Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Apple REIT Ten, Inc. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 76,856,889 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001498864 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investment in real estate, net of accumulated depreciation of $36,886 and $21,804, respectively | $675,130 | $506,689 |
Energy investment | 100,329 | 0 |
Cash and cash equivalents | 0 | 146,530 |
Restricted cash-furniture, fixtures and other escrows | 5,137 | 9,396 |
Due from third party managers, net | 6,432 | 2,481 |
Other assets, net | 7,420 | 2,689 |
Total Assets | 794,448 | 667,785 |
Liabilities | ' | ' |
Credit facility | 35,103 | 0 |
Notes payable | 79,972 | 81,186 |
Accounts payable and accrued expenses | 9,123 | 7,074 |
Total Liabilities | 124,198 | 88,260 |
Shareholders' Equity | ' | ' |
Preferred stock, value issued | 0 | 0 |
Common stock, no par value, authorized 400,000,000 shares; issued and outstanding 76,577,211 and 64,983,511 shares, respectively | 750,049 | 636,191 |
Distributions greater than net income | -79,847 | -56,714 |
Total Shareholders' Equity | 670,250 | 579,525 |
Total Liabilities and Shareholders' Equity | 794,448 | 667,785 |
Series A Preferred Stock [Member] | ' | ' |
Shareholders' Equity | ' | ' |
Preferred stock, value issued | 0 | 0 |
Series B Convertible Preferred Stock [Member] | ' | ' |
Shareholders' Equity | ' | ' |
Preferred stock, value issued | $48 | $48 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Real estate accumulated depreciation (in Dollars) | $36,886 | $21,804 |
Preferred stock, shares authorized (in Shares) | 30,000,000 | 30,000,000 |
Preferred stock, shares issued (in Shares) | 0 | 0 |
Preferred stock, shares outstanding (in Shares) | 0 | 0 |
Common stock, shares authorized (in Shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in Shares) | 76,577,211 | 64,983,511 |
Common stock, shares outstanding (in Shares) | 76,577,211 | 64,983,511 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized (in Shares) | 400,000,000 | 400,000,000 |
Preferred stock, shares issued (in Shares) | 76,577,211 | 64,983,511 |
Preferred stock, shares outstanding (in Shares) | 76,577,211 | 64,983,511 |
Series B Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized (in Shares) | 480,000 | 480,000 |
Preferred stock, shares issued (in Shares) | 480,000 | 480,000 |
Preferred stock, shares outstanding (in Shares) | 480,000 | 480,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Room revenue | $40,166 | $29,627 | $104,647 | $80,422 |
Other revenue | 3,595 | 2,855 | 10,922 | 8,004 |
Total revenue | 43,761 | 32,482 | 115,569 | 88,426 |
Expenses: | ' | ' | ' | ' |
Operating expense | 11,028 | 8,069 | 28,956 | 21,763 |
Hotel administrative expense | 3,359 | 2,491 | 8,967 | 6,887 |
Sales and marketing | 3,841 | 2,826 | 10,015 | 7,716 |
Utilities | 1,695 | 1,324 | 4,094 | 3,326 |
Repair and maintenance | 1,656 | 1,039 | 4,088 | 2,901 |
Franchise fees | 1,862 | 1,283 | 4,810 | 3,531 |
Management fees | 1,345 | 1,016 | 3,691 | 2,743 |
Property taxes, insurance and other | 2,959 | 1,834 | 7,822 | 5,880 |
General and administrative | 1,119 | 1,148 | 3,305 | 3,470 |
Acquisition related costs | 2,935 | 607 | 4,904 | 1,541 |
Depreciation expense | 5,748 | 4,094 | 15,082 | 11,582 |
Total expenses | 37,547 | 25,731 | 95,734 | 71,340 |
Operating income | 6,214 | 6,751 | 19,835 | 17,086 |
Investment income | 3,533 | 73 | 4,467 | 134 |
Interest expense | -1,478 | -1,213 | -3,802 | -3,596 |
Income before income taxes | 8,269 | 5,611 | 20,500 | 13,624 |
Income tax expense | -87 | -92 | -244 | -231 |
Net income | $8,182 | $5,519 | $20,256 | $13,393 |
Basic and diluted net income per common share (in Dollars per share) | $0.11 | $0.09 | $0.29 | $0.26 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 74,887 | 58,701 | 70,308 | 52,066 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $20,256 | $13,393 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation | 15,082 | 11,582 |
Amortization of deferred financing costs, fair value adjustments and other non-cash expenses, net | 197 | 140 |
Changes in operating assets and liabilities: | ' | ' |
Increase in due from third party managers, net | -4,050 | -3,344 |
(Increase) decrease in other assets, net | -927 | 156 |
Increase in accounts payable and accrued expenses | 1,930 | 1,109 |
Net cash provided by operating activities | 32,488 | 23,036 |
Cash flows used in investing activities: | ' | ' |
Cash paid for energy investment | -100,000 | 0 |
Cash paid for the acquisition of hotel properties | -177,379 | -51,226 |
Deposits and other disbursements for potential acquisitions, net | -1,528 | -72 |
Capital improvements | -6,543 | -5,241 |
Decrease in capital improvement reserves | 4,044 | 648 |
Investment in other assets | -1,450 | 0 |
Net cash used in investing activities | -282,856 | -55,891 |
Cash flows from financing activities: | ' | ' |
Net proceeds related to issuance of Units | 128,409 | 198,532 |
Redemptions of Units | -14,611 | -14,546 |
Distributions paid to common shareholders | -43,389 | -32,011 |
Net proceeds from credit facility | 35,103 | 0 |
Payments of notes payable | -1,144 | -1,048 |
Deferred financing costs | -530 | -132 |
Net cash provided by financing activities | 103,838 | 150,795 |
Increase (decrease) in cash and cash equivalents | -146,530 | 117,940 |
Cash and cash equivalents, beginning of period | 146,530 | 7,079 |
Cash and cash equivalents, end of period | 0 | 125,019 |
Non-cash transactions: | ' | ' |
Notes payable assumed in acquisitions | $0 | $13,067 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | ' |
1. Organization and Summary of Significant Accounting Policies | |
Organization | |
Apple REIT Ten, Inc. together with its wholly owned subsidiaries (the “Company”) is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company was formed to invest in hotels and other income-producing real estate in selected metropolitan areas in the United States. Initial capitalization occurred on August 13, 2010, when 10 Units, each Unit consisting of one common share and one Series A preferred share, were purchased by Apple Ten Advisors, Inc. (“A10A”) and 480,000 Series B convertible preferred shares, were purchased by Glade M. Knight, the Company’s Chairman and Chief Executive Officer. The Company began operations on March 4, 2011, when it purchased its first hotel. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has an interest in a variable interest entity through its energy investment and its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of the entity and does not share in any of its benefits, and therefore does not consolidate the entities. As of September 30, 2013, the Company owned 43 hotels located in 17 states with an aggregate of 5,452 rooms. | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its 2012 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2013. | |
Use of Estimates | |
The preparation of the financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Reclassifications | |
Certain amounts in the 2012 consolidated financial statements have been reclassified to conform with the 2013 presentation with no effect on previously reported net income or shareholders’ equity. | |
Restricted Cash | |
Restricted cash includes reserves for debt service, real estate taxes, and insurance, and reserves for furniture, fixtures, and equipment replacements of up to 5% of property revenue for certain hotels, as required by certain management or mortgage debt agreement restrictions and provisions. | |
Offering Costs | |
The Company is raising capital through an on-going best-efforts offering of Units by David Lerner Associates, Inc., the managing underwriter, which receives a selling commission and a marketing expense allowance based on proceeds of the Units sold. Additionally, the Company has incurred other offering costs including legal, accounting and reporting services. These offering costs are recorded by the Company as a reduction of shareholders’ equity. As of September 30, 2013, the Company had sold 79.5 million Units for gross proceeds of $869.6 million and proceeds net of offering costs of $779.6 million. Offering costs included $87.0 million in selling commissions and marketing expenses and $3.1 million in other offering costs. On January 4, 2013, the Board of Directors approved the extension of the offering until January 19, 2014. As a result, the offering will continue until all Units have been sold or until January 19, 2014, whichever occurs sooner. | |
Earnings Per Common Share | |
Basic earnings per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted earnings per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for the three and nine months ended September 30, 2013 or 2012. As a result, basic and diluted outstanding shares were the same. Series B convertible preferred shares are not included in earnings per common share calculations until such time that such shares are eligible to be converted to common shares. | |
Investment_in_Real_Estate
Investment in Real Estate | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||
Real Estate Disclosure [Text Block] | ' | ||||||||||||||||
2. Investment in Real Estate | |||||||||||||||||
The Company acquired 12 hotels during the first nine months of 2013. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price for each hotel. All dollar amounts are in thousands. | |||||||||||||||||
City | State | Brand | Manager | Date Acquired | Rooms | Gross Purchase Price | |||||||||||
Huntsville | AL | Hampton Inn & Suites | LBA | 3/14/13 | 98 | $ | 11,466 | ||||||||||
Huntsville | AL | Home2 Suites | LBA | 3/14/13 | 77 | 9,009 | |||||||||||
Fairfax | VA | Marriott | White | 3/15/13 | 310 | 34,000 | |||||||||||
Houston | TX | Residence Inn | Western | 6/7/13 | 120 | 18,000 | |||||||||||
Denton | TX | Homewood Suites | Chartwell | 7/26/13 | 107 | 11,300 | |||||||||||
Maple Grove | MN | Hilton Garden Inn | North Central | 7/26/13 | 120 | 12,675 | |||||||||||
Oklahoma City | OK | Homewood Suites | Chartwell | 7/26/13 | 90 | 11,500 | |||||||||||
Omaha | NE | Hampton Inn & Suites | North Central | 7/26/13 | 139 | 19,775 | |||||||||||
Omaha | NE | Homewood Suites | North Central | 7/26/13 | 123 | 17,625 | |||||||||||
Phoenix | AZ | Courtyard | North Central | 7/26/13 | 127 | 10,800 | |||||||||||
Phoenix | AZ | Hampton Inn & Suites | North Central | 7/26/13 | 125 | 8,600 | |||||||||||
Phoenix | AZ | Homewood Suites | North Central | 7/26/13 | 134 | 12,025 | |||||||||||
Total | 1,570 | $ | 176,775 | ||||||||||||||
The purchase price for these properties was funded by the Company’s on-going best-efforts offering of Units and borrowings under the Company’s unsecured revolving credit facility. The Company also used proceeds from its on-going best-efforts offering and borrowings under its unsecured revolving credit facility to pay approximately $4.9 million in acquisition related costs, including $3.5 million, representing 2% of the gross purchase price for these hotels, as a brokerage commission to Apple Suites Realty Group, Inc. (“ASRG”), 100% owned by Glade M. Knight, the Company’s Chairman and Chief Executive Officer, and approximately $1.4 million in other acquisition related costs, including title, legal and other related costs. These costs are included in acquisition related costs in the Company’s consolidated statements of operations for the nine months ended September 30, 2013. | |||||||||||||||||
For the 12 hotels acquired during the first nine months of 2013, the amount of revenue and operating income (excluding acquisition related costs totaling $4.8 million) included in the Company’s consolidated income statement from the acquisition date to the period ending September 30, 2013 was approximately $14.9 million and $2.2 million, respectively. | |||||||||||||||||
The Company leases all of its hotels to its wholly-owned taxable REIT subsidiary (or a subsidiary thereof) under master hotel lease agreements. | |||||||||||||||||
