Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 01, 2015 | |
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 | 88,785,416 | |
Amendment Flag | false | |
Entity Central Index Key | 1,498,864 | |
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 | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Investment in real estate, net of accumulated depreciation of $98,262 and $72,106, respectively | $ 918,311 | $ 839,032 |
Cash and cash equivalents | 10,630 | 46,341 |
Restricted cash-furniture, fixtures and other escrows | 12,855 | 11,920 |
Due from third party managers, net | 11,446 | 5,565 |
Other assets, net | 11,297 | 6,178 |
Total Assets | 964,539 | 909,036 |
Liabilities | ||
Credit facility | 800 | 0 |
Mortgage debt | 205,691 | 119,708 |
Accounts payable and other liabilities | 11,317 | 12,162 |
Total Liabilities | 217,808 | 131,870 |
Shareholders' Equity | ||
Preferred stock, value issued | 0 | 0 |
Common stock, no par value, authorized 400,000,000 shares; issued and outstanding 89,685,096 and 91,037,588 shares, respectively | 878,012 | 891,801 |
Distributions greater than net income | (131,329) | (114,683) |
Total Shareholders' Equity | 746,731 | 777,166 |
Total Liabilities and Shareholders' Equity | 964,539 | 909,036 |
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 ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Real estate accumulated depreciation (in Dollars) | $ 98,262 | $ 72,106 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 89,685,096 | 91,037,588 |
Common stock, shares outstanding | 89,685,096 | 91,037,588 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized | 400,000,000 | 400,000,000 |
Preferred stock, shares issued | 89,685,096 | 91,037,588 |
Preferred stock, shares outstanding | 89,685,096 | 91,037,588 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, shares authorized | 480,000 | 480,000 |
Preferred stock, shares issued | 480,000 | 480,000 |
Preferred stock, shares outstanding | 480,000 | 480,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Room | $ 64,198 | $ 52,614 | $ 184,601 | $ 153,365 |
Other | 5,082 | 4,177 | 15,133 | 13,220 |
Total revenue | 69,280 | 56,791 | 199,734 | 166,585 |
Expenses: | ||||
Operating | 16,674 | 14,275 | 47,649 | 41,173 |
Hotel administrative | 5,332 | 4,320 | 15,518 | 12,918 |
Sales and marketing | 5,406 | 4,801 | 15,819 | 13,976 |
Utilities | 2,551 | 2,252 | 6,718 | 6,145 |
Repair and maintenance | 2,517 | 1,980 | 6,956 | 6,168 |
Franchise fees | 2,918 | 2,520 | 8,671 | 7,426 |
Management fees | 2,288 | 1,676 | 6,942 | 5,278 |
Property taxes, insurance and other | 4,098 | 3,308 | 12,008 | 9,981 |
General and administrative | 1,715 | 1,369 | 5,124 | 4,461 |
Acquisition related costs | 14 | 13 | 2,236 | 1,054 |
Depreciation | 8,979 | 7,226 | 26,156 | 21,237 |
Total expenses | 52,492 | 43,740 | 153,797 | 129,817 |
Operating income | 16,788 | 13,051 | 45,937 | 36,768 |
Investment income | 2 | 3,530 | 17 | 10,475 |
Interest expense | (2,550) | (1,867) | (6,408) | (6,541) |
Income before income taxes | 14,240 | 14,714 | 39,546 | 40,702 |
Income tax benefit (expense) | 223 | (1,203) | (307) | (2,934) |
Net income | $ 14,463 | $ 13,511 | $ 39,239 | $ 37,768 |
Basic and diluted net income per common share (in Dollars per share) | $ 0.16 | $ 0.15 | $ 0.43 | $ 0.45 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 89,793 | 90,267 | 90,260 | 84,605 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 39,239 | $ 37,768 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 26,156 | 21,237 |
Other non-cash expenses, net | 355 | 397 |
Changes in operating assets and liabilities: | ||
Increase in due from third party managers, net | (5,667) | (4,052) |
Decrease in other assets, net | 373 | 731 |
Increase in accounts payable and other liabilities | 1,165 | 610 |
Net cash provided by operating activities | 61,621 | 56,691 |
Cash flows from investing activities: | ||
Acquisition of hotel properties, net | (85,729) | (40,207) |
Deposits and other disbursements for potential acquisitions | (150) | (325) |
Capital improvements | (10,983) | (12,276) |
Increase in capital improvement reserves | (231) | (899) |
Net cash used in investing activities | (97,093) | (53,707) |
Cash flows from financing activities: | ||
Net proceeds related to issuance of Units | 0 | 134,820 |
Redemptions of Units | (13,896) | (12,508) |
Distributions paid to common shareholders | (55,885) | (52,218) |
Net proceeds from (payments on) credit facility | 800 | (71,239) |
Proceeds from mortgage debt | 71,850 | 0 |
Payments of mortgage debt | (1,942) | (1,585) |
Financing costs | (1,166) | (254) |
Net cash used in financing activities | (239) | (2,984) |
Decrease in cash and cash equivalents | (35,711) | 0 |
Cash and cash equivalents, beginning of period | 46,341 | 0 |
Cash and cash equivalents, end of period | 10,630 | 0 |
Supplemental cash flow information: | ||
Interest paid | 6,642 | 6,867 |
Income taxes paid | 180 | 3,665 |
Non-cash transactions: | ||
Notes payable assumed in acquisitions | $ 16,569 | $ 0 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
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 concluded its best-efforts offering on July 31, 2014. 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 interests in potential variable interest entities through 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 these entities, and therefore does not consolidate the entities. As of September 30, 2015, the Company owned 54 hotels located in 17 states with an aggregate of 6,898 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 2014 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2015. 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. 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, 2015 and 2014. As a result, basic and diluted earnings per common share 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. Recent Accounting Standards In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, Simplifying the ccounting for Measurement-Period Adjustments, In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs |
Investment in Real Estate
Investment in Real Estate | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Real Estate Disclosure [Text Block] | 2. Investment in Real Estate The Company acquired three hotels during the first nine months of 2015. 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 Tustin CA Fairfield Inn & Suites Marriott 2/5/2015 145 $ 31,000 Tustin CA Residence Inn Marriott 2/5/2015 149 42,800 San Juan Capistrano CA Residence Inn Marriott 6/5/2015 130 29,200 Total 424 $ 103,000 At the date of purchase, the purchase price for these properties, net of debt assumed, was funded by cash on hand and borrowings under the Company’s unsecured revolving credit facility. The Company assumed approximately $16.6 million of debt in connection with the purchase of and secured by the San Juan Capistrano Residence Inn. The Company also used borrowings under its unsecured credit facility to pay approximately $2.2 million in acquisition related costs, including approximately $2.1 million, representing 2% of the gross purchase price for these hotels, as a brokerage commission to Apple Suites Realty Group, Inc. (“ASRG”), which is 100% owned by Glade M. Knight, the Company’s Chairman and Chief Executive Officer, and approximately $0.1 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, 2015. For the three hotels acquired during the first nine months of 2015, the amount of revenue and operating income (excluding acquisition related costs totaling $2.2 million) included in the Company’s consolidated statements of operations from the acquisition date to September 30, 2015 was approximately $11.5 million and $3.6 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 acquisition of the San Juan Capistrano Residence Inn hotel in June 2015, the Company assumed a land lease with a remaining initial term of approximately 27 years and four 30 year renewal options. The lease was valued at below market rates and as a result the Company recorded an intangible asset totaling approximately $4.4 million, which is included in other assets, net in the Company’s consolidated balance sheets. The amount is being amortized through February 2072, the end of the first renewal option. As of September 30, 2015, the remaining minimum lease payments, through the end of the first renewal option, were approximately $46.4 million. No goodwill was recorded in connection with any of the acquisitions. As of September 30, 2015, the Company owned 54 hotels located in 17 states with an aggregate of 6,898 rooms, and the Company’s investment in real estate consisted of the following (in thousands): September 30, December 31, 2015 2014 Land $ 87,439 $ 77,943 Building and Improvements 848,456 762,134 Furniture, Fixtures and Equipment 77,146 67,529 Franchise Fees 3,532 3,532 1,016,573 911,138 Less Accumulated Depreciation (98,262 ) (72,106 ) