Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 18, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35074 | ||
Entity Registrant Name | SUMMIT HOTEL PROPERTIES, INC. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 27-2962512 | ||
Entity Address, Address Line One | 13215 Bee Cave Parkway, Suite B-300 | ||
Entity Address, City or Town | Austin | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78738 | ||
City Area Code | 512 | ||
Local Phone Number | 538-2300 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,183,107,411 | ||
Entity Common Stock, Shares Outstanding | 105,174,471 | ||
Entity Central Index Key | 0001497645 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement on Schedule 14A for its 2020 annual meeting of stockholders, to be filed with the Securities and Exchange Commission not later than 120 days after the end of the fiscal year pursuant to Regulation 14A, are incorporated herein by reference into Part III, Items 10, 11, 12, 13 and 14. | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | INN | ||
Security Exchange Name | NYSE | ||
6.45% Series D Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6.45% Series D Cumulative Redeemable Preferred Stock, par value $0.01 per share | ||
Trading Symbol | INN-PD | ||
Security Exchange Name | NYSE | ||
6.25% Series E Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6.25% Series E Cumulative Redeemable Preferred Stock, par value $0.01 per share | ||
Trading Symbol | INN-PE | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Investment in hotel properties, net | $ 2,184,232 | $ 2,065,554 |
Undeveloped land | 1,500 | 2,267 |
Assets held for sale, net | 425 | 7,633 |
Investment in real estate loans, net | 30,936 | 30,700 |
Right-of-use assets | 29,884 | |
Cash and cash equivalents | 42,238 | 44,088 |
Restricted cash | 27,595 | 28,468 |
Trade receivables, net | 13,281 | 13,978 |
Prepaid expenses and other | 8,844 | 10,111 |
Deferred charges, net | 4,709 | 4,691 |
Other assets | 12,039 | 14,807 |
Total assets | 2,355,683 | 2,222,297 |
Liabilities: | ||
Debt, net of debt issuance costs | 1,016,163 | 958,712 |
Lease liabilities | 19,604 | |
Accounts payable | 4,767 | 5,391 |
Accrued expenses and other | 71,759 | 66,050 |
Total liabilities | 1,112,293 | 1,030,153 |
Commitments and contingencies (Note 11) | ||
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, 105,169,515 and 104,783,179 shares issued and outstanding at December 31, 2019 and 2018, respectively | 1,052 | 1,048 |
Additional paid-in capital | 1,190,949 | 1,185,310 |
Accumulated other comprehensive loss | (16,034) | (1,441) |
(Distributions in excess of retained earnings) retained earnings | (2,283) | 4,838 |
Total stockholders’ equity | 1,173,778 | 1,189,849 |
Non-controlling interests in operating partnership | 1,809 | 2,295 |
Non-controlling interests in joint venture (Note 9) | 67,803 | |
Total equity | 1,243,390 | 1,192,144 |
Total liabilities and equity | 2,355,683 | 2,222,297 |
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 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 105,169,515 | 104,783,179 |
Common stock, shares outstanding | 105,169,515 | 104,783,179 |
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) | $ 75,417 | $ 75,417 |
Preferred stock, dividend rate (as a percent) | 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) | $ 160,861 | $ 160,861 |
Preferred stock, dividend rate (as a percent) | 6.25% | 6.25% |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Revenues | $ 549,348 | $ 567,270 | $ 515,377 |
Expenses: | |||
Property taxes, insurance and other | 44,220 | 43,339 | 37,419 |
Depreciation and amortization | 99,445 | 101,013 | 85,927 |
Corporate general and administrative | 23,622 | 21,509 | 19,597 |
Hotel property acquisition costs | 0 | 0 | 354 |
Loss on impairment of assets | 2,521 | 1,075 | 0 |
Total expenses | 475,360 | 483,545 | 431,482 |
Gain on disposal of assets, net | 45,418 | 41,474 | 43,209 |
Operating income | 119,406 | 125,199 | 127,104 |
Other income (expense): | |||
Interest expense | (41,030) | (41,944) | (29,687) |
Other income, net | 5,472 | 6,949 | 3,778 |
Total other expense | (35,558) | (34,995) | (25,909) |
Income from continuing operations before income taxes | 83,848 | 90,204 | 101,195 |
Income tax (expense) benefit (Note 14) | (1,500) | 922 | (1,674) |
Net income | 82,348 | 91,126 | 99,521 |
Operating Partnership | (157) | (205) | (307) |
Joint venture | (419) | 0 | 0 |
Net income attributable to Summit Hotel Properties, Inc. | 82,610 | 90,921 | 99,214 |
Preferred dividends | (14,838) | (16,671) | (17,408) |
Premium on redemption of preferred stock | 0 | (3,277) | (2,572) |
Net income attributable to common stockholders | $ 67,772 | $ 70,973 | $ 79,234 |
Earnings per share: | |||
Basic and diluted (in dollars per share) | $ 0.65 | $ 0.68 | $ 0.79 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 103,887 | 103,623 | 99,406 |
Diluted (in shares) | 103,939 | 103,842 | 99,780 |
Dividends per share (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.67 |
Room | |||
Revenues: | |||
Revenues | $ 505,342 | $ 523,439 | $ 479,934 |
Expenses: | |||
Hotel operating expenses | 112,244 | 119,724 | 108,715 |
Food and beverage | |||
Revenues: | |||
Revenues | 23,785 | 24,225 | 21,359 |
Expenses: | |||
Hotel operating expenses | 18,552 | 19,191 | 16,734 |
Other | |||
Revenues: | |||
Revenues | 20,221 | 19,606 | 14,084 |
Expenses: | |||
Hotel operating expenses | 158,181 | 159,173 | 144,526 |
Management fees | |||
Expenses: | |||
Hotel operating expenses | $ 16,575 | $ 18,521 | $ 18,210 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 82,348 | $ 91,126 | $ 99,521 |
Other comprehensive income, net of tax: | |||
Changes in fair value of derivative financial instruments | (14,596) | (2,900) | 2,437 |
Comprehensive income | 67,752 | 88,226 | 101,958 |
Comprehensive (income) loss attributable to non-controlling interests: | |||
Operating Partnership | (123) | (197) | (316) |
Joint venture | 419 | 0 | 0 |
Comprehensive income attributable to Summit Hotel Properties, Inc. | 68,048 | 88,029 | 101,642 |
Preferred dividends | (14,838) | (16,671) | (17,408) |
Premium on redemption of preferred stock | 0 | (3,277) | (2,572) |
Comprehensive income attributable to common stockholders | $ 53,210 | $ 68,081 | $ 81,662 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Distributions in Excess of Retained Earnings) | Total Shareholders’ Equity | Non-controlling Interests, Operating Partnership | Non-controlling Interests, Joint Venture | Preferred Stock | Preferred StockPreferred Stock | Preferred StockAdditional Paid-In Capital | Preferred StockTotal Shareholders’ Equity | Common Stock | Common StockCommon Stock | Common StockAdditional Paid-In Capital | Common StockTotal Shareholders’ Equity |
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 | $ 0 | ||||||||
Balance (in shares) at Dec. 31, 2016 | 9,400,000 | 93,525,469 | |||||||||||||||
Changes in equity | |||||||||||||||||
Net proceeds from sale of stock | $ 154,732 | $ 64 | $ 154,668 | $ 154,732 | $ 163,575 | $ 104 | $ 163,471 | $ 163,575 | |||||||||
Net proceeds from sale of stock (in shares) | 6,400,000 | 10,350,000 | |||||||||||||||
Redemption of preferred stock | (75,025) | $ (30) | (72,423) | (2,572) | (75,025) | ||||||||||||
Redemption of preferred stock (in shares) | (3,000,000) | ||||||||||||||||
Common stock redemption of common units | $ 1 | 650 | 651 | (651) | |||||||||||||
Common stock redemption of common units (in shares) | 73,322 | ||||||||||||||||
Dividends | (86,260) | (86,019) | (86,019) | (241) | |||||||||||||
Equity-based compensation | 5,887 | $ 4 | 5,861 | 5,865 | 22 | ||||||||||||
Equity-based compensation (in shares) | 397,448 | ||||||||||||||||
Shares acquired for employee withholding requirements | (961) | $ (1) | (960) | (961) | |||||||||||||
Shares acquired for employee withholding requirements (in shares) | (59,111) | ||||||||||||||||
Other comprehensive income (loss) | 2,437 | 2,428 | 2,428 | 9 | |||||||||||||
Net income | 99,521 | 99,214 | 99,214 | 307 | |||||||||||||
Balance at end of year at Dec. 31, 2017 | 1,277,376 | $ 128 | $ 1,043 | 1,262,679 | 1,451 | 9,201 | 1,274,502 | 2,874 | 0 | ||||||||
Balance (in shares) at Dec. 31, 2017 | 12,800,000 | 104,287,128 | |||||||||||||||
Changes in equity | |||||||||||||||||
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 | $ 1 | 576 | 577 | (577) | |||||||||||||
Common stock redemption of common units (in shares) | 64,126 | 64,126 | |||||||||||||||
Dividends | $ (92,225) | (92,007) | (92,007) | (218) | |||||||||||||
Equity-based compensation | 6,665 | $ 6 | 6,640 | 6,646 | 19 | ||||||||||||
Equity-based compensation (in shares) | 619,775 | ||||||||||||||||
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 | $ (174) | (174) | (174) | ||||||||||||||
Other comprehensive income (loss) | (2,900) | (2,892) | (2,892) | (8) | |||||||||||||
Net income | 91,126 | 90,921 | 90,921 | 205 | |||||||||||||
Balance at end of year at Dec. 31, 2018 | 1,192,144 | $ 94 | $ 1,048 | 1,185,310 | (1,441) | 4,838 | 1,189,849 | 2,295 | 0 | ||||||||
Balance (in shares) at Dec. 31, 2018 | 9,400,000 | 104,783,179 | |||||||||||||||
Changes in equity | |||||||||||||||||
Contribution by non-controlling interest in joint venture | $ 68,712 | 68,712 | |||||||||||||||
Common stock redemption of common units | $ 1 | 475 | (31) | 445 | (445) | ||||||||||||
Common stock redemption of common units (in shares) | 50,244 | 50,244 | |||||||||||||||
Dividends | $ (90,399) | (89,731) | (89,731) | (178) | (490) | ||||||||||||
Equity-based compensation | 6,219 | $ 4 | 6,201 | 6,205 | 14 | ||||||||||||
Equity-based compensation (in shares) | 410,432 | ||||||||||||||||
Shares acquired for employee withholding requirements | $ (839) | $ (1) | (838) | (839) | |||||||||||||
Shares acquired for employee withholding requirements (in shares) | (74,340) | (74,340) | |||||||||||||||
Other | $ (199) | (199) | (199) | ||||||||||||||
Other comprehensive income (loss) | (14,596) | (14,562) | (14,562) | (34) | |||||||||||||
Net income | 82,348 | 82,610 | 82,610 | 157 | (419) | ||||||||||||
Balance at end of year at Dec. 31, 2019 | $ 1,243,390 | $ 94 | $ 1,052 | $ 1,190,949 | $ (16,034) | $ (2,283) | $ 1,173,778 | $ 1,809 | $ 67,803 | ||||||||
Balance (in shares) at Dec. 31, 2019 | 9,400,000 | 105,169,515 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net income | $ 82,348 | $ 91,126 | $ 99,521 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 99,445 | 101,013 | 85,927 |
Amortization of deferred financing costs | 1,485 | 1,973 | 2,022 |
Loss on impairment of assets | 2,521 | 1,075 | 0 |
Equity-based compensation | 6,219 | 6,665 | 5,887 |
Deferred tax asset, net | (12) | (430) | 887 |
Realization of deferred gain | 0 | 0 | (15,000) |
Gain on disposal of assets, net | (45,418) | (41,474) | (28,209) |
Non-cash interest income | (2,477) | (2,045) | (284) |
Debt transaction costs | 1,892 | 401 | 195 |
Other | 469 | 770 | 285 |
Changes in operating assets and liabilities: | |||
Trade receivables, net | 511 | 2,787 | (5,032) |
Prepaid expenses and other | 552 | (1,127) | (2,454) |
Accounts payable | (314) | (424) | (491) |
Accrued expenses and other | 1,257 | 1,341 | 4,595 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 148,478 | 161,651 | 147,849 |
INVESTING ACTIVITIES | |||
Acquisitions of hotel properties and land | (282,557) | (71,002) | (588,822) |
Improvements to hotel properties | (59,268) | (66,610) | (37,191) |
Investment in hotel properties under development | 0 | (13,430) | (20,993) |
Proceeds from asset dispositions, net | 165,724 | 104,030 | 120,733 |
Funding of real estate loans | (8,363) | (16,245) | (17,935) |
Proceeds from principal payments on real estate loans | 2,300 | 200 | 32,500 |
NET CASH USED IN INVESTING ACTIVITIES | (182,164) | (63,057) | (511,708) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of debt | 360,000 | 815,000 | 667,640 |
Principal payments on debt | (302,287) | (723,098) | (452,082) |
Proceeds from equity offerings, net of issuance costs | 0 | 0 | 318,307 |
Redemption of preferred stock | 0 | (85,000) | (75,025) |
Dividends paid | (90,783) | (92,245) | (85,635) |
Proceeds from contribution by joint venture partner | 68,712 | 0 | 0 |
Financing fees on debt and other issuance costs | (3,840) | (3,978) | (1,953) |
Repurchase of common shares for withholding requirements | (839) | (2,724) | (961) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 30,963 | (92,045) | 370,291 |
Net change in cash, cash equivalents and restricted cash | (2,723) | 6,549 | 6,432 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Beginning of period | 72,556 | 66,007 | 59,575 |
End of period | 69,833 | 72,556 | 66,007 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash payments for interest | 41,648 | 38,743 | 27,362 |
Accrued improvements to hotel properties | 4,856 | 6,084 | 7,074 |
Capitalized interest | 0 | 446 | 301 |
Cash payments for income taxes, net of refunds | $ (229) | $ 839 | $ 623 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2019 | |
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. On February 14, 2011, the Company closed on its initial public offering and completed certain formation transactions, including the merger of Summit Hotel Properties, LLC with and into the Operating Partnership. Unless the context otherwise requires, “we”, “us”, and “our” refer to the Company and its consolidated subsidiaries. We focus on owning premium-branded hotels with efficient operating models primarily in the Upscale segment of the lodging industry. At December 31, 2019 , our portfolio consisted of 72 hotels with a total of 11,288 guestrooms located in 23 states. At December 31, 2019 , we own 100% of the outstanding equity interests in 67 of 72 of our hotels. We own a 51% controlling interest in five |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation We prepare our Consolidated Financial Statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenues and expenses in the reporting period. Actual results could differ from those estimates. The accompanying Consolidated Financial Statements consolidate the accounts of all entities in which we have a controlling financial interest, as well as variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. We evaluate joint venture partnerships to determine if they should be consolidated based on whether the partners exercise joint control. For a joint venture where we exercise primary control and we also own a majority of the equity interests, we consolidate the joint venture partnership. We have consolidated the accounts of our joint venture partnership with GIC (see "Note 9 - Equity - Non-controlling Interest in Joint Venture") in our accompanying Consolidated Financial Statements. Segment Disclosure Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. We have determined that we have one reportable segment, for activities related to investing in real estate. Our investments in real estate are geographically diversified and the chief operating decision makers evaluate operating performance on an individual asset level. As each of our assets has similar economic characteristics, the assets have been aggregated into one reportable segment. Investment in Hotel Properties The Company allocates the purchase price of acquired hotel properties based on the fair value of the acquired land, land improvements, building, furniture, fixtures and equipment, identifiable intangible assets or liabilities, other assets and assumed liabilities. Intangible assets may include certain value associated with the on-going operations of the hotel business being acquired as part of the hotel property acquisition. Acquired intangible assets that derive their values from real property or an interest in real property, are inseparable from that real property or interest in real property, and do not produce or contribute to the production of income other than consideration for the use or occupancy of space, are recorded as a component of the related real estate asset in our Consolidated Financial Statements. We allocate the purchase price of acquired hotel properties to land, building and furniture, fixtures and equipment based on third-party independent appraisals. 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. We generally depreciate our hotel properties and related assets using the straight-line method over their estimated useful lives as follows: Classification Estimated Useful Lives Buildings and improvements 6 to 40 years Furniture, fixtures and equipment 2 to 15 years We periodically re-evaluate asset lives based on current assessments of remaining utilization, which may result in changes in estimated useful lives. Such changes are accounted for prospectively and will increase or decrease future depreciation expense. When depreciable property and equipment is retired or disposed, the related costs and accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in current operations. On a limited basis, we provide financing to developers of hotel properties for development projects. We evaluate these arrangements to determine if we participate in residual profits of the hotel property through the loan provisions or other agreements. Where we conclude that these arrangements are more appropriately treated as an investment in the hotel property, we reflect the loan as an Investment in Hotel Properties, net in our Consolidated Balance Sheets. We monitor events and changes in circumstances for indicators that the carrying value of a hotel property or undeveloped land 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, v) changes in values of comparable land or hotel sales, and vi) 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 the carrying amount of the asset is not recoverable, we estimate the fair value of the property based on discounted cash flows, third party appraisals, 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. Intangible Assets We amortize intangible assets with determined finite useful lives using the straight-line method. We do not amortize intangible assets with indefinite useful lives, but we evaluate these assets for impairment annually or at interim periods if events or circumstances indicate that the asset may be impaired. Assets Held for Sale We periodically review our hotel properties and our undeveloped land based on established criteria such as age, type of franchise, adverse economic and competitive conditions, and strategic fit to identify properties that we believe are either non-strategic or no longer complement our business. Based on our review, we periodically market properties for sale that no longer meet our investment criteria. We also periodically receive unsolicited external inquiries that result in the sale of hotel properties. Variable Interest Entities Additionally, we have in the past and may in the future enter into purchase and sale transactions in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended (“IRC”), for the exchange of like-kind property to defer taxable gains on the sale of real estate properties (“1031 Exchange”). For reverse transactions under a 1031 Exchange in which we purchase a new property prior to selling the property to be matched in the like-kind exchange (we refer to a new property being acquired by us in the 1031 Exchange prior to the sale of the related property as a “Parked Asset”), legal title to the Parked Asset is held by a qualified intermediary engaged to execute the 1031 Exchange until the sale transaction and the 1031 Exchange is completed. We retain essentially all of the legal and economic benefits and obligations related to a Parked Asset prior to completion of a 1031 Exchange. As such, a Parked Asset is included in our Consolidated Balance Sheets and Consolidated Statements of Operations as a consolidated VIE until legal title is transferred to us upon completion of the 1031 Exchange. 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. Trade Receivables and Credit Policies We grant credit to qualified customers, generally without collateral, in the form of trade accounts receivable. Trade receivables result from the rental of hotel guestrooms and the sales of food, beverage, and banquet services and are payable under normal trade terms. Trade receivables also include credit and debit card transactions that are in the process of being settled. Trade receivables are stated at the amount billed to the customer and do not accrue interest. We regularly review the collectability of our trade receivables. A provision for losses is determined on the basis of previous loss experience and current economic conditions. Our allowance for doubtful accounts was $0.2 million at December 31, 2019 and $0.1 million at December 31, 2018 . Bad debt expense was $0.5 million , $0.6 million and $0.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which changed lessee accounting to reflect the financial liability and right-of-use assets that are inherent to leasing an asset on the balance sheet. We adopted ASU No. 2016-02 on January 1, 2019. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, to clarify how to apply certain aspects of ASC No. 842, Leases. In July 2018, the FASB also issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, to give companies another option for transition and to provide lessors with a practical expedient to reduce the cost and complexity of implementing the new standard. The transition option allows companies to not apply the new lease standard in the comparative periods they present in their financial statements in the year of adoption. The Company elected certain practical expedients allowed under the guidance and retained the original lease classification and historical accounting for initial direct costs for leases existing prior to the adoption date. The Company also elected not to restate prior periods for the effect of the adoption of the new standard. In accordance with ASU No. 2016-02, we reclassified certain existing lease-related assets and liabilities to Right-of-use assets as of January 1, 2019. The adoption of ASU No. 2016-02 resulted in the recognition of incremental right-of-use assets and related lease liabilities of $23.6 million on the Consolidated Balance Sheet as of January 1, 2019 (see "Note 7 - Leases"). Notes Receivables We selectively provide mezzanine financing to developers, where we also have the opportunity to acquire the hotel at or after the completion of the development project. Separately, we also may provide seller financing in connection with a hotel disposition under limited circumstances. We classify notes receivable as held-to-maturity and carry the notes receivable at cost less the unamortized discount, if any. We routinely evaluate our notes receivable for potential credit or collection issues that may indicate an impairment. Losses on notes receivable are recognized when incurred based on our best estimate of probable impairment. Deferred Charges, net Initial franchise fees are capitalized and amortized over the term of the franchise agreement using the straight-line method. Deferred Financing Fees Debt issuance costs are presented as a direct deduction from the carrying value of the debt liability on the Consolidated Balance Sheets. Debt issuance costs are amortized as a component of interest expense over the term of the related debt using the straight-line method, which approximates the interest method. Non-controlling Interests Non-controlling interests represent the portion of equity in a consolidated entity held by owners other than the consolidating parent. Non-controlling interests are reported in the Consolidated Balance Sheets within equity, separately from stockholders’ equity. Revenue, expenses and net income attributable to both the Company and the non-controlling interests are reported in the Consolidated Statements of Operations. Our Consolidated Financial Statements include non-controlling interests related to common units of limited partnership interests (“Common Units”) in the Operating Partnership held by unaffiliated third parties and third-party ownership of a 49% interest in a consolidated joint venture (See "Note 9 - Equity - Non-controlling Interest in Joint Venture" for further information). 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 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, cancellation fees, 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 assess 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 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. Sales and Other Taxes We have operations in states and municipalities that impose sales or other taxes on certain sales. We collect these taxes from our customers and remit the entire amount to the various governmental units. The taxes collected and remitted are excluded from revenues and are included in accrued expenses until remitted. Equity-Based Compensation Our 2011 Equity Incentive Plan, which was amended and restated effective June 15, 2015 (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 initial public offering 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. We have elected to account for forfeitures as they occur. 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 forfeitures or modification of previously granted awards. Derivative Financial Instruments and Hedging All derivative financial instruments are recorded at fair value in our Consolidated Balance Sheets. We use interest rate derivatives to hedge our risks on variable-rate debt. Interest rate derivatives could include interest rate swaps, caps and collars. 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. The change in the fair value of the hedging instruments is recorded in Other comprehensive income. Amounts in Other comprehensive income will be reclassified to Interest expense in our Consolidated Statements of Operations in the period in which the hedged item affects earnings. 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 was reduced to 21%, (2) the highest marginal individual income tax rate was reduced to 37% (through taxable years ending in 2025), (3) the corporate alternative minimum tax was repealed, and (4) the backup withholding rate for U.S. stockholders was 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 TRSs and any other TRS that we form. Fair Value Measurement Fair value measures are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market information, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). Our estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. We classify assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. We elected not to use the fair value option for cash and cash equivalents, restricted cash, trade receivables, prepaid expenses and other, debt, accounts payable, and accrued expenses and other. With the exception of our fixed-rate debt (See “Note 6 — Debt”), the carrying amounts of these financial instruments approximate their fair values due to their short-term nature or variable interest rates. 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 Food and beverage revenues, Other revenues, Food and beverage expenses, and Other hotel operating expenses in the Consolidated Statements of Operations in previous periods and certain amounts reported in the Consolidated Statements of Cash Flows in previous periods have been reclassified to conform to the current period presentation. New Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which clarifies when an entity recognizes a credit loss on certain financial assets. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses: Targeted Transition Relief , which provides an option to irrevocably elect the fair value option in ASC No. 825-10, Financial Instruments - Overall , applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASC No. 326, Financial Instruments - Credit Losses . ASU 2016-13 and ASU 2019-05 are both effective for our fiscal year commencing on January 1, 2020, with early adoption permitted. The adoption of ASU No. 2016-13 or ASU No. 2019-05 did not have a material effect on our consolidated financial position or results of operations. In August 2018, the FASB issued ASU No. 2018-15, Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement , which clarifies how an entity should account for fees paid in a cloud computing arrangement. ASU 2018-15 is effective for our fiscal year commencing on January 1, 2020, with early adoption permitted. During fiscal 2019, we elected to early adopt ASU No. 2018-15. The adoption of ASU No. 2018-15 did not have a material effect on our consolidated financial position or results of operations. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
INVESTMENT IN HOTEL PROPERTIES
INVESTMENT IN HOTEL PROPERTIES | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