In connection with the acquisitions of the Phoenix, Arizona Hampton Inn & Suites and Homewood Suites hotels in July 2013, the Company assumed two land leases with remaining lease terms of 87 years. The leases were valued at below market rates and as a result the Company recorded in-place favorable lease assets totaling $0.6 million which are included in other assets in the Company’s consolidated balance sheets. The amounts are being amortized over the remaining lease terms. As of September 30, 2013 the remaining minimum lease payments are approximately $16.0 million. | |||||||||||||||||
No goodwill was recorded in connection with any of the acquisitions. | |||||||||||||||||
As of September 30, 2013, the Company owned 43 hotels, located in 17 states, consisting of the following: | |||||||||||||||||
Total by | Number of | ||||||||||||||||
Brand | Brand | Rooms | |||||||||||||||
Hilton Garden Inn | 10 | 1,563 | |||||||||||||||
Hampton Inn & Suites | 8 | 988 | |||||||||||||||
Homewood Suites | 8 | 870 | |||||||||||||||
TownePlace Suites | 4 | 388 | |||||||||||||||
Courtyard | 3 | 393 | |||||||||||||||
Fairfield Inn & Suites | 3 | 310 | |||||||||||||||
Home2 Suites | 3 | 304 | |||||||||||||||
SpringHill Suites | 2 | 206 | |||||||||||||||
Marriott | 1 | 310 | |||||||||||||||
Residence Inn | 1 | 120 | |||||||||||||||
43 | 5,452 | ||||||||||||||||
At September 30, 2013, the Company’s investment in real estate consisted of the following (in thousands): | |||||||||||||||||
Land | $ | 65,358 | |||||||||||||||
Building and Improvements | 597,957 | ||||||||||||||||
Furniture, Fixtures and Equipment | 45,736 | ||||||||||||||||
Franchise fees | 2,965 | ||||||||||||||||
712,016 | |||||||||||||||||
Less Accumulated Depreciation | (36,886 | ) | |||||||||||||||
Investment in real estate, net | $ | 675,130 | |||||||||||||||
As of September 30, 2013, the Company had outstanding contracts for the potential purchase of seven additional hotels for a total purchase price of $155.9 million. Of these seven hotels, four are under construction and should be completed over the next two to 12 months from September 30, 2013. Closing on these four hotels is expected upon completion of construction. The three existing hotels are expected to close within the next three months. Although the Company is working towards acquiring these hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that closings will occur under the outstanding purchase contracts. The following table summarizes the location, brand, number of rooms, refundable (if the seller does not meet its obligations under the contract) contract deposits paid, and gross purchase price for each of the contracts. All dollar amounts are in thousands. | |||||||||||||||||
Location | Brand | Rooms | Deposits Paid | Gross Purchase Price | |||||||||||||
Operating (a) | |||||||||||||||||
Colorado Springs, CO | Hampton Inn & Suites | 101 | $ | 200 | $ | 11,500 | (b) | ||||||||||
Franklin Cool Springs, TN | Courtyard | 126 | (c) | (c) | (b) | ||||||||||||
Franklin Cool Springs, TN | Residence Inn | 124 | (c) | (c) | (b) | ||||||||||||
Under Construction (d) | |||||||||||||||||
Dallas, TX | Homewood Suites | 130 | 200 | 25,350 | |||||||||||||
Fort Lauderdale, FL (e) | Residence Inn | 156 | 3 | 23,088 | |||||||||||||
Oklahoma City, OK | Hilton Garden Inn | 155 | (f) | (f) | |||||||||||||
Oklahoma City, OK | Homewood Suites | 100 | (f) | (f) | |||||||||||||
892 | $ | 1,103 | $ | 155,938 | |||||||||||||
(a) These hotels are currently operational and assuming all conditions to closing are met should close within three months from September 30, 2013. | |||||||||||||||||
(b) Purchase contracts for these hotels require the Company to assume approximately $38.8 million in mortgage debt. The loans provide for monthly payments of principal and interest on an amortized basis. | |||||||||||||||||
(c) The Courtyard and Residence Inn hotels in Franklin Cool Springs, TN are located on the same site. The two hotels are covered by the same purchase contract with a total gross purchase price of $51 million and an initial deposit of $400,000. These amounts are reflected in the total gross purchase price and deposits paid as indicated above. | |||||||||||||||||
(d) The hotels are currently under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise. Assuming all conditions to closing are met the purchase of these hotels should close over the next 2 to 12 months from September 30, 2013. | |||||||||||||||||
(e) If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing. | |||||||||||||||||
(f) The Hilton Garden Inn and Homewood Suites hotels in Oklahoma City, OK are part of an adjoining two-hotel complex that will be located on the same site. The two hotels are covered by the same purchase contract with a total gross purchase price of $45 million and deposits of $300,000. These amounts are reflected in the total gross purchase price and deposits paid as indicated above. | |||||||||||||||||
As there can be no assurance that all conditions to closing will be satisfied, the Company includes deposits paid for hotels under contract in other assets, net in the Company’s consolidated balance sheets, and in deposits and other disbursements for potential acquisitions in the Company’s consolidated statements of cash flows. It is anticipated that the purchase price (less any debt assumed) for the outstanding contracts will be funded from the proceeds of the Company’s on-going best-efforts offering of Units and borrowings under the Company’s credit facility if a closing occurs. | |||||||||||||||||
On November 1, 2011, the Company entered into a purchase contract for the potential acquisition of an adjoining Courtyard and TownePlace Suites hotel complex under development in Grapevine, Texas. On March 18, 2013, this contract was terminated. The gross purchase price for the hotels totaled $41.7 million. In connection with the termination of this contract, the initial deposit of $50,000 was repaid to the Company. | |||||||||||||||||
Energy_Investment
Energy Investment | 9 Months Ended |
Sep. 30, 2013 | |
Investments, Debt and Equity Securities [Abstract] | ' |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' |
3. Energy Investment | |
On June 7, 2013, the Company became the preferred member (the “Preferred Interest”) of Cripple Creek Energy, LLC (“CCE”) pursuant to the Limited Liability Company Agreement of CCE, dated June 6, 2013, between Eastern Colorado Holdings, LLC, as common member (“Common Member”) and Apple Ten Ventures Services, Inc., an indirect wholly-owned taxable subsidiary of the Company (“Preferred Member”). CCE is a newly formed entity that was formed solely for the purpose of acquiring, owning, managing, operating, developing, drilling and disposing of oil and gas leasehold acreage and producing and selling oil, gas and other minerals. The purchase price of the Preferred Interest was $100 million, of which $80 million was funded on June 7, 2013 and the remaining $20 million was funded on July 2, 2013. At the time of purchase, the purchase price approximated fair value. The terms of the Preferred Interest include a distribution to be paid monthly at an annual return of 10% of the Company’s “Energy Investment”, which includes the funded purchase price plus any unpaid deferred distributions, and a deferred distribution at an annual return of 4% of the Energy Investment to be paid at CCE’s option on each monthly distribution date or upon redemption of the Preferred Interest. CCE is required to redeem the Preferred Interest on June 1, 2014, but may elect to extend that date to June 1, 2015. CCE is also permitted to redeem the Preferred Interest in whole or in part at any time. The redemption price is the initial investment plus any unpaid current or deferred distributions. The Preferred Interest ranks senior to any other equity in CCE and CCE’s organizational documents limit its permitted indebtedness. The Common Member has guaranteed CCE’s payment obligations in connection with the Preferred Interest on a non-recourse basis and has pledged its common membership interest in CCE to secure the guaranty. | |
In accordance with the Accounting Standards Codification Topic on “Investments – Debt and Equity Securities,” the Company’s Energy Investment is classified as a held-to-maturity debt security and accounted for under the cost method. As of September 30, 2013, the carrying value of the Company’s Energy Investment was $100.3 million. For the three and nine months ended September 30, 2013, total distributions earned on the Energy Investment were $3.5 million and $4.3 million, including $2.5 million and $3.1 million of monthly distributions and $1.0 million and $1.2 million of deferred distributions, which are included in investment income in the Company’s consolidated statements of operations. | |
Credit_Facility
Credit Facility | 9 Months Ended | |
Sep. 30, 2013 | ||
Debt Disclosure [Abstract] | ' | |
Debt Disclosure [Text Block] | ' | |
4. Credit Facility | ||
On July 26, 2013, the Company entered into an unsecured revolving credit facility with a commercial bank in an initial amount of $75 million. On October 3, 2013, the credit agreement was amended to increase the amount of the facility to $100 million and to allow for future increases in the amount of the facility up to $150 million, subject to certain conditions. The credit facility will be utilized for acquisitions, hotel renovations, working capital and other general corporate funding purposes, including the payment of redemptions and distributions. Under the terms of the credit agreement, the Company may make voluntary prepayments in whole or in part, at any time. The credit facility matures in July 2015; however, the Company has the right, upon satisfaction of certain conditions, including covenant compliance and payment of an extension fee, to extend the maturity date to July 2016. Interest payments are due monthly and the interest rate, subject to certain exceptions, is equal to the one-month LIBOR (the London Inter-Bank Offered Rate for a one-month term) plus a margin ranging from 2.25% to 2.75%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. The Company is also required to pay an unused facility fee of 0.25% or 0.35% on the unused portion of the revolving credit facility, based on the amount of borrowings outstanding during each quarter. | ||
On the day of closing of the credit facility, the Company borrowed $54.0 million under the credit facility, of which $53.6 million was used to fund a portion of the aggregate purchase price of eight hotels that closed on July 26, 2013 and $0.4 million was used to pay loan origination costs, which are being amortized as interest expense through the July 2015 maturity date.As of September 30, 2013, the credit facility had an outstanding principal balance of $35.1 million and an annual interest rate of approximately 2.43%. | ||
The credit facility contains customary affirmative covenants, negative covenants and events of default. In addition, the credit facility contains covenants restricting the level of certain investments and the following quarterly financial covenants (capitalized terms are defined in the credit agreement): | ||
· | Minimum Net Worth shall not be less than $450 million; | |
· | Total Indebtedness to Total Asset Value must not exceed 50%; | |
· | Total Secured Indebtedness to Total Asset Value must not exceed 30%; | |
· | Ratio of Adjusted Net Operating Income to Fixed Charges for the four trailing quarters must equal or exceed two; | |
· | Ratio of Adjusted Net Operating Income attributable to Unencumbered Hotels to Implied Debt Service for the four trailing quarters must equal or exceed two; | |
· | Distributions cannot exceed $0.825 per share per year; | |
· | Additional Unsecured Indebtedness (other than this credit facility) shall not exceed $2.5 million; and | |
· | Unencumbered Leverage Ratio must be less than 45%. | |
The Company was in compliance with each of these covenants at September 30, 2013. | ||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
5. Fair Value of Financial Instruments | |
The Company estimates the fair value of its debt and Energy Investment by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity of an instrument with similar credit terms and credit characteristics, which are Level 3 inputs. Market rates take into consideration general market conditions and maturity. At September 30, 2013, the carrying value of the Company’s Energy Investment as discussed in note 3 approximated fair value. As of September 30, 2013, the carrying value and estimated fair value of the Company’s debt was approximately $115.1 million and $119.4 million. As of December 31, 2012, the carrying value and estimated fair value of the Company’s debt was $81.2 million and $85.8 million. The carrying value of the Company’s other financial instruments approximates fair value due to the short-term nature of these financial instruments. | |
Related_Parties
Related Parties | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
6. Related Parties | |
The Company has, and is expected to continue to engage in, significant transactions with related parties. These transactions cannot be construed to be at arm’s length and the results of the Company’s operations may be different if these transactions were conducted with non-related parties. The Company’s independent members of the Board of Directors oversee and annually review the Company’s related party relationships (which include the relationships discussed in this section) and are required to approve any significant modifications to the contracts, as well as any new significant related party transactions. There were no changes to the contracts discussed in this section and no new significant related party transactions during the nine months ended September 30, 2013 (other than the transactions related to the completion of Apple REIT Six, Inc.’s merger with a third party, the Company’s Energy Investment, and Apple REIT Nine, Inc.’s subcontract agreement with Apple Ten Advisors, Inc. discussed below). The Board of Directors is not required to approve each individual transaction that falls under the related party relationships. However, under the direction of the Board of Directors, at least one member of the Company’s senior management team approves each related party transaction. | |
The term the “Apple REIT Entities” means Apple REIT Six, Inc. (“Apple Six”), Apple REIT Seven, Inc. (“Apple Seven”), Apple REIT Eight, Inc. (“Apple Eight”), Apple REIT Nine, Inc. (“Apple Nine”) and Apple REIT Ten, Inc. (“Apple Ten”). The term the “Advisors” means Apple Six Advisors, Inc., Apple Seven Advisors, Inc., Apple Eight Advisors, Inc., Apple Nine Advisors, Inc. (“A9A”), Apple Ten Advisors, Inc. (“A10A”), Apple Suites Realty Group, Inc. (“ASRG”) and Apple Six Realty Group, Inc. The Advisors are wholly owned by Glade M. Knight, Chairman and Chief Executive Officer of the Company. Mr. Knight is also Chairman and Chief Executive Officer of Apple Seven, Apple Eight and Apple Nine. Another member of the Company’s Board of Directors is also on the Board of Directors of Apple Seven and Apple Eight. | |
On May 14, 2013, Apple Six merged with and into an entity that is not affiliated with the Apple REIT Entities or the Advisors. Pursuant to the terms and conditions of the merger agreement, dated as of November 29, 2012, upon completion of the merger, the separate corporate existence of Apple Six ceased (the “A6 Merger”). Prior to the A6 Merger, Glade M. Knight was Chairman and Chief Executive Officer of Apple Six. | |
ASRG Agreement | |
The Company has a contract with ASRG, to acquire and dispose of real estate assets for the Company. A fee of 2% of the gross purchase price or gross sale price in addition to certain reimbursable expenses is paid to ASRG for these services. As of September 30, 2013, payments to ASRG for fees under the terms of this contract have totaled approximately $13.9 million since inception. Of this amount, the Company incurred $3.5 million and $1.2 million for the nine months ended September 30, 2013 and 2012, which is included in acquisition related costs in the Company’s consolidated statements of operations. | |
A10A Agreement | |
The Company is party to an advisory agreement with A10A, pursuant to which A10A provides management services to the Company. A10A provides these management services through Apple Fund Management LLC (“AFM”), which immediately after the A6 Merger became a wholly-owned subsidiary of A9A. This transaction between A9A and Apple Six was made with no cash consideration exchanged between the entities. Prior to May 14, 2013, AFM was a wholly-owned subsidiary of Apple Six. An annual fee ranging from 0.1% to 0.25% of total equity proceeds received by the Company, in addition to certain reimbursable expenses as described below, are payable to A10A for these management services. Total advisory fees incurred by the Company under the advisory agreement are included in general and administrative expenses and totaled approximately $0.6 million and $0.4 million for the nine months ended September 30, 2013 and 2012, respectively. | |
On August 8, 2013, Apple Seven, Apple Eight and Apple Nine announced that they have entered into an Agreement and Plan of Merger, as amended, (the “Merger Agreement”) pursuant to which Apple Seven and Apple Eight will merge into Apple Nine in two merger transactions (the “Mergers”), and that as a result of this transaction, Apple Nine will become self-advised and each of Apple Seven, Apple Eight and Apple Nine will terminate its advisory agreements with its advisors. Concurrently with the execution of the Merger Agreement, on August 7, 2013, Apple Nine entered into a subcontract agreement, as amended, (the “Subcontract Agreement”) with A10A. Pursuant to the Subcontract Agreement, A10A will subcontract its obligations under the advisory agreement between A10A and the Company (the “Advisory Agreement”) to Apple Nine. The Subcontract Agreement provides that, from and after the effective time of the Mergers, Apple Nine will provide to the Company the advisory services contemplated under the Advisory Agreement and Apple Nine will receive the fees and expenses payable under the Advisory Agreement from the Company. The Company also signed the Subcontract Agreement to acknowledge the terms of the Subcontract Agreement. The Subcontract Agreement has no effect on the Company’s contract with A10A. | |
Apple REIT Entities and Advisors Cost Sharing Structure | |
In addition to the fees payable to ASRG and A10A, the Company reimbursed to ASRG or A10A, or paid directly to AFM or Apple Nine on behalf of ASRG or A10A, approximately $1.3 million and $1.2 million for the nine months ended September 30, 2013 and 2012. The expenses reimbursed were approximately $0.4 million and $0.4 million, respectively, for costs reimbursed under the contract with ASRG and approximately $0.9 million and $0.8 million, respectively, for costs reimbursed under the contract with A10A in each period. The costs are included in general and administrative expenses and are for the Company’s allocated share of the staffing and related costs provided by AFM and Apple Nine at the direction of A10A. | |
AFM is an affiliate of each of the Advisors. Each of the Advisors provides management services through the use of AFM to, respectively, Apple Six (prior to the A6 Merger), Apple Seven, Apple Eight, Apple Nine and Apple Ten. In connection with the A6 Merger, effective May 14, 2013, the entire membership interest of Apple Six in AFM was transferred and assigned to A9A, which then became the sole member of AFM. As part of the assignment, A9A and the other Advisors agreed to indemnify the buyer of Apple Six for liabilities related to AFM. The assignment of AFM’s interest to A9A had no impact on the Company’s advisory agreement with A10A or the process of allocating costs from AFM to the Apple REIT Entities or Advisors as described below, except Apple Six and its advisors, Apple Six Advisors, Inc. and Apple Six Realty Group, Inc. (collectively “A6 Advisors”), no longer participate in the cost sharing arrangement, thereby increasing the remaining companies’ share of the allocated costs. | |
Also, in connection with the A6 Merger, on May 13, 2013, Apple Nine acquired from Apple Six the Apple REIT Entities’ and Advisors’ headquarters in Richmond, Virginia (“Headquarters”) and assumed the Fort Worth, Texas office lease agreement. As described below, any costs associated with the Headquarters and office lease, including office rent, utilities, office supplies, etc. (“Office Related Costs”) will continue to be allocated to the Apple REIT Entities and Advisors, excluding Apple Six and A6 Advisors. | |
Prior to the A6 Merger, amounts reimbursed to AFM included both compensation for personnel and Office Related Costs used by the companies. As discussed above, as a result of the A6 Merger, beginning on May 14, 2013, Office Related Costs are now allocated from Apple Nine to the other Apple REIT Entities and Advisors, excluding Apple Six and A6 Advisors. Each of these companies has agreed to reimburse Apple Nine for its share of these costs. From the period May 14, 2013 through September 30, 2013, the Company reimbursed Apple Nine approximately $0.1 million (included above in the total costs of $1.3 million related to the Company’s agreements with A10A and ASRG) for its share of Office Related Costs, which are included in general and administrative costs in the Company’s consolidated statements of operations. | |
All of the Office Related Costs and costs of AFM are allocated among the Apple REIT Entities and the Advisors, excluding Apple Six and A6 Advisors after the A6 Merger. The allocation of costs is reviewed at least annually by the Compensation Committees of the Apple REIT Entities. In making the allocation, management of each of the entities and their Compensation Committee consider all relevant facts related to each company’s level of business activity and the extent to which each company requires the services of particular personnel of AFM. Such payments are based on the actual costs of the services and are not based on formal record keeping regarding the time these personnel devote to the Company, but are based on a good faith estimate by the employee and/or his or her supervisor of the time devoted by the employee to the Company. Although there is a potential conflict on time allocation of employees due to the fact that a senior manager, officer or staff member will provide services to more than one company, the Company believes that the executives and staff compensation sharing arrangement described more fully below allows the companies to share costs yet attract and retain superior executives and staff. The cost sharing structure also allows each entity to maintain a much more cost effective structure than having separate staffing arrangements. Since the employees of AFM perform services for the Apple REIT Entities and Advisors at the direction of the Advisors, individuals, including executive officers, receive their compensation at the direction of the Advisors and may receive consideration directly from the Advisors. | |
As part of the cost sharing arrangements, the day-to-day transactions may result in amounts due to or from the Apple REIT Entities and Advisors (excluding Apple Six and A6 Advisors after the A6 Merger). To efficiently manage cash disbursements, an individual Apple REIT Entity or Advisor (excluding Apple Six and A6 Advisors after the A6 Merger) may make payments for any or all of the related companies. The amounts due to or from the related Apple REIT Entity or Advisor (excluding Apple Six and A6 Advisors after the A6 Merger) are reimbursed or collected and are not significant in amount. | |
