluding land that we acquired in a prior-year transaction. The carrying amount for this hotel includes internal capitalized costs of $1.6 million . Total costs of $37.1 million , including the carrying amount of the land, were reclassified as Investment in hotel properties, net upon completion of construction. Asset Sales On September 28, 2018, we sold the Hyatt Place in Fort Myers, FL and adjacent land for $16.5 million . The sale of this property resulted in the realization of a net gain of $2.2 million during the three and nine months ended September 30, 2018. On July 24, 2018, we completed the sale of three hotel properties, the Hilton Garden Inn - Smyrna, TN, the Hampton Inn & Suites - Smyrna, TN, and the Hyatt Place Phoenix North - Phoenix, AZ, for an aggregate sales price of $46.5 million . The sales of these three properties resulted in the realization of an aggregate net gain of $23.0 million during the three and nine months ended September 30, 2018. The proceeds from these sales were used to complete a 1031 Exchange, which resulted in the deferral of taxable gains of $22.2 million . On June 29, 2018, we sold the Holiday Inn Express & Suites in Sandy, UT and the Hampton Inn in Provo, UT, for an aggregate selling price of $19.0 million . On June 29, 2018 we also sold the Holiday Inn in Duluth, GA and the Hilton Garden Inn in Duluth, GA for an aggregate selling price of $24.9 million . The sales of these four properties resulted in the realization of an aggregate net gain of $17.4 million during the nine months ended September 30, 2018. We provided seller financing of $3.6 million , on the sale of the Holiday Inn in Duluth, GA and the Hilton Garden Inn in Duluth, GA, under two three-and-a-half-year second mortgage notes with a blended interest rate of 7.38% . On July 21, 2017, we completed the sale of three hotel properties in Fort Worth, TX for an aggregate sales price of $27.8 million , resulting in a net gain of $8.1 million during the three and nine months ended September 30, 2017. The proceeds from this sale were used to complete a 1031 Exchange, which resulted in the deferral of taxable gains of $8.6 million . On June 2, 2017, we completed the sale of the Courtyard by Marriott in El Paso, TX for $11.2 million . The sale of this property resulted in the realization of a net gain of $0.4 million during the nine months ended September 30, 2017. On April 27, 2017, we completed the sale of seven hotels to Hospitality Investors Trust, Inc. ("HIT") for a total purchase price of $66.8 million , resulting in a net gain of $16.0 million during the nine months ended September 30, 2017. On March 30, 2017, we completed the sale of the Hyatt Place in Atlanta, GA for $14.5 million and repaid a related mortgage loan totaling $6.5 million . The sale of this property resulted in the realization of a net gain of $4.8 million during the nine months ended September 30, 2017. Dispositions to Affiliates of Hospitality Investors Trust, Inc. (formerly American Realty Capital Hospitality Trust, Inc.) On June 8, 2015, we entered into multiple sales agreements with affiliates of HIT for the sale of a portfolio of hotels to HIT. The agreements were modified on various occasions between 2015 and 2017 such that we sold 23 hotels containing 2,448 guestrooms to HIT in three tranches over that time period for a combined price of approximately $325.1 million (collectively, the “HIT Sale”) as follows (dollars in thousands): Tranche Closing Date Hotels Sold Sales Price 1 October 2015 10 $ 150,000 2 February 2016 6 108,300 3 April 2017 7 66,800 23 $ 325,100 In connection with the HIT Sale, the Operating Partnership entered into a loan agreement with HIT, as borrower, which provided for a loan by us to HIT in the amount of $27.5 million (the “Loan”). The proceeds of the Loan were applied by HIT as follows: (i) $20.0 million was applied toward the payment of a portion of the $108.3 million purchase price for six hotels acquired in the second tranche; and (ii) the remaining $7.5 million was applied by HIT to fund the escrow deposit required for the purchase of hotels in the third tranche. We deferred $20.0 million of gain from the sale of the hotels in the second tranche as a result of the Loan structure. We recognized the deferred gain as principal payments on the Loan were received, and we recognized the final $15.0 million of gain when the Loan was paid in full on March 31, 2017. Hotel Property Acquisitions A summary of the hotel properties acquired during the nine months ended September 30, 2018 and 2017 is as follows (in thousands): Date Acquired Franchise/Brand Location Guestrooms Purchase For the nine months ended September 30, 2018 September 12, 2018 Residence Inn by Marriott Boston (Watertown), MA 150 $ 71,000 150 $ 71,000 (1) For the nine months ended September 30, 2017 March 1, 2017 Homewood Suites Aliso Viejo (Laguna Beach), CA 129 $ 38,000 March 30, 2017 Hyatt Place Phoenix (Mesa), AZ 152 22,200 May 23, 2017 Courtyard by Marriott Fort Lauderdale, FL 261 85,000 June 9, 2017 Courtyard by Marriott Charlotte, NC 181 56,250 June 21, 2017 Courtyard by Marriott Fort Worth, TX 203 40,000 June 21, 2017 Courtyard by Marriott Kansas City, MO 123 24,500 June 21, 2017 Courtyard by Marriott Pittsburgh, PA 182 42,000 June 21, 2017 Hampton Inn & Suites Baltimore, MD 116 18,000 June 21, 2017 Residence Inn by Marriott Baltimore, MD 188 38,500 July 13, 2017 AC Hotel by Marriott Atlanta, GA 255 57,500 1,790 $ 421,950 (2) (1) The net assets acquired totaled $71.0 million due to the purchase at settlement of $0.1 million of net working capital liabilities and capitalized transaction costs of $0.1 million . (2) The net assets acquired totaled $424.8 million due to the purchase at settlement of $0.6 million of net working capital assets and capitalized transaction costs of $2.2 million . 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): For the Nine Months Ended September 30, 2018 2017 Land $ 25,083 $ 63,339 Hotel buildings and improvements 42,676 328,395 Intangible assets — 16,162 Furniture, fixtures and equipment 3,300 16,294 Other assets 185 1,937 Total assets acquired 71,244 426,127 Less - other liabilities assumed (242 ) (1,354 ) Net assets acquired $ 71,002 $ 424,773 All hotel purchases completed in 2018 and 2017 were deemed to be the acquisition of assets. Therefore, acquisition costs related to these transactions have been capitalized as part of the recorded amount of the acquired assets. The results of operations of acquired hotel properties are included in the Condensed Consolidated Statements of Operations beginning on their respective acquisition dates. The following unaudited pro forma information includes operating results for 77 hotels owned as of September 30, 2018 as if all such hotels had been owned by us since January 1, 2017. For hotels acquired by us after January 1, 2017 (the "Acquired Hotels"), we have included in the pro forma information the financial results of each of the Acquired Hotels for the period from January 1, 2017 to the date the Acquired Hotels were purchased by us (the "Preacquisition Period"). The financial results for the Pre-Acquisition Period were provided by the third-party owner of such Acquired Hotel prior to purchase by us and such information has not been audited or reviewed by our auditors or adjusted by us. For hotels sold by us between January 1, 2017 and September 30, 2018 (the "Disposed Hotels"), the unaudited pro forma information excludes the financial results, including gains on disposal of assets, of each of the Disposed Hotels for the period of ownership by us from January 1, 2017 through the date that the Disposed Hotels were sold by us. The unaudited pro forma information is included to enable comparison of results for the current reporting period to results for the comparable period of the prior year and is not indicative of what actual results of operations would have been had the hotel acquisitions and dispositions taken place on or before January 1, 2017. The pro forma amounts exclude the gain or loss on the sale of hotel properties during the three and nine months ended September 30, 2017 and 2018, respectively. This information does not purport to be indicative of or represent results of operations for future periods. The unaudited condensed pro forma financial information for the 77 hotel properties owned at September 30, 2018 for the three and nine months ended September 30, 2018 and 2017 is as follows (in thousands, except per share): For the For the 2018 2017 2018 2017 Revenues $ 143,609 $ 140,582 $ 424,745 $ 414,604 Income from hotel operations $ 53,423 $ 53,515 $ 158,869 $ 158,756 Net income (1) $ 14,142 $ 17,539 $ 43,113 $ 64,416 Net income attributable to common stockholders, net of amount allocated to participating securities (1) (2) $ 10,280 $ 13,225 $ 26,546 $ 51,317 Basic and diluted net income per share attributable to common stockholders (1) (2) $ 0.10 $ 0.13 $ 0.26 $ 0.52 (1) Pro forma amounts include depreciation expense, property tax expense, interest expense, income tax expense, and other corporate expenses totaling $48.0 million and $43.4 million for the three months ended September 30, 2018 and 2017, respectively, and $145.2 million and $118.5 million for the nine months ended September 30, 2018 and 2017, respectively. (2) Pro forma amounts for the nine months ended September 30, 2018 include the effect of the premium on redemption of preferred stock of $3.3 million . Assets Held for Sale Assets held for sale at September 30, 2018 and December 31, 2017 included land parcels in Spokane, W A a nd Flagstaff, AZ. The land in Spokane, WA is under contract for sale and is expected to close in the fourth quarter of 2018.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
DEBT	DEBT At September 30, 2018 , our indebtedness was comprised of borrowings under our $450.0 million senior unsecured revolving credit and term loan facility (described below), the 2018 Term Loan (as defined below), the 2017 Term Loan (as defined below), and indebtedness secured by first priority mortgage liens on various hotel properties. At December 31, 2017 , our indebtedness was comprised of borrowings under our $450.0 million senior unsecured credit and term loan facility, the 2017 Term Loan (as defined below), the 2015 Term Loan (as defined below), and indebtedness secured by first priority mortgage liens on various hotel properties. The weighted average interest rate, after giving effect to our interest rate derivatives, for all borrowings was 4.31% at September 30, 2018 and 3.89% at December 31, 2017 . Debt, net of debt issuance costs, is as follows (in thousands): September 30, 2018 December 31, 2017 Revolving debt $ 65,000 $ 15,000 Term loans 600,000 515,000 Mortgage loans 308,962 343,109 973,962 873,109 Unamortized debt issuance costs (4,816 ) (4,873 ) Debt, net of debt issuance costs $ 969,146 $ 868,236 We have entered into five interest rate swaps to partially fix the interest rates on a portion of our variable interest rate unsecured indebtedness and term loans. See "Note 5- Derivative Financial Instruments and Hedging" to the Condensed Consolidated Financial Statements for additional information. Our total fixed-rate and variable-rate debt, after considering our interest rate derivative agreements that are currently effective, is as follows (in thousands): September 30, 2018 (1) Percentage December 31, 2017 Percentage Fixed-rate debt $ 627,833 64% $ 386,313 44% Variable-rate debt 346,129 36% 486,796 56% $ 973,962 $ 873,109 (1) Excludes the effect of a $125 million interest rate swap agreement that becomes effective December 31, 2018. Information about the fair value of our fixed-rate debt that is not recorded at fair value is as follows (in thousands): September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Valuation Technique Fixed-rate debt $ 277,833 $ 272,177 $ 311,313 $ 310,535 Level 2 - Market approach At September 30, 2018 and December 31, 2017 , we had $350.0 million and $75.0 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 5 — Derivative Financial Instruments and Hedging." $450 Million Senior Unsecured Credit and Term Loan Facility 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 $450.0 million senior unsecured revolving credit and term loan facility (the “2016 Unsecured Credit Facility”). The 2016 Unsecured Credit Facility is comprised of a $300.0 million revolving credit facility (the “$300 Million Revolver”) and a $150.0 million term loan (the “$150 Million Term Loan”). At September 30, 2018 , the maximum amount of borrowing provided by the 2016 Unsecured Credit Facility was $450.0 million , of which we had borrowed $150.0 million under the $150 Million Term Loan and $65.0 million under the $300 Million Revolver and we had $235.0 million available to borrow. 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 $150.0 million . 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. 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 margin of 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 of between 0.50% and 1.25% , depending upon the Company’s leverage ratio. The interest rate at September 30, 2018 was 4.06% . Financial and Other Covenants . We are required to comply with a series of financial and other covenants to borrow under this credit facility. At September 30, 2018 , we were in compliance with all required covenants. 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. At September 30, 2018 , the Company had 47 unencumbered hotel properties (the "Unencumbered Properties") supporting the 2016 Unsecured Credit Facility. In addition, the Company has one other hotel with a total of 150 guestrooms unencumbered by mortgage debt that is available to be used as collateral for future loans. Unsecured Term Loans 2018 Term Loan On February 15, 2018, our Operating Partnership, as borrower, the Company, as parent guarantor, and each party executing the term loan documentation as a subsidiary guarantor, entered into a new $225.0 million unsecured term loan (the “2018 Term Loan”) with KeyBank National Association, as administrative agent, and a syndicate of lenders listed in the loan documentation. The 2018 Term Loan has an accordion feature that allows us to increase the total commitments by $150.0 million prior to the maturity date of February 14, 2025, subject to certain conditions. At closing, we drew $140.0 million of the $225.0 million available under the 2018 Term Loan and used the proceeds to pay off and replace the 2015 Term Loan. On May 16, 2018, we drew the remaining $85.0 million available under the 2018 Term Loan and used the proceeds to pay down the $300 Million Revolver. 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 1.80% and 2.55% , depending upon our leverage ratio (as defined in the loan documents), 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 0.80% and 1.55% , depending upon our leverage ratio. We are required to pay other fees, including customary arrangement and administrative fees. The interest rate at September 30, 2018 was 4.31% . Financial and Other Covenants . We are required to comply with a series of financial and other covenants to draw and maintain borrowings under the 2018 Term Loan. At September 30, 2018 , we were in compliance with all financial covenants. Unencumbered Assets . The 2018 Term Loan is unsecured. However, borrowings under the term loan are limited by the value of the assets that qualify as unencumbered assets. At September 30, 2018 , the Unencumbered Properties also supported the 2018 Term Loan. 2017 Term Loan On September 26, 2017, our Operating Partnership, as borrower, the Company, as parent guarantor, and each party executing the term loan documentation as a subsidiary guarantor, entered into a $225.0 million unsecured term loan (the "2017 Term Loan") with KeyBank National Association, as administrative agent, and a syndicate of lenders listed in the loan documentation. The 2017 Term Loan has an accordion feature which allows us to increase the total commitments by an aggregate of $175.0 million prior to the maturity date, subject to certain conditions. The 2017 Term Loan matures on November 25, 2022. 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 1.45% and 2.20% , depending upon our leverage ratio (as defined in the loan documents), 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 0.45% and 1.20% , depending upon our leverage ratio. We are required to pay other fees, including customary arrangement and administrative fees. The interest rate at September 30, 2018 was 4.01% . Financial and Other Covenants . We are required to comply with a series of financial and other covenants to draw and maintain borrowings under the 2017 Term Loan. At September 30, 2018 we were in compliance with all financial covenants. Unencumbered Assets . The 2017 Term Loan is unsecured. However, borrowings under the term loan are limited by the value of the assets that qualify as unencumbered assets. At September 30, 2018 , the Unencumbered Properties also supported the 2017 Term Loan. 2015 Term Loan On April 7, 2015, our Operating Partnership, as borrower, the Company, as parent guarantor, and each party executing the term loan documentation as a subsidiary guarantor, entered into an unsecured term loan (the “2015 Term Loan”), with an original principal amount of $125.0 million , that was later increased to $140.0 million , upon exercise of an accordion feature. On February 15, 2018, we repaid the $140.0 million outstanding balance with funds received from the 2018 Term Loan. Metabank Loan On June 30, 2017, we entered into a $47.6 million secured, non-recourse loan with MetaBank (the "MetaBank Loan"). As of December 31, 2017, we had drawn the entire $47.6 million balance available under the loan and used the proceeds to pay down the principal balance of our $300 Million Revolver. The MetaBank Loan provides for a fixed interest rate of 4.44% and interest-only payments for 18 months following the closing date. After this 18 month period, the loan is amortized over 25 -years through the maturity date of July 1, 2027. The MetaBank Loan is secured by the Residence Inn in Salt Lake City, UT, the Four Points by Sheraton Hotel & Suites in South San Francisco, CA, and the Hyatt Place in Mesa, AZ. Mortgage and Term Loans On April 2, 2018, we repaid four mortgage loans with Western Alliance Bank totaling $23.9 million that had a blended interest rate of 5.39% . There were no prepayment penalties associated with the repayment of these loans. The properties that secured the mortgage loans are now unencumbered and have been added to our unencumbered pool to support our 2016 Unsecured Credit Facility, 2017 Term Loan and 2018 Term Loan. At September 30, 2018 , we had $909.0 million in secured mortgage loans and unsecured term loans outstanding (including the 2018 Term Loan, the 2017 Term Loan, and the $150 Million Term Loan). Term loans totaling $309.0 million , including the Metabank Loan, are secured primarily by first mortgage liens on certain hotel properties.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING	9 Months Ended
	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING	DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING Information about our derivative financial instruments at September 30, 2018 and December 31, 2017 is as follows (dollars in thousands): Notional Amount Fair Value Contract date Effective Date Expiration Date September 30, 2018 December 31, September 30, 2018 December 31, September 5, 2013 January 2, 2014 October 1, 2018 $ 75,000 (1) $ 75,000 (1) $ — $ (190 ) October 2, 2017 January 29, 2018 January 31, 2023 100,000 (2) 100,000 3,707 722 October 2, 2017 January 29, 2018 January 31, 2023 100,000 (2) 100,000 3,779 787 June 11, 2018 September 28, 2018 September 30, 2024 75,000 (3) — 180 — June 11, 2018 December 31, 2018 December 31, 2025 125,000 (4) — 254 — $ 475,000 $ 275,000 $ 7,920 $ 1,319 (1) Interest rate swap is related to a portion of our 2016 Unsecured Credit Facility and converts LIBOR from a floating rate to an average annual fixed rate of 2.04% . (2) Interest rate swap partially fixes the interest rate on a portion of our variable interest rate unsecured indebtedness and converts LIBOR from a floating rate to an average annual fixed rate of 1.98% . (3) Interest rate swap partially fixes the interest rate on a portion of our variable interest rate unsecured indebtedness and converts LIBOR from a floating rate to an average annual fixed rate of 2.87% . (4) Interest rate swap partially fixes the interest rate on a portion of our variable interest rate unsecured indebtedness and converts LIBOR from a floating rate to an average annual fixed rate of 2.93% . Our interest rate swaps have been designated as cash flow hedges and are valued using a market approach, which is a Level 2 valuation technique. At September 30, 2018 , all of our interest rate swaps were in an asset position. At December 31, 2017 , two of our interest rate swaps were in an asset position and one was in a liability position. We are not required to post any collateral related to these agreements and are not in breach of any financial provisions of the agreements. Changes in the fair value of the hedging instruments are deferred in Other comprehensive income and are reclassified to Interest expense in our Condensed Consolidated Statements of Operations in the period in which the hedged item affects earnings. In the next twelve months, we estimate that $0.9 million will be reclassified from Other comprehensive income and recorded as a reduction to Interest expense. The table below details the location in the financial statements of the gain or loss recognized on derivative financial instruments designated as cash flow hedges (in thousands): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Gain recognized in Other comprehensive income on derivative financial instruments $ 2,555 $ 2 $ 6,401 $ 92 Gain (loss) reclassified from Other comprehensive income to Interest expense $ 60 $ (155 ) $ (200 ) $ (588 )