INVESTMENT IN HOTEL PROPERTIES | INVESTMENT IN HOTEL PROPERTIES Investment in Hotel Properties, net Investment in hotel properties, net at December 31, 2019 and 2018 include (in thousands): 2019 2018 Land $ 319,603 $ 288,833 Hotel buildings and improvements 2,049,384 1,916,194 Furniture, fixtures and equipment 173,128 165,026 Construction in progress 9,388 21,059 Intangible assets 11,231 22,064 Real estate development loan 5,485 — 2,568,219 2,413,176 Less - accumulated depreciation (383,987 ) (347,622 ) $ 2,184,232 $ 2,065,554 During the year ended December 31, 2019, we provided a mezzanine loan to fund up to $28.9 million for a mixed-use development project that includes a hotel property, retail space, and parking. We have classified the mezzanine loan as Investment in hotel properties, net in our Consolidated Balance Sheets at December 31, 2019 (See "Note 4 - Investment in Real Estate Loans" for further information). Depreciation expense was $99.0 million , $100.5 million , and $85.5 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Intangible assets included in Investment in hotel properties, net in our Consolidated Balance Sheets include the following (in thousands): Weighted Average Amortization Period (in Years) 2019 2018 Intangible assets: Air rights (1) n/a $ 10,754 $ 10,754 Favorable leases (2) n/a — 10,550 In-place lease agreements 2.0 397 680 Other n/a 80 80 11,231 22,064 Less - accumulated amortization (224 ) (1,108 ) Intangible assets, net $ 11,007 $ 20,956 (1) In conjunction with the acquisition of the Courtyard by Marriott - Charlotte, NC, the Company acquired certain air rights related to the hotel property. (2) In accordance with ASU No. 2016-02, Leases (Topic 842), we reclassified certain existing lease-related intangible assets to Right-of-use assets as of January 1, 2019 (See "Note 7 - Leases" for further information). Future amortization expense is expected to be as follows (in thousands): Finite-Lived Intangible Assets 2020 $ 87 2021 86 $ 173 Hotel Property Acquisitions Hotel property acquisitions in 2019 and 2018 were as follows (in thousands): Date Acquired Franchise/Brand Location Guestrooms Purchase Year Ended December 31, 2019 August 6, 2019 Hampton Inn & Suites Silverthorne, CO 88 $ 25,500 October 8, 2019 Portfolio Purchase - four properties (1) various (1) 710 249,000 798 $ 274,500 (2) Year Ended December 31, 2018 September 12, 2018 Residence Inn by Marriott Boston (Watertown), MA 150 $ 71,000 150 $ 71,000 (3) (1) On October 8, 2019, we acquired a portfolio of four hotels for an aggregate purchase price of $249.0 million . The hotels acquired included the Hilton Garden Inn - San Francisco, CA, the Hilton Garden Inn - San Jose (Milpitas), CA, the Residence Inn by Marriott - Portland (Downtown), OR, and the Residence Inn by Marriott - Portland (Hillsboro), OR. (2) The net assets acquired in 2019 were purchased for $274.5 million plus the purchase of adjacent land parcels totaling $2.4 million , $1.0 million of net working capital assets and capitalized transaction costs of $0.4 million . We own a 51% controlling interest in these hotel properties through a consolidated joint venture. (3) The net assets acquired in 2018 were purchased for $71.0 million plus the purchase at settlement of $0.1 million of net working capital liabilities and capitalized transaction costs of $0.1 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): 2019 2018 Land $ 44,868 $ 25,083 Hotel buildings and improvements 219,410 42,676 Furniture, fixtures and equipment 12,995 3,300 Other assets 1,103 123 Total assets acquired 278,376 71,182 Less other liabilities (79 ) (180 ) Net assets acquired (1) (2) $ 278,297 $ 71,002 (1) The net assets acquired in 2019 were purchased for $274.5 million plus the purchase of adjacent land parcels totaling $2.4 million , $1.0 million of net working capital assets and capitalized transaction costs of $0.4 million . (2) The net assets acquired in 2018 were purchased for $71.0 million plus the purchase at settlement of $0.1 million of net working capital liabilities and capitalized transaction costs of $0.1 million . All hotel purchases completed in 2019 and 2018 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. On January 31, 2019, we exercised our option pursuant to a ground lease agreement to purchase the land upon which our Residence Inn by Marriott in Baltimore (Hunt Valley), MD is located for $4.2 million , which resulted in a termination of obligations under the ground lease. As a result, this hotel property is no longer subject to a ground lease. On December 4, 2019, we exercised our right to acquire a fee simple interest in the land upon which our Hyatt Place in Garden City, NY is located for nominal consideration. As a result, the hotel is no longer subject to a PILOT (payment in lieu of taxes) lease with the Town of Hempstead Industrial Development Authority. The results of operations of acquired hotel properties are included in the Consolidated Statements of Operations beginning on their respective acquisition dates. The following unaudited pro forma information includes operating results for 72 hotels owned as of December 31, 2019 as if all such hotels had been owned by us since January 1, 2018. For hotels acquired by us after January 1, 2018 (the "Acquired Hotels"), we have included in the unaudited pro forma information the financial results of each of the Acquired Hotels for the period from January 1, 2018 to the date the Acquired Hotels were purchased by us (the "Pre-Acquisition 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, 2018 and December 31, 2019 (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, 2018 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, 2018. The unaudited pro forma amounts exclude the gain or loss on the sale of hotel properties during the years ended December 31, 2018 and 2019. 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 72 hotel properties owned at December 31, 2019 for the twelve months ended December 31, 2019 and 2018 is as follows (in thousands, except per share): 2019 2018 Revenues $ 572,262 $ 562,097 Income from hotel operations $ 215,372 $ 215,931 Net income (1) $ 57,909 $ 71,478 Net income attributable to common stockholders, net of amount allocated to participating securities and non-controlling interests (1) (2) $ 33,671 $ 38,803 Basic and diluted net income per share attributable to common stockholders (1) (2) $ 0.32 $ 0.37 (1) Unaudited pro forma amounts include depreciation expense, property tax expense, interest expense, income tax expense, and corporate general and administrative expenses totaling $197.1 million and $181.9 million for the twelve months ended December 31, 2019 and 2018, respectively. (2) Unaudited pro forma amounts for the twelve months ended December 31, 2018 include the effect of the premium on redemption of preferred stock of $3.3 million and higher preferred dividends of $1.8 million related to the redeemed preferred stock. Developed Properties We completed the development and commenced operations of the 168 -guestroom Hyatt House Across From Orlando Universal Resort™ on June 27, 2018. The total construction cost for this hotel was $32.8 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 $37.2 million , including the carrying amount of the land, were reclassified as Investment in hotel properties, net upon completion. Asset Sales A summary of the dispositions in 2019 and 2018 follows (dollars in thousands): Disposition Date Franchise/Brand Location Guestrooms Gross Sales Price Aggregate Gain, net Year Ended December 31, 2019 February 12, 2019 Portfolio Sale - two properties (1) Charleston, WV (1) 130 $ 11,600 $ 4,163 April 17, 2019 Portfolio Sale - six properties (2) various (2) 815 135,000 36,626 November 8, 2019 Portfolio Sale - two properties (3) Birmingham, AL (3) 225 21,800 4,857 Total 1,170 $ 168,400 $ 45,646 Year Ended December 31, 2018 June 29, 2018 Portfolio Sale - two properties (4) various (4) 175 $ 18,950 $ 13,133 June 29, 2018 Portfolio Sale - two properties (5) Duluth, GA (5) 265 24,850 4,218 July 24, 2018 Portfolio Sale - three properties (6) various (6) 322 46,500 22,964 September 28, 2018 Hyatt Place Fort Myers, FL 148 16,500 2,195 November 7, 2018 Land parcel Spokane, WA n/a 450 139 Total 910 $ 107,250 $ 42,649 (1) The portfolio included the Country Inn & Suites and the Holiday Inn Express in Charleston, WV. (2) The portfolio included the SpringHill Suites in Minneapolis (Bloomington), MN, the Hampton Inn & Suites in Minneapolis (Bloomington), MN, the Residence Inn in Salt Lake City, UT, the Hyatt Place in Dallas (Arlington), TX, the Hampton Inn in Santa Barbara (Goleta), CA, and the Hampton Inn in Boston (Norwood), MA. The sale resulted in a net gain of $36.6 million based on a gross aggregate sales price of $135.0 million , or a net aggregate sales price of $133.0 million after a buyer credit of $2.0 million . (3) The portfolio included the Hilton Garden Inn in Birmingham (Lakeshore), AL and the Hilton Garden Inn in Birmingham (Liberty Park), AL. (4) The portfolio included the Hampton Inn in Provo, UT and the Holiday Inn Express & Suites in Sandy, UT. (5) The portfolio included the Holiday Inn in Duluth, GA and the Hilton Garden Inn in Duluth, GA. We provided seller financing of $3.6 million on the sale of these properties under two three-and-a-half-year second mortgage notes with a blended interest rate of 7.38% . (6) The portfolio included the Hampton Inn & Suites in Smyrna, TN, the Hilton Garden Inn in Smyrna, TN and the Hyatt Place Phoenix North in Phoenix, AZ. The proceeds from these sales were used to complete a 1031 Exchange, which resulted in the deferral of taxable gains of $22.2 million . Loss on Impairment of Assets During the year ended December 31, 2019 , the Company recorded an impairment charge of $1.7 million for the Hyatt Place - Chicago (Hoffman Estates) to reduce the net carrying amount of the property to its estimated net fair market value of $5.9 million , which was determined by a third-party independent appraisal. During the year ended December 31, 2019 , the Company also recorded impairment charges on two land parcels to reduce the net carrying amounts of the properties to their estimated fair market values based on third-party independent appraisals and a purchase contract for the sale of one of the land parcels that is expected to be completed in 2020. In 2018, we recorded impairment charges on two land parcels to reduce the net carrying amounts of the properties to their estimated fair market values based on third-party independent appraisals. Investment in real estate loans, net at December 31, 2019 and 2018 is as follows (in thousands): 2019 2018 Real estate loans $ 32,831 $ 34,650 Unamortized discount (1,895 ) (3,950 ) $ 30,936 $ 30,700 The amortized cost bases of our Investment in real estate loans approximate their fair value. The amortized cost bases and the contractual maturities of our Investment in real estate loans outstanding at December 31, 2019 are $28.9 million in 2020 and $2.0 million in 2021. Real Estate Development Loans We provided mezzanine loans on three real estate development projects to fund up to an aggregate of $29.6 million for the development of three hotel properties. The three real estate development 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 . Interest income on the mezzanine loans will be recorded in our Consolidated Statement of Operations as it is earned. As of December 31, 2019, 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. The Initial Options are exercisable while the related real estate development loan is outstanding. 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 value 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 non-cash interest income over the initial term of the real estate loans using the straight-line method, which approximates the interest method. We recorded amortization of the discount of $2.1 million and $2.0 million during the years ended December 31, 2019 and 2018, respectively. We intend to hold our Investment in Real Estate Loans to maturity and therefore, such loans are recorded as held-to-maturity. During the year ended December 31, 2019, we provided a mezzanine loan to fund up to $28.9 million for a mixed-use development project that includes a hotel property, retail space, and parking. The loan closed in the third quarter of 2019 and has a stated interest rate of 9% and an initial term of 30 months . The loan is secured by a second mortgage on the development project and a pledge of the equity in the project owner. As of December 31, 2019 , we have funded $7.9 million of the loan commitment. Upon completion of construction, we have an option to purchase a 90% interest in the hotel (the “Initial Purchase Option”). We also have the right to purchase the remaining interest in the hotel five years after the completion of construction. We have issued a $10.0 million letter of credit under our senior unsecured credit facility to secure the exercise of the Initial Purchase Option. As such, we have classified the loan as Investment in hotel properties, net on our Consolidated Balance Sheets at December 31, 2019 . Interest income on the mezzanine loan will be recorded in our Consolidated Statement of Operations as it is earned. We have recorded the aggregate estimated fair value of the Initial Purchase Option totaling $2.8 million in Other assets and as a contra-asset to Investment in hotel properties, net. The contra-asset will be amortized as a component of non-cash interest income over the term of the real estate development loan using the straight-line method, which approximates the interest method. During the year ended December 31, 2019 , we amortized $0.4 million as non-cash interest income. Seller-Financing Loans On June 29, 2018, we sold the Holiday Inn in Duluth, GA and the Hilton Garden Inn in Duluth, GA for an aggregate selling price of $24.9 million . We provided seller financing totaling $3.6 million on the sale of these properties under two , 3.5 year second mortgage notes with a blended interest rate of 7.38% . As of December 31, 2019 , there was $2.5 million outstanding on the seller-financing loans. |
INVESTMENT IN REAL ESTATE LOANS
INVESTMENT IN REAL ESTATE LOANS | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
INVESTMENT IN REAL ESTATE LOANS | INVESTMENT IN HOTEL PROPERTIES Investment in Hotel Properties, net Investment in hotel properties, net at December 31, 2019 and 2018 include (in thousands): 2019 2018 Land $ 319,603 $ 288,833 Hotel buildings and improvements 2,049,384 1,916,194 Furniture, fixtures and equipment 173,128 165,026 Construction in progress 9,388 21,059 Intangible assets 11,231 22,064 Real estate development loan 5,485 — 2,568,219 2,413,176 Less - accumulated depreciation (383,987 ) (347,622 ) $ 2,184,232 $ 2,065,554 During the year ended December 31, 2019, we provided a mezzanine loan to fund up to $28.9 million for a mixed-use development project that includes a hotel property, retail space, and parking. We have classified the mezzanine loan as Investment in hotel properties, net in our Consolidated Balance Sheets at December 31, 2019 (See "Note 4 - Investment in Real Estate Loans" for further information). Depreciation expense was $99.0 million , $100.5 million , and $85.5 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Intangible assets included in Investment in hotel properties, net in our Consolidated Balance Sheets include the following (in thousands): Weighted Average Amortization Period (in Years) 2019 2018 Intangible assets: Air rights (1) n/a $ 10,754 $ 10,754 Favorable leases (2) n/a — 10,550 In-place lease agreements 2.0 397 680 Other n/a 80 80 11,231 22,064 Less - accumulated amortization (224 ) (1,108 ) Intangible assets, net $ 11,007 $ 20,956 (1) In conjunction with the acquisition of the Courtyard by Marriott - Charlotte, NC, the Company acquired certain air rights related to the hotel property. (2) In accordance with ASU No. 2016-02, Leases (Topic 842), we reclassified certain existing lease-related intangible assets to Right-of-use assets as of January 1, 2019 (See "Note 7 - Leases" for further information). Future amortization expense is expected to be as follows (in thousands): Finite-Lived Intangible Assets 2020 $ 87 2021 86 $ 173 Hotel Property Acquisitions Hotel property acquisitions in 2019 and 2018 were as follows (in thousands): Date Acquired Franchise/Brand Location Guestrooms Purchase Year Ended December 31, 2019 August 6, 2019 Hampton Inn & Suites Silverthorne, CO 88 $ 25,500 October 8, 2019 Portfolio Purchase - four properties (1) various (1) 710 249,000 798 $ 274,500 (2) Year Ended December 31, 2018 September 12, 2018 Residence Inn by Marriott Boston (Watertown), MA 150 $ 71,000 150 $ 71,000 (3) (1) On October 8, 2019, we acquired a portfolio of four hotels for an aggregate purchase price of $249.0 million . The hotels acquired included the Hilton Garden Inn - San Francisco, CA, the Hilton Garden Inn - San Jose (Milpitas), CA, the Residence Inn by Marriott - Portland (Downtown), OR, and the Residence Inn by Marriott - Portland (Hillsboro), OR. (2) The net assets acquired in 2019 were purchased for $274.5 million plus the purchase of adjacent land parcels totaling $2.4 million , $1.0 million of net working capital assets and capitalized transaction costs of $0.4 million . We own a 51% controlling interest in these hotel properties through a consolidated joint venture. (3) The net assets acquired in 2018 were purchased for $71.0 million plus the purchase at settlement of $0.1 million of net working capital liabilities and capitalized transaction costs of $0.1 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): 2019 2018 Land $ 44,868 $ 25,083 Hotel buildings and improvements 219,410 42,676 Furniture, fixtures and equipment 12,995 3,300 Other assets 1,103 123 Total assets acquired 278,376 71,182 Less other liabilities (79 ) (180 ) Net assets acquired (1) (2) $ 278,297 $ 71,002 (1) The net assets acquired in 2019 were purchased for $274.5 million plus the purchase of adjacent land parcels totaling $2.4 million , $1.0 million of net working capital assets and capitalized transaction costs of $0.4 million . (2) The net assets acquired in 2018 were purchased for $71.0 million plus the purchase at settlement of $0.1 million of net working capital liabilities and capitalized transaction costs of $0.1 million . All hotel purchases completed in 2019 and 2018 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. On January 31, 2019, we exercised our option pursuant to a ground lease agreement to purchase the land upon which our Residence Inn by Marriott in Baltimore (Hunt Valley), MD is located for $4.2 million , which resulted in a termination of obligations under the ground lease. As a result, this hotel property is no longer subject to a ground lease. On December 4, 2019, we exercised our right to acquire a fee simple interest in the land upon which our Hyatt Place in Garden City, NY is located for nominal consideration. As a result, the hotel is no longer subject to a PILOT (payment in lieu of taxes) lease with the Town of Hempstead Industrial Development Authority. The results of operations of acquired hotel properties are included in the Consolidated Statements of Operations beginning on their respective acquisition dates. The following unaudited pro forma information includes operating results for 72 hotels owned as of December 31, 2019 as if all such hotels had been owned by us since January 1, 2018. For hotels acquired by us after January 1, 2018 (the "Acquired Hotels"), we have included in the unaudited pro forma information the financial results of each of the Acquired Hotels for the period from January 1, 2018 to the date the Acquired Hotels were purchased by us (the "Pre-Acquisition 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, 2018 and December 31, 2019 (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, 2018 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, 2018. The unaudited pro forma amounts exclude the gain or loss on the sale of hotel properties during the years ended December 31, 2018 and 2019. 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 72 hotel properties owned at December 31, 2019 for the twelve months ended December 31, 2019 and 2018 is as follows (in thousands, except per share): 2019 2018 Revenues $ 572,262 $ 562,097 Income from hotel operations $ 215,372 $ 215,931 Net income (1) $ 57,909 $ 71,478 Net income attributable to common stockholders, net of amount allocated to participating securities and non-controlling interests (1) (2) $ 33,671 $ 38,803 Basic and diluted net income per share attributable to common stockholders (1) (2) $ 0.32 $ 0.37 (1) Unaudited pro forma amounts include depreciation expense, property tax expense, interest expense, income tax expense, and corporate general and administrative expenses totaling $197.1 million and $181.9 million for the twelve months ended December 31, 2019 and 2018, respectively. (2) Unaudited pro forma amounts for the twelve months ended December 31, 2018 include the effect of the premium on redemption of preferred stock of $3.3 million and higher preferred dividends of $1.8 million related to the redeemed preferred stock. Developed Properties We completed the development and commenced operations of the 168 -guestroom Hyatt House Across From Orlando Universal Resort™ on June 27, 2018. The total construction cost for this hotel was $32.8 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 $37.2 million , including the carrying amount of the land, were reclassified as Investment in hotel properties, net upon completion. Asset Sales A summary of the dispositions in 2019 and 2018 follows (dollars in thousands): Disposition Date Franchise/Brand Location Guestrooms Gross Sales Price Aggregate Gain, net Year Ended December 31, 2019 February 12, 2019 Portfolio Sale - two properties (1) Charleston, WV (1) 130 $ 11,600 $ 4,163 April 17, 2019 Portfolio Sale - six properties (2) various (2) 815 135,000 36,626 November 8, 2019 Portfolio Sale - two properties (3) Birmingham, AL (3) 225 21,800 4,857 Total 1,170 $ 168,400 $ 45,646 Year Ended December 31, 2018 June 29, 2018 Portfolio Sale - two properties (4) various (4) 175 $ 18,950 $ 13,133 June 29, 2018 Portfolio Sale - two properties (5) Duluth, GA (5) 265 24,850 4,218 July 24, 2018 Portfolio Sale - three properties (6) various (6) 322 46,500 22,964 September 28, 2018 Hyatt Place Fort Myers, FL 148 16,500 2,195 November 7, 2018 Land parcel Spokane, WA n/a 450 139 Total 910 $ 107,250 $ 42,649 (1) The portfolio included the Country Inn & Suites and the Holiday Inn Express in Charleston, WV. (2) The portfolio included the SpringHill Suites in Minneapolis (Bloomington), MN, the Hampton Inn & Suites in Minneapolis (Bloomington), MN, the Residence Inn in Salt Lake City, UT, the Hyatt Place in Dallas (Arlington), TX, the Hampton Inn in Santa Barbara (Goleta), CA, and the Hampton Inn in Boston (Norwood), MA. The sale resulted in a net gain of $36.6 million based on a gross aggregate sales price of $135.0 million , or a net aggregate sales price of $133.0 million after a buyer credit of $2.0 million . (3) The portfolio included the Hilton Garden Inn in Birmingham (Lakeshore), AL and the Hilton Garden Inn in Birmingham (Liberty Park), AL. (4) The portfolio included the Hampton Inn in Provo, UT and the Holiday Inn Express & Suites in Sandy, UT. (5) The portfolio included the Holiday Inn in Duluth, GA and the Hilton Garden Inn in Duluth, GA. We provided seller financing of $3.6 million on the sale of these properties under two three-and-a-half-year second mortgage notes with a blended interest rate of 7.38% . (6) The portfolio included the Hampton Inn & Suites in Smyrna, TN, the Hilton Garden Inn in Smyrna, TN and the Hyatt Place Phoenix North in Phoenix, AZ. The proceeds from these sales were used to complete a 1031 Exchange, which resulted in the deferral of taxable gains of $22.2 million . Loss on Impairment of Assets During the year ended December 31, 2019 , the Company recorded an impairment charge of $1.7 million for the Hyatt Place - Chicago (Hoffman Estates) to reduce the net carrying amount of the property to its estimated net fair market value of $5.9 million , which was determined by a third-party independent appraisal. During the year ended December 31, 2019 , the Company also recorded impairment charges on two land parcels to reduce the net carrying amounts of the properties to their estimated fair market values based on third-party independent appraisals and a purchase contract for the sale of one of the land parcels that is expected to be completed in 2020. In 2018, we recorded impairment charges on two land parcels to reduce the net carrying amounts of the properties to their estimated fair market values based on third-party independent appraisals. Investment in real estate loans, net at December 31, 2019 and 2018 is as follows (in thousands): 2019 2018 Real estate loans $ 32,831 $ 34,650 Unamortized discount (1,895 ) (3,950 ) $ 30,936 $ 30,700 The amortized cost bases of our Investment in real estate loans approximate their fair value. The amortized cost bases and the contractual maturities of our Investment in real estate loans outstanding at December 31, 2019 are $28.9 million in 2020 and $2.0 million in 2021. Real Estate Development Loans We provided mezzanine loans on three real estate development projects to fund up to an aggregate of $29.6 million for the development of three hotel properties. The three real estate development 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 . Interest income on the mezzanine loans will be recorded in our Consolidated Statement of Operations as it is earned. As of December 31, 2019, 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. The Initial Options are exercisable while the related real estate development loan is outstanding. 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 value 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 non-cash interest income over the initial term of the real estate loans using the straight-line method, which approximates the interest method. We recorded amortization of the discount of $2.1 million and $2.0 million during the years ended December 31, 2019 and 2018, respectively. We intend to hold our Investment in Real Estate Loans to maturity and therefore, such loans are recorded as held-to-maturity. During the year ended December 31, 2019, we provided a mezzanine loan to fund up to $28.9 million for a mixed-use development project that includes a hotel property, retail space, and parking. The loan closed in the third quarter of 2019 and has a stated interest rate of 9% and an initial term of 30 months . The loan is secured by a second mortgage on the development project and a pledge of the equity in the project owner. As of December 31, 2019 , we have funded $7.9 million of the loan commitment. Upon completion of construction, we have an option to purchase a 90% interest in the hotel (the “Initial Purchase Option”). We also have the right to purchase the remaining interest in the hotel five years after the completion of construction. We have issued a $10.0 million letter of credit under our senior unsecured credit facility to secure the exercise of the Initial Purchase Option. As such, we have classified the loan as Investment in hotel properties, net on our Consolidated Balance Sheets at December 31, 2019 . Interest income on the mezzanine loan will be recorded in our Consolidated Statement of Operations as it is earned. We have recorded the aggregate estimated fair value of the Initial Purchase Option totaling $2.8 million in Other assets and as a contra-asset to Investment in hotel properties, net. The contra-asset will be amortized as a component of non-cash interest income over the term of the real estate development loan using the straight-line method, which approximates the interest method. During the year ended December 31, 2019 , we amortized $0.4 million as non-cash interest income. Seller-Financing Loans On June 29, 2018, we sold the Holiday Inn in Duluth, GA and the Hilton Garden Inn in Duluth, GA for an aggregate selling price of $24.9 million . We provided seller financing totaling $3.6 million on the sale of these properties under two , 3.5 year second mortgage notes with a blended interest rate of 7.38% . As of December 31, 2019 , there was $2.5 million outstanding on the seller-financing loans. |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION Assets Held for Sale, net Assets held for sale at December 31, 2019 and 2018 include the following (in thousands): 2019 2018 Land $ 425 $ 2,442 Hotel building and improvements — 7,929 Furniture, fixtures and equipment — 2,519 Franchise fees — 131 425 13,021 Less - accumulated depreciation and amortization — (5,388 ) $ 425 $ 7,633 Assets held for sale at December 31, 2019 included a land parcel in Flagstaff, AZ, which is currently under contract for sale. Assets held for sale at December 31, 2018 included a land parcel in Flagstaff, AZ and two hotels that were sold on February 12, 2019. During the year ended December 31, 2019 , we recognized a loss on impairment of assets of $0.1 million to reduce the carrying value of the land parcel in Flagstaff, AZ to its estimated net sales price based on a pending sales contract that is expected to close in 2020. Restricted Cash Restricted cash at December 31, 2019 and 2018 was as follows (in thousands): 2019 2018 FF&E reserves $ 25,664 $ 24,386 Property taxes 1,728 1,625 Other 203 2,457 $ 27,595 $ 28,468 Prepaid Expenses and Other Prepaid expenses and other at December 31, 2019 and 2018 included the following (in thousands): 2019 2018 Prepaid insurance $ 3,501 $ 2,822 Prepaid taxes 2,032 3,825 Other 3,311 3,464 $ 8,844 $ 10,111 Deferred Charges Deferred charges at December 31, 2019 and 2018 were as follows (in thousands): 2019 2018 Initial franchise fees $ 6,615 $ 6,463 Less - accumulated amortization (1,906 ) (1,772 ) $ 4,709 $ 4,691 Amortization expense for the years ended December 31, 2019 , 2018 , and 2017 was $0.4 million , $0.5 million and $0.4 million , respectively. Other Assets Other assets at December 31, 2019 and 2018 included the following (in thousands): 2019 2018 Purchase options related to real estate loans $ 8,920 $ 6,120 Deferred tax asset, net 2,138 2,046 Other 981 — Prepaid land lease — 3,180 Derivative financial instruments — 3,461 $ 12,039 $ 14,807 In accordance with ASU No. 2016-02, Leases (Topic 842), we reclassified certain prepaid land lease assets to Right-of-use assets as of January 1, 2019 (See "Note 7 - Leases" for further information). Accrued Expenses and Other Accrued expenses and other at December 31, 2019 and 2018 included the following (in thousands): 2019 2018 Accrued property, sales and income taxes $ 21,392 $ 19,570 Derivative financial instruments 16,177 5,042 Other accrued expenses at hotels 13,274 13,288 Accrued salaries and benefits 11,625 10,540 Other 8,209 9,801 Accrued interest 1,082 3,186 Acquired unfavorable leases — 4,623 $ 71,759 $ 66,050 In accordance with ASU No. 2016-02, Leases (Topic 842), we reclassified certain acquired unfavorable lease liabilities to Right-of-use assets as of January 1, 2019 (See "Note 7 - Leases" for further information). |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT At December 31, 2019 , our indebtedness is comprised of borrowings under the 2018 Unsecured Credit Facility (as defined below), the 2018 Term Loan (as defined below), the 2017 Term Loan (as defined below), the Joint Venture Credit Facility (as defined below), and indebtedness secured by first priority mortgage liens on various hotel properties. At December 31, 2018 , our indebtedness is comprised of borrowings under the 2018 Unsecured Credit Facility (as defined 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. The weighted average interest rate, after giving affect to our interest rate derivatives, for all borrowings was 3.95% and 4.27% at December 31, 2019 and 2018 , respectively. $600 Million Senior Unsecured Credit and Term Loan Facility On December 6, 2018, the Operating Partnership, as borrower, the Company, as parent guarantor, and each party executing the loan documentation as a subsidiary guarantor, entered into a $600.0 million senior unsecured facility (the “2018 Unsecured Credit Facility”) with Deutsche Bank AG New York Branch as administrative agent, and a syndicate of lenders. The 2018 Unsecured Credit Facility is comprised of a $400.0 million revolving credit facility (the “$400 Million Revolver”) and a $200.0 million term loan (the “$200 Million Term Loan”). At December 31, 2019 , the maximum amount of borrowing provided by the 2018 Unsecured Credit Facility was $600.0 million , of which we had $275.0 million borrowed and $315.0 million available to borrow. The 2018 Unsecured Credit Facility has an accordion feature which will allow the Company to increase the total commitments by an aggregate of up to $300.0 million . The $400 Million Revolver will mature on March 31, 2023 and can be extended to March 31, 2024 at the Company’s option, subject to certain conditions. The $200 Million Term Loan will mature on April 1, 2024. The interest rate on the 2018 Unsecured Credit Facility is based on a pricing grid ranging from 135 basis points to 210 basis points plus LIBOR for the $200 Million Term Loan and 140 basis points to 215 basis points plus LIBOR for the $400 Million Revolver, depending upon the Company's leverage ratio. The interest rate at December 31, 2019 for the $200 Million Term Loan was 3.36% . Financial and Other Covenants . We are required to comply with various financial and other covenants to draw and maintain borrowings under the 2018 Unsecured Credit Facility. At December 31, 2019 , we were in compliance with all financial covenants. Unencumbered Assets . The 2018 Unsecured Credit Facility is unsecured. However, borrowings under the 2018 Unsecured Credit Facility are limited by the value of hotel assets that qualify as unencumbered assets. At December 31, 2019 , the Company had 52 unencumbered hotel properties (the "Unencumbered Properties") supporting the 2018 Unsecured Credit Facility. 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 a term loan entered into in 2015. On May 16, 2018, we drew the remaining $85.0 million available under the 2018 Term Loan and used the proceeds to pay down our former $300 million revolving credit facility. 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 December 31, 2019 was 3.66% . On February 18, 2020, the Company repriced the $225 million 2018 Term Loan, lowering the interest rate to 150 basis points plus LIBOR based on the Company’s current leverage based pricing level, which represents a reduction of 40 basis points compared to the prior rate of 190 basis points plus LIBOR. All other material provisions of the loan remain unchanged, including the maturity date of the loan which remains February 14, 2025. The Company expects to realize approximately $0.9 million of annual interest expense savings as a result of the transaction through the remaining term of the loan. Financial and Other Covenants . We are required to comply with various financial and other covenants to draw and maintain borrowings under the 2018 Term Loan. At December 31, 2019 , 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 December 31, 2019 , 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. Financial and Other Covenants . In addition, we are required to comply with various financial and other covenants in order to borrow and maintain borrowings under the 2017 Term Loan. At December 31, 2019 we are 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 hotel assets that qualify as unencumbered assets. As of December 31, 2019 , the Unencumbered Properties also supported the 2017 Term Loan. The 2017 Term Loan gave us the option to delay draws of the principal amount of the term loan. On September 26, 2017, we drew $125.0 million of the $225.0 million available under the 2017 Term Loan and used the proceeds to pay down the principal balance of our former $300 million revolving credit facility. On December 11, 2017, we drew the remaining $100.0 million of the $225.0 million available under the 2017 Term Loan and used the proceeds to pay down the principal balance of our former $300 million revolving credit facility. The interest rate at December 31, 2019 was 3.36% . Joint Venture Credit Facility On October 8, 2019, Summit JV MR 1, LLC (the “Borrower”), as borrower, Summit Hospitality JV, LP (the “Parent”), as parent, and each party executing the credit facility documentation as a subsidiary guarantor, entered into a $200 million credit facility (the “Joint Venture Credit Facility”) with Bank of America, N.A., as administrative agent and sole initial lender, and BofA Securities, Inc., as sole lead arranger and sole bookrunner. The Operating Partnership and the Company are not borrowers or guarantors of the Joint Venture Credit Facility. The Joint Venture Credit Facility is guaranteed by all of the Borrower’s existing and future subsidiaries, subject to certain exceptions. The Joint Venture Credit Facility is comprised of a $125 million revolving credit facility (the “$125 Million Revolver”) and a $75 million term loan (the “$75 Million Term Loan”). The Joint Venture Credit Facility has an accordion feature which will allow us to increase the total commitments by up to $300 million , for aggregate potential borrowings of up to $500 million on the Joint Venture Credit Facility. The $125 Million Revolver and the $75 Million Term Loan will mature on October 8, 2023. Each individually can be extended for a single twelve-month period at the Joint Venture's option, subject to certain conditions. Interest is paid on revolving credit advances at varying rates based upon, at the Borrower's option, either (i) 1-, 2-, 3-, or 6-month LIBOR, plus a margin of 2.15% for Eurodollar rate advances, or (ii) LIBOR, plus a margin of 2.15% for LIBOR floating rate advances, or (iii) 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 1.15% . The applicable margin for a term loan advance shall be five basis points less than revolving credit advances referenced above. Borrowing Base Assets. The Joint Venture Credit Facility is secured primarily by a first priority pledge of the Borrower's equity interests in the subsidiaries that hold the borrowing base assets, and the related TRS entities, which wholly own the TRS lessees that lease each of the borrowing base assets. Financial and Other Covenants. In addition, the Borrower is required to comply with a series of financial and other covenants in order to borrow under the Joint Venture Credit Facility. MetaBank Loan On June 30, 2017, we entered into a $47.6 million secured, non-recourse loan with MetaBank (the "MetaBank Loan"). During the year ended December 31, 2017, we borrowed $47.6 million on the MetaBank Loan and used the proceeds to pay down the principal balance of our former $300 million revolving credit facility. The MetaBank Loan provides for a fixed interest rate of 4.44% and originally provided for interest only payments for 18 months following the closing date. On January 31, 2019, we entered into a modification agreement, at no additional cost, that increased the interest-only period from 18 months to 24 months following the closing date. Beginning August 1, 2019, the loan amortizes over 25 years through the maturity date of July 1, 2027. The MetaBank Loan is secured by three hotels and is subject to a prepayment penalty if prepaid prior to April 1, 2027. At December 31, 2019 and 2018 our outstanding indebtedness was as follows (in thousands): Lender Reference Interest Rate Amortization Period (Years) Maturity Date Number of Properties Encumbered Balance at December 31, 12/31/2019 2019 2018 $600 Million Senior Unsecured Credit and Term Loan Facility (1) Deutsche Bank AG New York Branch $400 Million Revolver 3.41% Variable n/a March 31, 2023 n/a $ 75,000 $ 115,000 $200 Million Term Loan 3.36% Variable n/a April 1, 2024 n/a 200,000 200,000 Total Senior Unsecured Credit and Term Loan Facility 275,000 315,000 Joint Venture Credit Facility (2) Bank of America, N.A. $125 Million Revolver 3.91% Variable n/a October 8, 2023 n/a 65,000 — $75 Million Term Loan 3.86% Variable n/a October 8, 2023 n/a 75,000 — Total Joint Venture Credit Facility 140,000 — Unsecured Term Loan (1) Term Loan (KeyBank National Association, as Administrative Agent) 3.36% Variable n/a November 25, 2022 n/a 225,000 225,000 Term Loan (KeyBank National Association, as Administrative Agent) 3.66% Variable n/a February 14, 2025 n/a 225,000 225,000 Secured Mortgage Indebtedness KeyBank National Association (3) 4.46% Fixed 30 February 1, 2023 3 19,510 26,357 (4) 4.52% Fixed 30 April 1, 2023 3 19,992 20,444 (5) 4.30% Fixed 30 April 1, 2023 3 19,323 19,777 (6) 4.95% Fixed 30 August 1, 2023 2 34,695 35,411 MetaBank (7) 4.44% Fixed 25 July 1, 2027 3 47,226 47,640 Bank of Cascades (8) 3.76% Variable 25 December 19, 2024 1 8,490 8,757 (8) 4.30% Fixed 25 December 19, 2024 — 8,490 8,757 Compass Bank (9) n/a 25 May 6, 2020 — — 22,151 U.S. Bank, NA (10) n/a 25 November 11, 2021 — — 10,717 Total Mortgage Loans 15 157,726 200,011 Total Debt 1,022,726 965,011 Unamortized debt issuance costs (6,563 ) (6,299 ) Debt, net of issuance costs $ 1,016,163 $ 958,712 (1) The $600 million Senior Secured Credit and Term Loan Facility and Unsecured Term Loans are supported by a borrowing base of 52 unencumbered hotel properties. (2) The Joint Venture Credit Facility is secured by pledges of the equity in the entities (and affiliated entities) that own the hotels. (3) On January 25, 2013, we closed on a $29.4 million loan with a fixed rate of 4.46% and a maturity of February 1, 2023. This loan is secured by three of the Hyatt Place hotels we acquired in October 2012. These hotels are located in Chicago (Lombard), IL; Denver (Lone Tree), CO; and Denver (Englewood), CO. This loan is subject to defeasance costs if prepaid. On March 19, 2019, we defeased $6.3 million of the principal balance to have the encumbrance released on one property, the Hyatt Place in Arlington, TX, to facilitate the sale of the property. As a result of this transaction, we recorded debt transaction costs of $0.6 million primarily related to the debt defeasance premium. (4) On March 7, 2013, we closed on a $ 22.7 million loan with a fixed rate of 4.52% and a maturity of April 1, 2023. This loan is secured by three of the Hyatt hotels we acquired in October 2012. These hotels include a Hyatt House in Denver (Englewood), CO and Hyatt Place hotels in Baltimore (Owings Mills), MD and Scottsdale, AZ. This loan is subject to defeasance if prepaid. (5) On March 8, 2013, we closed on a $ 22.0 million loan with a fixed rate of 4.30% and a maturity of April 1, 2023. This loan is secured by the three Hyatt Place hotels we acquired in January 2013. These hotels are located in Chicago (Hoffman Estates), IL; Orlando (Convention), FL; and Orlando (Universal), FL. This loan is subject to defeasance if prepaid. (6) On July 22, 2013, we closed on a $38.7 million loan with a fixed rate of 4.95% and a maturity of August 1, 2023. This loan is secured by two Marriott hotels we acquired in May 2013. These hotels include a Fairfield Inn & Suites and SpringHill Suites in Louisville, KY. This loan is subject to defeasance if prepaid. (7) On June 30, 2017, we entered into the MetaBank Loan. The MetaBank Loan is secured by the Hampton Inn & Suites in Minneapolis, MN, the Four Points by Sheraton Hotel & Suites in South San Francisco, CA, and the Hyatt Place in Mesa, AZ. The MetaBank Loan is subject to a prepayment penalty if prepaid prior to April 1, 2027. (8) On December 19, 2014, we refinanced our loan with Bank of the Cascades and increased the amount financed by $ 7.9 million . As part of the refinance the loan was split into two notes. Note A carries a variable interest rate of 30-day LIBOR plus 200 basis points and Note B carries a fixed interest rate of 4.3% . Both notes have amortization periods of 25 years and maturity dates of December 19, 2024. The Bank of Cascades mortgage loan is comprised of two promissory notes that are secured by the same collateral and cross-defaulted. (9) On April 24, 2019, we repaid a mortgage loan with Compass Bank totaling $21.9 million that was secured by three hotel properties. There was no prepayment penalty associated with the repayment of this loan. After the repayment of this loan, the three hotels were added to the Company's Unencumbered Properties. (10) On April 11, 2019, we repaid a $10.6 million mortgage loan with U.S. Bank to release the encumbrance on the Hampton Inn in Goleta, CA to facilitate the sale of the property. As a result of this transaction, we incurred debt transaction costs of $1.0 million . Our outstanding indebtedness requires us to comply with various financial and other covenants. We are currently in compliance with all covenants. Our total fixed-rate and variable-rate debt at December 31, 2019 and 2018 , after giving effect to our interest rate derivatives, is as follows (in thousands): 2019 Percentage 2018 Percentage Fixed-rate debt $ 549,236 54 % $ 569,103 59 % Variable-rate debt 473,490 46 % 395,908 41 % $ 1,022,726 $ 965,011 Contractual principal payments for each of the next five years are as follows (in thousands): 2020 $ 3,742 2021 3,912 2022 229,072 2023 303,434 2024 216,105 Thereafter 266,461 $ 1,022,726 Information about the fair value of our fixed-rate debt that is not recorded at fair value is as follows (in thousands): 2019 2018 Carrying Value Fair Value Carrying Value Fair Value Valuation Technique Fixed-rate debt $ 149,236 $ 151,268 $ 169,103 $ 166,256 Level 2 - Market approach At December 31, 2019 and 2018 , we had $400.0 million 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 8 –– Derivative Financial Instruments and Hedging.” |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases related to the land under certain hotel properties, conference centers, parking spaces, automobiles, our corporate office and other miscellaneous office equipment. These leases have remaining terms of 1 year to 79 years, some of which include options to extend the leases for additional years. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Certain of our lease agreements include rental payments based on a percentage of revenue over contractual levels and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or restrictive covenants that materially affect our business. We rent or sublease certain real estate to third parties. In 2019 , 2018 , and 2017 , we recorded gross third party tenant income of $2.2 million , $1.7 million , and $1.4 million , respectively, which were recorded in Other income in the Consolidated Statements of Operations. On January 1, 2019, the Company adopted ASC No. 842, Leases, and recognized right-of-use lease assets and related liabilities. The right-of-use assets and related liabilities include renewal options reasonably certain to be exercised. We base our lease calculations on our estimated incremental borrowing rate. As of December 31, 2019 , our weighted average incremental borrowing rate was 4.9% . In 2019 , 2018 , and 2017 , the Company's total operating lease cost was $3.3 million , $3.6 million , and $4.0 million , respectively, and the operating cash outflows from operating leases was $3.0 million , $3.6 million , and $3.5 million , respectively. As of December 31, 2019 , the weighted average operating lease term was 28.25 years. On January 31, 2019, we exercised our option pursuant to a ground lease agreement to purchase the land upon which our hotel property in Baltimore (Hunt Valley), MD is located for $4.2 million , which resulted in a termination of obligations under the ground lease. On December 4, 2019, we exercised our right to acquire a fee simple interest in the land upon which our Hyatt Place in Garden City, NY is located for nominal consideration. As a result, the hotel is no longer subject to a PILOT (payment in lieu of taxes) lease with the Town of Hempstead Industrial Development Authority. Operating lease maturities as of December 31, 2019 are as follows (in thousands): 2020 $ 2,148 2021 2,038 2022 1,815 2023 959 2024 900 Thereafter 28,904 Total lease payments (1) 36,764 Less imputed interest (17,160 ) Total $ 19,604 (1) Certain payments above include future increases to the minimum fixed rent based on the Consumer Price Index in effect at the initial measurement of the lease balances. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING We are exposed to interest rate risk through our variable-rate debt. We manage this risk primarily by managing the amount, sources, and duration of our debt funding and through the use of derivative financial instruments. Specifically, we enter into derivative financial instruments to manage our exposure to known or expected cash payments related to our variable-rate debt. The maximum length of time over which we have hedged our exposure to variable interest rates with our existing derivative financial instruments is approximately seven years . Our objectives in using derivative financial instruments are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish these objectives, we primarily use interest rate swaps as part of our interest rate risk management strategy. Our interest rate swaps are designated as cash flow hedges and involve the receipt of variable-rate payments from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Our agreements with our derivative counterparties contain provisions such that if we default, or can be declared in default, on any of our indebtedness, then we could also be declared in default on our derivative financial instruments. Information about our derivative financial instruments at December 31, 2019 and 2018 is as follows (dollar amounts in thousands): Average Annual Effective Fixed Rate Notional Amount Fair Value Contract date Effective Date Expiration Date December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 October 2, 2017 January 29, 2018 January 31, 2023 1.98 % $ 100,000 $ 100,000 $ (1,316 ) $ 1,758 October 2, 2017 January 29, 2018 January 31, 2023 1.98 % 100,000 100,000 (1,350 ) 1,703 June 11, 2018 September 28, 2018 September 30, 2024 2.87 % 75,000 75,000 (4,389 ) (1,656 ) June 11, 2018 December 31, 2018 December 31, 2025 2.93 % 125,000 125,000 (9,122 ) (3,386 ) $ 400,000 $ 400,000 $ (16,177 ) $ (1,581 ) Our interest rate swaps have been designated as cash flow hedges and are valued using a market approach, which is a Level 2 valuation technique. At December 31, 2019 , all of our interest rate swaps were in a liability position as a result of a decline in short term interest rates and a continued flattening of the forward yield curve during 2019. At December 31, 2018 , two of our interest rate swaps were in an asset position and two were in a liability position. We are not required to post any collateral related to these agreements and we are not in breach of any financial provisions of the agreements. Changes in the fair value of the hedging instruments included in the assessment of hedge effectiveness will be recorded in other comprehensive income. Amounts deferred in other comprehensive income will be reclassified to interest expense as interest payments are made on the hedged variable-rate debt. In 2020 , we estimate that an additional $3.4 million will be reclassified from other comprehensive income and recorded as an increase 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): 2019 2018 2017 (Loss) Gain recognized in Accumulated other comprehensive loss on derivative financial instruments $ (15,327 ) $ (3,050 ) $ 1,703 Loss reclassified from Accumulated other comprehensive loss to interest expense $ (731 ) $ (150 ) $ (734 ) Total interest expense and other finance expense presented in the Consolidated Statement of Operations in which the effects of cash flow hedges are recorded $ (41,030 ) $ (41,944 ) $ (29,687 ) |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
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 25, 2017, the Company and the Operating Partnership entered into separate sales agreements (collectively, the “Sales Agreements”) with each of Robert W. Baird & Co. Incorporated, Raymond James & Associates, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Deutsche Bank Securities Inc., RBC Capital Markets, LLC, KeyBanc Capital Markets Inc., Canaccord Genuity Inc. (this agreement was terminated on September 29, 2017), Jefferies LLC, BB&T Capital Markets, a division of BB&T Securities, LLC, and BTIG, LLC (collectively, the “Sales Agents”), pursuant to which the Company may sell our common stock having an aggregate offering price of up to $200.0 million (the “Shares”), from time to time through the Sales Agents, each acting as a sales agent and/or principal (the "2017 ATM Program"). At the same time, the Company terminated each of the sales agreements entered into in connection with its prior at-the-market offering program, which was established in August 2016 and under which 6,151,514 shares of the Company’s common stock were sold for net proceeds of approximately $89.1 million . To date, we have not sold any shares of our common stock under the 2017 ATM Program. Changes in common stock during the years ended December 31, 2019 and 2018 were as follows: 2019 2018 Beginning common shares outstanding 104,783,179 104,287,128 Grants under the Equity Plan 537,734 583,738 Common Unit redemptions 50,244 64,126 Annual grants to independent directors 40,455 34,130 Common stock issued for director fees — 3,543 Performance share and other forfeitures (167,757 ) (1,636 ) Shares retained for employee tax withholding requirements (74,340 ) (187,850 ) Ending common shares outstanding 105,169,515 104,783,179 At December 31, 2019 and 2018 , the Company had reserved 14,365,537 and 14,591,213 shares of common stock, respectively, for the issuance of common stock (i) upon the exercise of stock options, issuance of time-based restricted stock awards, issuance of performance-based restricted stock awards, grants of director stock awards, or other awards issued pursuant to our Equity Plan, (ii) upon redemption of Common Units, or (iii) under the 2017 ATM Program. 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 and 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 premium on redemption of $3.3 million was recorded as a reduction to retained earnings. The Company's preferred shares (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 preferred shares 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 in our Operating Partnership have the right to cause us to redeem their Common Units in exchange for cash based upon the fair value of an equivalent number of our shares of common stock at the time of redemption; however, the Company has the option to redeem with shares of our common stock on a one -for-one basis. The number of shares of our common stock issuable upon redemption of Common Units may be adjusted upon the occurrence of certain events such as share dividend payments, share subdivisions or combinations. At December 31, 2019 and 2018 , unaffiliated third parties owned 209,021 and 259,265 , respectively, of Common Units of the Operating Partnership, representing less than a 1% limited partnership interest in the Operating Partnership. We classify outstanding Common Units held by unaffiliated third parties as non-controlling interests in the Operating Partnership, a component of equity in the Company’s Consolidated Balance Sheets. The portion of net income allocated to these Common Units is reported on the Company’s Consolidated Statement of Operations as net income attributable to non-controlling interests of the Operating Partnership. Non-controlling Interest in Joint Venture In July 2019, the Company entered into a joint venture with GIC, Singapore’s sovereign wealth fund, to acquire assets that align with the Company’s current investment strategy and criteria. The Company serves as general partner and asset manager of the joint venture and intends to invest 51% of the equity capitalization of the limited partnership, with GIC investing the remaining 49% . The Company earns fees for providing services to the joint venture and will have the potential to earn incentive fees based on the joint venture achieving certain return thresholds. As of December 31, 2019 , the joint venture owns the five hotel properties acquired in 2019. The joint venture owns the hotels through a master real estate investment trust (“Master REIT”) and subsidiary REITs (“Subsidiary REIT”). All of the hotels owned by the joint venture are leased to taxable REIT subsidiaries of the Subsidiary REITs (“Subsidiary REIT TRS”). To qualify as a REIT, the Master REIT must meet all of the REIT requirements summarized under “Note 2 - Basis of Presentation and Significant Accounting Policies - Income Taxes.” Taxable income related to the Subsidiary REIT TRSs is subject to federal, state and local income taxes at applicable tax rates. We classify the non-controlling interest in the joint venture as a component of equity in the Company’s Consolidated Balance Sheets. The portion of net income allocated to this non-controlling interest is reported on the Company’s Consolidated Statements of Operations as net income attributable to non-controlling interest of the joint venture. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2019 | |
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 as of December 31, 2019 and 2018 . 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 Measurement at December 31, 2019 using Level 1 Level 2 Level 3 Total Assets: Purchase options related to real estate loans $ — $ — $ 8,920 $ 8,920 Liabilities: Interest rate swaps — 16,177 — 16,177 Fair Value Measurement at December 31, 2018 using Level 1 Level 2 Level 3 Total Assets: Interest rate swaps $ — $ 3,461 $ — $ 3,461 Purchase options related to real estate loans — — 6,120 6,120 Liabilities: Interest rate swaps — 5,042 — 5,042 Our purchase options related to real estate loans do not have readily determinable fair values. The fair value of each purchase option was estimated using a binomial lattice or Black-Scholes 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 Real Estate Loan 4 Exercise price $ 15,143 $ 17,377 $ 5,503 $ 37,800 First option exercise date (1) 12/31/2018 3/31/2019 5/31/2019 8/15/2021 Last option exercise date 11/1/2020 12/5/2020 12/1/2020 8/30/2021 Expected volatility 32.0 % 38.0 % 37.0 % 31.3 % Risk free rate 1.7 % 1.8 % 1.9 % 1.5 % Expected annualized equity dividend yield 6.8 % 9.9 % 6.5 % — % (2) (1) The first option date is the date used for valuing the Purchase Option. The actual option exercise dates are on or after the hotels are fully constructed and open for business. As of December 31, 2019 , three of the four hotels were open for business. (2) The purchase option was valued using the Black-Scholes model which assumes no dividends. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the years ended December 31, 2019 or 2018 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Franchise Agreements All of our hotel properties operate under franchise agreements with major hotel franchisors. The terms of our franchise agreements generally range from 10 to 20 years with various extension provisions. Each franchisor receives franchise fees ranging from 2% to 6% of each hotel property’s gross revenue, and some agreements require that we pay marketing fees of up to 4% of gross revenue. In addition, some of these franchise agreements require that we deposit a percentage of the hotel property’s gross revenue, generally not more than 5% , into a reserve fund for capital expenditures. We also pay fees to our franchisors for services related to reservation and information systems. In 2019 , 2018 , and 2017 , we expensed fees related to our franchise agreements of $47.8 million , $47.7 million , and $41.6 million , respectively. Management Agreements Our hotel properties operate pursuant to management agreements with various professional third-party management companies. The terms of our management agreements range from month-to-month to twenty-five years with various extension provisions. Each management company receives a base management fee, generally a percentage of total hotel property revenues. In some cases there are also monthly fees for certain services, such as accounting, based on the number of guestrooms. Generally there are also incentive fees based on attaining certain financial thresholds. In 2019 , 2018 , and 2017 , we expensed fees related to our hotel management agreements of $16.6 million , $18.5 million , and $ 18.2 million , respectively. Litigation We are involved from time to time in litigation arising in the ordinary course of business. We are not currently aware of any actions against us that would have a material effect on our financial condition or results of operations. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION Our currently outstanding equity-based awards were issued under our Equity Plan which provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, and other equity-based 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. Stock Options Granted Under Our Equity Plan As of December 31, 2019, 2018 and 2017, we had 235,000 outstanding and exercisable stock options. At December 31, 2019, the stock options had a weighted average exercise price of $9.75 and a weighted average contractual term of 1.2 years . At December 31, 2019 , the intrinsic value of outstanding and exercisable options was $0.6 million . At December 31, 2018 , the exercise price of our outstanding and exercisable stock options exceeded the market price of our common stock, resulting in no intrinsic value. The intrinsic value of outstanding and exercisable options at December 31, 2017 was $1.3 million . Time-Based Restricted Stock Awards Made Pursuant to Our Equity Plan The following table summarizes time-based restricted stock activity under our Equity Plan for 2019 and 2018 : Number of Shares Weighted Average Grant Date Fair Value per Share Aggregate Current Value (in thousands) Non-vested December 31, 2017 391,477 $ 13.52 Granted 185,930 13.15 Vested (205,619 ) 13.41 Forfeited (1,636 ) 12.84 Non-vested December 31, 2018 370,152 13.40 Granted 235,407 11.32 Vested (154,801 ) 12.82 Forfeited (2,291 ) 12.65 Non-vested December 31, 2019 448,467 $ 12.51 $ 5,534 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. During the years ended December 31, 2019 , 2018 , and 2017 , the total fair value of time-based restricted stock awards that vested was $2.0 million , $2.8 million and $1.4 million , respectively. Performance-Based Restricted Stock Awards Made Pursuant to Our Equity Plan The following table summarizes performance-based restricted stock activity under our Equity Plan for 2019 and 2018 : Number of Shares Weighted Average Grant Date Fair Value per Share Aggregate Current Value (in thousands) Non-vested December 31, 2017 619,429 $ 16.16 Granted 397,808 15.69 Vested (309,010 ) 18.78 Non-vested December 31, 2018 708,227 14.75 Granted 302,327 12.81 Vested (89,097 ) 13.77 Forfeited (165,466 ) 13.77 Non-vested December 31, 2019 755,991 $ 14.31 $ 9,329 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. The fair value of performance-based restricted stock awards granted was estimated using a Monte Carlo simulation valuation model and the following assumptions: 2019 2018 2017 Expected dividend yield 6.17 % 5.33 % 4.14 % Expected stock price volatility 23.2 % 25.7 % 24.8 % Risk-free interest rate 2.43 % 2.41 % 1.59 % Monte Carlo iterations 100,000 100,000 100,000 Weighted average estimated fair value of performance-based restricted stock awards $ 12.81 $ 13.73 $ 17.13 The expected dividend yield was calculated based on our annual expected dividend payments at the time of grant. The expected volatility was based on historical price changes of our common stock for a period comparable to the performance period. The risk-free interest rates were interpolated from the Federal Reserve Bond Equivalent Yield rates for “on-the-run” U.S. Treasury securities. Director Stock Awards Made Pursuant to Our Equity Plan During the years ended December 31, 2019 and 2018 , we granted 40,455 and 34,130 shares of common stock, respectively, to our non-employee directors as a part of our director compensation program. These grants were made pursuant to our Equity Plan and were vested upon grant. Our non-employee directors have the option to receive shares of our common stock in lieu of cash for their director fees. In 2019 , all directors elected to receive cash for their director fees. In 2018 , we issued 3,543 shares of common stock for director fees. The fair value of director stock awards is calculated based on the market value of our common stock on the date of grant. Equity-Based Compensation Expense Equity-based compensation expense included in Corporate General and Administrative expense in the Consolidated Statements of Operations for the years ended December 31, 2019 , 2018 , and 2017 was as follows (in thousands): 2019 2018 2017 Time-based restricted stock $ 2,327 $ 2,384 $ 2,145 Performance-based restricted stock 3,396 3,727 3,183 Director stock 496 554 559 $ 6,219 $ 6,665 $ 5,887 We recognize equity-based compensation expense ratably over the vesting terms. The amount of expense may be subject to adjustment in future periods due to a change in the forfeiture assumptions. Unrecognized equity-based compensation expense for all non-vested awards pursuant to our Equity Plan was $7.4 million at December 31, 2019 as follows (in thousands): Total 2020 2021 2022 2023 Time-based restricted stock $ 3,092 $ 1,798 $ 1,048 $ 231 $ 15 Performance-based restricted stock 4,270 2,578 1,477 215 — $ 7,362 $ 4,376 $ 2,525 $ 446 $ 15 |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS On August 1, 2011, we initiated a qualified contributory retirement plan (the “Plan”) under Section 401(k) of the IRC, which covers all full-time employees who meet certain eligibility requirements. Voluntary contributions may be made to the Plan by employees. The Plan is a Safe Harbor Plan and requires a mandatory employer contribution. The employer contribution expense for the years ended December 31, 2019 , 2018 and 2017 was $0.3 million , $0.2 million , and $0.2 million , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We have elected to be taxed as a REIT. As a REIT, we are generally not subject to corporate level income taxes on taxable income we distribute to our shareholders. We believe we have met the annual REIT distribution requirement by distribution of at least 90% of our taxable income to our shareholders. Income related to our TRSs is subject to federal, state and local taxes at applicable tax rates. Our consolidated tax provision includes the income tax provision related to the operations of the TRSs as well as state and local income taxes related to the Operating Partnership. The components of income tax expense (benefit) for the years ended December 31, 2019 , 2018 , and 2017 are as follows (in thousands): 2019 2018 2017 Current: Federal $ 869 $ (67 ) $ 10 State and local 643 (425 ) 777 Deferred: Federal (32 ) (279 ) 232 State and local 20 (151 ) 49 Effect of federal tax law change — — 606 Income tax expense (benefit) $ 1,500 $ (922 ) $ 1,674 Below is a reconciliation between the provision for income taxes and the amounts computed by applying the federal statutory income tax rate to the income or loss before taxes: 2019 2018 2017 Statutory federal income tax provision $ 17,608 $ 18,943 $ 35,418 Nontaxable income of the REITs (16,996 ) (19,073 ) (35,073 ) Effect of graduated corporate tax rates — — (10 ) State income taxes, net of federal tax benefit 568 266 716 Provision to return and deferred adjustment (6 ) 75 — Effect of permanent differences and other 326 (184 ) 17 Tax benefit from deduction for partnership distributions — (949 ) — Effect of federal tax law change — — 606 Income tax provision (benefit) $ 1,500 $ (922 ) $ 1,674 Deferred tax assets and liabilities are included within Other Assets in the accompanying Consolidated Balance Sheets. Significant components of deferred tax assets (liabilities) are as follows (in thousands): 2019 2018 Tax carryforwards $ 38 $ 154 Accrued expenses 2,068 1,893 Other 32 (1 ) Net deferred tax assets $ 2,138 $ 2,046 Gross deferred tax assets $ 2,172 $ 2,086 Gross deferred tax liabilities (34 ) (40 ) Net deferred tax assets $ 2,138 $ 2,046 At December 31, 2019 , we had state net operating losses of $0.7 million which expire beginning in 2027. We had no unrecognized tax benefits at December 31, 2019 or in the three year period then ended. We expect no significant increase or decrease in unrecognized tax benefits due to changes in tax positions within one year of December 31, 2019 . We have no material interest or penalties relating to unrecognized tax benefits in the Consolidated Statements of Operations for the years ended December 31, 2019 , 2018 or 2017 or in the Consolidated Balance Sheets as of December 31, 2019 or 2018 . We file U.S. and state income tax returns in jurisdictions with varying statutes of limitations. In general, we are not subject to tax examinations by tax authorities for years before 2016. Characterization of Distributions For income tax purposes, distributions paid consist of ordinary income and capital gains or a combination thereof. For the years ended December 31, 2019, 2018, and 2017 distributions paid per share were characterized as follows (unaudited): 2019 2018 2017 Amount % Amount % Amount % Common Stock Ordinary income $ 0.6132 85.16 % $ 0.7200 100.00 % $ 0.6725 100.00 % Capital gain distributions 0.1068 14.84 % — — % — — % Total $ 0.7200 100.00 % $ 0.7200 100.00 % $ 0.6725 100.00 % Preferred Stock - Series B Ordinary income $ — — % $ — — % $ 2.0234 100.00 % Capital gain distributions — — % — — % — — % Total $ — — % $ — — % $ 2.0234 100.00 % Preferred Stock - Series C Ordinary income $ — — % $ 0.5393 100.00 % $ 1.7813 100.00 % Capital gain distributions — — % — — % — — % Total $ — — % $ 0.5393 100.00 % $ 1.7813 100.00 % Preferred Stock - Series D Ordinary income $ 1.3732 85.16 % $ 1.6125 100.00 % $ 1.6125 100.00 % Capital gain distributions 0.2393 14.84 % — — % — — % Total $ 1.6125 100.00 % $ 1.6125 100.00 % $ 1.6125 100.00 % Preferred Stock - Series E Ordinary Income $ 1.3307 85.16 % $ 1.5625 100.00 % $ 0.0694 100.00 % Capital gain distributions 0.2318 14.84 % — — % — — % Total $ 1.5625 100.00 % $ 1.5625 100.00 % $ 0.0694 100.00 % The dividends that were taxable to our stockholders in 2019 were 85.16% ordinary income and 14.84% capital gain distributions. The 2019 capital gain distribution was 100% related to unrecaptured Section 1250 gain. The 2019 ordinary income dividends are eligible for the 20% deduction provided by Section 199A for qualified REIT dividends. The dividends that were taxable to our stockholders in 2018 were 100% ordinary income and were eligible for the 20% deduction provided by Section 199A for qualified REIT dividends. The dividends that were taxable to our stockholders in 2017 were 100% ordinary income. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
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. All outstanding stock options were included in the computation of diluted earnings per share for the years ended December 31, 2019 , 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. For the years ended December 31, 2019, 2018, and 2017, we had unvested performance-based restricted stock awards of 755,991 shares, 453,664 shares and 464,924 shares, respectively, 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. Below is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share amounts): 2019 2018 2017 Numerator: Net income $ 82,348 $ 91,126 $ 99,521 Less: Preferred dividends (14,838 ) (16,671 ) (17,408 ) Premium on redemption of preferred stock — (3,277 ) (2,572 ) Allocation to participating securities (309 ) (271 ) (307 ) Attributable to non-controlling interest in Operating Partnership (157 ) (205 ) (307 ) Attributable to non-controlling interest in joint venture 419 — — Net income attributable to common stockholders, net of amount allocated to participating securities $ 67,463 $ 70,702 $ 78,927 Denominator: Weighted average common shares outstanding - basic 103,887 103,623 99,406 Dilutive effect of equity-based compensation awards 52 219 374 Weighted average common shares outstanding - diluted 103,939 103,842 99,780 Earnings per share: Basic and diluted $ 0.65 $ 0.68 $ 0.79 |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Selected quarterly financial data for the years ended December 31, 2019 and 2018 are as follows (in thousands, except per share amounts): 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total revenues $ 138,952 $ 142,930 $ 133,685 $ 133,781 Net income $ 12,900 $ 49,069 $ 11,626 $ 8,753 Net income attributable to Summit Hotel Properties, Inc. $ 12,877 $ 48,957 $ 11,534 $ 9,242 Earnings per share: Basic and diluted $ 0.09 $ 0.43 $ 0.07 $ 0.05 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total revenues $ 140,199 $ 152,222 $ 142,340 $ 132,509 Net income $ 9,691 $ 37,677 $ 38,001 $ 5,757 Net income attributable to Summit Hotel Properties, Inc. $ 9,688 $ 37,576 $ 37,901 $ 5,756 Earnings per share: Basic $ 0.01 $ 0.33 $ 0.33 $ 0.02 Diluted $ 0.01 $ 0.32 $ 0.33 $ 0.02 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Equity Transactions On January 31, 2020, 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 February 28, 2020 to stockholders of record on February 14, 2020. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III - Real Estate and Accumulated Depreciation | Initial Cost Cost Capitalized Subsequent to Acquisition Total Cost Location Franchise Year Acquired/ Constructed Land Building & Improvements Land, Building & Improvements Land Building & Improvements Total Accumulated Depreciation Total Cost Net of Accumulated Depreciation Mortgage Debt Aliso Viejo, CA Homewood Suites 2017 $ 5,599 $ 32,367 $ 354 $ 5,599 $ 32,721 $ 38,320 $ (4,030 ) $ 34,290 $ — Arlington, TX Courtyard 2012 1,497 15,573 (565 ) 1,497 15,008 16,505 (3,830 ) 12,675 — Arlington, TX Residence Inn 2012 1,646 15,440 16 1,646 15,456 17,102 (4,071 ) 13,031 — Asheville, NC Hotel Indigo 2015 2,100 34,755 1,051 2,100 35,806 37,906 (6,687 ) 31,219 — Atlanta, GA Courtyard 2012 2,050 27,969 834 2,050 28,803 30,853 (5,702 ) 25,151 — Atlanta, GA Residence Inn 2016 3,381 34,820 790 3,381 35,610 38,991 (4,801 ) 34,190 — Atlanta, GA AC Hotel 2017 5,670 51,922 567 5,670 52,489 58,159 (5,378 ) 52,781 — Austin, TX Hampton Inn & Suites 2014 — (2) 56,394 4,846 — 61,240 61,240 (9,519 ) 51,721 — Austin, TX Corporate Office 2017 — 6,048 1,410 — 7,458 7,458 (2,207 ) 5,251 — Baltimore, MD Hampton Inn & Suites 2017 2,205 16,013 2,342 2,205 18,355 20,560 (1,373 ) 19,187 — Baltimore, MD Residence Inn 2017 1,986 37,016 6,198 1,986 43,214 45,200 (4,372 ) 40,828 — Boulder, CO Marriott 2016 11,115 49,204 8,946 11,115 58,150 69,265 (7,000 ) 62,265 — Branchburg, NJ Residence Inn 2015 2,374 24,411 285 2,374 24,696 27,070 (4,754 ) 22,316 — Brisbane, CA DoubleTree 2014 3,300 39,686 1,137 3,300 40,823 44,123 (11,496 ) 32,627 — Camarillo, CA Hampton Inn & Suites 2013 2,200 17,366 384 2,200 17,750 19,950 (5,749 ) 14,201 — Charlotte, NC Courtyard 2017 — 41,094 1,468 — 42,562 42,562 (4,581 ) 37,981 — Chicago, IL Hyatt Place 2016 5,395 68,355 192 5,395 68,547 73,942 (9,533 ) 64,409 — Cleveland, OH Residence Inn 2017 10,075 33,340 1,699 10,075 35,039 45,114 (3,925 ) 41,189 — Decatur, GA Courtyard 2015 4,046 34,151 3,816 4,046 37,967 42,013 (5,818 ) 36,195 — Eden Prairie, MN Hilton Garden Inn 2013 1,800 11,211 146 1,800 11,357 13,157 (3,981 ) 9,176 — Englewood, CO Hyatt Place 2012 2,000 11,950 (441 ) 2,000 11,509 13,509 (4,054 ) 9,455 19,510 (1) Englewood, CO Hyatt House 2012 2,700 16,267 224 2,700 16,491 19,191 (6,553 ) 12,638 19,992 (1) Fort Lauderdale, FL Courtyard 2017 37,950 47,002 1,421 37,950 48,423 86,373 (5,861 ) 80,512 — Fort Worth, TX Courtyard 2017 1,920 38,070 9,029 1,920 47,099 49,019 (3,748 ) 45,271 — Garden City, NY Hyatt Place 2012 4,200 27,775 272 4,283 27,964 32,247 (5,787 ) 26,460 — Glendale, CO Staybridge Suites 2011 2,100 10,151 333 2,100 10,484 12,584 (3,679 ) 8,905 — Greenville, SC Hilton Garden Inn 2013 1,200 14,566 3,009 1,200 17,575 18,775 (3,772 ) 15,003 — Hillsboro, OR Residence Inn 2019 4,943 42,541 9 4,943 42,550 47,493 (461 ) 47,032 — Hoffman Estates, IL Hyatt Place 2013 1,900 8,917 (1,861 ) 1,900 7,056 8,956 (3,186 ) 5,770 19,323 (1) Initial Cost Cost Capitalized Subsequent to Acquisition Total Cost Location Franchise Year Acquired/ Constructed Land Building & Improvements Land, Building & Improvements Land Building & Improvements Total Accumulated Depreciation Total Cost Net of Accumulated Depreciation Mortgage Debt Houston, TX Hilton Garden Inn 2014 $ — (2) $ 41,838 $ 5,951 $ — $ 47,789 $ 47,789 $ (11,015 ) $ 36,774 $ — Houston, TX Hilton Garden Inn 2014 2,800 33,777 1,373 2,800 35,150 37,950 (5,950 ) 32,000 — Hunt Valley, MD Residence Inn 2015 — 35,436 1,326 1,076 35,686 36,762 (6,432 ) 30,330 — Indianapolis, IN SpringHill Suites 2013 4,012 27,910 (646 ) 4,012 27,264 31,276 (5,588 ) 25,688 — Indianapolis, IN Courtyard 2013 7,788 54,384 (2,077 ) 7,788 52,307 60,095 (10,470 ) 49,625 — Kansas City, MO Courtyard 2017 3,955 20,608 1,769 3,955 22,377 26,332 (2,702 ) 23,630 — Lombard, IL Hyatt Place 2012 1,550 17,351 (445 ) 1,550 16,906 18,456 (5,597 ) 12,859 — (1) Lone Tree, CO Hyatt Place 2012 1,300 11,704 (203 ) 1,314 11,487 12,801 (4,302 ) 8,499 — (1) Louisville, KY Fairfield Inn & Suites 2013 3,120 24,231 (531 ) 3,120 23,700 26,820 (5,901 ) 20,919 34,695 (1) Louisville, KY SpringHill Suites 2013 4,880 37,361 (719 ) 4,880 36,642 41,522 (9,181 ) 32,341 — (1) Mesa, AZ Hyatt Place 2017 2,400 19,848 820 2,400 20,668 23,068 (3,648 ) 19,420 47,226 (1) Metairie, LA Courtyard 2013 1,860 25,168 349 1,860 25,517 27,377 (7,505 ) 19,872 — Metairie, LA Residence Inn 2013 1,791 23,386 338 1,791 23,724 25,515 (7,901 ) 17,614 — Miami, FL Hyatt House 2015 4,926 40,087 1,385 4,926 41,472 46,398 (8,386 ) 38,012 — Milpitas, CA Hilton Garden Inn 2019 7,921 46,141 4 7,921 46,145 54,066 (588 ) 53,478 — Minneapolis, MN Hyatt Place 2013 — 34,026 1,424 — 35,450 35,450 (7,901 ) 27,549 — Minneapolis, MN Hampton Inn & Suites 2015 3,502 35,433 165 3,502 35,598 39,100 (7,669 ) 31,431 — (1) Minnetonka, MN Holiday Inn Express & Suites 2013 1,000 7,662 212 1,000 7,874 8,874 (2,723 ) 6,151 — Nashville, TN SpringHill Suites 2004 777 5,598 299 777 5,897 6,674 (3,473 ) 3,201 — Nashville, TN Courtyard 2016 8,792 62,759 7,852 8,792 70,611 79,403 (8,259 ) 71,144 — New Haven, CT Courtyard 2017 11,990 51,497 1,555 11,990 53,052 65,042 (4,489 ) 60,553 — New Orleans, LA Courtyard 2013 1,944 25,120 3,356 1,944 28,476 30,420 (9,012 ) 21,408 — New Orleans, LA Courtyard 2013 2,490 34,220 1,136 2,490 35,356 37,846 (10,592 ) 27,254 — New Orleans, LA SpringHill Suites 2013 2,046 33,270 6,099 2,046 39,369 41,415 (10,459 ) 30,956 — Orlando, FL Hyatt Place 2013 3,100 11,343 (539 ) 3,100 10,804 13,904 (3,861 ) 10,043 — (1) Orlando, FL Hyatt Place 2013 2,716 11,221 422 2,716 11,643 14,359 (3,928 ) 10,431 — (1) Orlando, FL Hyatt House 2018 2,800 34,423 94 2,800 34,517 37,317 (3,394 ) 33,923 — Owings Mills, MD Hyatt Place 2012 2,100 9,799 (175 ) 2,100 9,624 11,724 (3,337 ) 8,387 — (1) Pittsburgh, PA Courtyard 2017 1,652 40,749 5,683 1,652 46,432 48,084 (3,871 ) 44,213 — Portland, OR Hyatt Place 2009 — (2) 14,700 457 — 15,157 15,157 (4,534 ) 10,623 — Portland, OR Residence Inn 2009 — (2) 15,629 286 — 15,915 15,915 (5,571 ) 10,344 16,980 (1) Portland, OR Residence Inn 2019 12,813 76,868 38 12,813 76,906 89,719 (1,204 ) 88,515 — Poway, CA Hampton Inn & Suites 2013 2,300 14,728 1,228 2,300 15,956 18,256 (3,923 ) 14,333 — San Francisco, CA Hilton Garden Inn 2019 12,346 45,730 36 12,346 45,766 58,112 (585 ) 57,527 — San Francisco, CA Holiday Inn Express & Suites 2013 15,545 49,469 3,875 15,545 53,344 68,889 (13,191 ) 55,698 — San Francisco, CA Four Points 2014 1,200 21,397 2,874 1,200 24,271 25,471 (5,094 ) 20,377 — (1) Initial Cost Cost Capitalized Subsequent to Acquisition Total Cost Location Franchise Year Acquired/ Constructed Land Building & Improvements Land, Building & Improvements Land Building & Improvements Total Accumulated Depreciation Total Cost Net of Accumulated Depreciation Mortgage Debt Scottsdale, AZ Hyatt Place 2012 $ 1,500 $ 10,171 $ (431 ) $ 1,500 $ 9,740 $ 11,240 $ (3,120 ) $ 8,120 $ — (1) Scottsdale, AZ Courtyard 2003 3,225 12,571 3,648 3,225 16,219 19,444 (5,694 ) 13,750 — Scottsdale, AZ SpringHill Suites 2003 2,195 9,496 1,750 2,195 11,246 13,441 (4,109 ) 9,332 — Silverthorne, CO Hampton Inn & Suites 2019 6,845 21,125 145 6,845 21,270 28,115 (334 ) 27,781 — Tampa, FL Hampton Inn & Suites 2012 3,600 20,366 4,466 3,600 24,832 28,432 (4,641 ) 23,791 — Tucson, AZ Homewood Suites 2017 2,570 22,802 996 2,570 23,798 26,368 (2,981 ) 23,387 — Waltham, MA Hilton Garden Inn 2017 10,644 21,713 5,888 10,644 27,601 38,245 (2,212 ) 36,033 — Watertown, MA Residence Inn 2018 25,083 45,917 223 25,083 46,140 71,223 (2,528 ) 68,695 — Land Parcels Land Parcels 4,645 — (2,720 ) 1,925 — 1,925 — 1,925 — $ 323,075 $ 2,123,406 $ 106,947 $ 321,528 $ 2,231,900 $ 2,553,428 $ (383,763 ) $ 2,169,665 $ 157,726 (1) Properties cross-collateralize the related loan, refer to "Note 6 - Debt" in the Consolidated Financial Statements. (2) Properties subject to ground lease, refer to "Note 7 - Leases" in the Consolidated Financial Statements. (a) ASSET BASIS 2019 2018 2017 Reconciliation of land, buildings and improvements: Balance at beginning of period $ 2,406,269 $ 2,355,723 $ 1,848,673 Additions to land, buildings and improvements 336,480 151,829 636,389 Disposition of land, buildings and improvements (186,800 ) (100,208 ) (129,339 ) Impairment loss (2,521 ) (1,075 ) — Balance at end of period $ 2,553,428 $ 2,406,269 $ 2,355,723 (b) ACCUMULATED DEPRECIATION 2019 2018 2017 Reconciliation of accumulated depreciation: Balance at beginning of period $ 351,821 $ 290,066 $ 241,760 Depreciation 99,013 100,545 85,524 Depreciation on assets sold or disposed (67,071 ) (38,790 ) (37,218 ) Balance at end of period $ 383,763 $ 351,821 $ 290,066 (c) The aggregate cost of real estate for Federal income tax purposes was approximately $2,358.1 million . (d) Depreciation is computed based upon the following useful lives: Buildings and improvements 6 - 40 years Furniture and equipment 2 - 15 years (e) We have mortgages payable on the properties as noted. Additional mortgage information can be found in "Note 6 - Debt" to the Consolidated Financial Statements. (f) The negative balance for costs capitalized subsequent to acquisition include out-parcels sold, disposal of assets, and recorded impairment losses. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We prepare our Consolidated Financial Statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenues and expenses in the reporting period. Actual results could differ from those estimates. The accompanying Consolidated Financial Statements consolidate the accounts of all entities in which we have a controlling financial interest, as well as variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. |
Segment Disclosure | Segment Disclosure Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. We have determined that we have one reportable segment, for activities related to investing in real estate. Our investments in real estate are geographically diversified and the chief operating decision makers evaluate operating performance on an individual asset level. As each of our assets has similar economic characteristics, the assets have been aggregated into one reportable segment. |
Investment in Hotel Properties | Investment in Hotel Properties The Company allocates the purchase price of acquired hotel properties based on the fair value of the acquired land, land improvements, building, furniture, fixtures and equipment, identifiable intangible assets or liabilities, other assets and assumed liabilities. Intangible assets may include certain value associated with the on-going operations of the hotel business being acquired as part of the hotel property acquisition. Acquired intangible assets that derive their values from real property or an interest in real property, are inseparable from that real property or interest in real property, and do not produce or contribute to the production of income other than consideration for the use or occupancy of space, are recorded as a component of the related real estate asset in our Consolidated Financial Statements. We allocate the purchase price of acquired hotel properties to land, building and furniture, fixtures and equipment based on third-party independent appraisals. 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. We generally depreciate our hotel properties and related assets using the straight-line method over their estimated useful lives as follows: Classification Estimated Useful Lives Buildings and improvements 6 to 40 years Furniture, fixtures and equipment 2 to 15 years We periodically re-evaluate asset lives based on current assessments of remaining utilization, which may result in changes in estimated useful lives. Such changes are accounted for prospectively and will increase or decrease future depreciation expense. When depreciable property and equipment is retired or disposed, the related costs and accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in current operations. On a limited basis, we provide financing to developers of hotel properties for development projects. We evaluate these arrangements to determine if we participate in residual profits of the hotel property through the loan provisions or other agreements. Where we conclude that these arrangements are more appropriately treated as an investment in the hotel property, we reflect the loan as an Investment in Hotel Properties, net in our Consolidated Balance Sheets. We monitor events and changes in circumstances for indicators that the carrying value of a hotel property or undeveloped land 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, v) changes in values of comparable land or hotel sales, and vi) 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 the carrying amount of the asset is not recoverable, we estimate the fair value of the property based on discounted cash flows, third party appraisals, 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. |
Intangible Assets | Intangible Assets We amortize intangible assets with determined finite useful lives using the straight-line method. We do not amortize intangible assets with indefinite useful lives, but we evaluate these assets for impairment annually or at interim periods if events or circumstances indicate that the asset may be impaired. |
Assets Held for Sale | Assets Held for Sale We periodically review our hotel properties and our undeveloped land based on established criteria such as age, type of franchise, adverse economic and competitive conditions, and strategic fit to identify properties that we believe are either non-strategic or no longer complement our business. Based on our review, we periodically market properties for sale that no longer meet our investment criteria. We also periodically receive unsolicited external inquiries that result in the sale of hotel properties. |
Variable Interest Entities | Variable Interest Entities Additionally, we have in the past and may in the future enter into purchase and sale transactions in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended (“IRC”), for the exchange of like-kind property to defer taxable gains on the sale of real estate properties (“1031 Exchange”). For reverse transactions under a 1031 Exchange in which we purchase a new property prior to selling the property to be matched in the like-kind exchange (we refer to a new property being acquired by us in the 1031 Exchange prior to the sale of the related property as a “Parked Asset”), legal title to the Parked Asset is held by a qualified intermediary engaged to execute the 1031 Exchange until the sale transaction and the 1031 Exchange is completed. We retain essentially all of the legal and economic benefits and obligations related to a Parked Asset prior to completion of a 1031 Exchange. As such, a Parked Asset is included in our Consolidated Balance Sheets and Consolidated Statements of Operations as a consolidated VIE until legal title is transferred to us upon completion of the 1031 Exchange. |
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. |
Trade Receivables and Credit Policies | Trade Receivables and Credit Policies We grant credit to qualified customers, generally without collateral, in the form of trade accounts receivable. Trade receivables result from the rental of hotel guestrooms and the sales of food, beverage, and banquet services and are payable under normal trade terms. Trade receivables also include credit and debit card transactions that are in the process of being settled. Trade receivables are stated at the amount billed to the customer and do not accrue interest. |
Leases | Leases |
Notes Receivables | Notes Receivables We selectively provide mezzanine financing to developers, where we also have the opportunity to acquire the hotel at or after the completion of the development project. Separately, we also may provide seller financing in connection with a hotel disposition under limited circumstances. We classify notes receivable as held-to-maturity and carry the notes receivable at cost less the unamortized discount, if any. We routinely evaluate our notes receivable for potential credit or collection issues that may indicate an impairment. Losses on notes receivable are recognized when incurred based on our best estimate of probable impairment. |
Deferred Charges, net | Deferred Charges, net Initial franchise fees are capitalized and amortized over the term of the franchise agreement using the straight-line method. |
Deferred Financing Fees | Deferred Financing Fees Debt issuance costs are presented as a direct deduction from the carrying value of the debt liability on the Consolidated Balance Sheets. Debt issuance costs are amortized as a component of interest expense over the term of the related debt using the straight-line method, which approximates the interest method. |
Non-controlling Interests | Non-controlling Interests Non-controlling interests represent the portion of equity in a consolidated entity held by owners other than the consolidating parent. Non-controlling interests are reported in the Consolidated Balance Sheets within equity, separately from stockholders’ equity. Revenue, expenses and net income attributable to both the Company and the non-controlling interests are reported in the Consolidated Statements of Operations. Our Consolidated Financial Statements include non-controlling interests related to common units of limited partnership interests (“Common Units”) in the Operating Partnership held by unaffiliated third parties and third-party ownership of a 49% |
Revenue Recognition, Sales and Other Taxes | 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 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, cancellation fees, 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 assess 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 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. Sales and Other Taxes We have operations in states and municipalities that impose sales or other taxes on certain sales. We collect these taxes from our customers and remit the entire amount to the various governmental units. The taxes collected and remitted are excluded from revenues and are included in accrued expenses until remitted. |
Equity-Based Compensation | Equity-Based Compensation Our 2011 Equity Incentive Plan, which was amended and restated effective June 15, 2015 (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 initial public offering 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. We have elected to account for forfeitures as they occur. 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 forfeitures or modification of previously granted awards. |
Derivative Financial Instruments and Hedging | Derivative Financial Instruments and Hedging All derivative financial instruments are recorded at fair value in our Consolidated Balance Sheets. We use interest rate derivatives to hedge our risks on variable-rate debt. Interest rate derivatives could include interest rate swaps, caps and collars. 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. The change in the fair value of the hedging instruments is recorded in Other comprehensive income. Amounts in Other comprehensive income will be reclassified to Interest expense in our Consolidated Statements of Operations in the period in which the hedged item affects earnings. |
Income Taxes | Income Taxes |
Fair Value Measurement | Fair Value Measurement Fair value measures are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market information, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). Our estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. We classify assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. We elected not to use the fair value option for cash and cash equivalents, restricted cash, trade receivables, prepaid expenses and other, debt, accounts payable, and accrued expenses and other. With the exception of our fixed-rate debt (See “Note 6 — Debt”), the carrying amounts of these financial instruments approximate their fair values due to their short-term nature or variable interest rates. 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 Food and beverage revenues, Other revenues, Food and beverage expenses, and Other hotel operating expenses in the Consolidated Statements of Operations in previous periods and certain amounts reported in the Consolidated Statements of Cash Flows in previous periods have been reclassified to conform to the current period presentation. |
New Accounting Standards | New Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which clarifies when an entity recognizes a credit loss on certain financial assets. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses: Targeted Transition Relief , which provides an option to irrevocably elect the fair value option in ASC No. 825-10, Financial Instruments - Overall , applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASC No. 326, Financial Instruments - Credit Losses . ASU 2016-13 and ASU 2019-05 are both effective for our fiscal year commencing on January 1, 2020, with early adoption permitted. The adoption of ASU No. 2016-13 or ASU No. 2019-05 did not have a material effect on our consolidated financial position or results of operations. In August 2018, the FASB issued ASU No. 2018-15, Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement , which clarifies how an entity should account for fees paid in a cloud computing arrangement. ASU 2018-15 is effective for our fiscal year commencing on January 1, 2020, with early adoption permitted. During fiscal 2019, we elected to early adopt ASU No. 2018-15. The adoption of ASU No. 2018-15 did not have a material effect on our consolidated financial position or results of operations. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of hotel properties and related assets | We generally depreciate our hotel properties and related assets using the straight-line method over their estimated useful lives as follows: Classification Estimated Useful Lives Buildings and improvements 6 to 40 years Furniture, fixtures and equipment 2 to 15 years Investment in hotel properties, net at December 31, 2019 and 2018 include (in thousands): 2019 2018 Land $ 319,603 $ 288,833 Hotel buildings and improvements 2,049,384 1,916,194 Furniture, fixtures and equipment 173,128 165,026 Construction in progress 9,388 21,059 Intangible assets 11,231 22,064 Real estate development loan 5,485 — 2,568,219 2,413,176 Less - accumulated depreciation (383,987 ) (347,622 ) $ 2,184,232 $ 2,065,554 |
INVESTMENT IN HOTEL PROPERTIES
INVESTMENT IN HOTEL PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Schedule of investment in hotel properties, net | We generally depreciate our hotel properties and related assets using the straight-line method over their estimated useful lives as follows: Classification Estimated Useful Lives Buildings and improvements 6 to 40 years Furniture, fixtures and equipment 2 to 15 years Investment in hotel properties, net at December 31, 2019 and 2018 include (in thousands): 2019 2018 Land $ 319,603 $ 288,833 Hotel buildings and improvements 2,049,384 1,916,194 Furniture, fixtures and equipment 173,128 165,026 Construction in progress 9,388 21,059 Intangible assets 11,231 22,064 Real estate development loan 5,485 — 2,568,219 2,413,176 Less - accumulated depreciation (383,987 ) (347,622 ) $ 2,184,232 $ 2,065,554 |
Schedule of finite-lived intangible assets | Intangible assets included in Investment in hotel properties, net in our Consolidated Balance Sheets include the following (in thousands): Weighted Average Amortization Period (in Years) 2019 2018 Intangible assets: Air rights (1) n/a $ 10,754 $ 10,754 Favorable leases (2) n/a — 10,550 In-place lease agreements 2.0 397 680 Other n/a 80 80 11,231 22,064 Less - accumulated amortization (224 ) (1,108 ) Intangible assets, net $ 11,007 $ 20,956 (1) In conjunction with the acquisition of the Courtyard by Marriott - Charlotte, NC, the Company acquired certain air rights related to the hotel property. (2) In accordance with ASU No. 2016-02, Leases (Topic 842), we reclassified certain existing lease-related intangible assets to Right-of-use assets as of January 1, 2019 (See "Note 7 - Leases" for further information). |
Schedule of indefinite-lived intangible assets | ntangible assets included in Investment in hotel properties, net in our Consolidated Balance Sheets include the following (in thousands): Weighted Average Amortization Period (in Years) 2019 2018 Intangible assets: Air rights (1) n/a $ 10,754 $ 10,754 Favorable leases (2) n/a — 10,550 In-place lease agreements 2.0 397 680 Other n/a 80 80 11,231 22,064 Less - accumulated amortization (224 ) (1,108 ) Intangible assets, net $ 11,007 $ 20,956 (1) In conjunction with the acquisition of the Courtyard by Marriott - Charlotte, NC, the Company acquired certain air rights related to the hotel property. (2) In accordance with ASU No. 2016-02, Leases (Topic 842), we reclassified certain existing lease-related intangible assets to Right-of-use assets as of January 1, 2019 (See "Note 7 - Leases" for further information). |
Schedule of intangible liabilities future amortization expense | Future amortization expense is expected to be as follows (in thousands): Finite-Lived Intangible Assets 2020 $ 87 2021 86 $ 173 |
Schedule of finite-lived intangible assets, future amortization expense | Future amortization expense is expected to be as follows (in thousands): Finite-Lived Intangible Assets 2020 $ 87 2021 86 $ 173 |
Schedule of hotel property acquisitions | Hotel property acquisitions in 2019 and 2018 were as follows (in thousands): Date Acquired Franchise/Brand Location Guestrooms Purchase Year Ended December 31, 2019 August 6, 2019 Hampton Inn & Suites Silverthorne, CO 88 $ 25,500 October 8, 2019 Portfolio Purchase - four properties (1) various (1) 710 249,000 798 $ 274,500 (2) Year Ended December 31, 2018 September 12, 2018 Residence Inn by Marriott Boston (Watertown), MA 150 $ 71,000 150 $ 71,000 (3) (1) On October 8, 2019, we acquired a portfolio of four hotels for an aggregate purchase price of $249.0 million . The hotels acquired included the Hilton Garden Inn - San Francisco, CA, the Hilton Garden Inn - San Jose (Milpitas), CA, the Residence Inn by Marriott - Portland (Downtown), OR, and the Residence Inn by Marriott - Portland (Hillsboro), OR. (2) The net assets acquired in 2019 were purchased for $274.5 million plus the purchase of adjacent land parcels totaling $2.4 million , $1.0 million of net working capital assets and capitalized transaction costs of $0.4 million . We own a 51% controlling interest in these hotel properties through a consolidated joint venture. (3) The net assets acquired in 2018 were purchased for $71.0 million plus the purchase at settlement of $0.1 million of net working capital liabilities and capitalized transaction costs of $0.1 million . |
Schedule of allocation of aggregate purchase prices to fair value of assets and liabilities acquired | The allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired for the above acquisitions is as follows (in thousands): 2019 2018 Land $ 44,868 $ 25,083 Hotel buildings and improvements 219,410 42,676 Furniture, fixtures and equipment 12,995 3,300 Other assets 1,103 123 Total assets acquired 278,376 71,182 Less other liabilities (79 ) (180 ) Net assets acquired (1) (2) $ 278,297 $ 71,002 (1) The net assets acquired in 2019 were purchased for $274.5 million plus the purchase of adjacent land parcels totaling $2.4 million , $1.0 million of net working capital assets and capitalized transaction costs of $0.4 million . (2) The net assets acquired in 2018 were purchased for $71.0 million plus the purchase at settlement of $0.1 million of net working capital liabilities and capitalized transaction costs of $0.1 million . |
Schedule of unaudited condensed pro forma financial information | The unaudited condensed pro forma financial information for the 72 hotel properties owned at December 31, 2019 for the twelve months ended December 31, 2019 and 2018 is as follows (in thousands, except per share): 2019 2018 Revenues $ 572,262 $ 562,097 Income from hotel operations $ 215,372 $ 215,931 Net income (1) $ 57,909 $ 71,478 Net income attributable to common stockholders, net of amount allocated to participating securities and non-controlling interests (1) (2) $ 33,671 $ 38,803 Basic and diluted net income per share attributable to common stockholders (1) (2) $ 0.32 $ 0.37 (1) Unaudited pro forma amounts include depreciation expense, property tax expense, interest expense, income tax expense, and corporate general and administrative expenses totaling $197.1 million and $181.9 million for the twelve months ended December 31, 2019 and 2018, respectively. (2) Unaudited pro forma amounts for the twelve months ended December 31, 2018 include the effect of the premium on redemption of preferred stock of $3.3 million and higher preferred dividends of $1.8 million related to the redeemed preferred stock. |
Schedule of sale of hotels | A summary of the dispositions in 2019 and 2018 follows (dollars in thousands): Disposition Date Franchise/Brand Location Guestrooms Gross Sales Price Aggregate Gain, net Year Ended December 31, 2019 February 12, 2019 Portfolio Sale - two properties (1) Charleston, WV (1) 130 $ 11,600 $ 4,163 April 17, 2019 Portfolio Sale - six properties (2) various (2) 815 135,000 36,626 November 8, 2019 Portfolio Sale - two properties (3) Birmingham, AL (3) 225 21,800 4,857 Total 1,170 $ 168,400 $ 45,646 Year Ended December 31, 2018 June 29, 2018 Portfolio Sale - two properties (4) various (4) 175 $ 18,950 $ 13,133 June 29, 2018 Portfolio Sale - two properties (5) Duluth, GA (5) 265 24,850 4,218 July 24, 2018 Portfolio Sale - three properties (6) various (6) 322 46,500 22,964 September 28, 2018 Hyatt Place Fort Myers, FL 148 16,500 2,195 November 7, 2018 Land parcel Spokane, WA n/a 450 139 Total 910 $ 107,250 $ 42,649 (1) The portfolio included the Country Inn & Suites and the Holiday Inn Express in Charleston, WV. (2) The portfolio included the SpringHill Suites in Minneapolis (Bloomington), MN, the Hampton Inn & Suites in Minneapolis (Bloomington), MN, the Residence Inn in Salt Lake City, UT, the Hyatt Place in Dallas (Arlington), TX, the Hampton Inn in Santa Barbara (Goleta), CA, and the Hampton Inn in Boston (Norwood), MA. The sale resulted in a net gain of $36.6 million based on a gross aggregate sales price of $135.0 million , or a net aggregate sales price of $133.0 million after a buyer credit of $2.0 million . (3) The portfolio included the Hilton Garden Inn in Birmingham (Lakeshore), AL and the Hilton Garden Inn in Birmingham (Liberty Park), AL. (4) The portfolio included the Hampton Inn in Provo, UT and the Holiday Inn Express & Suites in Sandy, UT. (5) The portfolio included the Holiday Inn in Duluth, GA and the Hilton Garden Inn in Duluth, GA. We provided seller financing of $3.6 million on the sale of these properties under two three-and-a-half-year second mortgage notes with a blended interest rate of 7.38% . (6) The portfolio included the Hampton Inn & Suites in Smyrna, TN, the Hilton Garden Inn in Smyrna, TN and the Hyatt Place Phoenix North in Phoenix, AZ. The proceeds from these sales were used to complete a 1031 Exchange, which resulted in the deferral of taxable gains of $22.2 million . |
INVESTMENT IN REAL ESTATE LOA_2
INVESTMENT IN REAL ESTATE LOANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Schedule of Investment in Real Estate Loans | Investment in real estate loans, net at December 31, 2019 and 2018 is as follows (in thousands): 2019 2018 Real estate loans $ 32,831 $ 34,650 Unamortized discount (1,895 ) (3,950 ) $ 30,936 $ 30,700 |
SUPPLEMENTAL BALANCE SHEET IN_2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of assets held for sale | Assets held for sale at December 31, 2019 and 2018 include the following (in thousands): 2019 2018 Land $ 425 $ 2,442 Hotel building and improvements — 7,929 Furniture, fixtures and equipment — 2,519 Franchise fees — 131 425 13,021 Less - accumulated depreciation and amortization — (5,388 ) $ 425 $ 7,633 |
Schedule of restricted cash | Restricted cash at December 31, 2019 and 2018 was as follows (in thousands): 2019 2018 FF&E reserves $ 25,664 $ 24,386 Property taxes 1,728 1,625 Other 203 2,457 $ 27,595 $ 28,468 |
Schedule of prepaid expenses and other | Prepaid expenses and other at December 31, 2019 and 2018 included the following (in thousands): 2019 2018 Prepaid insurance $ 3,501 $ 2,822 Prepaid taxes 2,032 3,825 Other 3,311 3,464 $ 8,844 $ 10,111 |
Schedule of deferred charges | Deferred charges at December 31, 2019 and 2018 were as follows (in thousands): 2019 2018 Initial franchise fees $ 6,615 $ 6,463 Less - accumulated amortization (1,906 ) (1,772 ) $ 4,709 $ 4,691 |
Schedule of other assets | Other assets at December 31, 2019 and 2018 included the following (in thousands): 2019 2018 Purchase options related to real estate loans $ 8,920 $ 6,120 Deferred tax asset, net 2,138 2,046 Other 981 — Prepaid land lease — 3,180 Derivative financial instruments — 3,461 $ 12,039 $ 14,807 |
Schedule of accrued expenses | Accrued expenses and other at December 31, 2019 and 2018 included the following (in thousands): 2019 2018 Accrued property, sales and income taxes $ 21,392 $ 19,570 Derivative financial instruments 16,177 5,042 Other accrued expenses at hotels 13,274 13,288 Accrued salaries and benefits 11,625 10,540 Other 8,209 9,801 Accrued interest 1,082 3,186 Acquired unfavorable leases — 4,623 $ 71,759 $ 66,050 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding indebtedness | At December 31, 2019 and 2018 our outstanding indebtedness was as follows (in thousands): Lender Reference Interest Rate Amortization Period (Years) Maturity Date Number of Properties Encumbered Balance at December 31, 12/31/2019 2019 2018 $600 Million Senior Unsecured Credit and Term Loan Facility (1) Deutsche Bank AG New York Branch $400 Million Revolver 3.41% Variable n/a March 31, 2023 n/a $ 75,000 $ 115,000 $200 Million Term Loan 3.36% Variable n/a April 1, 2024 n/a 200,000 200,000 Total Senior Unsecured Credit and Term Loan Facility 275,000 315,000 Joint Venture Credit Facility (2) Bank of America, N.A. $125 Million Revolver 3.91% Variable n/a October 8, 2023 n/a 65,000 — $75 Million Term Loan 3.86% Variable n/a October 8, 2023 n/a 75,000 — Total Joint Venture Credit Facility 140,000 — Unsecured Term Loan (1) Term Loan (KeyBank National Association, as Administrative Agent) 3.36% Variable n/a November 25, 2022 n/a 225,000 225,000 Term Loan (KeyBank National Association, as Administrative Agent) 3.66% Variable n/a February 14, 2025 n/a 225,000 225,000 Secured Mortgage Indebtedness KeyBank National Association (3) 4.46% Fixed 30 February 1, 2023 3 19,510 26,357 (4) 4.52% Fixed 30 April 1, 2023 3 19,992 20,444 (5) 4.30% Fixed 30 April 1, 2023 3 19,323 19,777 (6) 4.95% Fixed 30 August 1, 2023 2 34,695 35,411 MetaBank (7) 4.44% Fixed 25 July 1, 2027 3 47,226 47,640 Bank of Cascades (8) 3.76% Variable 25 December 19, 2024 1 8,490 8,757 (8) 4.30% Fixed 25 December 19, 2024 — 8,490 8,757 Compass Bank (9) n/a 25 May 6, 2020 — — 22,151 U.S. Bank, NA (10) n/a 25 November 11, 2021 — — 10,717 Total Mortgage Loans 15 157,726 200,011 Total Debt 1,022,726 965,011 Unamortized debt issuance costs (6,563 ) (6,299 ) Debt, net of issuance costs $ 1,016,163 $ 958,712 (1) The $600 million Senior Secured Credit and Term Loan Facility and Unsecured Term Loans are supported by a borrowing base of 52 unencumbered hotel properties. (2) The Joint Venture Credit Facility is secured by pledges of the equity in the entities (and affiliated entities) that own the hotels. (3) On January 25, 2013, we closed on a $29.4 million loan with a fixed rate of 4.46% and a maturity of February 1, 2023. This loan is secured by three of the Hyatt Place hotels we acquired in October 2012. These hotels are located in Chicago (Lombard), IL; Denver (Lone Tree), CO; and Denver (Englewood), CO. This loan is subject to defeasance costs if prepaid. On March 19, 2019, we defeased $6.3 million of the principal balance to have the encumbrance released on one property, the Hyatt Place in Arlington, TX, to facilitate the sale of the property. As a result of this transaction, we recorded debt transaction costs of $0.6 million primarily related to the debt defeasance premium. (4) On March 7, 2013, we closed on a $ 22.7 million loan with a fixed rate of 4.52% and a maturity of April 1, 2023. This loan is secured by three of the Hyatt hotels we acquired in October 2012. These hotels include a Hyatt House in Denver (Englewood), CO and Hyatt Place hotels in Baltimore (Owings Mills), MD and Scottsdale, AZ. This loan is subject to defeasance if prepaid. (5) On March 8, 2013, we closed on a $ 22.0 million loan with a fixed rate of 4.30% and a maturity of April 1, 2023. This loan is secured by the three Hyatt Place hotels we acquired in January 2013. These hotels are located in Chicago (Hoffman Estates), IL; Orlando (Convention), FL; and Orlando (Universal), FL. This loan is subject to defeasance if prepaid. (6) On July 22, 2013, we closed on a $38.7 million loan with a fixed rate of 4.95% and a maturity of August 1, 2023. This loan is secured by two Marriott hotels we acquired in May 2013. These hotels include a Fairfield Inn & Suites and SpringHill Suites in Louisville, KY. This loan is subject to defeasance if prepaid. (7) On June 30, 2017, we entered into the MetaBank Loan. The MetaBank Loan is secured by the Hampton Inn & Suites in Minneapolis, MN, the Four Points by Sheraton Hotel & Suites in South San Francisco, CA, and the Hyatt Place in Mesa, AZ. The MetaBank Loan is subject to a prepayment penalty if prepaid prior to April 1, 2027. (8) On December 19, 2014, we refinanced our loan with Bank of the Cascades and increased the amount financed by $ 7.9 million . As part of the refinance the loan was split into two notes. Note A carries a variable interest rate of 30-day LIBOR plus 200 basis points and Note B carries a fixed interest rate of 4.3% . Both notes have amortization periods of 25 years and maturity dates of December 19, 2024. The Bank of Cascades mortgage loan is comprised of two promissory notes that are secured by the same collateral and cross-defaulted. (9) On April 24, 2019, we repaid a mortgage loan with Compass Bank totaling $21.9 million that was secured by three hotel properties. There was no prepayment penalty associated with the repayment of this loan. After the repayment of this loan, the three hotels were added to the Company's Unencumbered Properties. (10) On April 11, 2019, we repaid a $10.6 million mortgage loan with U.S. Bank to release the encumbrance on the Hampton Inn in Goleta, CA to facilitate the sale of the property. As a result of this transaction, we incurred debt transaction costs of $1.0 million . |
Schedule of total fixed-rate and variable-rate debt, after giving effect to interest rate derivatives | Our total fixed-rate and variable-rate debt at December 31, 2019 and 2018 , after giving effect to our interest rate derivatives, is as follows (in thousands): 2019 Percentage 2018 Percentage Fixed-rate debt $ 549,236 54 % $ 569,103 59 % Variable-rate debt 473,490 46 % 395,908 41 % $ 1,022,726 $ 965,011 |
Schedule of principal payments for each of the next five years | Contractual principal payments for each of the next five years are as follows (in thousands): 2020 $ 3,742 2021 3,912 2022 229,072 2023 303,434 2024 216,105 Thereafter 266,461 $ 1,022,726 |
Schedule of the fair value of fixed-rate debt that is not recorded at fair value | Information about the fair value of our fixed-rate debt that is not recorded at fair value is as follows (in thousands): 2019 2018 Carrying Value Fair Value Carrying Value Fair Value Valuation Technique Fixed-rate debt $ 149,236 $ 151,268 $ 169,103 $ 166,256 Level 2 - Market approach |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Maturity | Operating lease maturities as of December 31, 2019 are as follows (in thousands): 2020 $ 2,148 2021 2,038 2022 1,815 2023 959 2024 900 Thereafter 28,904 Total lease payments (1) 36,764 Less imputed interest (17,160 ) Total $ 19,604 (1) Certain payments above include future increases to the minimum fixed rent based on the Consumer Price Index in effect at the initial measurement of the lease balances. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative financial instruments | Information about our derivative financial instruments at December 31, 2019 and 2018 is as follows (dollar amounts in thousands): Average Annual Effective Fixed Rate Notional Amount Fair Value Contract date Effective Date Expiration Date December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 October 2, 2017 January 29, 2018 January 31, 2023 1.98 % $ 100,000 $ 100,000 $ (1,316 ) $ 1,758 October 2, 2017 January 29, 2018 January 31, 2023 1.98 % 100,000 100,000 (1,350 ) 1,703 June 11, 2018 September 28, 2018 September 30, 2024 2.87 % 75,000 75,000 (4,389 ) (1,656 ) June 11, 2018 December 31, 2018 December 31, 2025 2.93 % 125,000 125,000 (9,122 ) (3,386 ) $ 400,000 $ 400,000 $ (16,177 ) $ (1,581 ) |
Schedule of location in financial statements of gain or loss recognized on derivative financial instruments designated as cash flow hedges | The table below details the location in the financial statements of the gain or loss recognized on derivative financial instruments designated as cash flow hedges (in thousands): 2019 2018 2017 (Loss) Gain recognized in Accumulated other comprehensive loss on derivative financial instruments $ (15,327 ) $ (3,050 ) $ 1,703 Loss reclassified from Accumulated other comprehensive loss to interest expense $ (731 ) $ (150 ) $ (734 ) Total interest expense and other finance expense presented in the Consolidated Statement of Operations in which the effects of cash flow hedges are recorded $ (41,030 ) $ (41,944 ) $ (29,687 ) |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Common Stock Activity | Changes in common stock during the years ended December 31, 2019 and 2018 were as follows: 2019 2018 Beginning common shares outstanding 104,783,179 104,287,128 Grants under the Equity Plan 537,734 583,738 Common Unit redemptions 50,244 64,126 Annual grants to independent directors 40,455 34,130 Common stock issued for director fees — 3,543 Performance share and other forfeitures (167,757 ) (1,636 ) Shares retained for employee tax withholding requirements (74,340 ) (187,850 ) Ending common shares outstanding 105,169,515 104,783,179 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Measurement at December 31, 2019 using Level 1 Level 2 Level 3 Total Assets: Purchase options related to real estate loans $ — $ — $ 8,920 $ 8,920 Liabilities: Interest rate swaps — 16,177 — 16,177 Fair Value Measurement at December 31, 2018 using Level 1 Level 2 Level 3 Total Assets: Interest rate swaps $ — $ 3,461 $ — $ 3,461 Purchase options related to real estate loans — — 6,120 6,120 Liabilities: Interest rate swaps — 5,042 — 5,042 |
Schedule of unobservable inputs for fair values of purchase options | 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 Real Estate Loan 4 Exercise price $ 15,143 $ 17,377 $ 5,503 $ 37,800 First option exercise date (1) 12/31/2018 3/31/2019 5/31/2019 8/15/2021 Last option exercise date 11/1/2020 12/5/2020 12/1/2020 8/30/2021 Expected volatility 32.0 % 38.0 % 37.0 % 31.3 % Risk free rate 1.7 % 1.8 % 1.9 % 1.5 % Expected annualized equity dividend yield 6.8 % 9.9 % 6.5 % — % (2) (1) The first option date is the date used for valuing the Purchase Option. The actual option exercise dates are on or after the hotels are fully constructed and open for business. As of December 31, 2019 , three of the four hotels were open for business. (2) The purchase option was valued using the Black-Scholes model which assumes no dividends. |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of restricted stock activity | The following table summarizes performance-based restricted stock activity under our Equity Plan for 2019 and 2018 : Number of Shares Weighted Average Grant Date Fair Value per Share Aggregate Current Value (in thousands) Non-vested December 31, 2017 619,429 $ 16.16 Granted 397,808 15.69 Vested (309,010 ) 18.78 Non-vested December 31, 2018 708,227 14.75 Granted 302,327 12.81 Vested (89,097 ) 13.77 Forfeited (165,466 ) 13.77 Non-vested December 31, 2019 755,991 $ 14.31 $ 9,329 The following table summarizes time-based restricted stock activity under our Equity Plan for 2019 and 2018 : Number of Shares Weighted Average Grant Date Fair Value per Share Aggregate Current Value (in thousands) Non-vested December 31, 2017 391,477 $ 13.52 Granted 185,930 13.15 Vested (205,619 ) 13.41 Forfeited (1,636 ) 12.84 Non-vested December 31, 2018 370,152 13.40 Granted 235,407 11.32 Vested (154,801 ) 12.82 Forfeited (2,291 ) 12.65 Non-vested December 31, 2019 448,467 $ 12.51 $ 5,534 |
Schedule of assumptions used estimate fair value of performance-based restricted stock awards granted | The fair value of performance-based restricted stock awards granted was estimated using a Monte Carlo simulation valuation model and the following assumptions: 2019 2018 2017 Expected dividend yield 6.17 % 5.33 % 4.14 % Expected stock price volatility 23.2 % 25.7 % 24.8 % Risk-free interest rate 2.43 % 2.41 % 1.59 % Monte Carlo iterations 100,000 100,000 100,000 Weighted average estimated fair value of performance-based restricted stock awards $ 12.81 $ 13.73 $ 17.13 |
Schedule of equity-based compensation expense | Equity-based compensation expense included in Corporate General and Administrative expense in the Consolidated Statements of Operations for the years ended December 31, 2019 , 2018 , and 2017 was as follows (in thousands): 2019 2018 2017 Time-based restricted stock $ 2,327 $ 2,384 $ 2,145 Performance-based restricted stock 3,396 3,727 3,183 Director stock 496 554 559 $ 6,219 $ 6,665 $ 5,887 |
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 $7.4 million at December 31, 2019 as follows (in thousands): Total 2020 2021 2022 2023 Time-based restricted stock $ 3,092 $ 1,798 $ 1,048 $ 231 $ 15 Performance-based restricted stock 4,270 2,578 1,477 215 — $ 7,362 $ 4,376 $ 2,525 $ 446 $ 15 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense and total provision (benefit) for TRS and Operating Partnership | The components of income tax expense (benefit) for the years ended December 31, 2019 , 2018 , and 2017 are as follows (in thousands): 2019 2018 2017 Current: Federal $ 869 $ (67 ) $ 10 State and local 643 (425 ) 777 Deferred: Federal (32 ) (279 ) 232 State and local 20 (151 ) 49 Effect of federal tax law change — — 606 Income tax expense (benefit) $ 1,500 $ (922 ) $ 1,674 |
Schedule of reconciliation of federal statutory rate to effective income tax rate for TRS | Below is a reconciliation between the provision for income taxes and the amounts computed by applying the federal statutory income tax rate to the income or loss before taxes: 2019 2018 2017 Statutory federal income tax provision $ 17,608 $ 18,943 $ 35,418 Nontaxable income of the REITs (16,996 ) (19,073 ) (35,073 ) Effect of graduated corporate tax rates — — (10 ) State income taxes, net of federal tax benefit 568 266 716 Provision to return and deferred adjustment (6 ) 75 — Effect of permanent differences and other 326 (184 ) 17 Tax benefit from deduction for partnership distributions — (949 ) — Effect of federal tax law change — — 606 Income tax provision (benefit) $ 1,500 $ (922 ) $ 1,674 |
Schedule of significant components of deferred tax assets (liabilities) | Deferred tax assets and liabilities are included within Other Assets in the accompanying Consolidated Balance Sheets. Significant components of deferred tax assets (liabilities) are as follows (in thousands): 2019 2018 Tax carryforwards $ 38 $ 154 Accrued expenses 2,068 1,893 Other 32 (1 ) Net deferred tax assets $ 2,138 $ 2,046 Gross deferred tax assets $ 2,172 $ 2,086 Gross deferred tax liabilities (34 ) (40 ) Net deferred tax assets $ 2,138 $ 2,046 |
Schedule of Characterization of Distributions | For income tax purposes, distributions paid consist of ordinary income and capital gains or a combination thereof. For the years ended December 31, 2019, 2018, and 2017 distributions paid per share were characterized as follows (unaudited): 2019 2018 2017 Amount % Amount % Amount % Common Stock Ordinary income $ 0.6132 85.16 % $ 0.7200 100.00 % $ 0.6725 100.00 % Capital gain distributions 0.1068 14.84 % — — % — — % Total $ 0.7200 100.00 % $ 0.7200 100.00 % $ 0.6725 100.00 % Preferred Stock - Series B Ordinary income $ — — % $ — — % $ 2.0234 100.00 % Capital gain distributions — — % — — % — — % Total $ — — % $ — — % $ 2.0234 100.00 % Preferred Stock - Series C Ordinary income $ — — % $ 0.5393 100.00 % $ 1.7813 100.00 % Capital gain distributions — — % — — % — — % Total $ — — % $ 0.5393 100.00 % $ 1.7813 100.00 % Preferred Stock - Series D Ordinary income $ 1.3732 85.16 % $ 1.6125 100.00 % $ 1.6125 100.00 % Capital gain distributions 0.2393 14.84 % — — % — — % Total $ 1.6125 100.00 % $ 1.6125 100.00 % $ 1.6125 100.00 % Preferred Stock - Series E Ordinary Income $ 1.3307 85.16 % $ 1.5625 100.00 % $ 0.0694 100.00 % Capital gain distributions 0.2318 14.84 % — — % — — % Total $ 1.5625 100.00 % $ 1.5625 100.00 % $ 0.0694 100.00 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of components used to calculate basic and diluted earnings per share | Below is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share amounts): 2019 2018 2017 Numerator: Net income $ 82,348 $ 91,126 $ 99,521 Less: Preferred dividends (14,838 ) (16,671 ) (17,408 ) Premium on redemption of preferred stock — (3,277 ) (2,572 ) Allocation to participating securities (309 ) (271 ) (307 ) Attributable to non-controlling interest in Operating Partnership (157 ) (205 ) (307 ) Attributable to non-controlling interest in joint venture 419 — — Net income attributable to common stockholders, net of amount allocated to participating securities $ 67,463 $ 70,702 $ 78,927 Denominator: Weighted average common shares outstanding - basic 103,887 103,623 99,406 Dilutive effect of equity-based compensation awards 52 219 374 Weighted average common shares outstanding - diluted 103,939 103,842 99,780 Earnings per share: Basic and diluted $ 0.65 $ 0.68 $ 0.79 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected consolidated quarterly financial data | Selected quarterly financial data for the years ended December 31, 2019 and 2018 are as follows (in thousands, except per share amounts): 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total revenues $ 138,952 $ 142,930 $ 133,685 $ 133,781 Net income $ 12,900 $ 49,069 $ 11,626 $ 8,753 Net income attributable to Summit Hotel Properties, Inc. $ 12,877 $ 48,957 $ 11,534 $ 9,242 Earnings per share: Basic and diluted $ 0.09 $ 0.43 $ 0.07 $ 0.05 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total revenues $ 140,199 $ 152,222 $ 142,340 $ 132,509 Net income $ 9,691 $ 37,677 $ 38,001 $ 5,757 Net income attributable to Summit Hotel Properties, Inc. $ 9,688 $ 37,576 $ 37,901 $ 5,756 Earnings per share: Basic $ 0.01 $ 0.33 $ 0.33 $ 0.02 Diluted $ 0.01 $ 0.32 $ 0.33 $ 0.02 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) | Dec. 31, 2019hotelRoomStateProperty | Dec. 31, 2018Room |