The Company has incurred legal fees associated with the Legal Proceedings discussed herein. The Company also incurs other professional fees such as accounting, auditing and reporting. These fees are included in general and administrative expense in the Company’s consolidated statements of operations. To be cost effective, these services received by the Company are shared as applicable across the other Apple REIT Entities. The professionals cannot always specifically identify their fees for one company; therefore management allocates these costs across the companies that benefit from the services. The total costs for the Legal Proceedings discussed herein for all of the Apple REIT Entities (excluding Apple Six after the A6 Merger) was approximately $2.2 million for the first nine months of 2013, of which approximately $0.2 million was allocated to the Company. Total costs for the nine months ended September 30, 2012 for all of the Apple REIT Entities was approximately $5.7 million, of which approximately $0.7 million was allocated to the Company. | |
Apple Air Holding, LLC (“Apple Air”) Membership Interest | |
Included in other assets, net on the Company’s consolidated balance sheet as of September 30, 2013 is a 26% equity investment in Apple Air. The other current members of Apple Air are Apple Seven, Apple Eight and Apple Nine. In connection with the A6 Merger, on May 13, 2013, the Company acquired its membership interest in Apple Air from Apple Six for approximately $1.45 million. The membership interest includes all rights and obligations previously held by Apple Six under Apple Air’s operating agreement. Also as part of the purchase, the Company agreed to indemnify the buyer of Apple Six for any liabilities related to the membership interest. The Company’s equity investment was approximately $1.3 million as of September 30, 2013. The Company has recorded its share of income and losses of the entity under the equity method of accounting and adjusted its investment in Apple Air accordingly. For the nine months ended September 30, 2013, the Company recorded a loss of approximately $109,000 as its share of the net loss of Apple Air, which primarily relates to the depreciation of the aircraft, and is included in general and administrative expense in the Company’s consolidated statements of operations. Through its equity investment, the Company has access to Apple Air’s aircraft for acquisition, asset management and renovation purposes. Additionally, prior to May 13, 2013, the Company, on occasion, used the Learjet owned by Apple Air for acquisition, asset management and renovation purposes. Total costs paid for the usage of the aircraft for the nine months ended September 30, 2013 and 2012 were $218,000 and $133,000. | |
Energy Investment | |
The Company’s Preferred Interest investment in CCE was identified by an unaffiliated entity in which one of the Company’s Board of Directors is a partner. The entity earned a finder’s fee from the Common Member. | |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||||||
7. Shareholders’ Equity | |||||||||||||
Series B Convertible Preferred Stock | |||||||||||||
The Company has issued 480,000 Series B convertible preferred shares to Glade M. Knight, Chairman and Chief Executive Officer of the Company, in exchange for the payment by him of $0.10 per Series B convertible preferred share, or an aggregate of $48,000. The Series B convertible preferred shares are convertible into common shares pursuant to the formula and on the terms and conditions set forth below. | |||||||||||||
There are no dividends payable on the Series B convertible preferred shares. Holders of more than two-thirds of the Series B convertible preferred shares must approve any proposed amendment to the articles of incorporation that would adversely affect the Series B convertible preferred shares. | |||||||||||||
Upon the Company’s liquidation, the holder of the Series B convertible preferred shares is entitled to a priority liquidation payment before any distribution of liquidation proceeds to the holders of the common shares. However, the priority liquidation payment of the holder of the Series B convertible preferred shares is junior to the holders of the Series A preferred shares’ distribution rights. The holder of a Series B convertible preferred share is entitled to a liquidation payment of $11.00 per number of common shares each Series B convertible preferred share would be convertible into according to the formula described below. In the event that the liquidation of the Company’s assets results in proceeds that exceed the distribution rights of the Series A preferred shares and the Series B convertible preferred shares, the remaining proceeds will be distributed between the common shares and the Series B convertible preferred shares, on an as converted basis. | |||||||||||||
Each holder of outstanding Series B convertible preferred shares shall have the right to convert any of such shares into common shares of the Company upon and for 180 days following the occurrence of any of the following events: | |||||||||||||
(1) substantially all of the Company’s assets, stock or business is sold or transferred through exchange, merger, consolidation, lease, share exchange, sale or otherwise, other than a sale of assets in liquidation, dissolution or winding up of the Company; | |||||||||||||
(2) the termination or expiration without renewal of the advisory agreement with A10A, or if the Company ceases to use ASRG to provide property acquisition and disposition services; or | |||||||||||||
(3) the Company’s common shares are listed on any securities exchange or quotation system or in any established market. | |||||||||||||
Upon the occurrence of any conversion event, each Series B convertible preferred share may be converted into a number of common shares based upon the gross proceeds raised through the date of conversion in the Company’s $2 billion offering according to the following table: | |||||||||||||
Gross Proceeds Raised from Sales of | Number of Common Shares | ||||||||||||
Units through Date of Conversion | through Conversion of | ||||||||||||
One Series B Convertible Preferred Share | |||||||||||||
$800 million | 9.70287 | ||||||||||||
$900 million | 10.90855 | ||||||||||||
$ 1 billion | 12.11423 | ||||||||||||
$ 1.1 billion | 13.31991 | ||||||||||||
$ 1.2 billion | 14.52559 | ||||||||||||
$ 1.3 billion | 15.73128 | ||||||||||||
$ 1.4 billion | 16.93696 | ||||||||||||
$ 1.5 billion | 18.14264 | ||||||||||||
$ 1.6 billion | 19.34832 | ||||||||||||
$ 1.7 billion | 20.554 | ||||||||||||
$ 1.8 billion | 21.75968 | ||||||||||||
$ 1.9 billion | 22.96537 | ||||||||||||
$ 2 billion | 24.17104 | ||||||||||||
In the event that after raising gross proceeds of $2 billion, the Company raises additional gross proceeds in a subsequent public offering, each Series B convertible preferred share may be converted into an additional number of common shares based on the additional gross proceeds raised through the date of conversion in a subsequent public offering according to the following formula: (X/100 million) x 1.20568, where X is the additional gross proceeds rounded down to the nearest $100 million. | |||||||||||||
No additional consideration is due upon the conversion of the Series B convertible preferred shares. The conversion into common shares of the Series B convertible preferred shares will result in dilution of the shareholders’ interests and the termination of the Series A preferred shares. | |||||||||||||
Expense related to the issuance of 480,000 Series B convertible preferred shares to Mr. Knight will be recognized at such time when the number of common shares to be issued for conversion of the Series B convertible preferred shares can be reasonably estimated and the event triggering the conversion of the Series B convertible preferred shares to common shares occurs. The expense will be measured as the difference between the fair value of the common stock for which the Series B convertible preferred shares can be converted and the amounts paid for the Series B convertible preferred shares. Although the fair market value cannot be determined at this time, expense if the maximum offering is achieved could range from $0 to in excess of $127 million (assumes $11 per common share fair market value). Based on equity raised through September 30, 2013, if a triggering event had occurred, expense would have ranged from $0 to $51.2 million (assumes $11 per common share fair market value) and approximately 4.7 million common shares would have been issued. | |||||||||||||
Unit Redemption Program | |||||||||||||
In April 2012, the Company instituted a Unit Redemption Program to provide limited interim liquidity to its shareholders who have held their Units for at least one year. Shareholders may request redemption of Units for a purchase price equal to 92.5% of the price paid per Unit if the Units have been owned for less than five years, or 100% of the price paid per Unit if the Units have been owned more than five years. The maximum number of Units that may be redeemed in any given year is three percent (3%) of the weighted average number of Units outstanding during the 12-month period immediately prior to the date of redemption. The Company reserves the right to change the purchase price of redemptions, reject any request for redemption, or otherwise amend the terms of, suspend, or terminate the Unit Redemption Program. Since the inception of the program through September 30, 2013, the Company has redeemed approximately 2.9 million Units in the amount of $29.7 million, including 1.4 million Units in the amount of $14.6 million and 1.4 million Units in the amount of $14.5 million during the nine months ended September 30, 2013 and 2012. As contemplated in the program, beginning with the October 2012 redemption, the scheduled redemption date for the fourth quarter of 2012, through the April 2013 redemption, the scheduled redemption date for the second quarter of 2013, the Company redeemed Units on a pro-rata basis due to the 3% limitation discussed above. Prior to October 2012 and in July 2013, the scheduled redemption date for the third quarter of 2013, the Company redeemed 100% of redemption requests. The following is a summary of the Unit redemptions during 2012 and the first nine months of 2013: | |||||||||||||
Redemption Date | Total Requested Unit | Units Redeemed | Total Redemption | ||||||||||
Redemptions at | Requests Not | ||||||||||||
Redemption Date | Redeemed at | ||||||||||||
Redemption Date | |||||||||||||
Second Quarter 2012 | 474,466 | 474,466 | 0 | ||||||||||
Third Quarter 2012 | 961,236 | 961,236 | 0 | ||||||||||
Fourth Quarter 2012 | 617,811 | 46,889 | 570,922 | ||||||||||
First Quarter 2013 | 938,026 | 114,200 | 823,826 | ||||||||||
Second Quarter 2013 | 1,063,625 | 637,779 | 425,846 | ||||||||||
Third Quarter 2013 | 677,855 | 677,855 | 0 | ||||||||||
Distributions | |||||||||||||
The Company’s annual distribution rate as of September 30, 2013 was $0.825 per common share, payable monthly. For the three months ended September 30, 2013 and 2012, the Company made distributions of $0.20625 per common share for a total of $15.4 million and $12.1 million. For the nine months ended September 30, 2013 and 2012, the Company made distributions of $0.61875 per common share for a total of $43.4 million and $32.0 million. | |||||||||||||
Pro_Forma_Information
Pro Forma Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||||||||||
8. Pro Forma Information | |||||||||||||||||
The following unaudited pro forma information for the nine months ended September 30, 2013 and 2012 is presented as if the acquisitions of the Company’s hotels acquired after December 31, 2011 had occurred on the latter of January 1, 2012 or the opening date of the hotel (six of the Company’s hotels opened after January 1, 2012). The pro forma information does not purport to represent what the Company’s results of operations would actually have been if such transactions, in fact, had occurred on these applicable dates, nor does it purport to represent the results of operations for future periods. Amounts are in thousands, except per share data. | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenues | $ | 45,630 | $ | 43,313 | $ | 136,617 | $ | 123,537 | |||||||||