EQUITY

EQUITY	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
EQUITY	EQUITY Common Stock The Company is authorized to issue up to 500,000,000 shares of common stock, $0.01 par value per share. 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. On May 9, 2017, the Company and the Operating Partnership entered into an underwriting agreement relating to the issuance and sale of 9,000,000 shares of the Company’s common stock, $0.01 par value per share, at a public offering price of $16.50 per share, less an underwriting discount of $0.66 per share. Pursuant to the terms of the underwriting agreement, the Company granted the underwriters a 30 -day option to purchase up to an additional 1,350,000 shares of common stock on the same terms, which the underwriters exercised in full on May 10, 2017. The closing of the offering occurred on May 15, 2017 for net proceeds of $163.8 million , after the underwriting discount and offering-related expenses of $7.0 million . On May 25, 2017, the Company filed a prospectus supplement to sell up to $200.0 million in common shares under a new “at the market” offering program (the “2017 ATM program”). At the same time, the Company terminated its prior ATM program. To date, we have not sold any shares of our common stock under the 2017 ATM Program. Changes in common stock during the nine months ended September 30, 2018 and 2017 were as follows: For the Nine Months Ended September 30, 2018 2017 Beginning common shares outstanding 104,287,128 93,525,469 Stock offering — 10,350,000 Grants under the Equity Plan 583,738 366,679 Common Unit redemptions 25,839 52,808 Annual grants to independent directors 34,130 28,426 Common stock issued for director fees 3,543 3,553 Forfeitures (818 ) (1,237 ) Shares retained for employee tax withholding requirements (187,850 ) (59,111 ) Ending common shares outstanding 104,745,710 104,266,587 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 90,600,000 is currently undesignated, 3,000,000 shares have been designated as 6.45% Series D Cumulative Redeemable Preferred Stock (the "Series D preferred shares") and 6,400,000 shares have been designated as 6.25% Series E Cumulative Redeemable Preferred Stock (the "Series E preferred shares"). On March 20, 2018, the Company paid $85.3 million to redeem all 3,400,000 of its outstanding 7.125% Series C Cumulative Redeemable Preferred Stock at a redemption price of $25 per share plus accrued and unpaid dividends. The Company's outstanding shares of preferred stock (collectively, “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 D or Series E preferred shares prior to June 28, 2021 and November 13, 2022, 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 D preferred share is 3.9216 shares of common stock and each Series E preferred share is 3.1686 shares of common stock, all subject to certain adjustments. The Company pays dividends at an annual rate of $1.6125 for each Series D preferred share and $1.5625 for each Series E 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, the unaffiliated third parties who hold common units of limited partnership interest ("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 Common Units with shares of our common stock on a one -for-one basis. The number of shares of our common stock issuable upon redemption of Common Units may be adjusted upon the occurrence of certain events such as share dividend payments, share subdivisions or combinations. At September 30, 2018 and December 31, 2017 , unaffiliated third parties owned 297,552 and 323,391 Common Units of the Operating Partnership, respectively, representing less than a 1% limited partnership interest in the Operating Partnership for each period. We classify outstanding Common Units held by unaffiliated third parties as non-controlling interests in the Operating Partnership, a component of equity in the Company’s Condensed Consolidated Balance Sheets. The portion of net income allocated to these Common Units is reported on the Company’s Condensed Consolidated Statement of Operations as net income attributable to non-controlling interests of the Operating Partnership.