Properties | ||
Number of hotels | hotel | 72 | |
Number of guestrooms | Room | 798 | 150 |
Number of states in which hotel properties are located | State | 23 | |
Hotels | ||
Properties | ||
Number of hotels | Property | 72 | |
Number of guestrooms | Room | 11,288 | |
All hotels other than one acquired in 2019 through joint venture | Hotels | ||
Properties | ||
Ownership interest (as a percent) | 100.00% | |
Five hotels acquired in 2019 through joint venture | Hotels | ||
Properties | ||
Number of hotels | hotel | 5 | |
Ownership interest (as a percent) | 51.00% | |
Wholly owned properties | Hotels | ||
Properties | ||
Number of hotels | Property | 67 |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Reportable Segment (Details) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Disclosure | |
Number of reportable segments | 1 |
BASIS OF PRESENTATION AND SIG_5
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives of Hotel Properties and Related Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings and improvements | Minimum | |
INVESTMENT IN HOTEL PROPERTIES, NET | |
Estimated Useful Lives | 6 years |
Buildings and improvements | Maximum | |
INVESTMENT IN HOTEL PROPERTIES, NET | |
Estimated Useful Lives | 40 years |
Furniture, fixtures and equipment | Minimum | |
INVESTMENT IN HOTEL PROPERTIES, NET | |
Estimated Useful Lives | 2 years |
Furniture, fixtures and equipment | Maximum | |
INVESTMENT IN HOTEL PROPERTIES, NET | |
Estimated Useful Lives | 15 years |
BASIS OF PRESENTATION AND SIG_6
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Trade Receivables and Credit Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $ 0.2 | $ 0.1 | |
Bad debt expense | $ 0.5 | $ 0.6 | $ 0.7 |
BASIS OF PRESENTATION AND SIG_7
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets | $ 29,884 | |
Lease liabilities | $ 19,604 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets | $ 23,600 | |
Lease liabilities | $ 23,600 |
BASIS OF PRESENTATION AND SIG_8
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Non-controlling Interests (Details) | 12 Months Ended |
Dec. 31, 2019 | |
GIC | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Limited partner, ownership percentage | 49.00% |
INVESTMENT IN HOTEL PROPERTIE_2
INVESTMENT IN HOTEL PROPERTIES - Schedule of Investment in Hotel Properties, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investment in Hotel Properties, net | ||
Investment in hotel properties at cost | $ 2,568,219 | $ 2,413,176 |
Less - accumulated depreciation | (383,987) | (347,622) |
Investment in hotel properties, net | 2,184,232 | 2,065,554 |
Real estate development loan | ||
Investment in Hotel Properties, net | ||
Investment in hotel properties at cost | 5,485 | 0 |
Land | ||
Investment in Hotel Properties, net | ||
Investment in hotel properties at cost | 319,603 | 288,833 |
Hotel building and improvements | ||
Investment in Hotel Properties, net | ||
Investment in hotel properties at cost | 2,049,384 | 1,916,194 |
Furniture, fixtures and equipment | ||
Investment in Hotel Properties, net | ||
Investment in hotel properties at cost | 173,128 | 165,026 |
Construction in progress | ||
Investment in Hotel Properties, net | ||
Investment in hotel properties at cost | 9,388 | 21,059 |
Intangible assets | ||
Investment in Hotel Properties, net | ||
Investment in hotel properties at cost | $ 11,231 | $ 22,064 |
INVESTMENT IN HOTEL PROPERTIE_3
INVESTMENT IN HOTEL PROPERTIES - Additional Information (Details) $ in Thousands | Jan. 31, 2019USD ($) | Dec. 31, 2019USD ($)hotelRoomLand_Parcel | Dec. 31, 2018USD ($)RoomLand_Parcel | Dec. 31, 2017USD ($) | Jun. 27, 2018USD ($)Room |
Business Acquisition [Line Items] | |||||
Depreciation expense | $ 99,000 | $ 100,500 | $ 85,500 | ||
Number of hotels | hotel | 72 | ||||
Number of guestrooms | Room | 798 | 150 | |||
Loss on impairment of assets | $ 2,521 | $ 1,075 | $ 0 | ||
Number of land parcels impaired | Land_Parcel | 2 | 2 | |||
Assets held for sale | |||||
Business Acquisition [Line Items] | |||||
Number of land parcels impaired | Land_Parcel | 1 | ||||
Residence Inn | Baltimore (Hunt Valley), MD | |||||
Business Acquisition [Line Items] | |||||
Acquisitions of hotel properties | $ 4,200 | ||||
Hyatt House | Orlando, FL | |||||
Business Acquisition [Line Items] | |||||
Number of guestrooms | Room | 168 | ||||
Construction and development costs, excluding land acquired | $ 32,800 | ||||
Construction costs capitalized | 1,600 | ||||
Investment in hotel properties, net | $ 37,200 | ||||
Hyatt Place | Chicago, IL | |||||
Business Acquisition [Line Items] | |||||
Loss on impairment of assets | $ 1,700 | ||||
Investment in hotel properties, net | 5,900 | ||||
Mezzanine Loans | |||||
Business Acquisition [Line Items] | |||||
Loans commitments amount | $ 28,900 |
INVESTMENT IN HOTEL PROPERTIE_4
INVESTMENT IN HOTEL PROPERTIES - Schedule of intangible assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible assets: | ||
Intangible assets, gross | $ 11,231 | $ 22,064 |
Less - accumulated amortization | (224) | (1,108) |
Intangible assets, net | 11,007 | 20,956 |
Favorable leases | ||
Intangible assets: | ||
Intangible assets, gross | $ 0 | 10,550 |
In-place lease agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, weighted average amortization period | 2 years | |
Intangible assets: | ||
Intangible assets, gross | $ 397 | 680 |
Air rights | ||
Intangible assets: | ||
Intangible assets, gross | 10,754 | 10,754 |
Other | ||
Intangible assets: | ||
Intangible assets, gross | $ 80 | $ 80 |
INVESTMENT IN HOTEL PROPERTIE_5
INVESTMENT IN HOTEL PROPERTIES - Schedule of future amortization expenses (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets | |
2020 | $ 87 |
2021 | 86 |
Finite Lived Intangible Assets | $ 173 |
INVESTMENT IN HOTEL PROPERTIE_6
INVESTMENT IN HOTEL PROPERTIES - Summary of hotel properties acquisitions (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)hotelRoomProperty | Dec. 31, 2018USD ($)Room | Oct. 08, 2019hotel | |
Business Acquisition [Line Items] | |||
Number of guestrooms | Room | 798 | 150 | |
Purchase Price | $ 274,500 | $ 71,000 | |
Number of hotels | hotel | 72 | ||
Net assets acquired, excluding purchases adjustments and transaction costs | $ 274,500 | 71,000 | |
Purchase of adjacent land parcels | 2,400 | ||
Purchase of net working capital assets | 1,000 | ||
Capitalized transaction costs | $ 400 | 100 | |
Purchase at settlement of net working capital liabilities | $ 100 | ||
Hampton Inn & Suites | Silverthorne, CO | |||
Business Acquisition [Line Items] | |||
Number of guestrooms | Room | 88 | ||
Purchase Price | $ 25,500 | ||
Portfolio Purchase - four properties | |||
Business Acquisition [Line Items] | |||
Number of guestrooms | Room | 710 | ||
Purchase Price | $ 249,000 | ||
Number of hotels | hotel | 4 | ||
Residence Inn by Marriott | Boston (Watertown), MA | |||
Business Acquisition [Line Items] | |||
Number of guestrooms | Room | 150 | ||
Purchase Price | $ 71,000 | ||
Hotels | |||
Business Acquisition [Line Items] | |||
Number of guestrooms | Room | 11,288 | ||
Number of hotels | Property | 72 | ||
Five hotels acquired in 2019 through joint venture | Hotels | |||
Business Acquisition [Line Items] | |||
Number of hotels | hotel | 5 | ||
Ownership interest (as a percent) | 51.00% |
INVESTMENT IN HOTEL PROPERTIE_7
INVESTMENT IN HOTEL PROPERTIES - Allocation of aggregate purchase price (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired | ||
Land | $ 44,868 | $ 25,083 |
Hotel buildings and improvements | 219,410 | 42,676 |
Furniture, fixtures and equipment | 12,995 | 3,300 |
Other assets | 1,103 | 123 |
Total assets acquired | 278,376 | 71,182 |
Less other liabilities | (79) | (180) |
Net assets acquired | 278,297 | 71,002 |
Net assets acquired, excluding purchases adjustments and transaction costs | 274,500 | 71,000 |
Purchase of adjacent land parcels | 2,400 | |
Purchase of net working capital assets | 1,000 | |
Capitalized transaction costs | $ 400 | 100 |
Purchase at settlement of net working capital liabilities | $ 100 |
INVESTMENT IN HOTEL PROPERTIE_8
INVESTMENT IN HOTEL PROPERTIES - Pro forma financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate [Abstract] | ||
Revenues | $ 572,262 | $ 562,097 |
Income from hotel operations | 215,372 | 215,931 |
Net income | 57,909 | 71,478 |
Net income attributable to common stockholders, net of amount allocated to participating securities and non-controlling interests | $ 33,671 | $ 38,803 |
Basic net income per share attributable to common stockholders (in dollars per share) | $ 0.32 | $ 0.37 |
Diluted net income per share attributable to common stockholders (in dollars per share) | $ 0.32 | $ 0.37 |
Pro forma real estate tax expense, depreciation expense, interest expense, and other corporate expenses | $ 197,100 | $ 181,900 |
Pro forma premium on redemption of preferred stock | 3,300 | |
Pro forma, preferred dividends related to redeemed preferred stock | $ 1,800 |
INVESTMENT IN HOTEL PROPERTIE_9
INVESTMENT IN HOTEL PROPERTIES - Summary of properties dispositions (Details) $ in Thousands | Apr. 17, 2019USD ($) | Jun. 29, 2018USD ($) | Dec. 31, 2019USD ($)Room | Dec. 31, 2018USD ($)Room | Jul. 24, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Number of guestrooms | Room | 798 | 150 | |||
Disposed of by Sale | |||||
Business Acquisition [Line Items] | |||||
Number of guestrooms | Room | 1,170 | 910 | |||
Gross Sales Price | $ 168,400 | $ 107,250 | |||
Aggregate Gain, net | $ 45,646 | $ 42,649 | |||
Disposed of by Sale | Portfolio Sale - six properties | |||||
Business Acquisition [Line Items] | |||||
Number of guestrooms | Room | 815 | ||||
Gross Sales Price | $ 135,000 | $ 135,000 | |||
Aggregate Gain, net | 36,600 | $ 36,626 | |||
Net aggregate sales price | 133,000 | ||||
Buyer credit | $ 2,000 | ||||
Disposed of by Sale | Portfolio Sale - two properties | |||||
Business Acquisition [Line Items] | |||||
Number of guestrooms | Room | 175 | ||||
Gross Sales Price | $ 18,950 | ||||
Aggregate Gain, net | $ 13,133 | ||||
Disposed of by Sale | Portfolio Sale - three properties | |||||
Business Acquisition [Line Items] | |||||
Number of guestrooms | Room | 322 | ||||
Gross Sales Price | $ 46,500 | ||||
Aggregate Gain, net | $ 22,964 | ||||
Deferred taxable gain on sale of hotels | $ 22,200 | ||||
Disposed of by Sale | Charleston, WV | Portfolio Sale - two properties | |||||
Business Acquisition [Line Items] | |||||
Number of guestrooms | Room | 130 | ||||
Gross Sales Price | $ 11,600 | ||||
Aggregate Gain, net | $ 4,163 | ||||
Disposed of by Sale | Birmingham, AL | Portfolio Sale - two properties | |||||
Business Acquisition [Line Items] | |||||
Number of guestrooms | Room | 225 | ||||
Gross Sales Price | $ 21,800 | ||||
Aggregate Gain, net | $ 4,857 | ||||
Disposed of by Sale | Duluth, GA | Portfolio Sale - two properties | |||||
Business Acquisition [Line Items] | |||||
Number of guestrooms | Room | 265 | ||||
Gross Sales Price | $ 24,850 | ||||
Aggregate Gain, net | $ 4,218 | ||||
Note receivable | $ 3,600 | ||||
Number of second mortgage notes | 2 | ||||
Financing receivable, term | 3 years 6 months | ||||
Financing receivables, interest rate | 7.38% | ||||
Disposed of by Sale | Fort Myers, FL | Hyatt Place | |||||
Business Acquisition [Line Items] | |||||
Number of guestrooms | Room | 148 | ||||
Gross Sales Price | $ 16,500 | ||||
Aggregate Gain, net | 2,195 | ||||
Disposed of by Sale | Spokane, WA | |||||
Business Acquisition [Line Items] | |||||
Gross Sales Price | 450 | ||||
Aggregate Gain, net | $ 139 |
INVESTMENT IN REAL ESTATE LOA_3
INVESTMENT IN REAL ESTATE LOANS - Schedule of Investment in Real Estate Loans, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Investment in real estate, net | $ 30,936 | $ 30,700 |
Real estate development loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Real estate loans | 32,831 | 34,650 |
Unamortized discount | (1,895) | (3,950) |
Investment in real estate, net | $ 30,936 | $ 30,700 |
INVESTMENT IN REAL ESTATE LOA_4
INVESTMENT IN REAL ESTATE LOANS - Additional Information (Details) | Jun. 29, 2018USD ($) | Sep. 30, 2019 | Dec. 31, 2019USD ($)Loanhotel | Dec. 31, 2018USD ($) |
Financing Receivable, Impaired [Line Items] | ||||
Number of hotels | hotel | 72 | |||
Purchase options related to real estate loans | $ 8,920,000 | $ 6,120,000 | ||
Real estate development loan | ||||
Financing Receivable, Impaired [Line Items] | ||||
Investment in real estate loans mature in 2020 | 28,900,000 | |||
Investment in real estate loans mature in 2021 | $ 2,000,000 | |||
Real estate development loans closed in the fourth quarter of 2017 | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of construction loans | Loan | 3 | |||
Loans amount | $ 29,600,000 | |||
Number of hotels | hotel | 3 | |||
Loans stated interest rate | 8.00% | |||
Loans initial term | 3 years | |||
Loans funded | $ 29,600,000 | |||
Interest in hotel upon completion to purchase | 90.00% | |||
Period of time after initial option exercise to purchase remaining interests | 5 years | |||
Amortization of discount | $ 2,100,000 | 2,000,000 | ||
Real estate development loans closed in the third quarter of 2019 | ||||
Financing Receivable, Impaired [Line Items] | ||||
Loans stated interest rate | 9.00% | |||
Loans initial term | 30 months | |||
Loans funded | $ 7,900,000 | |||
Interest in hotel upon completion to purchase | 90.00% | |||
Period of time after initial option exercise to purchase remaining interests | 5 years | |||
Amortization of discount | $ 400,000 | |||
Loans commitments amount | 28,900,000 | |||
Other assets | Real estate development loans closed in the fourth quarter of 2017 | ||||
Financing Receivable, Impaired [Line Items] | ||||
Purchase options related to real estate loans | 6,100,000 | |||
Other assets | Real estate development loans closed in the third quarter of 2019 | ||||
Financing Receivable, Impaired [Line Items] | ||||
Purchase options related to real estate loans | 2,800,000 | |||
Disposed of by Sale | ||||
Financing Receivable, Impaired [Line Items] | ||||
Aggregate sale price | 168,400,000 | $ 107,250,000 | ||
Duluth, GA | Disposed of by Sale | Holiday Inn and Hilton Garden Inn | ||||
Financing Receivable, Impaired [Line Items] | ||||
Aggregate sale price | $ 24,900,000 | |||
Financing receivable amount provided to seller | $ 3,600,000 | 2,500,000 | ||
Financing receivable, term | 3 years 6 months | |||
Number of second mortgage notes | 2 | |||
Financing receivables, interest rate | 7.38% | |||
Letter of credit | Unsecured debt | Real estate development loans closed in the third quarter of 2019 | ||||
Financing Receivable, Impaired [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 10,000,000 |
SUPPLEMENTAL BALANCE SHEET IN_3
SUPPLEMENTAL BALANCE SHEET INFORMATION - Assets Held for Sale, net (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)hotel | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 12, 2019hotel | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of hotels | hotel | 72 | |||
Loss on impairment of assets | $ 2,521 | $ 1,075 | $ 0 | |
Assets held for sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale, gross | 425 | 13,021 | ||
Less - accumulated depreciation and amortization | 0 | (5,388) | ||
Assets held for sale, net | 425 | 7,633 | ||
Assets held for sale | Land | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale, gross | 425 | 2,442 | ||
Assets held for sale | Hotel building and improvements | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale, gross | 0 | 7,929 | ||
Assets held for sale | Furniture, fixtures and equipment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale, gross | 0 | 2,519 | ||
Assets held for sale | Franchise fees | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale, gross | 0 | $ 131 | ||
Two Hotel Properties Sold On February 12, 2019 | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of hotels | hotel | 2 | |||
Flagstaff, AZ | Land | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on impairment of assets | $ 100 |
SUPPLEMENTAL BALANCE SHEET IN_4
SUPPLEMENTAL BALANCE SHEET INFORMATION - Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted cash | ||
Restricted cash | $ 27,595 | $ 28,468 |
FF&E reserves | ||
Restricted cash | ||
Restricted cash | 25,664 | 24,386 |
Property taxes | ||
Restricted cash | ||
Restricted cash | 1,728 | 1,625 |
Other | ||
Restricted cash | ||
Restricted cash | $ 203 | $ 2,457 |
SUPPLEMENTAL BALANCE SHEET IN_5
SUPPLEMENTAL BALANCE SHEET INFORMATION - Prepaid Expenses and Other (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid expenses and other | ||
Prepaid insurance | $ 3,501 | $ 2,822 |
Prepaid taxes | 2,032 | 3,825 |
Other | 3,311 | 3,464 |
Prepaid expenses and other | $ 8,844 | $ 10,111 |
SUPPLEMENTAL BALANCE SHEET IN_6
SUPPLEMENTAL BALANCE SHEET INFORMATION - Deferred Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred charges | |||
Initial franchise fees | $ 6,615 | $ 6,463 | |
Less - accumulated amortization | (1,906) | (1,772) | |
Total | 4,709 | 4,691 | |
Amortization expense | $ 400 | $ 500 | $ 400 |
SUPPLEMENTAL BALANCE SHEET IN_7
SUPPLEMENTAL BALANCE SHEET INFORMATION - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Purchase options related to real estate loans | $ 8,920 | $ 6,120 |
Deferred tax asset, net | 2,138 | 2,046 |
Other | 981 | 0 |
Prepaid land lease | 0 | 3,180 |
Derivative financial instruments | 0 | 3,461 |
Total | $ 12,039 | $ 14,807 |
SUPPLEMENTAL BALANCE SHEET IN_8
SUPPLEMENTAL BALANCE SHEET INFORMATION - Accrued Expenses and Other (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued expenses and other | ||
Accrued property, sales and income taxes | $ 21,392 | $ 19,570 |
Derivative financial instruments | 16,177 | 5,042 |
Other accrued expenses at hotels | 13,274 | 13,288 |
Accrued salaries and benefits | 11,625 | 10,540 |
Other | 8,209 | 9,801 |
Accrued interest | 1,082 | 3,186 |
Acquired unfavorable leases | 0 | 4,623 |
Total | $ 71,759 | $ 66,050 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Feb. 18, 2020USD ($) | Oct. 08, 2019USD ($) | Jan. 31, 2019 | May 16, 2018USD ($) | Feb. 15, 2018USD ($) | Dec. 11, 2017USD ($) | Sep. 26, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2019USD ($)Property | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 06, 2018USD ($) | Jan. 15, 2016USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Weighted average interest rate for all borrowings | 3.95% | 4.27% | |||||||||||
Debt instrument, collateral, number of real estate properties | Property | 52 | ||||||||||||
Repayments of mortgage loan | $ 302,287,000 | $ 723,098,000 | $ 452,082,000 | ||||||||||
$75 Million Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 75,000,000 | ||||||||||||
Unsecured debt | Senior unsecured credit facility $600 Million | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, maximum borrowing capacity | 600,000,000 | $ 600,000,000 | |||||||||||
Line of credit outstanding | 275,000,000 | ||||||||||||
Amount available for borrowing | 315,000,000 | ||||||||||||
Maximum increase in borrowing capacity available through accordion feature option | $ 300,000,000 | ||||||||||||
Unsecured debt | $400 Million Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, maximum borrowing capacity | 400,000,000 | ||||||||||||
Unsecured debt | $400 Million Revolver | LIBOR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.40% | ||||||||||||
Unsecured debt | $400 Million Revolver | LIBOR | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 2.15% | ||||||||||||
Unsecured debt | $200 Million Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 200,000,000 | ||||||||||||
Effective interest rate | 3.36% | ||||||||||||
Fixed interest rate | 3.36% | ||||||||||||
Unsecured debt | $200 Million Term Loan | LIBOR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.35% | ||||||||||||
Unsecured debt | $200 Million Term Loan | LIBOR | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 2.10% | ||||||||||||
Unsecured debt | $300 Million Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 300,000,000 | ||||||||||||
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 | ||||||||||||
Effective interest rate | 3.66% | ||||||||||||
Amount drawn | $ 85,000,000 | $ 140,000,000 | |||||||||||
Unsecured debt | 2018 Term Loan | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.90% | ||||||||||||
Unsecured debt | 2017 Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 225,000,000 | $ 225,000,000 | |||||||||||
Maximum increase in borrowing capacity available through accordion feature option | 175,000,000 | ||||||||||||
Effective interest rate | 3.36% | ||||||||||||
Amount drawn | $ 100,000,000 | $ 125,000,000 | |||||||||||
Unsecured debt | $75 Million Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fixed interest rate | 3.86% | ||||||||||||
Line of Credit | Joint Venture Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, maximum borrowing capacity | 500,000,000 | ||||||||||||
Maximum increase in borrowing capacity available through accordion feature option | 300,000,000 | ||||||||||||
Credit facility with bank of america | 200,000,000 | ||||||||||||
Revolving credit facility | $125 Million Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, maximum borrowing capacity | $ 125,000,000 | ||||||||||||
Revolving credit facility | Unsecured debt | $400 Million Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fixed interest rate | 3.41% | ||||||||||||
Revolving credit facility | Unsecured debt | $125 Million Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fixed interest rate | 3.91% | ||||||||||||
Option One | Unsecured debt | 2018 Term Loan | LIBOR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.80% | ||||||||||||
Option One | Unsecured debt | 2018 Term Loan | LIBOR | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 2.55% | ||||||||||||
Option One | Unsecured debt | 2017 Term Loan | LIBOR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.45% | ||||||||||||
Option One | Unsecured debt | 2017 Term Loan | LIBOR | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 2.20% | ||||||||||||
Option One | Line of Credit | Joint Venture Credit Facility | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 2.15% | ||||||||||||
Option Two | Unsecured debt | 2018 Term Loan | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.00% | ||||||||||||
Option Two | Unsecured debt | 2018 Term Loan | Base Rate | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 0.80% | ||||||||||||
Option Two | Unsecured debt | 2018 Term Loan | Base Rate | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.55% | ||||||||||||
Option Two | Unsecured debt | 2018 Term Loan | Federal funds rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 0.50% | ||||||||||||
Option Two | Unsecured debt | 2017 Term Loan | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.00% | ||||||||||||
Option Two | Unsecured debt | 2017 Term Loan | Base Rate | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 0.45% | ||||||||||||
Option Two | Unsecured debt | 2017 Term Loan | Base Rate | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.20% | ||||||||||||
Option Two | Unsecured debt | 2017 Term Loan | Federal funds rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 0.50% | ||||||||||||
Option Two | Line of Credit | Joint Venture Credit Facility | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 2.15% | ||||||||||||
Option Three | Line of Credit | Joint Venture Credit Facility | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.00% | ||||||||||||
Option Three | Line of Credit | Joint Venture Credit Facility | Base Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.15% | ||||||||||||
Option Three | Line of Credit | Joint Venture Credit Facility | Federal funds rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 0.50% | ||||||||||||
MetaBank | Secured debt | Non-recourse loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 47,600,000 | ||||||||||||
Debt instrument, collateral, number of real estate properties | Property | 3 | ||||||||||||
Amount drawn from secured debt | $ 47,600,000 | ||||||||||||
Fixed interest rate | 4.44% | ||||||||||||
Debt interest only payments term | 24 months | 18 months | 18 months | ||||||||||
Loan amortization period after interest only payments period | 25 years | ||||||||||||
Subsequent events | Unsecured debt | 2018 Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Decrease of interest expense from repricing | $ 900,000 | ||||||||||||
Subsequent events | Unsecured debt | 2018 Term Loan | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 1.50% | ||||||||||||
Decrease of debt interest rate | 0.40% |
DEBT - Summary of outstanding i
DEBT - Summary of outstanding indebtedness (Details) | Apr. 24, 2019USD ($)Property | Apr. 11, 2019USD ($) | Mar. 19, 2019USD ($) | Dec. 19, 2014USD ($)contract | Dec. 31, 2019USD ($)hotelProperty | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 08, 2019USD ($) | Dec. 06, 2018USD ($) | Jul. 22, 2013USD ($)Property | Mar. 08, 2013USD ($)Property | Mar. 07, 2013USD ($)Property | Jan. 25, 2013USD ($)Property |
Debt Instrument [Line Items] | |||||||||||||
Debt outstanding | $ 1,022,726,000 | $ 965,011,000 | |||||||||||
Unamortized debt issuance costs | (6,563,000) | (6,299,000) | |||||||||||
Debt, net of issuance costs | 1,016,163,000 | 958,712,000 | |||||||||||
Debt transaction costs | 1,892,000 | 401,000 | $ 195,000 | ||||||||||
Repayments of mortgage loan | $ 302,287,000 | 723,098,000 | $ 452,082,000 | ||||||||||
Debt instrument, collateral, number of real estate properties | Property | 52 | ||||||||||||
$75 Million Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 75,000,000 | ||||||||||||
Revolving credit facility | $125 Million Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, maximum borrowing capacity | $ 125,000,000 | ||||||||||||
Unsecured debt | Senior unsecured credit facility $600 Million | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt outstanding | $ 275,000,000 | 315,000,000 | |||||||||||
Credit facility, maximum borrowing capacity | $ 600,000,000 | $ 600,000,000 | |||||||||||
Number of unecumbered hotel properties | hotel | 52 | ||||||||||||
Unsecured debt | $400 Million Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, maximum borrowing capacity | 400,000,000 | ||||||||||||
Unsecured debt | $200 Million Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt outstanding | $ 200,000,000 | 200,000,000 | |||||||||||
Stated interest rate | 3.36% | ||||||||||||
Debt instrument, face amount | $ 200,000,000 | ||||||||||||
Unsecured debt | Joint Venture Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt outstanding | $ 140,000,000 | 0 | |||||||||||
Unsecured debt | $75 Million Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt outstanding | $ 75,000,000 | 0 | |||||||||||
Stated interest rate | 3.86% | ||||||||||||
Unsecured debt | Keybank National Association Term Loan due November 25, 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt outstanding | $ 225,000,000 | 225,000,000 | |||||||||||
Unsecured debt | Keybank National Association Term Loan due February 14, 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt outstanding | $ 225,000,000 | 225,000,000 | |||||||||||
Stated interest rate | 3.66% | ||||||||||||
Unsecured debt | Revolving credit facility | $400 Million Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt outstanding | $ 75,000,000 | 115,000,000 | |||||||||||
Stated interest rate | 3.41% | ||||||||||||
Unsecured debt | Revolving credit facility | $125 Million Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt outstanding | $ 65,000,000 | 0 | |||||||||||
Stated interest rate | 3.91% | ||||||||||||
Unsecured debt | Revolving credit facility | Keybank National Association Term Loan due November 25, 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 3.36% | ||||||||||||
Mortgage loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt outstanding | $ 157,726,000 | 200,011,000 | |||||||||||
Number of Properties Encumbered | Property | 15 | ||||||||||||
Mortgage loans | KeyBank National Association 4.46% Fixed due February 1, 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization Period (Years) | 30 years | ||||||||||||
Debt outstanding | $ 19,510,000 | 26,357,000 | |||||||||||
Stated interest rate | 4.46% | 4.46% | |||||||||||
Debt instrument, face amount | $ 29,400,000 | ||||||||||||
Number of Properties Encumbered | Property | 3 | 3 | |||||||||||
Debt principal amount defeased | $ 6,300,000 | ||||||||||||
Debt transaction costs | $ 600,000 | ||||||||||||
Mortgage loans | KeyBank National Association 4.52% Fixed due April 1, 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization Period (Years) | 30 years | ||||||||||||
Debt outstanding | $ 19,992,000 | 20,444,000 | |||||||||||
Stated interest rate | 4.52% | 4.52% | |||||||||||
Debt instrument, face amount | $ 22,700,000 | ||||||||||||
Number of Properties Encumbered | Property | 3 | 3 | |||||||||||
Mortgage loans | KeyBank National Association 4.30% Fixed due April 1, 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization Period (Years) | 30 years | ||||||||||||
Debt outstanding | $ 19,323,000 | 19,777,000 | |||||||||||
Stated interest rate | 4.30% | 4.30% | |||||||||||
Debt instrument, face amount | $ 22,000,000 | ||||||||||||
Number of Properties Encumbered | Property | 3 | 3 | |||||||||||