Net income | 11,351 | 7,299 | 28,986 | 15,244 | |||||||||||||
Net income per share - basic and diluted | $ | 0.15 | $ | 0.11 | $ | 0.4 | $ | 0.25 | |||||||||
The pro forma information reflects adjustments for actual revenues and expenses of the 17 hotels acquired during 2012 and 2013 for the respective period owned prior to acquisition by the Company. Net income has been adjusted as follows: (1) interest income and expense has been adjusted to reflect the reduction in cash and cash equivalents required to fund the acquisitions; (2) interest expense related to prior owner’s debt which was not assumed has been eliminated; (3) depreciation has been adjusted based on the Company’s basis in the hotels; and (4) transaction costs have been adjusted for the acquisition of existing businesses. | |||||||||||||||||
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
9. Legal Proceedings | |
On December 13, 2011, the United States District Court for the Eastern District of New York ordered that three putative class actions, Kronberg, et al. v. David Lerner Associates, Inc., et al., Kowalski v. Apple REIT Ten, Inc., et al., and Leff v. Apple REIT Ten, Inc., et al., be consolidated and amended the caption of the consolidated matter to be In re Apple REITs Litigation. The District Court also appointed lead plaintiffs and lead counsel for the consolidated action and ordered lead plaintiffs to file and serve a consolidated complaint by February 17, 2012. The Company was previously named as a party in all three of the above mentioned class action lawsuits. | |
On February 17, 2012, lead plaintiffs and lead counsel in the In re Apple REITs Litigation, Civil Action No. 1:11-cv-02919-KAM-JO, filed an amended consolidated complaint in the United States District Court for the Eastern District of New York against the Company, Apple Suites Realty Group, Inc., Apple Eight Advisors, Inc., Apple Nine Advisors, Inc., Apple Ten Advisors, Inc., Apple Fund Management, LLC, Apple REIT Six, Inc., Apple REIT Seven, Inc., Apple REIT Eight, Inc. and Apple REIT Nine, Inc., their directors and certain officers, and David Lerner Associates, Inc. and David Lerner. The consolidated complaint, which was dismissed in April 2013, was purportedly brought on behalf of all purchasers of Units in the Company and the other Apple REIT Entities, or those who otherwise acquired these Units that were offered and sold to them by David Lerner Associates, Inc., or its affiliates and on behalf of subclasses of shareholders in New Jersey, New York, Connecticut and Florida, and alleges that the Apple REIT Entities “misrepresented the investment objectives of the Apple REITs, the dividend payment policy of the Apple REITs, and the value of their Apple REIT investments.” The consolidated complaint asserts claims under Sections 11, 12 and 15 of the Securities Act of 1933, as well as claims for breach of fiduciary duty, aiding and abetting breach of fiduciary duty, negligence, and unjust enrichment, and claims for violation of the securities laws of Connecticut and Florida. The complaint seeks, among other things, certification of a putative nationwide class and the state subclasses, damages, rescission of share purchases and other costs and expenses. | |
On April 18, 2012, the Company, and the other defendants moved to dismiss the consolidated complaint in the In re Apple REITs Litigation. By Order entered on March 31, 2013 and opinion issued on April 3, 2013, the Court dismissed the consolidated complaint in its entirety with prejudice and without leave to amend. Plaintiffs filed a Notice of Appeal to the Second Circuit Court of Appeals on April 12, 2013, and filed their Brief for Plaintiffs-Appellants on July 26, 2013. Defendants-Appellees filed their Briefs on October 25, 2013. The Company believes that Plaintiffs’ claims against it, its officers and directors and other Apple REIT Entities were properly dismissed by the lower court, and intends to vigorously defend the judgment as entered. In the event some or all of Plaintiffs’ claims are revived as a result of Plaintiffs’ appeal, the Company will, once again, defend against them vigorously. At this time, the Company cannot reasonably predict the outcome of these proceedings or provide a reasonable estimate of the possible loss or range of loss due to these proceedings, if any. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
10. Subsequent Events | |
In October 2013, the Company declared and paid approximately $5.3 million, or $0.06875 per outstanding common share, in distributions to its common shareholders. | |
In October 2013, under the guidelines of the Company’s Unit Redemption Program, the Company redeemed approximately 0.6 million Units in the amount of $6.2 million, representing 100% of the requested Unit redemptions. | |
During October 2013, the Company closed on the issuance of approximately 0.9 million Units through its on-going best-efforts offering, representing gross proceeds to the Company of approximately $9.8 million and proceeds net of selling and marketing costs of approximately $8.8 million. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Organization | |
Apple REIT Ten, Inc. together with its wholly owned subsidiaries (the “Company”) is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company was formed to invest in hotels and other income-producing real estate in selected metropolitan areas in the United States. Initial capitalization occurred on August 13, 2010, when 10 Units, each Unit consisting of one common share and one Series A preferred share, were purchased by Apple Ten Advisors, Inc. (“A10A”) and 480,000 Series B convertible preferred shares, were purchased by Glade M. Knight, the Company’s Chairman and Chief Executive Officer. The Company began operations on March 4, 2011, when it purchased its first hotel. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has an interest in a variable interest entity through its energy investment and its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of the entity and does not share in any of its benefits, and therefore does not consolidate the entities. As of September 30, 2013, the Company owned 43 hotels located in 17 states with an aggregate of 5,452 rooms. | |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its 2012 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2013. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of the financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
Certain amounts in the 2012 consolidated financial statements have been reclassified to conform with the 2013 presentation with no effect on previously reported net income or shareholders’ equity. | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Restricted Cash | |
Restricted cash includes reserves for debt service, real estate taxes, and insurance, and reserves for furniture, fixtures, and equipment replacements of up to 5% of property revenue for certain hotels, as required by certain management or mortgage debt agreement restrictions and provisions. | |
Offering Costs [Policy Text Block] | ' |
Offering Costs | |
The Company is raising capital through an on-going best-efforts offering of Units by David Lerner Associates, Inc., the managing underwriter, which receives a selling commission and a marketing expense allowance based on proceeds of the Units sold. Additionally, the Company has incurred other offering costs including legal, accounting and reporting services. These offering costs are recorded by the Company as a reduction of shareholders’ equity. As of September 30, 2013, the Company had sold 79.5 million Units for gross proceeds of $869.6 million and proceeds net of offering costs of $779.6 million. Offering costs included $87.0 million in selling commissions and marketing expenses and $3.1 million in other offering costs. On January 4, 2013, the Board of Directors approved the extension of the offering until January 19, 2014. As a result, the offering will continue until all Units have been sold or until January 19, 2014, whichever occurs sooner. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings Per Common Share | |
Basic earnings per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted earnings per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for the three and nine months ended September 30, 2013 or 2012. As a result, basic and diluted outstanding shares were the same. Series B convertible preferred shares are not included in earnings per common share calculations until such time that such shares are eligible to be converted to common shares. |
Investment_in_Real_Estate_Tabl
Investment in Real Estate (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | 'The Company acquired 12 hotels during the first nine months of 2013. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price for each hotel. All dollar amounts are in thousands. | ||||||||||||||||
City | State | Brand | Manager | Date Acquired | Rooms | Gross Purchase Price | |||||||||||
Huntsville | AL | Hampton Inn & Suites | LBA | 3/14/13 | 98 | $ | 11,466 | ||||||||||
Huntsville | AL | Home2 Suites | LBA | 3/14/13 | 77 | 9,009 | |||||||||||
Fairfax | VA | Marriott | White | 3/15/13 | 310 | 34,000 | |||||||||||
Houston | TX | Residence Inn | Western | 6/7/13 | 120 | 18,000 | |||||||||||
Denton | TX | Homewood Suites | Chartwell | 7/26/13 | 107 | 11,300 | |||||||||||
Maple Grove | MN | Hilton Garden Inn | North Central | 7/26/13 | 120 | 12,675 | |||||||||||
Oklahoma City | OK | Homewood Suites | Chartwell | 7/26/13 | 90 | 11,500 | |||||||||||
Omaha | NE | Hampton Inn & Suites | North Central | 7/26/13 | 139 | 19,775 | |||||||||||
Omaha | NE | Homewood Suites | North Central | 7/26/13 | 123 | 17,625 | |||||||||||
Phoenix | AZ | Courtyard | North Central | 7/26/13 | 127 | 10,800 | |||||||||||
Phoenix | AZ | Hampton Inn & Suites | North Central | 7/26/13 | 125 | 8,600 | |||||||||||
Phoenix | AZ | Homewood Suites | North Central | 7/26/13 | 134 | 12,025 | |||||||||||
Total | 1,570 | $ | 176,775 | ||||||||||||||
Schedule of Real Estate Properties [Table Text Block] | 'As of September 30, 2013, the Company owned 43 hotels, located in 17 states, consisting of the following: | ||||||||||||||||
Total by | Number of | ||||||||||||||||
Brand | Brand | Rooms | |||||||||||||||
Hilton Garden Inn | 10 | 1,563 | |||||||||||||||
Hampton Inn & Suites | 8 | 988 | |||||||||||||||
Homewood Suites | 8 | 870 | |||||||||||||||
TownePlace Suites | 4 | 388 | |||||||||||||||
Courtyard | 3 | 393 | |||||||||||||||
Fairfield Inn & Suites | 3 | 310 | |||||||||||||||
Home2 Suites | 3 | 304 | |||||||||||||||
SpringHill Suites | 2 | 206 | |||||||||||||||
Marriott | 1 | 310 | |||||||||||||||
Residence Inn | 1 | 120 | |||||||||||||||
43 | 5,452 | ||||||||||||||||
Property, Plant and Equipment [Table Text Block] | 'At September 30, 2013, the Company’s investment in real estate consisted of the following (in thousands): | ||||||||||||||||
Land | $ | 65,358 | |||||||||||||||
Building and Improvements | 597,957 | ||||||||||||||||
Furniture, Fixtures and Equipment | 45,736 | ||||||||||||||||
Franchise fees | 2,965 | ||||||||||||||||
712,016 | |||||||||||||||||
Less Accumulated Depreciation | (36,886 | ) | |||||||||||||||
Investment in real estate, net | $ | 675,130 | |||||||||||||||
Outstanding Contracts for Potential Purchase of Notes [Table Text Block] | 'As of September 30, 2013, the Company had outstanding contracts for the potential purchase of seven additional hotels for a total purchase price of $155.9 million. Of these seven hotels, four are under construction and should be completed over the next two to 12 months from September 30, 2013. Closing on these four hotels is expected upon completion of construction. The three existing hotels are expected to close within the next three months. Although the Company is working towards acquiring these hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that closings will occur under the outstanding purchase contracts. The following table summarizes the location, brand, number of rooms, refundable (if the seller does not meet its obligations under the contract) contract deposits paid, and gross purchase price for each of the contracts. All dollar amounts are in thousands. | ||||||||||||||||