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	FAIR VALUE MEASUREMENT The following table presents information about our financial instruments measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017 . In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, we classify assets and liabilities based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Disclosures concerning financial instruments measured at fair value are as follows (in thousands): Fair Value Measurements at September 30, 2018 using Level 1 Level 2 Level 3 Total Assets: Interest rate swaps $ — $ 7,920 $ — $ 7,920 Purchase options related to real estate loans — — 6,120 6,120 Fair Value Measurements at December 31, 2017 using Level 1 Level 2 Level 3 Total Assets: Interest rate swaps $ — $ 1,509 $ — $ 1,509 Purchase options related to real estate loans — — 6,078 6,078 Liabilities: Interest rate swaps — 190 — 190 We are a mezzanine lender on three construction loans to fund up to an aggregate of $29.6 million for the development of three hotel properties. The three real estate loans closed in the fourth quarter of 2017 and each has a stated interest rate of 8% and an initial term of approximately three years. As of September 30, 2018, we have funded the full amount of $29.6 million . We have separate options related to each loan (each the "Initial Option") to purchase a 90% interest in each joint venture that owns the respective hotel upon completion of construction. We also have the right to purchase the remaining interests in each joint venture at future dates, generally five years after we exercise our Initial Option. We have recorded the aggregate estimated fair values of the Initial Options totaling $6.1 million in Other assets and as a discount to the related real estate loans. The discount will be amortized as a component of interest income over the term of the real estate loans using the straight-line method, which approximates the interest method. We recorded amortization of the discount of $0.5 million during the three months ended September 30, 2018 and $1.5 million during the nine months ended September 30, 2018. Our purchase options do not have readily determinable fair values. The fair value of each purchase option was estimated using a binomial lattice model. The estimated fair values of the purchase options were based on unobservable inputs for which there is little or no market information available and required us to develop our own assumptions as follows (dollar amounts in thousands): Real Estate Loan 1 Real Estate Loan 2 Real Estate Loan 3 Exercise price $ 15,143 $ 17,377 $ 5,503 First option exercise date 12/31/2018 3/31/2019 5/31/2019 Last option exercise date 11/1/2020 12/5/2020 12/1/2020 Expected volatility 32.0 % 38.0 % 37.0 % Risk free rate 1.7 % 1.8 % 1.9 % Expected annualized equity dividend yield 6.8 % 9.9 % 6.5 %

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Restricted Cash The Company maintains reserve funds for property taxes, insurance, capital expenditures and replacement or refurbishment of furniture, fixtures and equipment at some of our hotel properties in accordance with management, franchise or mortgage loan agreements. These agreements generally require us to reserve cash ranging from 3% to 5% of the revenues of the individual hotel in restricted cash escrow accounts. Any unused restricted cash balances revert to us upon the termination of the underlying agreement or may be released to us from the restricted cash escrow accounts upon proof of expenditures and approval from the lender or other party requiring the restricted cash reserves. At September 30, 2018 and December 31, 2017 , approximately $31.6 million and $29.5 million , respectively, was available in restricted cash reserve funds for property taxes, insurance, capital expenditures and replacement or refurbishment of furniture, fixtures and equipment at our hotel properties. Ground Leases At September 30, 2018 and December 31, 2017, we had two prepaid ground leases for two hotel properties in Portland, OR which expire in June 2084. These ground leases had prepaid balances of approximately $3.2 million at both September 30, 2018 and December 31, 2017 . 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 and 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. At December 31, 2017, we had an additional ground lease for one hotel property in Duluth, GA. The hotel property was sold on June 29, 2018 and the ground lease was transferred to the buyer. See "Note 3 - Investment in Hotel Properties, net" to the Condensed Consolidated Financial Statements for additional information. Total rent expense for ground leases for each of the three months ended September 30, 2018 and 2017 was $0.4 million . Total rent expense for ground leases for each of the nine months ended September 30, 2018 and 2017 was $1.3 million . 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 During the three months ended September 30, 2018 and 2017 , we expensed fees related to our franchise agreements of $11.7 million and $11.4 million , respectively. During the nine months ended September 30, 2018 and 2017, we expensed fees related to our franchise agreements of $36.2 million and $30.8 million , respectively. Management Agreements Our hotel properties operate pursuant to management agreements with various professional third-party management companies. We pay base management fees that are a percentage of gross room revenues and incentive management fees based on achievement of certain financial targets pursuant to contracts that generally have remaining terms of less than five years. Litigation We are involved from time to time in litigation arising in the ordinary course of business. There are currently no pending legal actions that we believe would have a material effect on our financial position or results of operations.

EQUITY-BASED COMPENSATION

EQUITY-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EQUITY-BASED COMPENSATION	EQUITY-BASED COMPENSATION Our currently outstanding equity-based awards were issued under the Equity Plan which provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, and other equity-based 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. All of our outstanding equity-based awards are classified as equity awards. The Company's former Chief Financial Officer retired on March 31, 2018. In connection with his retirement, the Company recorded $1.0 million of additional stock-based compensation expense during the nine months ended September 30, 2018 related to the modification of certain stock award agreements. Stock Options Granted Under our Equity Plan As of September 30, 2018 , we had 235,000 outstanding and exercisable stock options with a weighted average exercise price of $9.75 per share, weighted average contractual term of 2.4 years and an aggregate intrinsic value of $0.9 million . Time-Based Restricted Stock Awards Made Pursuant to Our Equity Plan The following table summarizes time-based restricted stock award activity under our Equity Plan for the nine months ended September 30, 2018 : Number of Shares Weighted Average Grant Date Fair Value Aggregate Current Value (per share) (in thousands) Non-vested at December 31, 2017 391,477 $ 13.52 $ 5,962 Granted 185,930 13.15 Vested (205,619 ) 13.41 Forfeited (818 ) 12.84 Non-vested at September 30, 2018 370,970 $ 13.40 $ 5,019 The awards granted to our non-executive employees generally vest over a four -year period based on continuous service ( 20% on the first, second and third anniversary of the grant date and 40% on the fourth anniversary of the grant date). The awards granted to our executive officers generally vest over a three -year period based on continuous service ( 25% on the first and second anniversary of the grant date and 50% on the third anniversary of the grant date) or in certain circumstances 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 of our common stock on the date of grant. Performance-Based Restricted Stock Awards Made Pursuant to Our Equity Plan The following table summarizes performance-based restricted stock activity under the Equity Plan for the nine months ended September 30, 2018 : Number of Shares Weighted Average Grant Date Fair Value (1) Aggregate Current Value (per share) (in thousands) Non-vested at December 31, 2017 619,429 $ 16.16 $ 9,434 Granted 397,808 15.69 Vested (309,010 ) 18.78 Non-vested at September 30, 2018 708,227 $ 14.75 $ 9,582 (1) The amounts included in this column represent the expected future value of the performance-based restricted stock awards calculated using the Monte Carlo simulation valuation model. 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 over a three-year period based on our percentile ranking within the SNL U.S. REIT Hotel Index at the end of the period 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 our percentile ranking within the index at the end of the measurement period. In addition, a portion of the performance-based shares may be earned based on the Company's absolute total shareholder return calculated during the performance 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 our percentile ranking within the index, dividend payments will be issued as if the additional shares had been held throughout the measurement period. Equity-Based Compensation Expense Equity-based compensation expense included in Corporate general and administrative expenses in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017 was as follows (in thousands): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Time-based restricted stock $ 518 $ 541 $ 1,870 $ 1,607 Performance-based restricted stock 784 849 2,943 2,333 Director stock 17 99 554 543 $ 1,319 $ 1,489 $ 5,367 $ 4,483 We recognize equity-based compensation expense ratably over the vesting periods. 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 $7.9 million at September 30, 2018 and will be recorded as follows (in thousands): Total 2018 2019 2020 2021 2022 Time-based restricted stock $ 3,310 $ 518 $ 1,617 $ 957 $ 205 $ 13 Performance-based restricted stock 4,577 784 2,320 1,287 186 — $ 7,887 $ 1,302 $ 3,937 $ 2,244 $ 391 $ 13

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES On December 22, 2017, H.R. 1, originally known as the Tax Cuts and Jobs Act (the “TCJA”), was enacted. The TCJA made many significant changes to the U.S. federal income tax laws applicable to businesses and their owners, including REITs and their stockholders. Pursuant to this legislation, as of January 1, 2018, (1) the federal income tax rate applicable to corporations is reduced to 21% , (2) the highest marginal individual income tax rate is reduced to 37% (through taxable years ending in 2025), (3) the corporate alternative minimum tax is repealed, and (4) the backup withholding rate for U.S. stockholders is reduced to 24% . In addition, individuals, estates and trusts may deduct up to 20% of certain pass-through income, including ordinary REIT dividends that are not “capital gain dividends” or “qualified dividend income,” subject to certain limitations. For taxpayers qualifying for the full deduction, the effective maximum tax rate on ordinary REIT dividends would be 29.6% (through taxable years ending in 2025). The maximum rate of withholding with respect to our distributions to non-U.S. stockholders that are treated as attributable to gains from the sale or exchange of U.S. real property interests is also reduced from 35% to 21% . The deduction of net interest expense is limited for all businesses; provided that certain businesses, including real estate businesses, may elect not to be subject to such limitations and instead to depreciate their real property related assets over longer depreciable lives. The reduced corporate tax rate will apply to our TRS and any other TRS that we form. The reduced 21% federal income tax rate applicable to corporations will apply to taxable earnings reported for the full 2018 fiscal year. Accordingly, the Company remeasured its net deferred tax assets as a result of the TCJA at December 31, 2017 using the lower federal tax rate that will apply when these amounts are expected to reverse. At September 30, 2018, we have completed our accounting for all the enactment-date income tax effects of the act under ASC 740, Income Taxes . No subsequent adjustments have been necessary. Income taxes for the interim periods presented have been included in our Condensed Consolidated Financial Statements on the basis of an estimated annual effective tax rate. Our effective tax rate is affected by the mix of earnings and losses by taxing jurisdictions. Our earnings, other than from our TRS, are not generally subject to federal and state corporate income taxes due to our REIT election, provided that we distribute 100% of our taxable income to our shareholders. However, there are a limited number of local and state jurisdictions that tax the taxable income of the Operating Partnership. Accordingly, we provide for income taxes in these jurisdictions for the Operating Partnership. We recorded an income tax benefit of $0.5 million and $0.2 million for the three months ended September 30, 2018 and 2017 , respectively. We recorded an income tax benefit of $0.1 million for the nine months ended September 30, 2018 and an income tax expense related to net income from continuing operations of $0.6 million for the nine months ended September 30, 2017. The Company had deferred tax assets of $2.4 million and $1.6 million at September 30, 2018 and December 31, 2017 , respectively. We had no unrecognized tax benefits at September 30, 2018 . We expect no significant changes in unrecognized tax benefits within the next year.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE We apply the two-class method of computing earnings per share, which requires the calculation of separate earnings per share amounts for our non-vested time-based restricted stock awards with non-forfeitable dividends and for our common stock. Our non-vested time-based restricted stock awards with non-forfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. Our non-vested time-based restricted stock awards with non-forfeitable dividends do not have such an obligation so they are not allocated losses. Below is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Numerator: Net income $ 38,001 $ 22,445 $ 85,369 $ 89,734 Less: Preferred dividends (3,710 ) (4,200 ) (12,962 ) (12,600 ) Premium on redemption of preferred stock — — (3,277 ) — Allocation to participating securities (122 ) (69 ) (249 ) (305 ) Attributable to non-controlling interest (100 ) (55 ) (204 ) (289 ) Net income attributable to common stockholders, net of amount allocated to participating securities $ 34,069 $ 18,121 $ 68,677 $ 76,540 Denominator: Weighted average common shares outstanding - basic 103,666 103,253 103,603 98,105 Dilutive effect of equity-based compensation awards 155 379 265 366 Weighted average common shares outstanding - diluted 103,821 103,632 103,868 98,471 Earnings per share: Basic $ 0.33 $ 0.18 $ 0.66 $ 0.78 Diluted $ 0.33 $ 0.17 $ 0.66 $ 0.78 All outstanding stock options were included in the computation of diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 due to their dilutive effect. The Common Units held by the non-controlling interest holders have been excluded from the denominator of the diluted earnings per share as there would be no effect on the amounts since the limited partners' share of income would also be added to derive net income attributable to common stockholders. We had unvested performance-based restricted stock awards of 453,664 shares for the three and nine months ended September 30, 2018 and 464,924 shares for the three and nine months ended September 30, 2017, which were excluded from the denominator of the diluted earnings per share as the awards had not achieved the requisite performance conditions for vesting at each period end.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Dividends On October 26, 2018, our Board of Directors declared cash dividends of $0.18 per share of common stock, $0.403125 per share of 6.45% Series D Cumulative Redeemable Preferred Stock, and $0.390625 per share of 6.25% Series E Cumulative Redeemable Preferred Stock. These dividends are payable November 30, 2018 to stockholders of record on November 16, 2018.

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying Condensed Consolidated Financial Statements of the Company consolidate the accounts of the Company and all entities that are controlled by the Company’s ownership of a majority voting interest in such entities, as well as variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in the Condensed Consolidated Financial Statements. We prepare our Condensed Consolidated Financial Statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Act of 1934 (the “Exchange Act”). Accordingly, the Condensed Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation in accordance with GAAP have been included. Results for the three and nine months ended September 30, 2018 may not be indicative of the results that may be expected for the full year of 2018 . For further information, please read the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 .
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. 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. If substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or group of similar identifiable assets, the asset or asset group is not considered a business. When we conclude that an acquisition meets this threshold, acquisition costs will be capitalized as part of our allocation of the purchase price of the acquired hotel properties. Our hotel properties and related assets are recorded at cost, less accumulated depreciation. We capitalize hotel development costs and the costs of significant additions and improvements that materially upgrade, increase the value or extend the useful life of the property. These costs may include hotel development, refurbishment, renovation, and remodeling expenditures, as well as certain indirect internal costs related to construction projects. If an asset requires a period of time in which to carry out the activities necessary to bring it to the condition necessary for its intended use, the interest cost incurred during that period as a result of expenditures for the asset is capitalized as part of the cost of the asset. We expense the cost of repairs and maintenance as incurred. 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 we consider for an impairment analysis include, among others: i) significant underperformance relative to historical or anticipated 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 carrying amount of the asset is recoverable. If an impairment is identified, 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 its estimated fair value. In certain circumstances, we provide loan financing to developers of hotel properties for development projects. We record these loans as Investment in real estate loans, net unless we determine that we are the primary beneficiary of a variable interest entity through the loan provisions or other agreements. If we are the primary beneficiary of a variable interest entity, then the loan is recorded in Investment in hotel properties under development in our Condensed Consolidated Balance Sheets. If classified as Investment in hotel properties under development, no interest income is recognized on the loan and interest expense is capitalized as part of our investment in the hotel property during the construction period.
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 lender or other party requiring the restricted cash reserves. On January 1, 2018, we adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . As a result, we report changes in cash, cash equivalents and restricted cash on our Condensed Consolidated Statement of Cash Flows.
Revenue Recognition	Revenue Recognition On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers . In accordance with ASU No. 2014-09, revenues from the operation of our hotels are recognized when guestrooms are occupied, services have been rendered or fees have been earned. Revenues are recorded net of any discounts and sales and other taxes collected from customers. Revenues consist of room sales, food and beverage sales, and other hotel revenues and are presented on a disaggregated basis on our Condensed Consolidated Statements of Operations. Room revenue is generated through short-term contracts with customers whereby customers agree to pay a daily rate for the right to occupy hotel rooms for one or more nights. Our performance obligations are fulfilled at the end of each night that the customers have the right to occupy the rooms. Room revenues are recognized daily at the contracted room rate in effect for each room night. Food and beverage revenues are generated when customers purchase food and beverage at a hotel's restaurant, bar or other facilities. Our performance obligations are fulfilled at the time that food and beverage is purchased and provided to our customers. Other revenues such as for parking, meeting space or telephone services are recognized at the point in time or over the time period that the associated good or service is provided. Ancillary services such as parking at certain hotels are provided by third parties and we assesses whether we are the principal or agent in such arrangements. If we are determined to be the agent, revenue is recognized based upon the commission paid to us by the third party for the services rendered to our customers. If we are determined to be the principal, revenues are recognized based upon the gross contract price of the service provided. Certain of our hotels have retail spaces, restaurants or other spaces that we lease to third parties. Lease revenues are recognized on a straight­ line basis over the respective lease terms and are included in Other income on our Condensed Consolidated Statement of Operations. Cash received prior to customer arrival is recorded as an advance deposit from the customer and is recognized as revenue at the time of occupancy.
Equity-Based Compensation	Equity-Based Compensation Our 2011 Equity Incentive Plan, which was amended and restated effective June 15, 2015 (as amended, 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 . 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. On January 1, 2018, we adopted ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . As such, we account for certain changes to share-based payment awards using modification accounting, which may result in incremental stock-based compensation expense based on the remeasurement of the award on the modification date.
Derivative Financial Instruments and Hedging	Derivative Financial Instruments and Hedging 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. All derivative financial instruments are recorded at fair value as a net asset or liability in our Condensed Consolidated Balance Sheets. During 2017, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. Accordingly, beginning in 2017, the change in the fair value of the hedging instruments is recorded in Other comprehensive income. Amounts deferred in Other comprehensive income will be reclassified to Interest expense in our Condensed Consolidated Statements of Operations in the period in which the hedged item affects earnings.
Income Taxes	Income Taxes We have elected to be taxed as a REIT under certain provisions of the Internal Revenue Code. 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.
Fair Value Measurement	air Value Measurement Fair value measures are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market information, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). Our estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. We classify assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. On January 1, 2018, we adopted ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . Accordingly, we have elected a measurement alternative for equity investments, such as our purchase options, that do not have readily determinable fair values. Under the alternative, our purchase options are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer, if any.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with 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 the Condensed Consolidated Statements of Operations in previous periods have been disaggregated and reclassified to conform to the current period presentation. Revenues have been disaggregated into Rooms, Food and beverage, and Other. Direct and Indirect expense has been reclassified into Room, Food and beverage, and Other hotel operating expenses. Property taxes, insurance and other, and Management expenses are also separately reported. We have also reclassified certain intangible assets related to our acquisitions of hotel properties from Other assets to Investment in hotel properties, net, on the Condensed Consolidated Balance Sheet. See "Note 3 - Investment in Hotel Properties, net" for further details. These reclassifications, made at September 30, 2018 and for the three and nine months then ended, had no net effect on the previously reported financial position or results of operations.
New Accounting Standards	New Accounting Standards In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which enhances the reporting requirements for the measurement of financial instruments and requires equity securities to be measured at fair value with changes in the fair value recognized through net income for the period. We adopted ASU No. 2016-01 for our fiscal year commencing on January 1, 2018. The adoption of ASU No. 2016-01 did not have a material effect on our consolidated financial position or our results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which changes lessee accounting to reflect the financial liability and right-of-use assets that are inherent to leasing an asset on the balance sheet. ASU No. 2016-02 is effective for our fiscal year commencing on January 1, 2019, but early adoption is permitted. We anticipate that we will adopt ASU No. 2016-02 for our fiscal year commencing on January 1, 2019. We expect to apply the modified retrospective approach such that we will account for leases that commenced before the effective date of ASU No. 2016-02 in accordance with previous GAAP unless the lease is modified, except we will recognize right-of-use assets and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. We are currently in the process of analyzing our leases. We expect that the adoption of ASU No. 2016-02 will result in the recognition of right-of-use assets and related lease liability accounts on the consolidated balance sheet but is not expected to have a material effect on our consolidated financial position or our results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which addresses the Statement of Cash Flows classification and presentation of certain cash transactions. We adopted ASU No. 2016-15 for our fiscal year commencing on January 1, 2018. The effect of this amendment has been applied retrospectively. The adoption of ASU No. 2016-15 did not have a material effect on our consolidated financial position or our results of operations. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which clarifies how companies should present restricted cash and restricted cash equivalents in the Statement of Cash Flows. This guidance requires companies to show the changes in the total of cash, cash equivalents and restricted cash in the Statement of Cash Flows. We retrospectively adopted ASU No. 2016-18 for our fiscal year commencing on January 1, 2018. The adoption of ASU No. 2016-18 did not have a material effect on our consolidated financial position or our results of operations. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in accordance with ASC No. 718, Compensation - Stock Compensation. We adopted ASC No. 2017-09 for our fiscal year commencing on January 1, 2018. This guidance is to be applied prospectively to an award modified on or after the adoption date. We applied the requirements of ASU No. 2017-09 to the modification of certain stock awards as described in "Note 9 - Equity-Based Compensation." In February 2018, the FASB issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which clarifies how an entity should measure certain equity securities. ASU 2018-03 is effective for our fiscal year commencing on January 1, 2019, but we have early adopted ASU No. 2018-03 for our fiscal year commencing on January 1, 2018. The adoption of ASU No. 2018-03 did not have a material effect on our consolidated financial position or results of operations.