Mortgage loans | KeyBank National Association 4.95% Fixed due August 1, 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization Period (Years) | 30 years | ||||||||||||
Debt outstanding | $ 34,695,000 | 35,411,000 | |||||||||||
Stated interest rate | 4.95% | 4.95% | |||||||||||
Debt instrument, face amount | $ 38,700,000 | ||||||||||||
Number of Properties Encumbered | Property | 2 | 2 | |||||||||||
Mortgage loans | Meta Bank 4.44% Fixed due July 1, 2027 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization Period (Years) | 25 years | ||||||||||||
Debt outstanding | $ 47,226,000 | 47,640,000 | |||||||||||
Stated interest rate | 4.44% | ||||||||||||
Number of Properties Encumbered | Property | 3 | ||||||||||||
Mortgage loans | Bank of Cascades loan(s) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization Period (Years) | 25 years | ||||||||||||
Loan increase | $ 7,900,000 | ||||||||||||
Number of loans | contract | 2 | ||||||||||||
Mortgage loans | Bank Of Cascades Variable due December 19, 2024, Note A | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization Period (Years) | 25 years | ||||||||||||
Debt outstanding | $ 8,490,000 | 8,757,000 | |||||||||||
Stated interest rate | 3.76% | ||||||||||||
Number of Properties Encumbered | Property | 1 | ||||||||||||
Mortgage loans | Bank Of Cascades 4.30% Fixed due December 19, 2024, Note B | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization Period (Years) | 25 years | ||||||||||||
Debt outstanding | $ 8,490,000 | 8,757,000 | |||||||||||
Stated interest rate | 4.30% | 4.30% | |||||||||||
Number of Properties Encumbered | Property | 0 | ||||||||||||
Mortgage loans | Compass Bank Variable due May 6, 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization Period (Years) | 25 years | ||||||||||||
Debt outstanding | $ 0 | 22,151,000 | |||||||||||
Number of Properties Encumbered | Property | 0 | ||||||||||||
Mortgage loans | U.S. Bank, NA 6.13% Fixed due November 11, 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization Period (Years) | 25 years | ||||||||||||
Debt outstanding | $ 0 | $ 10,717,000 | |||||||||||
Number of Properties Encumbered | Property | 0 | ||||||||||||
Secured debt | Compass Bank Variable due May 6, 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of mortgage loan | $ 21,900,000 | ||||||||||||
Debt instrument, collateral, number of real estate properties | Property | 3 | ||||||||||||
Secured debt | U.S. Bank, NA 6.13% Fixed due November 11, 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt transaction costs | $ 1,000,000 | ||||||||||||
Repayments of mortgage loan | $ 10,600,000 | ||||||||||||
LIBOR | Mortgage loans | Bank Of Cascades Variable due December 19, 2024, Note A | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate margin on variable rate basis | 2.00% |
DEBT - Fixed-Rate and Variable-
DEBT - Fixed-Rate and Variable-Rate Debt, after Giving Effect to Interest Rate Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Fixed-rate debt | $ 549,236 | $ 569,103 |
Fixed-rate debt percentage | 54.00% | 59.00% |
Variable-rate debt | $ 473,490 | $ 395,908 |
Variable-rate debt percentage | 46.00% | 41.00% |
Debt, gross | $ 1,022,726 | $ 965,011 |
DEBT - Schedule of Principal Pa
DEBT - Schedule of Principal Payments for Each of the Next Five Years (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Principal payments for each of the next five years | ||
2020 | $ 3,742 | |
2021 | 3,912 | |
2022 | 229,072 | |
2023 | 303,434 | |
2024 | 216,105 | |
Thereafter | 266,461 | |
Debt, gross | $ 1,022,726 | $ 965,011 |
DEBT - Fair Value of Fixed-Rate
DEBT - Fair Value of Fixed-Rate Debt not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value | Fixed-rate debt | ||
Debt | ||
Debt | $ 149,236 | $ 169,103 |
Fair Value | ||
Debt | ||
Debt with variable interest rates that had been converted to fixed interest rates | 400,000 | 400,000 |
Fair Value | Level 2 | Fixed-rate debt | ||
Debt | ||
Debt | $ 151,268 | $ 166,256 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Real Estate Properties [Line Items] | ||||
Tenant income | $ 2.2 | $ 1.7 | $ 1.4 | |
Operating lease weighted average discount rate | 4.90% | |||
Operating lease, cost | $ 3.3 | 3.6 | 4 | |
Operating cash outflows from operating leases | $ 3 | $ 3.6 | $ 3.5 | |
Operating lease weighted average remaining lease term | 28 years 3 months | |||
Residence Inn | Baltimore (Hunt Valley), MD | ||||
Real Estate Properties [Line Items] | ||||
Acquisitions of hotel properties | $ 4.2 | |||
Minimum | ||||
Real Estate Properties [Line Items] | ||||
Lease remaining term | 1 year | |||
Maximum | ||||
Real Estate Properties [Line Items] | ||||
Lease remaining term | 79 years |
LEASES - Operating Lease Matur
LEASES - Operating Lease Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2,148 |
2021 | 2,038 |
2022 | 1,815 |
2023 | 959 |
2024 | 900 |
Thereafter | 28,904 |
Total lease payments | 36,764 |
Less imputed interest | (17,160) |
Lease liabilities | $ 19,604 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018Instrument | |
Derivative [Line Items] | ||
Maximum length of time over which instruments are hedged | 7 years | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Estimated reclassification from other comprehensive income as an increase to interest expense in 2017 | $ | $ 3.4 | |
Designated as hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Number of instruments held in asset position | 2 | |
Number of instruments held in liability account | 2 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING - Information about Derivative Financial Instruments (Details) - Designated as hedges - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 400,000 | $ 400,000 |
Fair Value | (16,177) | (1,581) |
Interest Rate Swap Expiring January 31, 2023 One | ||
Derivative [Line Items] | ||
Notional Amount | 100,000 | 100,000 |
Fair Value | $ (1,316) | 1,758 |
Average Annual Effective Fixed Rate | 1.98% | |
Interest Rate Swap Expiring January 31, 2023 Two | ||
Derivative [Line Items] | ||
Notional Amount | $ 100,000 | 100,000 |
Fair Value | $ (1,350) | 1,703 |
Average Annual Effective Fixed Rate | 1.98% | |
Interest Rate Swap Expiring September 30, 2024 | ||
Derivative [Line Items] | ||
Notional Amount | $ 75,000 | 75,000 |
Fair Value | $ (4,389) | (1,656) |
Average Annual Effective Fixed Rate | 2.87% | |
Interest Rate Swap Expiring December 31, 2025 | ||
Derivative [Line Items] | ||
Notional Amount | $ 125,000 | 125,000 |
Fair Value | $ (9,122) | $ (3,386) |
Average Annual Effective Fixed Rate | 2.93% |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING - Gain or Loss Recognized on Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative instruments, gain (loss) recognized | |||
Total interest expense and other finance expense presented in the Consolidated Statement of Operations in which the effects of cash flow hedges are recorded | $ (41,030) | $ (41,944) | $ (29,687) |
Cash flow hedges | Interest rate swaps | |||
Derivative instruments, gain (loss) recognized | |||
(Loss) Gain recognized in Accumulated other comprehensive loss on derivative financial instruments | (15,327) | (3,050) | 1,703 |
Total interest expense and other finance expense presented in the Consolidated Statement of Operations in which the effects of cash flow hedges are recorded | (41,030) | (41,944) | (29,687) |
Cash flow hedges | Interest rate swaps | Interest expense | |||
Derivative instruments, gain (loss) recognized | |||
Loss reclassified from Accumulated other comprehensive loss to interest expense | $ (731) | $ (150) | $ (734) |
EQUITY - Additional Information
EQUITY - Additional Information (Details) $ / shares in Units, $ in Thousands | Mar. 20, 2018USD ($)$ / sharesshares | May 25, 2017USD ($)shares | Dec. 31, 2019USD ($)Vote$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) |
Class of Stock [Line Items] | |||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Number of votes a share of outstanding common stock is entitled | Vote | 1 | ||||
Aggregate offering price | $ | $ 200,000 | ||||
Number of common stock sold (in shares) | 6,151,514 | ||||
Net proceeds from sale of stock | $ | $ 89,100 | ||||
Shares reserved for issuance | 14,365,537 | 14,591,213 | |||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Premium on redemption of preferred stock | $ | $ 0 | $ 3,277 | $ 2,572 | ||
General partner, ownership interest | 51.00% | ||||
Undesignated preferred stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized | 90,600,000 | ||||
6.45% Series D Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized | 3,000,000 | ||||
Preferred stock, dividend rate (as a percent) | 6.45% | 6.45% | |||
Preferred stock, shares outstanding | 3,000,000 | 3,000,000 | |||
Preferred stock, redemption price (in dollars per share) | $ / shares | $ 25 | ||||
Annual dividend rate per share (in dollars per share) | $ / shares | $ 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 | 6,400,000 | ||||
Preferred stock, dividend rate (as a percent) | 6.25% | 6.25% | |||
Preferred stock, shares outstanding | 6,400,000 | 6,400,000 | |||
Preferred stock, redemption price (in dollars per share) | $ / shares | $ 25,000 | ||||
Annual dividend rate per share (in dollars per share) | $ / shares | $ 1.5625 | ||||
6.25% Series E Preferred Stock | Maximum | |||||
Class of Stock [Line Items] | |||||
Ratio for conversion | 3.1686 | ||||
7.125% Series C Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, dividend rate (as a percent) | 7.125% | ||||
Payments for repurchase of redeemable preferred shares | $ | $ 85,300 | ||||
Preferred stock, shares outstanding | 3,400,000 | ||||
Preferred stock, redemption price (in dollars per share) | $ / shares | $ 25 | ||||
Premium on redemption of preferred stock | $ | $ 3,300 | ||||
9.25% Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, redemption price (in dollars per share) | $ / shares | $ 25 | ||||
GIC | |||||
Class of Stock [Line Items] | |||||
Limited partner, ownership percentage | 49.00% | ||||
Unaffiliated Third Parties | Operating partnership | |||||
Class of Stock [Line Items] | |||||
Limited partner capital account units conversion ratio | 1 | ||||
Number of common units of operating partnership owned by unaffiliated third parties (in shares) | 209,021 | 259,265 | |||
Limited partner, ownership percentage | 1.00% | 1.00% |
EQUITY - Changes in common stoc
EQUITY - Changes in common stock (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||
Beginning common shares outstanding | 104,783,179 | 104,287,128 |
Common Unit redemptions | 50,244 | 64,126 |
Performance share and other forfeitures | (167,757) | (1,636) |
Shares retained for employee tax withholding requirements | (74,340) | (187,850) |
Ending common shares outstanding | 105,169,515 | 104,783,179 |
Equity Plan | ||
Class of Stock [Line Items] | ||
Grants under the Equity Plan | 537,734 | 583,738 |
Director stock | ||
Class of Stock [Line Items] | ||
Grants under the Equity Plan | 40,455 | 34,130 |
Common stock issued for director fees | 0 | 3,543 |
FAIR VALUE MEASUREMENT - Schedu
FAIR VALUE MEASUREMENT - Schedule of Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Purchase options related to real estate loans | $ 8,920 | $ 6,120 |
Derivative asset | 0 | 3,461 |
Liabilities: | ||
Derivative Liablities | 16,177 | 5,042 |
Recurring basis | ||
Assets: | ||
Purchase options related to real estate loans | 8,920 | 6,120 |
Recurring basis | Interest rate swaps | ||
Assets: | ||
Derivative asset | 3,461 | |
Liabilities: | ||
Derivative Liablities | 16,177 | 5,042 |
Recurring basis | Level 1 | ||
Assets: | ||
Purchase options related to real estate loans | 0 | 0 |
Recurring basis | Level 1 | Interest rate swaps | ||
Assets: | ||
Derivative asset | 0 | |
Liabilities: | ||
Derivative Liablities | 0 | 0 |
Recurring basis | Level 2 | ||
Assets: | ||
Purchase options related to real estate loans | 0 | 0 |
Recurring basis | Level 2 | Interest rate swaps | ||
Assets: | ||
Derivative asset | 3,461 | |
Liabilities: | ||
Derivative Liablities | 16,177 | 5,042 |
Recurring basis | Level 3 | ||
Assets: | ||
Purchase options related to real estate loans | 8,920 | 6,120 |
Recurring basis | Level 3 | Interest rate swaps | ||
Assets: | ||
Derivative asset | 0 | |
Liabilities: | ||
Derivative Liablities | $ 0 | $ 0 |
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 | Dec. 31, 2019$ / shares |
Exercise price | Real Estate Loan 1 | |
Fair value | |
Purchase options, measurement input | 15,143 |
Exercise price | Real Estate Loan 2 | |
Fair value | |
Purchase options, measurement input | 17,377 |
Exercise price | Real Estate Loan 3 | |
Fair value | |
Purchase options, measurement input | 5,503 |
Exercise price | Real Estate Loan 4 | |
Fair value | |
Purchase options, measurement input | 37,800 |
Expected volatility | Real Estate Loan 1 | |
Fair value | |
Purchase options, measurement input | 0.320 |
Expected volatility | Real Estate Loan 2 | |
Fair value | |
Purchase options, measurement input | 0.380 |
Expected volatility | Real Estate Loan 3 | |
Fair value | |
Purchase options, measurement input | 0.370 |
Expected volatility | Real Estate Loan 4 | |
Fair value | |
Purchase options, measurement input | 0.313 |
Risk free rate | Real Estate Loan 1 | |
Fair value | |
Purchase options, measurement input | 0.017 |
Risk free rate | Real Estate Loan 2 | |
Fair value | |
Purchase options, measurement input | 0.018 |
Risk free rate | Real Estate Loan 3 | |
Fair value | |
Purchase options, measurement input | 0.019 |
Risk free rate | Real Estate Loan 4 | |
Fair value | |
Purchase options, measurement input | 0.015 |
Expected annualized equity dividend yield | Real Estate Loan 1 | |
Fair value | |
Purchase options, measurement input | 0.068 |
Expected annualized equity dividend yield | Real Estate Loan 2 | |
Fair value | |
Purchase options, measurement input | 0.099 |
Expected annualized equity dividend yield | Real Estate Loan 3 | |
Fair value | |
Purchase options, measurement input | 0.065 |
Expected annualized equity dividend yield | Real Estate Loan 4 | |
Fair value | |
Purchase options, measurement input | 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Franchise Agreements and Management Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Franchise Agreements | |||
Commitments and contingencies | |||
Fees related to the agreement | $ 47.8 | $ 47.7 | $ 41.6 |
Franchise Agreements | Minimum | |||
Commitments and contingencies | |||
Agreement term | 10 years | ||
Franchise fees received by each franchisor as a percentage of each hotel property's gross revenue | 2.00% | ||
Franchise Agreements | Maximum | |||
Commitments and contingencies | |||
Agreement term | 20 years | ||
Franchise fees received by each franchisor as a percentage of each hotel property's gross revenue | 6.00% | ||
Marketing fees payable as a percentage of gross revenue | 4.00% | ||
Deposits required under the agreement as a percentage of the hotel property's gross revenue, into a reserve fund for capital expenditures | 5.00% | ||
Management Agreements | |||
Commitments and contingencies | |||
Fees related to the agreement | $ 16.6 | $ 18.5 | $ 18.2 |
Management Agreements | Maximum | |||
Commitments and contingencies | |||
Agreement term | 25 years |
EQUITY-BASED COMPENSATION - Add
EQUITY-BASED COMPENSATION - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity-based compensation | ||||
Number of outstanding shares (in shares) | 235,000 | 235,000 | ||
Number of exercisable shares (in shares) | 235,000 | 235,000 | 235,000 | |
Outstanding stock options, intrinsic value | $ 600,000 | $ 0 | $ 1,300,000 | |
Exercisable stock options, intrinsic value | $ 0 | $ 1,300,000 | ||
Minimum | ||||
Equity-based compensation | ||||
Stock options term | 5 years | |||
Maximum | ||||
Equity-based compensation | ||||
Stock options term | 10 years | |||
Stock options | ||||
Equity-based compensation | ||||
Number of outstanding shares (in shares) | 235,000 | |||
Weighted average exercise price, exercisable (in dollars per share) | $ 9.75 | |||
Weighted average remaining contractual terms, exercisable | 1 year 2 months 12 days | |||
Exercisable stock options, intrinsic value | $ 600,000 |
EQUITY-BASED COMPENSATION - Tim
EQUITY-BASED COMPENSATION - Time-Based Restricted Stock Awards (Details) - Restricted Stock Awards - USD ($) $ / shares in Units, $ in Thousands | Mar. 07, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Time-based restricted stock | ||||
Number of Shares | ||||
Non-vested at the beginning of year (in shares) | 370,152 | 391,477 | ||
Granted (in shares) | 235,407 | 185,930 | ||
Vested (in shares) | (154,801) | (205,619) | ||
Forfeited (in shares) | (2,291) | (1,636) | ||
Non-vested at end of year (in shares) | 448,467 | 370,152 | 391,477 | |
Weighted Average Grant Date Fair Value per Share | ||||
Non-vested at beginning of year (in dollars per share) | $ 13.40 | $ 13.52 | ||
Granted (in dollars per share) | 11.32 | 13.15 | ||
Vested (in dollars per share) | 12.82 | 13.41 | ||
Forfeited (in dollars per share) | 12.65 | 12.84 | ||
Non-vested at end of year (in dollars per share) | $ 12.51 | $ 13.40 | $ 13.52 | |
Aggregate Current Value | ||||
Aggregate Current Value | $ 5,534 | |||
Total fair value of awards vested | $ 2,000 | $ 2,800 | $ 1,400 | |
Performance-based restricted stock | ||||
Number of Shares | ||||
Non-vested at the beginning of year (in shares) | 708,227 | 619,429 | ||
Granted (in shares) | 302,327 | 397,808 | ||
Vested (in shares) | (89,097) | (309,010) | ||
Forfeited (in shares) | (165,466) | |||
Non-vested at end of year (in shares) | 755,991 | 708,227 | 619,429 | |
Weighted Average Grant Date Fair Value per Share | ||||
Non-vested at beginning of year (in dollars per share) | $ 14.75 | $ 16.16 | ||
Granted (in dollars per share) | $ 13.73 | 12.81 | 15.69 | $ 17.13 |
Vested (in dollars per share) | 13.77 | 18.78 | ||
Forfeited (in dollars per share) | 13.77 | |||
Non-vested at end of year (in dollars per share) | $ 14.31 | $ 14.75 | $ 16.16 | |
Aggregate Current Value | ||||
Aggregate Current Value | $ 9,329 | |||
Vesting period | 3 years | |||
Employees | Time-based restricted stock | ||||
Aggregate Current Value | ||||
Vesting period | 4 years | |||
Employees | Period one | Time-based restricted stock | ||||
Aggregate Current Value | ||||
Vesting percentage | 20.00% | |||
Employees | Period two | Time-based restricted stock | ||||
Aggregate Current Value | ||||
Vesting percentage | 20.00% | |||
Employees | Period three | Time-based restricted stock | ||||
Aggregate Current Value | ||||
Vesting percentage | 20.00% | |||
Employees | Period four | Time-based restricted stock | ||||
Aggregate Current Value | ||||
Vesting percentage | 40.00% | |||
Executive officers | Time-based restricted stock | ||||
Aggregate Current Value | ||||
Vesting period | 3 years | |||
Executive officers | Period one | Time-based restricted stock | ||||
Aggregate Current Value | ||||
Vesting percentage | 25.00% | |||
Executive officers | Period two | Time-based restricted stock | ||||
Aggregate Current Value | ||||
Vesting percentage | 25.00% | |||
Executive officers | Period three | Time-based restricted stock | ||||
Aggregate Current Value | ||||
Vesting percentage | 50.00% |
EQUITY-BASED COMPENSATION - Per
EQUITY-BASED COMPENSATION - Performance-Based Restricted Stock Awards (Details) - Restricted Stock Awards $ / shares in Units, $ in Thousands | Mar. 07, 2018$ / shares | Dec. 31, 2019USD ($)Iteration$ / sharesshares | Dec. 31, 2018Iteration$ / sharesshares | Dec. 31, 2017Iteration$ / sharesshares |
Performance-based restricted stock | ||||
Number of Shares | ||||
Non-vested at the beginning of year (in shares) | shares | 708,227 | 619,429 | ||
Granted (in shares) | shares | 302,327 | 397,808 | ||
Vested (in shares) | shares | (89,097) | (309,010) | ||
Forfeited (in shares) | shares | (165,466) | |||
Non-vested at end of year (in shares) | shares | 755,991 | 708,227 | 619,429 | |
Weighted Average Grant Date Fair Value per Share | ||||
Non-vested at beginning of year (in dollars per share) | $ 14.75 | $ 16.16 | ||
Granted (in dollars per share) | $ 13.73 | 12.81 | 15.69 | $ 17.13 |
Vested (in dollars per share) | 13.77 | 18.78 | ||
Forfeited (in dollars per share) | 13.77 | |||
Non-vested at end of year (in dollars per share) | $ 14.31 | $ 14.75 | $ 16.16 | |
Aggregate Current Value | ||||
Aggregate Current Value | $ | $ 9,329 | |||
Vesting period | 3 years | |||
Assumptions used to estimate the fair value of options granted | ||||
Expected dividend yield | 6.17% | 5.33% | 4.14% | |
Expected stock price volatility | 23.20% | 25.70% | 24.80% | |
Risk-free interest rate | 2.43% | 2.41% | 1.59% | |
Monte Carlo iterations | Iteration | 100,000 | 100,000 | 100,000 | |
Weighted average estimated fair value of performance-based restricted stock awards | $ 13.73 | $ 12.81 | $ 15.69 | $ 17.13 |
Executive officers | Minimum | ||||
Aggregate Current Value | ||||
Shares earned (as a percent) | 0.00% | |||
Executive officers | Maximum | ||||
Aggregate Current Value | ||||
Shares earned (as a percent) | 200.00% |
EQUITY-BASED COMPENSATION - Dir
EQUITY-BASED COMPENSATION - Director Stock Awards (Details) - Director stock - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity-based compensation | ||
Grant of stock (in shares) | 40,455 | 34,130 |
Common stock issued for director fees | 0 | 3,543 |
Common Stock | ||
Equity-based compensation | ||
Grant of stock (in shares) | 40,455 | 34,130 |
Common stock issued for director fees | 3,543 |
EQUITY-BASED COMPENSATION - Equ
EQUITY-BASED COMPENSATION - Equity-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation expense to be recognized | |||
2020 | $ 4,376 | ||
2021 | 2,525 | ||
2022 | 446 | ||
2023 | 15 | ||
Total | 7,362 | ||
Restricted Stock Awards | Time-based restricted stock | |||
Compensation expense to be recognized | |||
2020 | 1,798 | ||
2021 | 1,048 | ||
2022 | 231 | ||
2023 | 15 | ||
Total | 3,092 | ||
Restricted Stock Awards | Performance-based restricted stock | |||
Compensation expense to be recognized | |||
2020 | 2,578 | ||
2021 | 1,477 | ||
2022 | 215 | ||
2023 | 0 | ||
Total | 4,270 | ||
Corporate general and administrative | |||
Equity-based compensation expense | |||
Share based compensation expense | 6,219 | $ 6,665 | $ 5,887 |
Corporate general and administrative | Restricted Stock Awards | Time-based restricted stock | |||
Equity-based compensation expense | |||
Share based compensation expense | 2,327 | 2,384 | 2,145 |
Corporate general and administrative | Restricted Stock Awards | Performance-based restricted stock | |||
Equity-based compensation expense | |||
Share based compensation expense | 3,396 | 3,727 | 3,183 |
Corporate general and administrative | Director stock | Director stock | |||
Equity-based compensation expense | |||
Share based compensation expense | $ 496 | $ 554 | $ 559 |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Employer contribution expense | $ 0.3 | $ 0.2 | $ 0.2 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 869 | $ (67) | $ 10 |
State and local | 643 | (425) | 777 |
Deferred: | |||
Federal | (32) | (279) | 232 |
State and local | 20 | (151) | 49 |
Effect of federal tax law change | 0 | 0 | 606 |
Income tax expense (benefit) | $ 1,500 | $ (922) | $ 1,674 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Tax Rate for TRS and Total Provision for TRS and Operating Partnership (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the federal statutory rate to the effective income tax rate for the TRSs | |||
Statutory federal income tax provision | $ 17,608 | $ 18,943 | $ 35,418 |
Nontaxable income of the REITs | (16,996) | (19,073) | (35,073) |
Effect of graduated corporate tax rates | 0 | 0 | (10) |
State income taxes, net of federal tax benefit | 568 | 266 | 716 |
Provision to return and deferred adjustment | (6) | 75 | 0 |
Effect of permanent differences and other | 326 | (184) | 17 |
Tax benefit from deduction for partnership distributions | 0 | (949) | 0 |
Effect of federal tax law change | 0 | 0 | 606 |
Income tax expense (benefit) | $ 1,500 | $ (922) | $ 1,674 |
INCOME TAXES - Significant Comp
INCOME TAXES - Significant Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Significant components of the Company's deferred tax assets and liabilities | ||
Tax carryforwards | $ 38 | $ 154 |
Accrued expenses | 2,068 | 1,893 |
Other | 32 | |
Other | (1) | |
Net deferred tax assets | 2,138 | 2,046 |
Net Deferred Tax Assets | ||
Gross deferred tax assets | 2,172 | 2,086 |
Gross deferred tax liabilities | (34) | (40) |
Net deferred tax assets | $ 2,138 | $ 2,046 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) | Dec. 31, 2019USD ($) |
Income taxes | |
Unrecognized tax benefits | $ 0 |
State | |
Income taxes | |
Operating loss carryforwards | $ 700,000 |
INCOME TAXES - Characterization
INCOME TAXES - Characterization of Distributions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock | |||
Class of Stock [Line Items] | |||
Ordinary income (in dollars per share) | $ 0.6132 | $ 0.7200 | $ 0.6725 |
Ordinary Income Distribution, Percent | 85.16% | 100.00% | 100.00% |
Capital gain distributions (in dollars per share) | $ 0.1068 | $ 0 | $ 0 |
Capital Gain Distribution, Percent | 14.84% | 0.00% | 0.00% |
Distribution Per Share (in dollars per share) | $ 0.7200 | $ 0.7200 | $ 0.6725 |
Distribution Paid, Percent | 100.00% | 100.00% | 100.00% |
Preferred Stock - Series B | |||
Class of Stock [Line Items] | |||
Ordinary income (in dollars per share) | $ 0 | $ 0 | $ 2.0234 |
Ordinary Income Distribution, Percent | 0.00% | 0.00% | 100.00% |
Capital gain distributions (in dollars per share) | $ 0 | $ 0 | $ 0 |
Capital Gain Distribution, Percent | 0.00% | 0.00% | 0.00% |
Distribution Per Share (in dollars per share) | $ 0 | $ 0 | $ 2.0234 |
Distribution Paid, Percent | 0.00% | 0.00% | 100.00% |
Preferred Stock - Series C | |||
Class of Stock [Line Items] | |||
Ordinary income (in dollars per share) | $ 0 | $ 0.5393 | $ 1.7813 |
Ordinary Income Distribution, Percent | 0.00% | 100.00% | 100.00% |
Capital gain distributions (in dollars per share) | $ 0 | $ 0 | $ 0 |
Capital Gain Distribution, Percent | 0.00% | 0.00% | 0.00% |
Distribution Per Share (in dollars per share) | $ 0 | $ 0.5393 | $ 1.7813 |
Distribution Paid, Percent | 0.00% | 100.00% | 100.00% |
Preferred Stock - Series D | |||
Class of Stock [Line Items] | |||
Ordinary income (in dollars per share) | $ 1.3732 | $ 1.6125 | $ 1.6125 |
Ordinary Income Distribution, Percent | 85.16% | 100.00% | 100.00% |
Capital gain distributions (in dollars per share) | $ 0.2393 | $ 0 | $ 0 |
Capital Gain Distribution, Percent | 14.84% | 0.00% | 0.00% |
Distribution Per Share (in dollars per share) | $ 1.6125 | $ 1.6125 | $ 1.6125 |
Distribution Paid, Percent | 100.00% | 100.00% | 100.00% |
Preferred Stock - Series E | |||
Class of Stock [Line Items] | |||
Ordinary income (in dollars per share) | $ 1.3307 | $ 1.5625 | $ 0.0694 |
Ordinary Income Distribution, Percent | 85.16% | 100.00% | 100.00% |
Capital gain distributions (in dollars per share) | $ 0.2318 | $ 0 | $ 0 |
Capital Gain Distribution, Percent | 14.84% | 0.00% | 0.00% |
Distribution Per Share (in dollars per share) | $ 1.5625 | $ 1.5625 | $ 0.0694 |
Distribution Paid, Percent | 100.00% | 100.00% | 100.00% |
EARNINGS PER SHARE - Anti-Dilut
EARNINGS PER SHARE - Anti-Dilutive Stock Options (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Awards | |||
Anti-dilutive options excluded from computation of diluted earnings per share | |||
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares) | 755,991 | 453,664 | 464,924 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Components Used to Calculate Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net income | $ 8,753 | $ 11,626 | $ 49,069 | $ 12,900 | $ 5,757 | $ 38,001 | $ 37,677 | $ 9,691 | $ 82,348 | $ 91,126 | $ 99,521 |
Less: Preferred dividends | (14,838) | (16,671) | (17,408) | ||||||||
Premium on redemption of preferred stock | 0 | (3,277) | (2,572) | ||||||||
Allocation to participating securities | (309) | (271) | (307) | ||||||||
Attributable to non-controlling interest in Operating Partnership | (157) | (205) | (307) | ||||||||
Attributable to non-controlling interest in joint venture | 419 | 0 | 0 | ||||||||
Net income attributable to common stockholders, net of amount allocated to participating securities | $ 67,463 | $ 70,702 | $ 78,927 | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding - basic (in shares) | 103,887 | 103,623 | 99,406 | ||||||||
Dilutive effect of equity-based compensation awards (in shares) | 52 | 219 | 374 | ||||||||
Weighted average common shares outstanding - diluted (in shares) | 103,939 | 103,842 | 99,780 | ||||||||
Basic and diluted (in dollars per share) | $ 0.05 | $ 0.07 | $ 0.43 | $ 0.09 | $ 0.65 | $ 0.68 | $ 0.79 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 133,781 | $ 133,685 | $ 142,930 | $ 138,952 | $ 132,509 | $ 142,340 | $ 152,222 | $ 140,199 | $ 549,348 | $ 567,270 | $ 515,377 |
Net income | 8,753 | 11,626 | 49,069 | 12,900 | 5,757 | 38,001 | 37,677 | 9,691 | 82,348 | 91,126 | 99,521 |
Net income attributable to Summit Hotel Properties, Inc. | $ 9,242 | $ 11,534 | $ 48,957 | $ 12,877 | $ 5,756 | $ 37,901 | $ 37,576 | $ 9,688 | $ 82,610 | $ 90,921 | $ 99,214 |
Earnings per share: | |||||||||||
Basic and diluted (in dollars per share) | $ 0.05 | $ 0.07 | $ 0.43 | $ 0.09 | $ 0.65 | $ 0.68 | $ 0.79 | ||||
Basic (in dollars per share) | $ 0.02 | $ 0.33 | $ 0.33 | $ 0.01 | |||||||
Diluted (in dollars per share) | $ 0.02 | $ 0.33 | $ 0.32 | $ 0.01 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
6.45% Series D Preferred Stock | |||
Subsequent events | |||
Preferred stock, dividend rate (as a percent) | 6.45% | 6.45% | |
6.25% Series E Preferred Stock | |||
Subsequent events | |||
Preferred stock, dividend rate (as a percent) | 6.25% | 6.25% | |
Subsequent events | |||
Subsequent events | |||
Cash dividends declared, common stock (in dollars per share) | $ 0.18 | ||
Subsequent events | 6.45% Series D Preferred Stock | |||
Subsequent events | |||
Cash dividends declared, preferred stock (in dollars per share) | 0.403125 | ||
Subsequent events | 6.25% Series E Preferred Stock | |||
Subsequent events | |||
Cash dividends declared, preferred stock (in dollars per share) | $ 0.390625 |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation - Schedule of Real Estate (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Initial Cost | ||||
Land | $ 323,075 | |||
Building & Improvements | 2,123,406 | |||