Location | Brand | Rooms | Deposits Paid | Gross Purchase Price | |||||||||||||
Operating (a) | |||||||||||||||||
Colorado Springs, CO | Hampton Inn & Suites | 101 | $ | 200 | $ | 11,500 | (b) | ||||||||||
Franklin Cool Springs, TN | Courtyard | 126 | (c) | (c) | (b) | ||||||||||||
Franklin Cool Springs, TN | Residence Inn | 124 | (c) | (c) | (b) | ||||||||||||
Under Construction (d) | |||||||||||||||||
Dallas, TX | Homewood Suites | 130 | 200 | 25,350 | |||||||||||||
Fort Lauderdale, FL (e) | Residence Inn | 156 | 3 | 23,088 | |||||||||||||
Oklahoma City, OK | Hilton Garden Inn | 155 | (f) | (f) | |||||||||||||
Oklahoma City, OK | Homewood Suites | 100 | (f) | (f) | |||||||||||||
892 | $ | 1,103 | $ | 155,938 | |||||||||||||
(a) These hotels are currently operational and assuming all conditions to closing are met should close within three months from September 30, 2013. | |||||||||||||||||
(b) Purchase contracts for these hotels require the Company to assume approximately $38.8 million in mortgage debt. The loans provide for monthly payments of principal and interest on an amortized basis. | |||||||||||||||||
(c) The Courtyard and Residence Inn hotels in Franklin Cool Springs, TN are located on the same site. The two hotels are covered by the same purchase contract with a total gross purchase price of $51 million and an initial deposit of $400,000. These amounts are reflected in the total gross purchase price and deposits paid as indicated above. | |||||||||||||||||
(d) The hotels are currently under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise. Assuming all conditions to closing are met the purchase of these hotels should close over the next 2 to 12 months from September 30, 2013. | |||||||||||||||||
(e) If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing. | |||||||||||||||||
(f) The Hilton Garden Inn and Homewood Suites hotels in Oklahoma City, OK are part of an adjoining two-hotel complex that will be located on the same site. The two hotels are covered by the same purchase contract with a total gross purchase price of $45 million and deposits of $300,000. These amounts are reflected in the total gross purchase price and deposits paid as indicated above. |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Shareholders' Equity (Tables) [Line Items] | ' | ||||||||||||
Summary of Unit Redemptions [Table Text Block] | 'The following is a summary of the Unit redemptions during 2012 and the first nine months of 2013: | ||||||||||||
Redemption Date | Total Requested Unit | Units Redeemed | Total Redemption | ||||||||||
Redemptions at | Requests Not | ||||||||||||
Redemption Date | Redeemed at | ||||||||||||
Redemption Date | |||||||||||||
Second Quarter 2012 | 474,466 | 474,466 | 0 | ||||||||||
Third Quarter 2012 | 961,236 | 961,236 | 0 | ||||||||||
Fourth Quarter 2012 | 617,811 | 46,889 | 570,922 | ||||||||||
First Quarter 2013 | 938,026 | 114,200 | 823,826 | ||||||||||
Second Quarter 2013 | 1,063,625 | 637,779 | 425,846 | ||||||||||
Third Quarter 2013 | 677,855 | 677,855 | 0 | ||||||||||
Series B Convertible Preferred Stock [Member] | ' | ||||||||||||
Shareholders' Equity (Tables) [Line Items] | ' | ||||||||||||
Schedule of Conversion of Preferred Stock to Common Stock | 'Upon the occurrence of any conversion event, each Series B convertible preferred share may be converted into a number of common shares based upon the gross proceeds raised through the date of conversion in the Company’s $2 billion offering according to the following table: | ||||||||||||
Gross Proceeds Raised from Sales of | Number of Common Shares | ||||||||||||
Units through Date of Conversion | through Conversion of | ||||||||||||
One Series B Convertible Preferred Share | |||||||||||||
$800 million | 9.70287 | ||||||||||||
$900 million | 10.90855 | ||||||||||||
$ 1 billion | 12.11423 | ||||||||||||
$ 1.1 billion | 13.31991 | ||||||||||||
$ 1.2 billion | 14.52559 | ||||||||||||
$ 1.3 billion | 15.73128 | ||||||||||||
$ 1.4 billion | 16.93696 | ||||||||||||
$ 1.5 billion | 18.14264 | ||||||||||||
$ 1.6 billion | 19.34832 | ||||||||||||
$ 1.7 billion | 20.554 | ||||||||||||
$ 1.8 billion | 21.75968 | ||||||||||||
$ 1.9 billion | 22.96537 | ||||||||||||
$ 2 billion | 24.17104 |
Pro_Forma_Information_Tables
Pro Forma Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | 'The following unaudited pro forma information for the nine months ended September 30, 2013 and 2012 is presented as if the acquisitions of the Company’s hotels acquired after December 31, 2011 had occurred on the latter of January 1, 2012 or the opening date of the hotel (six of the Company’s hotels opened after January 1, 2012). The pro forma information does not purport to represent what the Company’s results of operations would actually have been if such transactions, in fact, had occurred on these applicable dates, nor does it purport to represent the results of operations for future periods. Amounts are in thousands, except per share data. | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenues | $ | 45,630 | $ | 43,313 | $ | 136,617 | $ | 123,537 | |||||||||
Net income | 11,351 | 7,299 | 28,986 | 15,244 | |||||||||||||
Net income per share - basic and diluted | $ | 0.15 | $ | 0.11 | $ | 0.4 | $ | 0.25 |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 33 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
August 13, 2010 (Initial Capitalization) [Member] | Hotels [Member] | Aggregate Hotel Rooms [Member] | Capital Raised Through On-Going Best-Efforts Offering [Member] | |||||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Units sold at inception (in Shares) | ' | ' | ' | ' | 10 | ' | ' | ' |
Unit Description | ' | ' | 'one common share and one Series A preferred share | ' | ' | ' | ' | ' |
Series B Convertible Preferred Stock, Issued at inception (in Shares) | ' | ' | ' | ' | 480,000 | ' | ' | ' |
Number of Reportable Segments | ' | ' | 1 | ' | ' | ' | ' | ' |
Number of Real Estate Properties | ' | ' | ' | ' | ' | 43 | ' | ' |
Number of States in which Entity Operates | ' | ' | ' | ' | ' | 17 | ' | ' |
Number of Units in Real Estate Property | ' | ' | ' | ' | ' | ' | 5,452 | ' |
Percentage of Revenue Reserved for Replacements | ' | ' | 'up to 5% | ' | ' | ' | ' | ' |
Units Sold (in Shares) | ' | ' | ' | ' | ' | ' | ' | 79,500,000 |
Proceeds from issuance or sale of equity, gross (in Dollars) | ' | ' | ' | ' | ' | ' | ' | $869,600,000 |
Proceeds from Issuance or Sale of Equity (in Dollars) | ' | ' | 128,409,000 | 198,532,000 | ' | ' | ' | 779,600,000 |
Offering costs, selling commissions and marketing expenses (in Dollars) | ' | ' | ' | ' | ' | ' | ' | 87,000,000 |
Offering costs, other (in Dollars) | ' | ' | ' | ' | ' | ' | ' | $3,100,000 |
Weighted Average Number Diluted Shares Outstanding Adjustment (in Shares) | 0 | 0 | 0 | 0 | ' | ' | ' | ' |
Investment_in_Real_Estate_Deta
Investment in Real Estate (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Business Combination, Acquisition Related Costs | $2,935,000 | $607,000 | $4,904,000 | $1,541,000 |
Goodwill | 0 | ' | 0 | ' |
Noncash or Part Noncash Acquisition, Debt Assumed | ' | ' | 0 | 13,067,000 |
Payments for Deposits on Real Estate Acquisitions | ' | ' | 1,528,000 | 72,000 |
Acquisition-related Costs [Member] | Real Estate Acquisition and Disposal Fees Incurred [Member] | ' | ' | ' | ' |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Costs and Expenses, Related Party | ' | ' | 3,500,000 | ' |
Acquisition-related Costs [Member] | ' | ' | ' | ' |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Business Combination, Acquisition Related Costs | ' | ' | 4,900,000 | ' |
Real estate acquisition and disposal fee, Related Party, Percent | ' | ' | 2.00% | ' |
Business Combination, Other Acquisition Related Costs | ' | ' | 1,400,000 | ' |
Hotels [Member] | ' | ' | ' | ' |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Number of Real Estate Properties | 43 | ' | 43 | ' |
Number of States in which Entity Operates | 17 | ' | 17 | ' |
Apple Suites Realty Group (ASRG) [Member] | Chairman and CEO of Company [Member] | ' | ' | ' | ' |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Related person ownership of related parties | ' | ' | 100.00% | ' |
Hotel Acquisitions [Member] | ' | ' | ' | ' |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Number of Businesses Acquired | ' | ' | 12 | ' |
Business Combination, Acquisition Related Costs | ' | ' | 4,800,000 | ' |
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | ' | ' | 14,900,000 | ' |
Business Combination, Pro Forma Information, Operating Income (Expense) of Acquiree since Acquisition Date, Actual | ' | ' | 2,200,000 | ' |
Phoenix, Arizona Hampton Inn & Suites and Homewood Suites [Member] | ' | ' | ' | ' |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Number of Land Leases | ' | ' | 2 | ' |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | ' | ' | '87 years | ' |
Finite-Lived Intangible Asset, Off-market Lease, Favorable, Gross | 600,000 | ' | 600,000 | ' |
Operating Leases, Future Minimum Payments Due | 16,000,000 | ' | 16,000,000 | ' |
Potential Purchase of Additional Hotels [Member] | ' | ' | ' | ' |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Potential Number of Hotel Properties | 7 | ' | 7 | ' |
Business Acquisition, Gross Purchase Price | 155,900,000 | ' | 155,900,000 | ' |
Number of Potential Hotel Properties Under Construction | 4 | ' | 4 | ' |
Hotel construction, time to completion | ' | ' | 'two to 12 months | ' |
Number of Potential Hotel Properties Operating | 3 | ' | 3 | ' |
Existing Hotels, time to acquisition | ' | ' | 'within the next three months | ' |
Potential Purchase of Colorado Springs and Franklin Cool Springs Hotels [Member] | ' | ' | ' | ' |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Noncash or Part Noncash Acquisition, Debt Assumed | ' | ' | 38,800,000 | ' |
Potential Franklin Cool Springs Courtyard and Residence Inn Hotels [Member] | ' | ' | ' | ' |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Potential Number of Hotel Properties | 2 | ' | 2 | ' |
Business Acquisition, Gross Purchase Price | 51,000,000 | ' | 51,000,000 | ' |
Payments for Deposits on Real Estate Acquisitions | ' | ' | 400,000 | ' |
Potential Oklahoma City Hilton Garden Inn and Homewood Suites [Member] | ' | ' | ' | ' |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Potential Number of Hotel Properties | 2 | ' | 2 | ' |
Business Acquisition, Gross Purchase Price | 45,000,000 | ' | 45,000,000 | ' |
Payments for Deposits on Real Estate Acquisitions | ' | ' | 300,000 | ' |
Termination of Potential Courtyard and TownPlace Suites [Member] | ' | ' | ' | ' |
Investment in Real Estate (Details) [Line Items] | ' | ' | ' | ' |
Terminated Purchase Contract, Purchase Price | ' | ' | 41,700,000 | ' |
Return of Deposit on Purchase Contract | ' | ' | $50,000 | ' |
Investment_in_Real_Estate_Deta1
Investment in Real Estate (Details) - Hotel Acquisitions (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Hampton Inn & Suites Huntsville, AL [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'AL |
Brand | 'Hampton Inn & Suites |
Manager | 'LBA |
Date Acquired | '3/14/2013 |
Rooms | 98 |
Gross Purchase Price (in Dollars) | $11,466 |
Home2 Suites Huntsville, AL [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'AL |
Brand | 'Home2 Suites |
Manager | 'LBA |
Date Acquired | '3/14/2013 |
Rooms | 77 |
Gross Purchase Price (in Dollars) | 9,009 |
Marriott Fairfax, VA [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'VA |
Brand | 'Marriott |
Manager | 'White |
Date Acquired | '3/15/2013 |
Rooms | 310 |
Gross Purchase Price (in Dollars) | 34,000 |
Residence Inn Houston, TX [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'TX |
Brand | 'Residence Inn |
Manager | 'Western |
Date Acquired | '6/7/2013 |
Rooms | 120 |
Gross Purchase Price (in Dollars) | 18,000 |
Homewood Suites Denton, TX [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'TX |
Brand | 'Homewood Suites |
Manager | 'Chartwell |
Date Acquired | '7/26/2013 |
Rooms | 107 |
Gross Purchase Price (in Dollars) | 11,300 |
Hilton Garden Inn Maple Grove, MN [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'MN |
Brand | 'Hilton Garden Inn |
Manager | 'North Central |
Date Acquired | '7/26/2013 |
Rooms | 120 |
Gross Purchase Price (in Dollars) | 12,675 |
Homewood Suites Oklahoma City, OK [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'OK |
Brand | 'Homewood Suites |
Manager | 'Chartwell |
Date Acquired | '7/26/2013 |
Rooms | 90 |
Gross Purchase Price (in Dollars) | 11,500 |
Hampton Inn & Suites Omaha, NE [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'NE |
Brand | 'Hampton Inn & Suites |
Manager | 'North Central |
Date Acquired | '7/26/2013 |
Rooms | 139 |
Gross Purchase Price (in Dollars) | 19,775 |
Homewood Suites Omaha, NE [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'NE |
Brand | 'Homewood Suites |
Manager | 'North Central |
Date Acquired | '7/26/2013 |
Rooms | 123 |
Gross Purchase Price (in Dollars) | 17,625 |
Courtyard Phoenix, AZ [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'AZ |
Brand | 'Courtyard |
Manager | 'North Central |
Date Acquired | '7/26/2013 |
Rooms | 127 |
Gross Purchase Price (in Dollars) | 10,800 |
Hampton Inn & Suites Phoenix, AZ [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'AZ |
Brand | 'Hampton Inn & Suites |
Manager | 'North Central |
Date Acquired | '7/26/2013 |
Rooms | 125 |
Gross Purchase Price (in Dollars) | 8,600 |
Homewood Suites Phoenix, AZ [Member] | ' |
Business Acquisition [Line Items] | ' |
State | 'AZ |
Brand | 'Homewood Suites |
Manager | 'North Central |
Date Acquired | '7/26/2013 |
Rooms | 134 |
Gross Purchase Price (in Dollars) | 12,025 |
Total [Member] | ' |
Business Acquisition [Line Items] | ' |
Rooms | 1,570 |
Gross Purchase Price (in Dollars) | $176,775 |
Investment_in_Real_Estate_Deta2
Investment in Real Estate (Details) - Hotels | Sep. 30, 2013 |
Hilton Garden Inn [Member] | ' |
Real Estate Properties [Line Items] | ' |
Total by Brand | 10 |
Number of Rooms | 1,563 |
Hampton Inn & Suites [Member] | ' |
Real Estate Properties [Line Items] | ' |
Total by Brand | 8 |
Number of Rooms | 988 |
Homewood Suites [Member] | ' |
Real Estate Properties [Line Items] | ' |
Total by Brand | 8 |
Number of Rooms | 870 |
TownePlace Suites [Member] | ' |
Real Estate Properties [Line Items] | ' |
Total by Brand | 4 |
Number of Rooms | 388 |
Courtyard [Member] | ' |
Real Estate Properties [Line Items] | ' |
Total by Brand | 3 |
Number of Rooms | 393 |
Fairfield Inn & Suites [Member] | ' |
Real Estate Properties [Line Items] | ' |
Total by Brand | 3 |
Number of Rooms | 310 |
Home2 Suites [Member] | ' |
Real Estate Properties [Line Items] | ' |
Total by Brand | 3 |
Number of Rooms | 304 |
SpringHill Suites [Member] | ' |
Real Estate Properties [Line Items] | ' |
Total by Brand | 2 |
Number of Rooms | 206 |
Marriott [Member] | ' |
Real Estate Properties [Line Items] | ' |
Total by Brand | 1 |
Number of Rooms | 310 |
Residence Inn [Member] | ' |
Real Estate Properties [Line Items] | ' |
Total by Brand | 1 |
Number of Rooms | 120 |
Total [Member] | ' |
Real Estate Properties [Line Items] | ' |
Total by Brand | 43 |
Number of Rooms | 5,452 |
Investment_in_Real_Estate_Deta3
Investment in Real Estate (Details) - Investment in Real Estate (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investment in Real Estate [Abstract] | ' | ' |
Land | $65,358 | ' |
Building and Improvements | 597,957 | ' |
Furniture, Fixtures and Equipment | 45,736 | ' |
Franchise fees | 2,965 | ' |
712,016 | ' | |
Less Accumulated Depreciation | -36,886 | -21,804 |
Investment in real estate, net | $675,130 | $506,689 |
Investment_in_Real_Estate_Deta4
Investment in Real Estate (Details) - Outstanding Contracts (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | ||
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ' | ' | |
Deposits Paid | $1,528,000 | $72,000 | |
Potential Hampton Inn & Suites Colorado Springs, CO [Member] | ' | ' | |
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ' | ' | |
Brand | 'Hampton Inn & Suites | [1] | ' |
Rooms | 101 | ' | |
Deposits Paid | 200,000 | ' | |
Gross Purchase Price | 11,500,000 | [2] | ' |
Potential Courtyard Franklin Cool Springs, TN [Member] | ' | ' | |
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ' | ' | |
Brand | 'Courtyard | [1] | ' |
Rooms | 126 | ' | |
Deposits Paid | ' | [3] | ' |
Gross Purchase Price | ' | [2],[3] | ' |
Potential Residence Inn Franklin Cool Springs, TN [Member] | ' | ' | |
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ' | ' | |
Brand | 'Residence Inn | [1] | ' |
Rooms | 124 | ' | |
Deposits Paid | ' | [3] | ' |
Gross Purchase Price | ' | [2],[3] | ' |
Potential Homewood Suites Dallas, TX [Member] | ' | ' | |
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ' | ' | |
Brand | 'Homewood Suites | [4] | ' |
Rooms | 130 | ' | |
Deposits Paid | 200,000 | ' | |
Gross Purchase Price | 25,350,000 | ' | |
Potential Residence Inn Fort Lauderdale, FL [Member] | ' | ' | |
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ' | ' | |
Brand | 'Residence Inn | [4],[5] | ' |
Rooms | 156 | ' | |
Deposits Paid | 3,000 | ' | |
Gross Purchase Price | 23,088,000 | ' | |
Potential Hilton Garden Inn Oklahoma City, OK [Member] | ' | ' | |
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ' | ' | |
Brand | 'Hilton Garden Inn | [4] | ' |
Rooms | 155 | ' | |
Deposits Paid | ' | [6] | ' |
Gross Purchase Price | ' | [6] | ' |
Potential Homewood Suites Oklahoma City, OK [Member] | ' | ' | |
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ' | ' | |
Brand | 'Homewood Suites | [4] | ' |
Rooms | 100 | ' | |
Deposits Paid | ' | [6] | ' |
Gross Purchase Price | ' | [6] | ' |
Total Potential Acquisitions [Member] | ' | ' | |
Investment in Real Estate (Details) - Outstanding Contracts [Line Items] | ' | ' | |
Rooms | 892 | ' | |
Deposits Paid | 1,103,000 | ' | |
Gross Purchase Price | $155,938,000 | ' | |
[1] | These hotels are currently operational and assuming all conditions to closing are met should close within three months from September 30, 2013. | ||
[2] | Purchase contracts for these hotels require the Company to assume approximately $38.8 million in mortgage debt. The loans provide for monthly payments of principal and interest on an amortized basis. | ||
[3] | The Courtyard and Residence Inn hotels in Franklin Cool Springs, TN are located on the same site. The two hotels are covered by the same purchase contract with a total gross purchase price of $51 million and an initial deposit of $400,000. These amounts are reflected in the total gross purchase price and deposits paid as indicated above. | ||
[4] | The hotels are currently under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise. Assuming all conditions to closing are met the purchase of these hotels should close over the next 2 to 12 months from September 30, 2013. | ||
[5] | If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing. | ||
[6] | The Hilton Garden Inn and Homewood Suites hotels in Oklahoma City, OK are part of an adjoining two-hotel complex that will be located on the same site. The two hotels are covered by the same purchase contract with a total gross purchase price of $45 million and deposits of $300,000. These amounts are reflected in the total gross purchase price and deposits paid as indicated above. |
Energy_Investment_Details
Energy Investment (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Energy Investment (Details) [Line Items] | ' | ' | ' | ' | ' |
Payments to Acquire Investments | ' | ' | $100,000,000 | $0 | ' |
Held-to-maturity Securities | 100,329,000 | ' | 100,329,000 | ' | 0 |
Investment Income, Interest | 3,533,000 | 73,000 | 4,467,000 | 134,000 | ' |
Energy Investment [Member] | Investment Funded on June 7, 2013 [Member] | ' | ' | ' | ' | ' |
Energy Investment (Details) [Line Items] | ' | ' | ' | ' | ' |
Payments to Acquire Investments | ' | ' | 80,000,000 | ' | ' |
Energy Investment [Member] | Investment Funded on July 2, 2013 [Member] | ' | ' | ' | ' | ' |
Energy Investment (Details) [Line Items] | ' | ' | ' | ' | ' |
Payments to Acquire Investments | ' | ' | 20,000,000 | ' | ' |
Energy Investment [Member] | Monthly Distributions [Member] | ' | ' | ' | ' | ' |
Energy Investment (Details) [Line Items] | ' | ' | ' | ' | ' |
Monthly Distribution, Annual Return | ' | ' | 10.00% | ' | ' |
Investment Income, Interest | 2,500,000 | ' | 3,100,000 | ' | ' |
Energy Investment [Member] | Deferred Distributions [Member] | ' | ' | ' | ' | ' |
Energy Investment (Details) [Line Items] | ' | ' | ' | ' | ' |
Deferred Distribution, Annual Return | ' | ' | 4.00% | ' | ' |
Investment Income, Interest | 1,000,000 | ' | 1,200,000 | ' | ' |
Energy Investment [Member] | ' | ' | ' | ' | ' |
Energy Investment (Details) [Line Items] | ' | ' | ' | ' | ' |
Investment, Purchase Price | 100,000,000 | ' | 100,000,000 | ' | ' |
Investment, Additional Information | ' | ' | 'The terms of the Preferred Interest include a distribution to be paid monthly at an annual return of 10% of the Company's "Energy Investment", which includes the funded purchase price plus any unpaid deferred distributions, and a deferred distribution at an annual return of 4% of the Energy Investment to be paid at CCE's option on each monthly distribution date or upon redemption of the Preferred Interest. CCE is required to redeem the Preferred Interest on June 1, 2014, but may elect to extend that date to June 1, 2015. CCE is also permitted to redeem the Preferred Interest in whole or in part at any time. The redemption price is the initial investment plus any unpaid current or deferred distributions. The Preferred Interest ranks senior to any other equity in CCE and CCE's organizational documents limit its permitted indebtedness. The Common Member has guaranteed CCE's payment obligations in connection with the Preferred Interest on a non-recourse basis and has pledged its common membership interest in CCE to secure the guaranty. | ' | ' |
Held-to-maturity Securities | 100,300,000 | ' | 100,300,000 | ' | ' |
Investment Income, Interest | $3,500,000 | ' | $4,300,000 | ' | ' |
Credit_Facility_Details
Credit Facility (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 03, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Subsequent Event [Member] | Hotels Acquired on July 26, 2013 [Member] | Revolving Credit Facility $75 Million [Member] | Minimum [Member] | Maximum [Member] | |||
Amended Credit Agreement [Member] | Revolving Credit Facility $75 Million [Member] | Revolving Credit Facility $75 Million [Member] | |||||
Credit Facility (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | $100,000,000 | ' | $75,000,000 | ' | ' |
Line of Credit Facility, Borrowing Capacity, Description | ' | ' | 'allow for future increases in the amount of the facility up to $150 million, subject to certain conditions | ' | ' | ' | ' |
Debt Instrument, Maturity Date, Description | ' | ' | ' | ' | 'matures in July 2015; however, the Company has the right, upon satisfaction of certain conditions, including covenant compliance and payment of an extension fee, to extend the maturity date to July 2016 | ' | ' |
Line of Credit Facility, Interest Rate Description | ' | ' | ' | ' | 'one-month LIBOR (the London Inter-Bank Offered Rate for a one-month term) plus a margin ranging from 2.25% to 2.75%, depending upon the Company's leverage ratio, as calculated under the terms of the credit agreement | ' | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | ' | ' | ' | ' | ' | 0.25% | 0.35% |
Proceeds from Lines of Credit | ' | ' | ' | ' | 54,000,000 | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | 53,600,000 | ' | ' |
Number of Businesses Acquired | ' | ' | ' | 8 | ' | ' | ' |
Payments of Loan Costs | ' | ' | ' | ' | 400,000 | ' | ' |
Line of Credit Facility, Amount Outstanding | $35,103,000 | $0 | ' | ' | $35,100,000 | ' | ' |
Line of Credit Facility, Interest Rate at Period End | ' | ' | ' | ' | 2.43% | ' | ' |
Line of Credit Facility, Covenant Terms | ' | ' | ' | ' | 'The credit facility contains customary affirmative covenants, negative covenants and events of default. In addition, the credit facility contains covenants restricting the level of certain investments and the following quarterly financial covenants (capitalized terms are defined in the credit agreement): Minimum Net Worth shall not be less than $450 million; Total Indebtedness to Total Asset Value must not exceed 50%; Total Secured Indebtedness to Total Asset Value must not exceed 30%; Ratio of Adjusted Net Operating Income to Fixed Charges for the four trailing quarters must equal or exceed two; Ratio of Adjusted Net Operating Income attributable to Unencumbered Hotels to Implied Debt Service for the four trailing quarters must equal or exceed two; Distributions cannot exceed $0.825 per share per year; Additional Unsecured Indebtedness (other than this credit facility) shall not exceed $2.5 million; and Unencumbered Leverage Ratio must be less than 45%.The Company was in compliance with each of these covenants at September 30, 2013. | ' | ' |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Long-term Debt | $115.10 | $81.20 |
Long-term Debt, Fair Value | $119.40 | $85.80 |
Related_Parties_Details
Related Parties (Details) (USD $) | 0 Months Ended | 9 Months Ended | 38 Months Ended | 9 Months Ended | 5 Months Ended | |||||||||||||||||
14-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Cash Consideration Exchanged Between Entities [Member] | Acquisition of Membership Interest in Apple Air Holding, LLC from Apple REIT Six, Inc. [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Ten Advisors (A10A) [Member] | Apple Ten Advisors (A10A) [Member] | Apple Ten Advisors (A10A) [Member] | Apple Ten Advisors (A10A) [Member] | Apple Ten Advisors (A10A) [Member] | ASRG and A10A [Member] | ASRG and A10A [Member] | All Apple REIT Entities [Member] | All Apple REIT Entities [Member] | Apple REIT Ten, Inc. [Member] | Apple REIT Ten, Inc. [Member] | Apple Air Holding, LLC [Member] | Apple Air Holding, LLC [Member] | Reimbursement to Related Party for Company's Proportionate Share of Office Related Costs Provided by Apple REIT Nine, Inc. [Member] | |
Assignment and Transfer of Apple REIT Six, Inc.'s Interest in Apple Fund Management to Apple Nine Advisors (A9A) [Member] | Real Estate Acquisition and Disposal Fees Incurred [Member] | Real Estate Acquisition and Disposal Fees Incurred [Member] | Real Estate Acquisition and Disposal Fees Incurred [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Advisory Fees Incurred [Member] | Advisory Fees Incurred [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Legal Proceedings and SEC Investigation [Member] | Legal Proceedings and SEC Investigation [Member] | Legal Proceedings and SEC Investigation [Member] | Legal Proceedings and SEC Investigation [Member] | |||||||
Related Parties (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate acquisition and disposal fee, Related Party, Percent | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs and Expenses, Related Party | ' | ' | $3,500,000 | $1,200,000 | $13,900,000 | $400,000 | $400,000 | ' | $600,000 | $400,000 | $900,000 | $800,000 | ' | $1,300,000 | $1,200,000 | ' | ' | ' | ' | ' | ' | $100,000 |
Related Party Transaction, Amounts of Transaction | 0 | 1,450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management Advisory Fee, Related Party, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '0.1% to 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000 | 5,700,000 | 200,000 | 700,000 | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.00% | ' | ' |
Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' |
Income (Loss) from Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -109,000 | ' | ' |
Aircraft usage fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $218,000 | $133,000 | ' |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 18 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Series B Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Triggering Event on Conversion of Series B Convertible Preferred Shares if maximum offer is achieved [Member] | Triggering Event on Conversion of Series B Convertible Preferred Shares based on equity raised through end of reporting period [Member] | Unit Redemption Program [Member] | Unit Redemption Program [Member] | Unit Redemption Program [Member] | Unit Redemption Program [Member] | Unit Redemption Program [Member] | Unit Redemption Program [Member] | Distributions [Member] | Distributions [Member] | Distributions [Member] | Distributions [Member] | ||||
Shareholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Shares Issued (in Shares) | 0 | ' | 0 | 480,000 | 480,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Value, Issued | $0 | ' | $0 | $48,000 | $48,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proportion of ownership required to approve amendments to articles of incorporation | ' | ' | ' | ' | ' | 'Holders of more than two-thirds of the Series B convertible preferred shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Liquidation Payment Per Share (in Dollars per share) | ' | ' | ' | ' | ' | $11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total amount of Unit offering | ' | ' | ' | ' | ' | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion Formula Used In Subsequent Public Offering | ' | ' | ' | ' | ' | '(X/100 million) x 1.20568, where X is the additional gross proceeds rounded down to the nearest $100 million | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expense Related to the Conversion of Series B Convertible Preferred Shares, minimum | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expense Related to the Conversion of Series B Convertible Preferred Shares, maximum | ' | ' | ' | ' | ' | ' | 'in excess of $127 million | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per Common Share Fair Market Value Assumption (in Dollars per share) | ' | ' | ' | ' | ' | ' | $11 | $11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expense Related to the Conversion of Series B Convertible Preferred Shares, maximum amount | ' | ' | ' | ' | ' | ' | ' | 51,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued (in Shares) | ' | ' | ' | ' | ' | ' | ' | 4,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unit redemption eligibility period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' |
Redemption rate, Units owned less than 5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92.50% | ' | ' | ' | ' | ' | ' | ' |
Redemption rate, Units owned more than 5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Weighted average number of Units outstanding, percentage redeemable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' |
Units Redeemed (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' | 1,400,000 | 2,900,000 | ' | ' | ' | ' |
Payments for Redemption of Units | 14,611,000 | 14,546,000 | ' | ' | ' | ' | ' | ' | ' | ' | 14,600,000 | ' | 14,500,000 | 29,700,000 | ' | ' | ' | ' |
Redemption requests redeemed, description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'pro-rata basis | ' | ' | ' | ' | ' | ' |
Redemption requests redeemed, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Distribution rate (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.83 | ' |
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.21 | $0.21 | $0.62 | $0.62 |
Payments of Ordinary Dividends, Common Stock | $43,389,000 | $32,011,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,400,000 | $12,100,000 | $43,400,000 | $32,000,000 |
Shareholders_Equity_Details_Se
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event | Sep. 30, 2013 |
Number of common shares through conversion if gross proceeds are $800 million [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 9.70287 |
Number of common shares through conversion if gross proceeds are $900 million [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 10.90855 |
Number of common shares through conversion if gross proceeds are $1 billion [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 12.11423 |
Number of common shares through conversion if gross proceeds are $1.1 billion [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 13.31991 |
Number of common shares through conversion if gross proceeds are $1.2 billion [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 14.52559 |
Number of common shares through conversion if gross proceeds are $1.3 billion [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 15.73128 |
Number of common shares through conversion if gross proceeds are $1.4 billion [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 16.93696 |
Number of common shares through conversion if gross proceeds are $1.5 billion [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 18.14264 |
Number of common shares through conversion if gross proceeds are $1.6 billion [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 19.34832 |
Number of common shares through conversion if gross proceeds are $1.7 billion [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 20.554 |
Number of common shares through conversion if gross proceeds are $1.8 billion [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 21.75968 |
Number of common shares through conversion if gross proceeds are $1.9 billion [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 22.96537 |
Number of common shares through conversion if gross proceeds are $2 billion [Member] | ' |
Shareholders' Equity (Details) - Series B Convertible Preferred Stock Conversion to Common Stock Upon the Occurrence of Any Conversion Event [Line Items] | ' |
Number of common shares through conversion of one Series B Convertible Preferred Share | 24.17104 |
Shareholders_Equity_Details_Sc
Shareholders' Equity (Details) - Schedule of Unit Redemption (Redemptions [Member]) | 3 Months Ended | |||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | |
Redemptions [Member] | ' | ' | ' | ' | ' | ' |
Shareholders' Equity (Details) - Schedule of Unit Redemption [Line Items] | ' | ' | ' | ' | ' | ' |
Total Requested Unit Redemptions at Redemption Date | 677,855 | 1,063,625 | 938,026 | 617,811 | 961,236 | 474,466 |
Units Redeemed (in Shares) | 677,855 | 637,779 | 114,200 | 46,889 | 961,236 | 474,466 |
Total Redemption Requests Not Redeemed at Redemption Date | 0 | 425,846 | 823,826 | 570,922 | 0 | 0 |
Pro_Forma_Information_Details
Pro Forma Information (Details) (Hotels Acquired After December 31, 2011 [Member]) | 21 Months Ended |
Sep. 30, 2013 | |
Hotels Acquired After December 31, 2011 [Member] | ' |
Pro Forma Information (Details) [Line Items] | ' |
Number of Hotels Opened | 6 |
Number of Businesses Acquired | 17 |
Pro_Forma_Information_Details_
Pro Forma Information (Details) - Pro Forma (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pro Forma [Abstract] | ' | ' | ' | ' |
Total revenues | $45,630 | $43,313 | $136,617 | $123,537 |
Net income | $11,351 | $7,299 | $28,986 | $15,244 |
Net income per share - basic and diluted (in Dollars per share) | $0.15 | $0.11 | $0.40 | $0.25 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 9 Months Ended | 1 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2013 | |
Subsequent Event [Member] | |||
Subsequent Events (Details) [Line Items] | ' | ' | ' |
Payments of Ordinary Dividends, Common Stock | $43,389,000 | $32,011,000 | $5,300,000 |
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | ' | ' | $0.07 |
Units Redeemed (in Shares) | ' | ' | 600,000 |
Payments for Redemption of Units | 14,611,000 | 14,546,000 | 6,200,000 |
Redemption requests redeemed, percentage | ' | ' | 100.00% |
Units Sold (in Shares) | ' | ' | 900,000 |
Proceeds from issuance or sale of equity, gross | ' | ' | 9,800,000 |
Proceeds from Issuance or Sale of Equity | $128,409,000 | $198,532,000 | $8,800,000 |