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Fair value measurements	Fair value measures are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market information, which require a reporting entity to develop its own assumptions.
Fair value valuation techniques	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). The estimated fair values of the purchase options were based on unobservable inputs for which there is little or no market information available and required us to develop our own assumptions as follows (dollar amounts in thousands): Real Estate Loan 1 Real Estate Loan 2 Real Estate Loan 3 Exercise price $ 15,143 $ 17,377 $ 5,503 First option exercise date 12/31/2018 3/31/2019 5/31/2019 Last option exercise date 11/1/2020 12/5/2020 12/1/2020 Expected volatility 32.0 % 38.0 % 37.0 % Risk free rate 1.7 % 1.8 % 1.9 % Expected annualized equity dividend yield 6.8 % 9.9 % 6.5 %

INVESTMENT IN HOTEL PROPERTIE_2

INVESTMENT IN HOTEL PROPERTIES, NET (Tables)	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Schedule of investment in hotel properties, net	Investment in hotel properties, net at September 30, 2018 and December 31, 2017 is as follows (in thousands): September 30, 2018 December 31, 2017 Land $ 290,782 $ 272,932 Hotel buildings and improvements 1,899,906 1,868,273 Intangible assets 22,064 22,764 Construction in progress 20,219 12,464 Furniture, fixtures and equipment 189,457 174,126 2,422,428 2,350,559 Less - accumulated depreciation and amortization (339,823 ) (291,067 ) $ 2,082,605 $ 2,059,492
Schedule of sale of hotels	The agreements were modified on various occasions between 2015 and 2017 such that we sold 23 hotels containing 2,448 guestrooms to HIT in three tranches over that time period for a combined price of approximately $325.1 million (collectively, the “HIT Sale”) as follows (dollars in thousands): Tranche Closing Date Hotels Sold Sales Price 1 October 2015 10 $ 150,000 2 February 2016 6 108,300 3 April 2017 7 66,800 23 $ 325,100
Schedule of hotel property acquisitions	A summary of the hotel properties acquired during the nine months ended September 30, 2018 and 2017 is as follows (in thousands): Date Acquired Franchise/Brand Location Guestrooms Purchase For the nine months ended September 30, 2018 September 12, 2018 Residence Inn by Marriott Boston (Watertown), MA 150 $ 71,000 150 $ 71,000 (1) For the nine months ended September 30, 2017 March 1, 2017 Homewood Suites Aliso Viejo (Laguna Beach), CA 129 $ 38,000 March 30, 2017 Hyatt Place Phoenix (Mesa), AZ 152 22,200 May 23, 2017 Courtyard by Marriott Fort Lauderdale, FL 261 85,000 June 9, 2017 Courtyard by Marriott Charlotte, NC 181 56,250 June 21, 2017 Courtyard by Marriott Fort Worth, TX 203 40,000 June 21, 2017 Courtyard by Marriott Kansas City, MO 123 24,500 June 21, 2017 Courtyard by Marriott Pittsburgh, PA 182 42,000 June 21, 2017 Hampton Inn & Suites Baltimore, MD 116 18,000 June 21, 2017 Residence Inn by Marriott Baltimore, MD 188 38,500 July 13, 2017 AC Hotel by Marriott Atlanta, GA 255 57,500 1,790 $ 421,950 (2) (1) The net assets acquired totaled $71.0 million due to the purchase at settlement of $0.1 million of net working capital liabilities and capitalized transaction costs of $0.1 million . (2) The net assets acquired totaled $424.8 million due to the purchase at settlement of $0.6 million of net working capital assets and capitalized transaction costs of $2.2 million .
Schedule of allocation of the aggregate purchase prices to the fair value of assets acquired and liabilities assumed	The allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired for the above acquisitions is as follows (in thousands): For the Nine Months Ended September 30, 2018 2017 Land $ 25,083 $ 63,339 Hotel buildings and improvements 42,676 328,395 Intangible assets — 16,162 Furniture, fixtures and equipment 3,300 16,294 Other assets 185 1,937 Total assets acquired 71,244 426,127 Less - other liabilities assumed (242 ) (1,354 ) Net assets acquired $ 71,002 $ 424,773

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Schedule of outstanding indebtedness	Debt, net of debt issuance costs, is as follows (in thousands): September 30, 2018 December 31, 2017 Revolving debt $ 65,000 $ 15,000 Term loans 600,000 515,000 Mortgage loans 308,962 343,109 973,962 873,109 Unamortized debt issuance costs (4,816 ) (4,873 ) Debt, net of debt issuance costs $ 969,146 $ 868,236
Schedule of fixed-rate and variable-rate debt, after giving effect to interest rate derivative	Our total fixed-rate and variable-rate debt, after considering our interest rate derivative agreements that are currently effective, is as follows (in thousands): September 30, 2018 (1) Percentage December 31, 2017 Percentage Fixed-rate debt $ 627,833 64% $ 386,313 44% Variable-rate debt 346,129 36% 486,796 56% $ 973,962 $ 873,109 (1) Excludes the effect of a $125 million interest rate swap agreement that becomes effective December 31, 2018.
Schedule of the fair value of fixed-rate that is debt not recorded at fair value	Information about the fair value of our fixed-rate debt that is not recorded at fair value is as follows (in thousands): September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Valuation Technique Fixed-rate debt $ 277,833 $ 272,177 $ 311,313 $ 310,535 Level 2 - Market approach

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING (Tables)	9 Months Ended
	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivative financial instruments	Information about our derivative financial instruments at September 30, 2018 and December 31, 2017 is as follows (dollars in thousands): Notional Amount Fair Value Contract date Effective Date Expiration Date September 30, 2018 December 31, September 30, 2018 December 31, September 5, 2013 January 2, 2014 October 1, 2018 $ 75,000 (1) $ 75,000 (1) $ — $ (190 ) October 2, 2017 January 29, 2018 January 31, 2023 100,000 (2) 100,000 3,707 722 October 2, 2017 January 29, 2018 January 31, 2023 100,000 (2) 100,000 3,779 787 June 11, 2018 September 28, 2018 September 30, 2024 75,000 (3) — 180 — June 11, 2018 December 31, 2018 December 31, 2025 125,000 (4) — 254 — $ 475,000 $ 275,000 $ 7,920 $ 1,319 (1) Interest rate swap is related to a portion of our 2016 Unsecured Credit Facility and converts LIBOR from a floating rate to an average annual fixed rate of 2.04% . (2) Interest rate swap partially fixes the interest rate on a portion of our variable interest rate unsecured indebtedness and converts LIBOR from a floating rate to an average annual fixed rate of 1.98% . (3) Interest rate swap partially fixes the interest rate on a portion of our variable interest rate unsecured indebtedness and converts LIBOR from a floating rate to an average annual fixed rate of 2.87% . (4) Interest rate swap partially fixes the interest rate on a portion of our variable interest rate unsecured indebtedness and converts LIBOR from a floating rate to an average annual fixed rate of 2.93% .
Schedule of the location in the financial statements of the gain or loss recognized on derivative financial instruments designated as cash flow hedges	The table below details the location in the financial statements of the gain or loss recognized on derivative financial instruments designated as cash flow hedges (in thousands): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Gain recognized in Other comprehensive income on derivative financial instruments $ 2,555 $ 2 $ 6,401 $ 92 Gain (loss) reclassified from Other comprehensive income to Interest expense $ 60 $ (155 ) $ (200 ) $ (588 )

EQUITY (Tables)

EQUITY (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Schedule of common stock activity	Changes in common stock during the nine months ended September 30, 2018 and 2017 were as follows: For the Nine Months Ended September 30, 2018 2017 Beginning common shares outstanding 104,287,128 93,525,469 Stock offering — 10,350,000 Grants under the Equity Plan 583,738 366,679 Common Unit redemptions 25,839 52,808 Annual grants to independent directors 34,130 28,426 Common stock issued for director fees 3,543 3,553 Forfeitures (818 ) (1,237 ) Shares retained for employee tax withholding requirements (187,850 ) (59,111 ) Ending common shares outstanding 104,745,710 104,266,587

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of disclosures concerning financial instruments measured at fair value	Disclosures concerning financial instruments measured at fair value are as follows (in thousands): Fair Value Measurements at September 30, 2018 using Level 1 Level 2 Level 3 Total Assets: Interest rate swaps $ — $ 7,920 $ — $ 7,920 Purchase options related to real estate loans — — 6,120 6,120 Fair Value Measurements at December 31, 2017 using Level 1 Level 2 Level 3 Total Assets: Interest rate swaps $ — $ 1,509 $ — $ 1,509 Purchase options related to real estate loans — — 6,078 6,078 Liabilities: Interest rate swaps — 190 — 190
Fair value valuation techniques	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). The estimated fair values of the purchase options were based on unobservable inputs for which there is little or no market information available and required us to develop our own assumptions as follows (dollar amounts in thousands): Real Estate Loan 1 Real Estate Loan 2 Real Estate Loan 3 Exercise price $ 15,143 $ 17,377 $ 5,503 First option exercise date 12/31/2018 3/31/2019 5/31/2019 Last option exercise date 11/1/2020 12/5/2020 12/1/2020 Expected volatility 32.0 % 38.0 % 37.0 % Risk free rate 1.7 % 1.8 % 1.9 % Expected annualized equity dividend yield 6.8 % 9.9 % 6.5 %

EQUITY-BASED COMPENSATION (Tabl

EQUITY-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of equity-based compensation expense	Equity-based compensation expense included in Corporate general and administrative expenses in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017 was as follows (in thousands): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Time-based restricted stock $ 518 $ 541 $ 1,870 $ 1,607 Performance-based restricted stock 784 849 2,943 2,333 Director stock 17 99 554 543 $ 1,319 $ 1,489 $ 5,367 $ 4,483
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 $7.9 million at September 30, 2018 and will be recorded as follows (in thousands): Total 2018 2019 2020 2021 2022 Time-based restricted stock $ 3,310 $ 518 $ 1,617 $ 957 $ 205 $ 13 Performance-based restricted stock 4,577 784 2,320 1,287 186 — $ 7,887 $ 1,302 $ 3,937 $ 2,244 $ 391 $ 13
Restricted Stock Awards | Time-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of restricted stock awards	The following table summarizes time-based restricted stock award activity under our Equity Plan for the nine months ended September 30, 2018 : Number of Shares Weighted Average Grant Date Fair Value Aggregate Current Value (per share) (in thousands) Non-vested at December 31, 2017 391,477 $ 13.52 $ 5,962 Granted 185,930 13.15 Vested (205,619 ) 13.41 Forfeited (818 ) 12.84 Non-vested at September 30, 2018 370,970 $ 13.40 $ 5,019
Restricted Stock Awards | Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of restricted stock awards	The following table summarizes performance-based restricted stock activity under the Equity Plan for the nine months ended September 30, 2018 : Number of Shares Weighted Average Grant Date Fair Value (1) Aggregate Current Value (per share) (in thousands) Non-vested at December 31, 2017 619,429 $ 16.16 $ 9,434 Granted 397,808 15.69 Vested (309,010 ) 18.78 Non-vested at September 30, 2018 708,227 $ 14.75 $ 9,582 (1) The amounts included in this column represent the expected future value of the performance-based restricted stock awards calculated using the Monte Carlo simulation valuation model.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Summary of the components used to calculate basic and diluted earnings per share	Below is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Numerator: Net income $ 38,001 $ 22,445 $ 85,369 $ 89,734 Less: Preferred dividends (3,710 ) (4,200 ) (12,962 ) (12,600 ) Premium on redemption of preferred stock — — (3,277 ) — Allocation to participating securities (122 ) (69 ) (249 ) (305 ) Attributable to non-controlling interest (100 ) (55 ) (204 ) (289 ) Net income attributable to common stockholders, net of amount allocated to participating securities $ 34,069 $ 18,121 $ 68,677 $ 76,540 Denominator: Weighted average common shares outstanding - basic 103,666 103,253 103,603 98,105 Dilutive effect of equity-based compensation awards 155 379 265 366 Weighted average common shares outstanding - diluted 103,821 103,632 103,868 98,471 Earnings per share: Basic $ 0.33 $ 0.18 $ 0.66 $ 0.78 Diluted $ 0.33 $ 0.17 $ 0.66 $ 0.78