Cost Capitalized Subsequent to Acquisition | 106,947 | |||
Total Cost | ||||
Land | 321,528 | |||
Building & Improvements | 2,231,900 | |||
Total | 2,553,428 | $ 2,406,269 | $ 2,355,723 | $ 1,848,673 |
Accumulated Depreciation | (383,763) | $ (351,821) | $ (290,066) | $ (241,760) |
Total Cost Net of Accumulated Depreciation | 2,169,665 | |||
Mortgage Debt | 157,726 | |||
Land Parcels | ||||
Initial Cost | ||||
Land | 4,645 | |||
Building & Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | (2,720) | |||
Total Cost | ||||
Land | 1,925 | |||
Building & Improvements | 0 | |||
Total | 1,925 | |||
Accumulated Depreciation | 0 | |||
Total Cost Net of Accumulated Depreciation | 1,925 | |||
Mortgage Debt | 0 | |||
Aliso Viejo, CA | Homewood Suites | ||||
Initial Cost | ||||
Land | 5,599 | |||
Building & Improvements | 32,367 | |||
Cost Capitalized Subsequent to Acquisition | 354 | |||
Total Cost | ||||
Land | 5,599 | |||
Building & Improvements | 32,721 | |||
Total | 38,320 | |||
Accumulated Depreciation | (4,030) | |||
Total Cost Net of Accumulated Depreciation | 34,290 | |||
Mortgage Debt | 0 | |||
Arlington, TX | Courtyard | ||||
Initial Cost | ||||
Land | 1,497 | |||
Building & Improvements | 15,573 | |||
Cost Capitalized Subsequent to Acquisition | (565) | |||
Total Cost | ||||
Land | 1,497 | |||
Building & Improvements | 15,008 | |||
Total | 16,505 | |||
Accumulated Depreciation | (3,830) | |||
Total Cost Net of Accumulated Depreciation | 12,675 | |||
Mortgage Debt | 0 | |||
Arlington, TX | Residence Inn | ||||
Initial Cost | ||||
Land | 1,646 | |||
Building & Improvements | 15,440 | |||
Cost Capitalized Subsequent to Acquisition | 16 | |||
Total Cost | ||||
Land | 1,646 | |||
Building & Improvements | 15,456 | |||
Total | 17,102 | |||
Accumulated Depreciation | (4,071) | |||
Total Cost Net of Accumulated Depreciation | 13,031 | |||
Mortgage Debt | 0 | |||
Asheville, NC | Hotel Indigo | ||||
Initial Cost | ||||
Land | 2,100 | |||
Building & Improvements | 34,755 | |||
Cost Capitalized Subsequent to Acquisition | 1,051 | |||
Total Cost | ||||
Land | 2,100 | |||
Building & Improvements | 35,806 | |||
Total | 37,906 | |||
Accumulated Depreciation | (6,687) | |||
Total Cost Net of Accumulated Depreciation | 31,219 | |||
Mortgage Debt | 0 | |||
Atlanta, GA | Courtyard | ||||
Initial Cost | ||||
Land | 2,050 | |||
Building & Improvements | 27,969 | |||
Cost Capitalized Subsequent to Acquisition | 834 | |||
Total Cost | ||||
Land | 2,050 | |||
Building & Improvements | 28,803 | |||
Total | 30,853 | |||
Accumulated Depreciation | (5,702) | |||
Total Cost Net of Accumulated Depreciation | 25,151 | |||
Mortgage Debt | 0 | |||
Atlanta, GA | Residence Inn | ||||
Initial Cost | ||||
Land | 3,381 | |||
Building & Improvements | 34,820 | |||
Cost Capitalized Subsequent to Acquisition | 790 | |||
Total Cost | ||||
Land | 3,381 | |||
Building & Improvements | 35,610 | |||
Total | 38,991 | |||
Accumulated Depreciation | (4,801) | |||
Total Cost Net of Accumulated Depreciation | 34,190 | |||
Mortgage Debt | 0 | |||
Atlanta, GA | AC Hotel | ||||
Initial Cost | ||||
Land | 5,670 | |||
Building & Improvements | 51,922 | |||
Cost Capitalized Subsequent to Acquisition | 567 | |||
Total Cost | ||||
Land | 5,670 | |||
Building & Improvements | 52,489 | |||
Total | 58,159 | |||
Accumulated Depreciation | (5,378) | |||
Total Cost Net of Accumulated Depreciation | 52,781 | |||
Mortgage Debt | 0 | |||
Austin, TX | Hampton Inn & Suites | ||||
Initial Cost | ||||
Land | 0 | |||
Building & Improvements | 56,394 | |||
Cost Capitalized Subsequent to Acquisition | 4,846 | |||
Total Cost | ||||
Land | 0 | |||
Building & Improvements | 61,240 | |||
Total | 61,240 | |||
Accumulated Depreciation | (9,519) | |||
Total Cost Net of Accumulated Depreciation | 51,721 | |||
Mortgage Debt | 0 | |||
Austin, TX | Corporate Office | ||||
Initial Cost | ||||
Land | 0 | |||
Building & Improvements | 6,048 | |||
Cost Capitalized Subsequent to Acquisition | 1,410 | |||
Total Cost | ||||
Land | 0 | |||
Building & Improvements | 7,458 | |||
Total | 7,458 | |||
Accumulated Depreciation | (2,207) | |||
Total Cost Net of Accumulated Depreciation | 5,251 | |||
Mortgage Debt | 0 | |||
Baltimore, MD | Residence Inn | ||||
Initial Cost | ||||
Land | 1,986 | |||
Building & Improvements | 37,016 | |||
Cost Capitalized Subsequent to Acquisition | 6,198 | |||
Total Cost | ||||
Land | 1,986 | |||
Building & Improvements | 43,214 | |||
Total | 45,200 | |||
Accumulated Depreciation | (4,372) | |||
Total Cost Net of Accumulated Depreciation | 40,828 | |||
Mortgage Debt | 0 | |||
Baltimore, MD | Hampton Inn & Suites | ||||
Initial Cost | ||||
Land | 2,205 | |||
Building & Improvements | 16,013 | |||
Cost Capitalized Subsequent to Acquisition | 2,342 | |||
Total Cost | ||||
Land | 2,205 | |||
Building & Improvements | 18,355 | |||
Total | 20,560 | |||
Accumulated Depreciation | (1,373) | |||
Total Cost Net of Accumulated Depreciation | 19,187 | |||
Mortgage Debt | 0 | |||
Boulder, CO | Marriott | ||||
Initial Cost | ||||
Land | 11,115 | |||
Building & Improvements | 49,204 | |||
Cost Capitalized Subsequent to Acquisition | 8,946 | |||
Total Cost | ||||
Land | 11,115 | |||
Building & Improvements | 58,150 | |||
Total | 69,265 | |||
Accumulated Depreciation | (7,000) | |||
Total Cost Net of Accumulated Depreciation | 62,265 | |||
Mortgage Debt | 0 | |||
Branchburg, NJ | Residence Inn | ||||
Initial Cost | ||||
Land | 2,374 | |||
Building & Improvements | 24,411 | |||
Cost Capitalized Subsequent to Acquisition | 285 | |||
Total Cost | ||||
Land | 2,374 | |||
Building & Improvements | 24,696 | |||
Total | 27,070 | |||
Accumulated Depreciation | (4,754) | |||
Total Cost Net of Accumulated Depreciation | 22,316 | |||
Mortgage Debt | 0 | |||
Brisbane, CA | DoubleTree | ||||
Initial Cost | ||||
Land | 3,300 | |||
Building & Improvements | 39,686 | |||
Cost Capitalized Subsequent to Acquisition | 1,137 | |||
Total Cost | ||||
Land | 3,300 | |||
Building & Improvements | 40,823 | |||
Total | 44,123 | |||
Accumulated Depreciation | (11,496) | |||
Total Cost Net of Accumulated Depreciation | 32,627 | |||
Mortgage Debt | 0 | |||
Camarillo, CA | Hampton Inn & Suites | ||||
Initial Cost | ||||
Land | 2,200 | |||
Building & Improvements | 17,366 | |||
Cost Capitalized Subsequent to Acquisition | 384 | |||
Total Cost | ||||
Land | 2,200 | |||
Building & Improvements | 17,750 | |||
Total | 19,950 | |||
Accumulated Depreciation | (5,749) | |||
Total Cost Net of Accumulated Depreciation | 14,201 | |||
Mortgage Debt | 0 | |||
Charlotte, NC | Courtyard | ||||
Initial Cost | ||||
Land | 0 | |||
Building & Improvements | 41,094 | |||
Cost Capitalized Subsequent to Acquisition | 1,468 | |||
Total Cost | ||||
Land | 0 | |||
Building & Improvements | 42,562 | |||
Total | 42,562 | |||
Accumulated Depreciation | (4,581) | |||
Total Cost Net of Accumulated Depreciation | 37,981 | |||
Mortgage Debt | 0 | |||
Chicago, IL | Hyatt Place | ||||
Initial Cost | ||||
Land | 5,395 | |||
Building & Improvements | 68,355 | |||
Cost Capitalized Subsequent to Acquisition | 192 | |||
Total Cost | ||||
Land | 5,395 | |||
Building & Improvements | 68,547 | |||
Total | 73,942 | |||
Accumulated Depreciation | (9,533) | |||
Total Cost Net of Accumulated Depreciation | 64,409 | |||
Mortgage Debt | 0 | |||
Cleveland, OH | Residence Inn | ||||
Initial Cost | ||||
Land | 10,075 | |||
Building & Improvements | 33,340 | |||
Cost Capitalized Subsequent to Acquisition | 1,699 | |||
Total Cost | ||||
Land | 10,075 | |||
Building & Improvements | 35,039 | |||
Total | 45,114 | |||
Accumulated Depreciation | (3,925) | |||
Total Cost Net of Accumulated Depreciation | 41,189 | |||
Mortgage Debt | 0 | |||
Decatur, GA | Courtyard | ||||
Initial Cost | ||||
Land | 4,046 | |||
Building & Improvements | 34,151 | |||
Cost Capitalized Subsequent to Acquisition | 3,816 | |||
Total Cost | ||||
Land | 4,046 | |||
Building & Improvements | 37,967 | |||
Total | 42,013 | |||
Accumulated Depreciation | (5,818) | |||
Total Cost Net of Accumulated Depreciation | 36,195 | |||
Mortgage Debt | 0 | |||
Eden Prairie, MN | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 1,800 | |||
Building & Improvements | 11,211 | |||
Cost Capitalized Subsequent to Acquisition | 146 | |||
Total Cost | ||||
Land | 1,800 | |||
Building & Improvements | 11,357 | |||
Total | 13,157 | |||
Accumulated Depreciation | (3,981) | |||
Total Cost Net of Accumulated Depreciation | 9,176 | |||
Mortgage Debt | 0 | |||
Englewood, CO | Hyatt Place | ||||
Initial Cost | ||||
Land | 2,000 | |||
Building & Improvements | 11,950 | |||
Cost Capitalized Subsequent to Acquisition | (441) | |||
Total Cost | ||||
Land | 2,000 | |||
Building & Improvements | 11,509 | |||
Total | 13,509 | |||
Accumulated Depreciation | (4,054) | |||
Total Cost Net of Accumulated Depreciation | 9,455 | |||
Mortgage Debt | 19,510 | |||
Englewood, CO | Hyatt House | ||||
Initial Cost | ||||
Land | 2,700 | |||
Building & Improvements | 16,267 | |||
Cost Capitalized Subsequent to Acquisition | 224 | |||
Total Cost | ||||
Land | 2,700 | |||
Building & Improvements | 16,491 | |||
Total | 19,191 | |||
Accumulated Depreciation | (6,553) | |||
Total Cost Net of Accumulated Depreciation | 12,638 | |||
Mortgage Debt | 19,992 | |||
Fort Lauderdale, FL | Courtyard | ||||
Initial Cost | ||||
Land | 37,950 | |||
Building & Improvements | 47,002 | |||
Cost Capitalized Subsequent to Acquisition | 1,421 | |||
Total Cost | ||||
Land | 37,950 | |||
Building & Improvements | 48,423 | |||
Total | 86,373 | |||
Accumulated Depreciation | (5,861) | |||
Total Cost Net of Accumulated Depreciation | 80,512 | |||
Mortgage Debt | 0 | |||
Fort Worth, TX | Courtyard | ||||
Initial Cost | ||||
Land | 1,920 | |||
Building & Improvements | 38,070 | |||
Cost Capitalized Subsequent to Acquisition | 9,029 | |||
Total Cost | ||||
Land | 1,920 | |||
Building & Improvements | 47,099 | |||
Total | 49,019 | |||
Accumulated Depreciation | (3,748) | |||
Total Cost Net of Accumulated Depreciation | 45,271 | |||
Mortgage Debt | 0 | |||
Garden City, NY | Hyatt Place | ||||
Initial Cost | ||||
Land | 4,200 | |||
Building & Improvements | 27,775 | |||
Cost Capitalized Subsequent to Acquisition | 272 | |||
Total Cost | ||||
Land | 4,283 | |||
Building & Improvements | 27,964 | |||
Total | 32,247 | |||
Accumulated Depreciation | (5,787) | |||
Total Cost Net of Accumulated Depreciation | 26,460 | |||
Mortgage Debt | 0 | |||
Glendale, CO | Staybridge Suites | ||||
Initial Cost | ||||
Land | 2,100 | |||
Building & Improvements | 10,151 | |||
Cost Capitalized Subsequent to Acquisition | 333 | |||
Total Cost | ||||
Land | 2,100 | |||
Building & Improvements | 10,484 | |||
Total | 12,584 | |||
Accumulated Depreciation | (3,679) | |||
Total Cost Net of Accumulated Depreciation | 8,905 | |||
Mortgage Debt | 0 | |||
Greenville, SC | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 1,200 | |||
Building & Improvements | 14,566 | |||
Cost Capitalized Subsequent to Acquisition | 3,009 | |||
Total Cost | ||||
Land | 1,200 | |||
Building & Improvements | 17,575 | |||
Total | 18,775 | |||
Accumulated Depreciation | (3,772) | |||
Total Cost Net of Accumulated Depreciation | 15,003 | |||
Mortgage Debt | 0 | |||
Hillsboro, OR | Residence Inn | ||||
Initial Cost | ||||
Land | 4,943 | |||
Building & Improvements | 42,541 | |||
Cost Capitalized Subsequent to Acquisition | 9 | |||
Total Cost | ||||
Land | 4,943 | |||
Building & Improvements | 42,550 | |||
Total | 47,493 | |||
Accumulated Depreciation | (461) | |||
Total Cost Net of Accumulated Depreciation | 47,032 | |||
Mortgage Debt | 0 | |||
Hoffman Estates, IL | Hyatt Place | ||||
Initial Cost | ||||
Land | 1,900 | |||
Building & Improvements | 8,917 | |||
Cost Capitalized Subsequent to Acquisition | (1,861) | |||
Total Cost | ||||
Land | 1,900 | |||
Building & Improvements | 7,056 | |||
Total | 8,956 | |||
Accumulated Depreciation | (3,186) | |||
Total Cost Net of Accumulated Depreciation | 5,770 | |||
Mortgage Debt | 19,323 | |||
Houston, TX | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 0 | |||
Building & Improvements | 41,838 | |||
Cost Capitalized Subsequent to Acquisition | 5,951 | |||
Total Cost | ||||
Land | 0 | |||
Building & Improvements | 47,789 | |||
Total | 47,789 | |||
Accumulated Depreciation | (11,015) | |||
Total Cost Net of Accumulated Depreciation | 36,774 | |||
Mortgage Debt | 0 | |||
Houston, TX | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 2,800 | |||
Building & Improvements | 33,777 | |||
Cost Capitalized Subsequent to Acquisition | 1,373 | |||
Total Cost | ||||
Land | 2,800 | |||
Building & Improvements | 35,150 | |||
Total | 37,950 | |||
Accumulated Depreciation | (5,950) | |||
Total Cost Net of Accumulated Depreciation | 32,000 | |||
Mortgage Debt | 0 | |||
Hunt Valley, MD | Residence Inn | ||||
Initial Cost | ||||
Land | 0 | |||
Building & Improvements | 35,436 | |||
Cost Capitalized Subsequent to Acquisition | 1,326 | |||
Total Cost | ||||
Land | 1,076 | |||
Building & Improvements | 35,686 | |||
Total | 36,762 | |||
Accumulated Depreciation | (6,432) | |||
Total Cost Net of Accumulated Depreciation | 30,330 | |||
Mortgage Debt | 0 | |||
Indianapolis, IN | Courtyard | ||||
Initial Cost | ||||
Land | 7,788 | |||
Building & Improvements | 54,384 | |||
Cost Capitalized Subsequent to Acquisition | (2,077) | |||
Total Cost | ||||
Land | 7,788 | |||
Building & Improvements | 52,307 | |||
Total | 60,095 | |||
Accumulated Depreciation | (10,470) | |||
Total Cost Net of Accumulated Depreciation | 49,625 | |||
Mortgage Debt | 0 | |||
Indianapolis, IN | SpringHill Suites | ||||
Initial Cost | ||||
Land | 4,012 | |||
Building & Improvements | 27,910 | |||
Cost Capitalized Subsequent to Acquisition | (646) | |||
Total Cost | ||||
Land | 4,012 | |||
Building & Improvements | 27,264 | |||
Total | 31,276 | |||
Accumulated Depreciation | (5,588) | |||
Total Cost Net of Accumulated Depreciation | 25,688 | |||
Mortgage Debt | 0 | |||
Kansas City, MO | Courtyard | ||||
Initial Cost | ||||
Land | 3,955 | |||
Building & Improvements | 20,608 | |||
Cost Capitalized Subsequent to Acquisition | 1,769 | |||
Total Cost | ||||
Land | 3,955 | |||
Building & Improvements | 22,377 | |||
Total | 26,332 | |||
Accumulated Depreciation | (2,702) | |||
Total Cost Net of Accumulated Depreciation | 23,630 | |||
Mortgage Debt | 0 | |||
Lombard, IL | Hyatt Place | ||||
Initial Cost | ||||
Land | 1,550 | |||
Building & Improvements | 17,351 | |||
Cost Capitalized Subsequent to Acquisition | (445) | |||
Total Cost | ||||
Land | 1,550 | |||
Building & Improvements | 16,906 | |||
Total | 18,456 | |||
Accumulated Depreciation | (5,597) | |||
Total Cost Net of Accumulated Depreciation | 12,859 | |||
Mortgage Debt | 0 | |||
Lone Tree, CO | Hyatt Place | ||||
Initial Cost | ||||
Land | 1,300 | |||
Building & Improvements | 11,704 | |||
Cost Capitalized Subsequent to Acquisition | (203) | |||
Total Cost | ||||
Land | 1,314 | |||
Building & Improvements | 11,487 | |||
Total | 12,801 | |||
Accumulated Depreciation | (4,302) | |||
Total Cost Net of Accumulated Depreciation | 8,499 | |||
Mortgage Debt | 0 | |||
Louisville, KY | SpringHill Suites | ||||
Initial Cost | ||||
Land | 4,880 | |||
Building & Improvements | 37,361 | |||
Cost Capitalized Subsequent to Acquisition | (719) | |||
Total Cost | ||||
Land | 4,880 | |||
Building & Improvements | 36,642 | |||
Total | 41,522 | |||
Accumulated Depreciation | (9,181) | |||
Total Cost Net of Accumulated Depreciation | 32,341 | |||
Mortgage Debt | 0 | |||
Louisville, KY | Fairfield Inn & Suites | ||||
Initial Cost | ||||
Land | 3,120 | |||
Building & Improvements | 24,231 | |||
Cost Capitalized Subsequent to Acquisition | (531) | |||
Total Cost | ||||
Land | 3,120 | |||
Building & Improvements | 23,700 | |||
Total | 26,820 | |||
Accumulated Depreciation | (5,901) | |||
Total Cost Net of Accumulated Depreciation | 20,919 | |||
Mortgage Debt | 34,695 | |||
Mesa, AZ | Hyatt Place | ||||
Initial Cost | ||||
Land | 2,400 | |||
Building & Improvements | 19,848 | |||
Cost Capitalized Subsequent to Acquisition | 820 | |||
Total Cost | ||||
Land | 2,400 | |||
Building & Improvements | 20,668 | |||
Total | 23,068 | |||
Accumulated Depreciation | (3,648) | |||
Total Cost Net of Accumulated Depreciation | 19,420 | |||
Mortgage Debt | 47,226 | |||
Metairie, LA | Courtyard | ||||
Initial Cost | ||||
Land | 1,860 | |||
Building & Improvements | 25,168 | |||
Cost Capitalized Subsequent to Acquisition | 349 | |||
Total Cost | ||||
Land | 1,860 | |||
Building & Improvements | 25,517 | |||
Total | 27,377 | |||
Accumulated Depreciation | (7,505) | |||
Total Cost Net of Accumulated Depreciation | 19,872 | |||
Mortgage Debt | 0 | |||
Metairie, LA | Residence Inn | ||||
Initial Cost | ||||
Land | 1,791 | |||
Building & Improvements | 23,386 | |||
Cost Capitalized Subsequent to Acquisition | 338 | |||
Total Cost | ||||
Land | 1,791 | |||
Building & Improvements | 23,724 | |||
Total | 25,515 | |||
Accumulated Depreciation | (7,901) | |||
Total Cost Net of Accumulated Depreciation | 17,614 | |||
Mortgage Debt | 0 | |||
Miami, FL | Hyatt House | ||||
Initial Cost | ||||
Land | 4,926 | |||
Building & Improvements | 40,087 | |||
Cost Capitalized Subsequent to Acquisition | 1,385 | |||
Total Cost | ||||
Land | 4,926 | |||
Building & Improvements | 41,472 | |||
Total | 46,398 | |||
Accumulated Depreciation | (8,386) | |||
Total Cost Net of Accumulated Depreciation | 38,012 | |||
Mortgage Debt | 0 | |||
Milpitas, CA | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 7,921 | |||
Building & Improvements | 46,141 | |||
Cost Capitalized Subsequent to Acquisition | 4 | |||
Total Cost | ||||
Land | 7,921 | |||
Building & Improvements | 46,145 | |||
Total | 54,066 | |||
Accumulated Depreciation | (588) | |||
Total Cost Net of Accumulated Depreciation | 53,478 | |||
Mortgage Debt | 0 | |||
Minneapolis, MN | Hampton Inn & Suites | ||||
Initial Cost | ||||
Land | 3,502 | |||
Building & Improvements | 35,433 | |||
Cost Capitalized Subsequent to Acquisition | 165 | |||
Total Cost | ||||
Land | 3,502 | |||
Building & Improvements | 35,598 | |||
Total | 39,100 | |||
Accumulated Depreciation | (7,669) | |||
Total Cost Net of Accumulated Depreciation | 31,431 | |||
Mortgage Debt | 0 | |||
Minneapolis, MN | Hyatt Place | ||||
Initial Cost | ||||
Land | 0 | |||
Building & Improvements | 34,026 | |||
Cost Capitalized Subsequent to Acquisition | 1,424 | |||
Total Cost | ||||
Land | 0 | |||
Building & Improvements | 35,450 | |||
Total | 35,450 | |||
Accumulated Depreciation | (7,901) | |||
Total Cost Net of Accumulated Depreciation | 27,549 | |||
Mortgage Debt | 0 | |||
Minnetonka, MN | Holiday Inn Express & Suites | ||||
Initial Cost | ||||
Land | 1,000 | |||
Building & Improvements | 7,662 | |||
Cost Capitalized Subsequent to Acquisition | 212 | |||
Total Cost | ||||
Land | 1,000 | |||
Building & Improvements | 7,874 | |||
Total | 8,874 | |||
Accumulated Depreciation | (2,723) | |||
Total Cost Net of Accumulated Depreciation | 6,151 | |||
Mortgage Debt | 0 | |||
Nashville, TN | Courtyard | ||||
Initial Cost | ||||
Land | 8,792 | |||
Building & Improvements | 62,759 | |||
Cost Capitalized Subsequent to Acquisition | 7,852 | |||
Total Cost | ||||
Land | 8,792 | |||
Building & Improvements | 70,611 | |||
Total | 79,403 | |||
Accumulated Depreciation | (8,259) | |||
Total Cost Net of Accumulated Depreciation | 71,144 | |||
Mortgage Debt | 0 | |||
Nashville, TN | SpringHill Suites | ||||
Initial Cost | ||||
Land | 777 | |||
Building & Improvements | 5,598 | |||
Cost Capitalized Subsequent to Acquisition | 299 | |||
Total Cost | ||||
Land | 777 | |||
Building & Improvements | 5,897 | |||
Total | 6,674 | |||
Accumulated Depreciation | (3,473) | |||
Total Cost Net of Accumulated Depreciation | 3,201 | |||
Mortgage Debt | 0 | |||
New Haven, CT | Courtyard | ||||
Initial Cost | ||||
Land | 11,990 | |||
Building & Improvements | 51,497 | |||
Cost Capitalized Subsequent to Acquisition | 1,555 | |||
Total Cost | ||||
Land | 11,990 | |||
Building & Improvements | 53,052 | |||
Total | 65,042 | |||
Accumulated Depreciation | (4,489) | |||
Total Cost Net of Accumulated Depreciation | 60,553 | |||
Mortgage Debt | 0 | |||
New Orleans, LA | Courtyard | ||||
Initial Cost | ||||
Land | 1,944 | |||
Building & Improvements | 25,120 | |||
Cost Capitalized Subsequent to Acquisition | 3,356 | |||
Total Cost | ||||
Land | 1,944 | |||
Building & Improvements | 28,476 | |||
Total | 30,420 | |||
Accumulated Depreciation | (9,012) | |||
Total Cost Net of Accumulated Depreciation | 21,408 | |||
Mortgage Debt | 0 | |||
New Orleans, LA | Courtyard | ||||
Initial Cost | ||||
Land | 2,490 | |||
Building & Improvements | 34,220 | |||
Cost Capitalized Subsequent to Acquisition | 1,136 | |||
Total Cost | ||||
Land | 2,490 | |||
Building & Improvements | 35,356 | |||
Total | 37,846 | |||
Accumulated Depreciation | (10,592) | |||
Total Cost Net of Accumulated Depreciation | 27,254 | |||
Mortgage Debt | 0 | |||
New Orleans, LA | SpringHill Suites | ||||
Initial Cost | ||||
Land | 2,046 | |||
Building & Improvements | 33,270 | |||
Cost Capitalized Subsequent to Acquisition | 6,099 | |||
Total Cost | ||||
Land | 2,046 | |||
Building & Improvements | 39,369 | |||
Total | 41,415 | |||
Accumulated Depreciation | (10,459) | |||
Total Cost Net of Accumulated Depreciation | 30,956 | |||
Mortgage Debt | 0 | |||
Orlando, FL | Hyatt Place | ||||
Initial Cost | ||||
Land | 3,100 | |||
Building & Improvements | 11,343 | |||
Cost Capitalized Subsequent to Acquisition | (539) | |||
Total Cost | ||||
Land | 3,100 | |||
Building & Improvements | 10,804 | |||
Total | 13,904 | |||
Accumulated Depreciation | (3,861) | |||
Total Cost Net of Accumulated Depreciation | 10,043 | |||
Mortgage Debt | 0 | |||
Orlando, FL | Hyatt Place | ||||
Initial Cost | ||||
Land | 2,716 | |||
Building & Improvements | 11,221 | |||
Cost Capitalized Subsequent to Acquisition | 422 | |||
Total Cost | ||||
Land | 2,716 | |||
Building & Improvements | 11,643 | |||
Total | 14,359 | |||
Accumulated Depreciation | (3,928) | |||
Total Cost Net of Accumulated Depreciation | 10,431 | |||
Mortgage Debt | 0 | |||
Orlando, FL | Hyatt House | ||||
Initial Cost | ||||
Land | 2,800 | |||
Building & Improvements | 34,423 | |||
Cost Capitalized Subsequent to Acquisition | 94 | |||
Total Cost | ||||
Land | 2,800 | |||
Building & Improvements | 34,517 | |||
Total | 37,317 | |||
Accumulated Depreciation | (3,394) | |||
Total Cost Net of Accumulated Depreciation | 33,923 | |||
Mortgage Debt | 0 | |||
Owings Mills, MD | Hyatt Place | ||||
Initial Cost | ||||
Land | 2,100 | |||
Building & Improvements | 9,799 | |||
Cost Capitalized Subsequent to Acquisition | (175) | |||
Total Cost | ||||
Land | 2,100 | |||
Building & Improvements | 9,624 | |||
Total | 11,724 | |||
Accumulated Depreciation | (3,337) | |||
Total Cost Net of Accumulated Depreciation | 8,387 | |||
Mortgage Debt | 0 | |||
Pittsburgh, PA | Courtyard | ||||
Initial Cost | ||||
Land | 1,652 | |||
Building & Improvements | 40,749 | |||
Cost Capitalized Subsequent to Acquisition | 5,683 | |||
Total Cost | ||||
Land | 1,652 | |||
Building & Improvements | 46,432 | |||
Total | 48,084 | |||
Accumulated Depreciation | (3,871) | |||
Total Cost Net of Accumulated Depreciation | 44,213 | |||
Mortgage Debt | 0 | |||
Portland, OR | Hyatt Place | ||||
Initial Cost | ||||
Land | 0 | |||
Building & Improvements | 14,700 | |||
Cost Capitalized Subsequent to Acquisition | 457 | |||
Total Cost | ||||
Land | 0 | |||
Building & Improvements | 15,157 | |||
Total | 15,157 | |||
Accumulated Depreciation | (4,534) | |||
Total Cost Net of Accumulated Depreciation | 10,623 | |||
Mortgage Debt | 0 | |||
Poway, CA | Hampton Inn & Suites | ||||
Initial Cost | ||||
Land | 2,300 | |||
Building & Improvements | 14,728 | |||
Cost Capitalized Subsequent to Acquisition | 1,228 | |||
Total Cost | ||||
Land | 2,300 | |||
Building & Improvements | 15,956 | |||
Total | 18,256 | |||
Accumulated Depreciation | (3,923) | |||
Total Cost Net of Accumulated Depreciation | 14,333 | |||
Mortgage Debt | 0 | |||
San Francisco, CA | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 12,346 | |||
Building & Improvements | 45,730 | |||
Cost Capitalized Subsequent to Acquisition | 36 | |||
Total Cost | ||||
Land | 12,346 | |||
Building & Improvements | 45,766 | |||
Total | 58,112 | |||
Accumulated Depreciation | (585) | |||
Total Cost Net of Accumulated Depreciation | 57,527 | |||
Mortgage Debt | 0 | |||
San Francisco, CA | Holiday Inn Express & Suites | ||||
Initial Cost | ||||
Land | 15,545 | |||
Building & Improvements | 49,469 | |||
Cost Capitalized Subsequent to Acquisition | 3,875 | |||
Total Cost | ||||
Land | 15,545 | |||
Building & Improvements | 53,344 | |||
Total | 68,889 | |||
Accumulated Depreciation | (13,191) | |||
Total Cost Net of Accumulated Depreciation | 55,698 | |||
Mortgage Debt | 0 | |||
San Francisco, CA | Four Points | ||||
Initial Cost | ||||
Land | 1,200 | |||
Building & Improvements | 21,397 | |||
Cost Capitalized Subsequent to Acquisition | 2,874 | |||
Total Cost | ||||
Land | 1,200 | |||
Building & Improvements | 24,271 | |||
Total | 25,471 | |||
Accumulated Depreciation | (5,094) | |||
Total Cost Net of Accumulated Depreciation | 20,377 | |||
Mortgage Debt | 0 | |||
Scottsdale, AZ | Courtyard | ||||
Initial Cost | ||||
Land | 3,225 | |||
Building & Improvements | 12,571 | |||
Cost Capitalized Subsequent to Acquisition | 3,648 | |||
Total Cost | ||||
Land | 3,225 | |||
Building & Improvements | 16,219 | |||
Total | 19,444 | |||
Accumulated Depreciation | (5,694) | |||
Total Cost Net of Accumulated Depreciation | 13,750 | |||
Mortgage Debt | 0 | |||
Scottsdale, AZ | Hyatt Place | ||||
Initial Cost | ||||
Land | 1,500 | |||
Building & Improvements | 10,171 | |||
Cost Capitalized Subsequent to Acquisition | (431) | |||
Total Cost | ||||
Land | 1,500 | |||
Building & Improvements | 9,740 | |||
Total | 11,240 | |||
Accumulated Depreciation | (3,120) | |||
Total Cost Net of Accumulated Depreciation | 8,120 | |||
Mortgage Debt | 0 | |||
Scottsdale, AZ | SpringHill Suites | ||||
Initial Cost | ||||
Land | 2,195 | |||
Building & Improvements | 9,496 | |||
Cost Capitalized Subsequent to Acquisition | 1,750 | |||
Total Cost | ||||
Land | 2,195 | |||
Building & Improvements | 11,246 | |||
Total | 13,441 | |||
Accumulated Depreciation | (4,109) | |||
Total Cost Net of Accumulated Depreciation | 9,332 | |||
Mortgage Debt | 0 | |||
Silverthorne, CO | Hampton Inn & Suites | ||||
Initial Cost | ||||
Land | 6,845 | |||
Building & Improvements | 21,125 | |||
Cost Capitalized Subsequent to Acquisition | 145 | |||
Total Cost | ||||
Land | 6,845 | |||
Building & Improvements | 21,270 | |||
Total | 28,115 | |||
Accumulated Depreciation | (334) | |||
Total Cost Net of Accumulated Depreciation | 27,781 | |||
Mortgage Debt | 0 | |||
Tampa, FL | Hampton Inn & Suites | ||||
Initial Cost | ||||
Land | 3,600 | |||
Building & Improvements | 20,366 | |||
Cost Capitalized Subsequent to Acquisition | 4,466 | |||
Total Cost | ||||
Land | 3,600 | |||
Building & Improvements | 24,832 | |||
Total | 28,432 | |||
Accumulated Depreciation | (4,641) | |||
Total Cost Net of Accumulated Depreciation | 23,791 | |||
Mortgage Debt | 0 | |||
Tucson, AZ | Homewood Suites | ||||
Initial Cost | ||||
Land | 2,570 | |||
Building & Improvements | 22,802 | |||
Cost Capitalized Subsequent to Acquisition | 996 | |||
Total Cost | ||||
Land | 2,570 | |||
Building & Improvements | 23,798 | |||
Total | 26,368 | |||
Accumulated Depreciation | (2,981) | |||
Total Cost Net of Accumulated Depreciation | 23,387 | |||
Mortgage Debt | 0 | |||
Waltham, MA | Hilton Garden Inn | ||||
Initial Cost | ||||
Land | 10,644 | |||
Building & Improvements | 21,713 | |||
Cost Capitalized Subsequent to Acquisition | 5,888 | |||
Total Cost | ||||
Land | 10,644 | |||
Building & Improvements | 27,601 | |||
Total | 38,245 | |||
Accumulated Depreciation | (2,212) | |||
Total Cost Net of Accumulated Depreciation | 36,033 | |||
Mortgage Debt | 0 | |||
Boston (Watertown), MA | Residence Inn | ||||
Initial Cost | ||||
Land | 25,083 | |||
Building & Improvements | 45,917 | |||
Cost Capitalized Subsequent to Acquisition | 223 | |||
Total Cost | ||||
Land | 25,083 | |||
Building & Improvements | 46,140 | |||
Total | 71,223 | |||
Accumulated Depreciation | (2,528) | |||
Total Cost Net of Accumulated Depreciation | 68,695 | |||
Mortgage Debt | 0 | |||
2009 | Portland, OR | Residence Inn | ||||
Initial Cost | ||||
Land | 0 | |||
Building & Improvements | 15,629 | |||
Cost Capitalized Subsequent to Acquisition | 286 | |||
Total Cost | ||||
Land | 0 | |||
Building & Improvements | 15,915 | |||
Total | 15,915 | |||
Accumulated Depreciation | (5,571) | |||
Total Cost Net of Accumulated Depreciation | 10,344 | |||
Mortgage Debt | 16,980 | |||
2019 | Portland, OR | Residence Inn | ||||
Initial Cost | ||||
Land | 12,813 | |||
Building & Improvements | 76,868 | |||
Cost Capitalized Subsequent to Acquisition | 38 | |||
Total Cost | ||||
Land | 12,813 | |||
Building & Improvements | 76,906 | |||
Total | 89,719 | |||
Accumulated Depreciation | (1,204) | |||
Total Cost Net of Accumulated Depreciation | 88,515 | |||
Mortgage Debt | $ 0 |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation - Reconciliation of Land, Buildings and Improvements, and Reconciliation of Accumulated Depreciation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ASSET BASIS | ||||
Balance at beginning of period | $ 2,406,269 | $ 2,355,723 | $ 1,848,673 | |
Additions to land, buildings and improvements | 336,480 | 151,829 | 636,389 | |
Disposition of land, buildings and improvements | (186,800) | (100,208) | (129,339) | |
Impairment loss | (2,521) | (1,075) | 0 | |
Balance at end of period | $ 1,848,673 | 2,553,428 | 2,406,269 | 2,355,723 |
ACCUMULATED DEPRECIATION | ||||
Balance at beginning of period | 351,821 | 290,066 | 241,760 | |
Depreciation | 85,524 | 99,013 | 100,545 | |
Depreciation on assets sold or disposed | (37,218) | (67,071) | (38,790) | |
Balance at end of period | $ 241,760 | 383,763 | $ 351,821 | $ 290,066 |
Aggregate cost of land, buildings, furniture and equipment for federal income tax purposes | $ 2,358,100 | |||
Hotel building and improvements | Minimum | ||||
ACCUMULATED DEPRECIATION | ||||
Useful lives | 6 years | |||
Hotel building and improvements | Maximum | ||||
ACCUMULATED DEPRECIATION | ||||
Useful lives | 40 years | |||
Furniture and equipment | Minimum | ||||
ACCUMULATED DEPRECIATION | ||||
Useful lives | 2 years | |||
Furniture and equipment | Maximum | ||||
ACCUMULATED DEPRECIATION | ||||
Useful lives | 15 years |