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details)	Sep. 30, 2018hotelRoomState	Sep. 30, 2017Room
Properties
Number of hotels | hotel	77
Number of guestrooms | Room	150	1,790
Number of states in which hotel properties are located | State	26
Hotels
Properties
Number of hotels | hotel	77
Number of guestrooms | Room	11,659
TRS Lessees | Operating partnership
Properties
Ownership interest in joint venture	100.00%

INVESTMENT IN HOTEL PROPERTIE_3

INVESTMENT IN HOTEL PROPERTIES, NET - Schedule of investment in hotel properties (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Investment in Hotel Properties
Investment in hotel properties at cost	$ 2,422,428	$ 2,350,559
Less - accumulated depreciation and amortization	(339,823)	(291,067)
Investment in hotel properties, net	2,082,605	2,059,492
Land
Investment in Hotel Properties
Investment in hotel properties at cost	290,782	272,932
Hotel buildings and improvements
Investment in Hotel Properties
Investment in hotel properties at cost	1,899,906	1,868,273
Intangible assets
Investment in Hotel Properties
Investment in hotel properties at cost	22,064	22,764
Construction in progress
Investment in Hotel Properties
Investment in hotel properties at cost	20,219	12,464
Furniture, fixtures and equipment
Investment in Hotel Properties
Investment in hotel properties at cost	$ 189,457	$ 174,126

INVESTMENT IN HOTEL PROPERTIE_4

INVESTMENT IN HOTEL PROPERTIES, NET - Narrative (Details) $ in Thousands

Jun. 29, 2018USD ($)

Apr. 27, 2017USD ($)hotel

Mar. 30, 2017USD ($)

Sep. 30, 2018USD ($)hotelRoom

Sep. 30, 2017USD ($)Room

Sep. 30, 2018USD ($)hotelRoom

Sep. 30, 2017USD ($)Room

Jun. 27, 2018USD ($)Room

Mar. 31, 2017USD ($)

Sep. 28, 2018USD ($)

Jul. 24, 2018USD ($)hotel

Jul. 21, 2017USD ($)hotel

Jun. 02, 2017USD ($)

Apr. 30, 2017USD ($)hotelRoom

Feb. 29, 2016USD ($)hotel

Feb. 11, 2016USD ($)hotel

Business Acquisition [Line Items]

Number of guestrooms | Room

150

1,790

150

1,790

Number of hotels | hotel

77

77

Hyatt House | Orlando, FL

Business Acquisition [Line Items]

Number of guestrooms | Room

168

Construction costs, excluding land acquired

$ 32,700

Capitalized construction costs

1,600

Total construction costs

$ 37,100

Disposed of by Sale

Business Acquisition [Line Items]

Number of guestrooms | Room

2,448

Aggregate sales price

$ 325,100

Number of hotels | hotel

23

Disposed of by Sale | Four properties disposed on June 29, 2018

Business Acquisition [Line Items]

Net gain on sale of properties

$ 17,400

Number of hotels | hotel

4

4

Disposed of by Sale | Three hotel properties sold on July 24, 2018

Business Acquisition [Line Items]

Aggregate sales price

$ 46,500

Net gain on sale of properties

$ 23,000

$ 23,000

Deferred taxable gain on sale of property

$ 22,200

Number of hotels | hotel

3

Disposed of by Sale | Three hotel properties sold on July 21, 2017

Business Acquisition [Line Items]

Aggregate sales price

$ 27,800

Net gain on sale of properties

$ 8,100

$ 8,100

Deferred taxable gain on sale of property

$ 8,600

Number of hotels | hotel

3

Disposed of by Sale | Portfolio of Hotels to HIT

Business Acquisition [Line Items]

Net gain on sale of properties

$ 15,000

Note receivable

$ 27,500

Disposed of by Sale | Portfolio of Hotels to HIT, Tranche Two

Business Acquisition [Line Items]

Aggregate sales price

$ 108,300

$ 108,300

Number of hotels | hotel

6

6

Receivable portion applied toward sale of hotel properties transaction by borrower

$ 20,000

Deferred gain on sale of property

20,000

Disposed of by Sale | Portfolio of Hotels to HIT, Tranche Three

Business Acquisition [Line Items]

Aggregate sales price

$ 66,800

$ 66,800

Net gain on sale of properties

$ 16,000

Number of hotels | hotel

7

7

Earnest money deposits

$ 7,500

Disposed of by Sale | Holiday Inn Express & Suites, and Hampton Inn | Sandy, UT and Provo, UT

Business Acquisition [Line Items]

Aggregate sales price

$ 19,000

Disposed of by Sale | Holiday Inn and Hilton Garden Inn | Duluth, GA

Business Acquisition [Line Items]

Aggregate sales price

24,900

Note receivable

$ 3,600

Number of second mortgage notes

2

Second mortgage notes term

3 years 6 months

Mortgage notes interest rate

7.38%

Disposed of by Sale | Hyatt Place | Fort Myers, FL

Business Acquisition [Line Items]

Aggregate sales price

$ 16,500

Net gain on sale of properties

$ 2,200

$ 2,200

Disposed of by Sale | Hyatt Place | Atlanta, GA

Business Acquisition [Line Items]

Aggregate sales price

$ 14,500

Net gain on sale of properties

4,800

Repayment of mortgage loan

$ 6,500

Disposed of by Sale | Courtyard by Marriott | El Paso, TX

Business Acquisition [Line Items]

Aggregate sales price

$ 11,200

Net gain on sale of properties

$ 400

INVESTMENT IN HOTEL PROPERTIE_5

INVESTMENT IN HOTEL PROPERTIES, NET - Schedule of sale of hotels (Details) $ in Thousands	Sep. 30, 2018hotelRoom	Sep. 30, 2017Room	Apr. 30, 2017USD ($)hotelRoom	Apr. 27, 2017USD ($)hotel	Feb. 29, 2016USD ($)hotel	Feb. 11, 2016USD ($)hotel	Oct. 31, 2015USD ($)hotel
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of hotels	77
Number of guestrooms | Room	150	1,790
Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of hotels			23
Number of guestrooms | Room			2,448
Aggregate sales price | $			$ 325,100
Portfolio of Hotels to HIT, Tranche One | Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of hotels							10
Aggregate sales price | $							$ 150,000
Portfolio of Hotels to HIT, Tranche Two | Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of hotels					6	6
Aggregate sales price | $					$ 108,300	$ 108,300
Portfolio of Hotels to HIT, Tranche Three | Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of hotels			7	7
Aggregate sales price | $			$ 66,800	$ 66,800

INVESTMENT IN HOTEL PROPERTIE_6

INVESTMENT IN HOTEL PROPERTIES, NET - Summary of hotel properties acquired (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)Room	Sep. 30, 2017USD ($)Room
Business Acquisition [Line Items]
Number of guestrooms | Room	150	1,790
Purchase Price	$ 71,000	$ 421,950
Net assets acquired	71,002	424,773
Settlement amount of net working capital liabilities	100
Settlement amount of net working capital assets		600
Other assets and capitalized transaction costs	$ 100	$ 2,200
Residence Inn by Marriott | Boston (Watertown), MA
Business Acquisition [Line Items]
Number of guestrooms | Room	150
Purchase Price	$ 71,000
Residence Inn by Marriott | Baltimore, MD
Business Acquisition [Line Items]
Number of guestrooms | Room		188
Purchase Price		$ 38,500
Homewood Suites | Aliso Viejo (Laguna Beach), CA
Business Acquisition [Line Items]
Number of guestrooms | Room		129
Purchase Price		$ 38,000
Hyatt Place | Phoenix (Mesa), AZ
Business Acquisition [Line Items]
Number of guestrooms | Room		152
Purchase Price		$ 22,200
Courtyard by Marriott | Fort Lauderdale, FL
Business Acquisition [Line Items]
Number of guestrooms | Room		261
Purchase Price		$ 85,000
Courtyard by Marriott | Charlotte, NC
Business Acquisition [Line Items]
Number of guestrooms | Room		181
Purchase Price		$ 56,250
Courtyard by Marriott | Fort Worth, TX
Business Acquisition [Line Items]
Number of guestrooms | Room		203
Purchase Price		$ 40,000
Courtyard by Marriott | Kansas City, MO
Business Acquisition [Line Items]
Number of guestrooms | Room		123
Purchase Price		$ 24,500
Courtyard by Marriott | Pittsburgh, PA
Business Acquisition [Line Items]
Number of guestrooms | Room		182
Purchase Price		$ 42,000
Hampton Inn & Suites | Baltimore, MD
Business Acquisition [Line Items]
Number of guestrooms | Room		116
Purchase Price		$ 18,000
AC Hotel by Marriott | Atlanta, GA
Business Acquisition [Line Items]
Number of guestrooms | Room		255
Purchase Price		$ 57,500

INVESTMENT IN HOTEL PROPERTIE_7

INVESTMENT IN HOTEL PROPERTIES, NET - Allocation of aggregate purchase prices (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired
Land	$ 25,083	$ 63,339
Hotel buildings and improvements	42,676	328,395
Intangible assets	0	16,162
Furniture, fixtures and equipment	3,300	16,294
Other assets	185	1,937
Total assets acquired	71,244	426,127
Less - other liabilities assumed	(242)	(1,354)
Net assets acquired	$ 71,002	$ 424,773

INVESTMENT IN HOTEL PROPERTIE_8

INVESTMENT IN HOTEL PROPERTIES, NET - Pro forma financial information (Details) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)hotel$ / shares	Sep. 30, 2017USD ($)$ / shares	Sep. 30, 2018USD ($)hotel$ / shares	Sep. 30, 2017USD ($)$ / shares
Business Combinations [Abstract]
Number of hotels owed | hotel	77		77
Revenues	$ 143,609	$ 140,582	$ 424,745	$ 414,604
Income from hotel operations	53,423	53,515	158,869	158,756
Net income	14,142	17,539	43,113	64,416
Net income attributable to common stockholders, net of amount allocated to participating securities	$ 10,280	$ 13,225	$ 26,546	$ 51,317
Basic net income per share attributable to common shareholders (in dollars per share) | $ / shares	$ 0.10	$ 0.13	$ 0.26	$ 0.52
Diluted net income per share attributable to common shareholders (in dollars per share) | $ / shares	$ 0.10	$ 0.13	$ 0.26	$ 0.52
Real estate tax expense, depreciation expense, interest expense, and other corporate expenses	$ 48,000	$ 43,400	$ 145,200	$ 118,500
Premium on redemption of preferred stock			$ 3,300

DEBT - Schedule of debt (Detail

DEBT - Schedule of debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Debt, gross	$ 973,962	$ 873,109
Unamortized debt issuance costs	(4,816)	(4,873)
Debt, net of debt issuance costs	969,146	868,236
Unsecured debt | Revolving debt
Debt Instrument [Line Items]
Debt, gross	65,000	15,000
Unsecured debt | Term loans
Debt Instrument [Line Items]
Debt, gross	600,000	515,000
Mortgage loans
Debt Instrument [Line Items]
Debt, gross	$ 308,962	$ 343,109

DEBT - Fixed-rate and variable-

DEBT - Fixed-rate and variable-rate debt (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Debt
Fixed-rate debt		$ 627,833	$ 386,313
Fixed rate debt, percentage		64.00%	44.00%
Variable-rate debt		$ 346,129	$ 486,796
Variable-rate debt, percentage		36.00%	56.00%
Debt, gross		$ 973,962	$ 873,109
Carrying Value
Debt
Fixed-rate debt		277,833	311,313
Level 2 | Fair Value
Debt
Fixed-rate debt		$ 272,177	$ 310,535
Subsequent Event | Interest rate swaps
Debt
Derivative notional amount	$ 125,000

DEBT - Narrative (Details)

DEBT - Narrative (Details)	May 16, 2018USD ($)	Apr. 02, 2018USD ($)Loan	Feb. 15, 2018USD ($)	Sep. 26, 2017USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2018USD ($)RoomProperty	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)	Jan. 15, 2016USD ($)	Apr. 08, 2015USD ($)	Apr. 07, 2015USD ($)
Debt Instrument [Line Items]
Weighted average interest rate for all borrowings, after giving effect to interest rate derivatives (as a percent)						4.31%		3.89%
Number of properties that served as collateral for loans | Property						47
Number of guestrooms available to be used as collateral for future loans | Room						150
Principal payments on debt						$ 369,147,000	$ 365,087,000
Long-term debt					$ 868,236,000	969,146,000		$ 868,236,000
Secured and unsecured debt | Total term loans
Debt Instrument [Line Items]
Long-term debt						909,000,000
Secured debt | Total term loans
Debt Instrument [Line Items]
Long-term debt						309,000,000
Secured debt | Non-recourse Loan | Metabank
Debt Instrument [Line Items]
Debt instrument, face amount							$ 47,600,000
Amount drawn on secured debt					$ 47,600,000
Fixed interest rate					4.44%			4.44%
Debt instrument, interest only payments term								18 months
Debt instrument, amortization period after interest only payments period								25 years
Unsecured debt | $450 Million Senior Unsecured Credit Facility
Debt Instrument [Line Items]
Debt instrument, face amount					$ 450,000,000	450,000,000		$ 450,000,000
Maximum borrowing capacity						450,000,000			$ 450,000,000
Maximum increase in borrowing capacity available through accordion feature option						150,000,000
Unsecured debt | $300 Million Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, face amount									300,000,000
Amount available for borrowing						235,000,000
Long-term debt						65,000,000
Unsecured debt | $150 Million Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount									$ 150,000,000
Long-term debt						$ 150,000,000
Unsecured debt | 2015 Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount										$ 140,000,000	$ 125,000,000
Principal payments on debt			$ 140,000,000
Unsecured debt | 2017 Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount				$ 225,000,000
Maximum increase in borrowing capacity available through accordion feature option				$ 175,000,000
Debt instrument, effective interest rate						4.01%
Unsecured debt | 2018 Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount			225,000,000
Maximum increase in borrowing capacity available through accordion feature option			150,000,000
Debt instrument, effective interest rate						4.31%
Amount drawn on unsecured debt	$ 85,000,000		$ 140,000,000
Mortgage loans | Western Alliance Bank
Debt Instrument [Line Items]
Debt instrument, effective interest rate		5.39%
Principal payments on debt		$ 23,900,000
Number of debt instrument | Loan		4
Option One | Minimum | LIBOR | Unsecured debt | 2017 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate				1.45%
Option One | Minimum | LIBOR | Unsecured debt | 2018 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate			1.80%
Option One | Maximum | LIBOR | Unsecured debt | 2017 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate				2.20%
Option One | Maximum | LIBOR | Unsecured debt | 2018 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate			2.55%
Option Two | LIBOR | Unsecured debt | 2017 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate				1.00%
Option Two | LIBOR | Unsecured debt | 2018 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate			1.00%
Option Two | Federal Funds Rate | Unsecured debt | 2017 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate				0.50%
Option Two | Federal Funds Rate | Unsecured debt | 2018 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate			0.50%
Option Two | Minimum | Base rate | Unsecured debt | 2017 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate				0.45%
Option Two | Minimum | Base rate | Unsecured debt | 2018 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate			0.80%
Option Two | Maximum | Base rate | Unsecured debt | 2017 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate				1.20%
Option Two | Maximum | Base rate | Unsecured debt | 2018 Term Loan
Debt Instrument [Line Items]
Debt basis spread on variable rate			1.55%
Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, effective interest rate						4.06%
Revolving Credit Facility | Option One | Minimum | LIBOR
Debt Instrument [Line Items]
Debt basis spread on variable rate						1.50%
Revolving Credit Facility | Option One | Maximum | LIBOR
Debt Instrument [Line Items]
Debt basis spread on variable rate						2.25%
Revolving Credit Facility | Option Two | LIBOR
Debt Instrument [Line Items]
Debt basis spread on variable rate						1.00%
Revolving Credit Facility | Option Two | Federal Funds Rate
Debt Instrument [Line Items]
Debt basis spread on variable rate						0.50%
Revolving Credit Facility | Option Two | Minimum
Debt Instrument [Line Items]
Debt instrument, base rate margin						0.50%
Revolving Credit Facility | Option Two | Maximum
Debt Instrument [Line Items]
Debt instrument, base rate margin						1.25%
Fair Value
Debt Instrument [Line Items]
Debt with variable interest rates that had been converted to fixed interest rates					$ 75,000,000	$ 350,000,000		$ 75,000,000

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING - Schedule of derivative financial instruments (Details) - Designated as hedges - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Interest rate swaps
Derivative financial instruments and hedging
Notional Amount	$ 475,000	$ 275,000
Fair Value	7,920	1,319
Interest Rate Swap Expiring October 1, 2018
Derivative financial instruments and hedging
Notional Amount	75,000	75,000
Fair Value	$ 0	(190)
Derivative average fixed interest rate	2.04%
Interest Rate Swap Expiring January 31, 2023
Derivative financial instruments and hedging
Derivative average fixed interest rate	1.98%
Interest Rate Swap Expiring January 31, 2023 One
Derivative financial instruments and hedging
Notional Amount	$ 100,000	100,000
Fair Value	3,707	722
Interest Rate Swap Expiring January 31, 2023 Two
Derivative financial instruments and hedging
Notional Amount	100,000	100,000
Fair Value	3,779	787
Interest Rate Swap Expiring September 30, 2024
Derivative financial instruments and hedging
Notional Amount	75,000	0
Fair Value	$ 180	0
Derivative average fixed interest rate	2.87%
Interest Rate Swap Expiring December 31, 2025
Derivative financial instruments and hedging
Notional Amount	$ 125,000	0
Fair Value	$ 254	$ 0
Derivative average fixed interest rate	2.93%

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING - Narrative (Details) $ in Thousands	Sep. 30, 2018USD ($)	Dec. 31, 2017USD ($)Instrument
Derivative [Line Items]
Fixed-rate debt	$ 627,833	$ 386,313
Fixed rate debt, percentage	64.00%	44.00%
Variable-rate debt	$ 346,129	$ 486,796
Variable-rate debt, percentage	36.00%	56.00%
Interest rate swaps
Derivative [Line Items]
Reclassification from other comprehensive income in next 12 months	$ 900
Designated as hedges | Interest rate swaps
Derivative [Line Items]
Number of derivatives in an asset position | Instrument		2
Number of derivatives in a liability position | Instrument		1

DERIVATIVE FINANCIAL INSTRUME_5

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING - Schedule of gain or loss recognized on derivative financial instruments (Details) - Cash flow hedges - Interest rate swaps - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivative instruments, gain (loss) recognized
Gain recognized in Other comprehensive income on derivative financial instruments	$ 2,555	$ 2	$ 6,401	$ 92
Interest expense
Derivative instruments, gain (loss) recognized
Gain (loss) reclassified from Other comprehensive income to Interest expense	$ 60	$ (155)	$ (200)	$ (588)

EQUITY - Changes in common stoc

EQUITY - Changes in common stock (Details) - shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Changes in Common Stock [Roll Forward]
Beginning common shares outstanding	104,287,128	93,525,469
Stock offering	0	10,350,000
Grants under the Equity Plan	583,738	366,679
Common Unit redemptions	25,839	52,808
Common stock issued for director fees	3,543	3,553
Forfeitures	(818)	(1,237)
Shares retained for employee tax withholding requirements	(187,850)	(59,111)
Ending common shares outstanding	104,745,710	104,266,587
Directors
Changes in Common Stock [Roll Forward]
Grants under the Equity Plan	34,130	28,426

EQUITY - Narrative (Details)

EQUITY - Narrative (Details)	Mar. 20, 2018USD ($)$ / sharesshares	May 15, 2017USD ($)	May 09, 2017$ / sharesshares	Sep. 30, 2018$ / sharesshares	Sep. 30, 2017USD ($)shares	Dec. 31, 2017$ / sharesshares	May 25, 2017USD ($)
Class of Stock [Line Items]
Common stock, shares authorized | shares				500,000,000		500,000,000
Common stock, par value (in dollars per share)				$ 0.01		$ 0.01
Shares issued during stock offering (in shares) | shares				0	10,350,000
Net proceeds from public shares offering | $					$ 163,620,000
Preferred stock, shares authorized | shares				100,000,000		100,000,000
Preferred stock, par value (in dollars per share)				$ 0.01		$ 0.01
Undesignated preferred stock
Class of Stock [Line Items]
Preferred stock, shares authorized | shares				90,600,000
9.25% Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, liquidation preference (in dollars per share)				$ 25
7.875% Series B Preferred Stock
Class of Stock [Line Items]
Preferred stock, liquidation preference (in dollars per share)				25
7.125% Series C Preferred Stock
Class of Stock [Line Items]
Preferred stock, dividend rate	7.125%					7.125%
Payments for repurchase of redeemable preferred shares | $	$ 85,300,000
Preferred stock, shares outstanding | shares	3,400,000					3,400,000
Preferred stock, redemption price (in dollars per share)	$ 25
Preferred stock, liquidation preference (in dollars per share)				$ 25
6.45% Series D Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares authorized | shares				3,000,000
Preferred stock, dividend rate				6.45%		6.45%
Preferred stock, shares outstanding | shares				3,000,000		3,000,000
Preferred stock, liquidation preference (in dollars per share)				$ 25
Annual dividend rate per share (in dollars per share)				$ 1.6125
6.45% Series D Preferred Stock | Maximum
Class of Stock [Line Items]
Ratio for conversion				3.9216
6.25% Series E Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares authorized | shares				6,400,000
Preferred stock, dividend rate				6.25%		6.25%
Preferred stock, shares outstanding | shares				6,400,000		6,400,000
Preferred stock, liquidation preference (in dollars per share)				$ 25
Annual dividend rate per share (in dollars per share)				$ 1.5625
6.25% Series E Preferred Stock | Maximum
Class of Stock [Line Items]
Ratio for conversion				3.1686
Operating partnership | Non-controlling Interests in Operating Partnership
Class of Stock [Line Items]
Number of common units of operating partnership owned by unaffiliated third parties (in shares) | shares				297,552		323,391
Percentage of limited partnership interest in operating partnership (less than)				1.00%		1.00%
Underwriting Agreement
Class of Stock [Line Items]
Common stock, par value (in dollars per share)			$ 0.01
Shares issued during stock offering (in shares) | shares			9,000,000
Public offering price (in dollars per share)			$ 16.50
Underwriting discount (in dollars per share)			$ 0.66
Number of days option for underwriters to purchase common stock on same terms			30 days
Number of additional shares for underwriters to purchase | shares			1,350,000
Net proceeds from public shares offering | $		$ 163,800,000
Underwriting discount and offering-related expenses | $		$ 7,000,000
2017 ATM Program
Class of Stock [Line Items]
Common stock, shares authorized, amount | $							$ 200,000,000
Unaffiliated Third Parties | Operating partnership
Class of Stock [Line Items]
Limited partner capital account units conversion ratio				1

FAIR VALUE MEASUREMENT - Schedu

FAIR VALUE MEASUREMENT - Schedule of Financial Instruments Measured at Fair Value (Details) - Recurring basis - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets:
Purchase options related to real estate loans	$ 6,120	$ 6,078
Level 1
Assets:
Purchase options related to real estate loans	0	0
Level 2
Assets:
Purchase options related to real estate loans	0	0
Level 3
Assets:
Purchase options related to real estate loans	6,120	6,078
Interest rate swaps
Assets:
Derivative asset	7,920	1,509
Liabilities:
Derivative liabilities		190
Interest rate swaps | Level 1
Assets:
Derivative asset	0	0
Liabilities:
Derivative liabilities		0
Interest rate swaps | Level 2
Assets:
Derivative asset	7,920	1,509
Liabilities:
Derivative liabilities		190
Interest rate swaps | Level 3
Assets:
Derivative asset	$ 0	0
Liabilities:
Derivative liabilities		$ 0

FAIR VALUE MEASUREMENT - Narrat

FAIR VALUE MEASUREMENT - Narrative (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)hotel	Sep. 30, 2018USD ($)Loanhotel
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of hotels | hotel	77	77
Mezzanine Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of construction loans | Loan		3
Net amount of loan receivable	$ 29.6	$ 29.6
Number of hotels | hotel	3	3
Interest rate		8.00%
Loans initial term		3 years
Funded amount of loan receivable	$ 29.6	$ 29.6
Interest in hotel upon completion to purchase	90.00%	90.00%
Period of time after initial option exercise to purchase remaining interests		5 years
Amortization of discount	$ 0.5	$ 1.5
Other Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Purchase options related to real estate loans	$ 6.1	$ 6.1

FAIR VALUE MEASUREMENT - Sche_2

FAIR VALUE MEASUREMENT - Schedule of Unobservable Inputs for Fair Values of Purchase Options (Details) - Recurring basis - Level 3 $ / shares in Thousands	9 Months Ended
	Sep. 30, 2018$ / shares
Real Estate Loan 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Exercise price	$ 15,143
Expected volatility	32.00%
Risk free rate	1.70%
Expected annualized equity dividend yield	6.80%
Real Estate Loan 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Exercise price	$ 17,377
Expected volatility	38.00%
Risk free rate	1.80%
Expected annualized equity dividend yield	9.90%
Real Estate Loan 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Exercise price	$ 5,503
Expected volatility	37.00%
Risk free rate	1.90%
Expected annualized equity dividend yield	6.50%

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Restricted Cash (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Loss Contingencies [Line Items]
Restricted cash	$ 31,567	$ 29,462
Minimum
Loss Contingencies [Line Items]
Restricted cash reserve as percentage of hotel revenues	3.00%
Maximum
Loss Contingencies [Line Items]
Restricted cash reserve as percentage of hotel revenues	5.00%

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Ground Leases (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)Propertycontract	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Propertycontractoption	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)Propertycontract
Commitments and contingencies
Total rent expense | $	$ 0.4	$ 0.4	$ 1.3	$ 1.3
Ground Leases | Portland, OR
Commitments and contingencies
Number of hotel properties for which land is leased	2		2		2
Number of Prepaid Land Lease | contract	2		2		2
Remaining prepaid balance of land lease | $	$ 3.2		$ 3.2		$ 3.2
Number of options to extend lease | option			1
Lease renewal period			14 years
Ground Leases | Houston (Galleria Area), TX
Commitments and contingencies
Number of hotel properties for which land is leased	1		1
Number of options to extend lease | option			1
Lease renewal period			10 years
Ground Leases | Austin, TX
Commitments and contingencies
Number of hotel properties for which land is leased	1		1
Ground Leases | Baltimore, MD
Commitments and contingencies
Number of hotel properties for which land is leased	1		1
Number of options to extend lease | option			12
Lease renewal period			5 years
Ground Leases | Duluth, GA
Commitments and contingencies
Number of hotel properties for which land is leased					1
Ground Leases | Long Island (Garden City), NY
Commitments and contingencies
Number of hotel properties for which land is leased	1		1

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES - Franchise and Management Agreements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Franchise agreements
Commitments and contingencies
Fees related to the agreement	$ 11.7	$ 11.4	$ 36.2	$ 30.8
Management Agreements | Maximum
Commitments and contingencies
Term of contract			5 years

EQUITY-BASED COMPENSATION - Sto

EQUITY-BASED COMPENSATION - Stock options (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of outstanding shares (in shares) | shares	235,000
Number of exercisable shares (in shares) | shares	235,000
Weighted average exercise price, outstanding (in dollars per share) | $ / shares	$ 9.75
Weighted average exercise price, exercisable (in dollars per share) | $ / shares	$ 9.75
Weighted average remaining contractual terms, exercisable	2 years 5 months
Aggregate intrinsic value, outstanding | $	$ 0.9
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options term	5 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options term	10 years
Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense | $	$ 1

EQUITY-BASED COMPENSATION - Tim

EQUITY-BASED COMPENSATION - Time-Based Restricted Stock Awards (Details) - Restricted Stock Awards - Time-Based - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Number of Shares
Non-vested at the beginning of period (in shares)	391,477
Granted (in shares)	185,930
Vested (in shares)	(205,619)
Forfeited (in shares)	(818)
Non-vested at the end of period (in shares)	370,970
Weighted Average Grant Date Fair Value
Non-vested at the beginning of period (in dollars per share)	$ 13.52
Granted (in dollars per share)	13.15
Vested (in dollars per share)	13.41
Forfeited (in dollars per share)	12.84
Non-vested at the end of period (in dollars per share)	$ 13.40
Aggregate Current Value
Non-vested outstanding	$ 5,019	$ 5,962
Employees
Aggregate Current Value
Vesting period	4 years
Employees | Period one
Aggregate Current Value
Vesting percentage	20.00%
Employees | Period two
Aggregate Current Value
Vesting percentage	20.00%
Employees | Period three
Aggregate Current Value
Vesting percentage	20.00%
Employees | Period four
Aggregate Current Value
Vesting percentage	40.00%
Executive officers
Aggregate Current Value
Vesting period	3 years
Executive officers | Period one
Aggregate Current Value
Vesting percentage	25.00%
Executive officers | Period two
Aggregate Current Value
Vesting percentage	25.00%
Executive officers | Period three
Aggregate Current Value
Vesting percentage	50.00%

EQUITY-BASED COMPENSATION - Per

EQUITY-BASED COMPENSATION - Performance-Based Restricted Stock Awards (Details) - Restricted Stock Awards - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Performance-Based
Number of Shares
Non-vested at the beginning of period (in shares)	619,429
Granted (in shares)	397,808
Vested (in shares)	(309,010)
Non-vested at the end of period (in shares)	708,227
Weighted Average Grant Date Fair Value
Non-vested at the beginning of period (in dollars per share)	$ 16.16
Granted (in dollars per share)	15.69
Vested (in dollars per share)	18.78
Non-vested at the end of period (in dollars per share)	$ 14.75
Aggregate Current Value
Non-vested outstanding	$ 9,582	$ 9,434
Maximum | Executive officers
Aggregate Current Value
Number of shares may earn, as multiple of shares granted	200.00%
Minimum | Executive officers
Aggregate Current Value
Number of shares may earn, as multiple of shares granted	0.00%

EQUITY-BASED COMPENSATION - Equ

EQUITY-BASED COMPENSATION - Equity-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Compensation expense to be recognized
Unrecognized compensation costs related to non-vested awards	$ 7,887		$ 7,887
2,018	1,302		1,302
2,019	3,937		3,937
2,020	2,244		2,244
2,021	391		391
2,022	13		13
Restricted Stock Awards | Time-Based
Compensation expense to be recognized
Unrecognized compensation costs related to non-vested awards	3,310		3,310
2,018	518		518
2,019	1,617		1,617
2,020	957		957
2,021	205		205
2,022	13		13
Restricted Stock Awards | Performance-Based
Compensation expense to be recognized
Unrecognized compensation costs related to non-vested awards	4,577		4,577
2,018	784		784
2,019	2,320		2,320
2,020	1,287		1,287
2,021	186		186
2,022	0		0
Corporate general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	1,319	$ 1,489	5,367	$ 4,483
Corporate general and administrative | Restricted Stock Awards | Time-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	518	541	1,870	1,607
Corporate general and administrative | Restricted Stock Awards | Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	784	849	2,943	2,333
Corporate general and administrative | Stock awards | Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	$ 17	$ 99	$ 554	$ 543

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Percentage of taxable income distributed to shareholders			100.00%
Income tax benefit (expense)	$ 532,000	$ 231,000	$ 120,000	$ (613,000)
Deferred tax assets	2,400,000		2,400,000		$ 1,600,000
Unrecognized tax benefits	$ 0		$ 0

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net income	$ 38,001	$ 22,445	$ 85,369	$ 89,734
Less: Preferred dividends	(3,710)	(4,200)	(12,962)	(12,600)
Premium on redemption of preferred stock	0	0	(3,277)	0
Allocation to participating securities	(122)	(69)	(249)	(305)
Attributable to non-controlling interest	(100)	(55)	(204)	(289)
Net income attributable to common stockholders	$ 34,069	$ 18,121	$ 68,677	$ 76,540
Denominator:
Weighted average common shares outstanding - basic (in shares)	103,666,000	103,253,000	103,603,000	98,105,000
Dilutive effect of equity-based compensation awards (in shares)	155,000	379,000	265,000	366,000
Weighted average common shares outstanding - diluted (in shares)	103,821,000	103,632,000	103,868,000	98,471,000
Basic (in dollars per share)	$ 0.33	$ 0.18	$ 0.66	$ 0.78
Diluted (in dollars per share)	$ 0.33	$ 0.17	$ 0.66	$ 0.78
Restricted Stock Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares)	453,664	464,924	453,664	464,924

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - $ / shares	Oct. 26, 2018	Sep. 30, 2018	Dec. 31, 2017
6.45% Series D Preferred Stock
Subsequent events
Preferred stock, dividend rate		6.45%	6.45%
6.25% Series E Preferred Stock
Subsequent events
Preferred stock, dividend rate		6.25%	6.25%
Subsequent Event
Subsequent events
Cash dividends declared, common stock (in dollars per share)	$ 0.18
Subsequent Event | 6.45% Series D Preferred Stock
Subsequent events
Cash dividends declared, preferred stock (in dollars per share)	0.403125
Subsequent Event | 6.25% Series E Preferred Stock
Subsequent events
Cash dividends declared, preferred stock (in dollars per share)	$ 0.390625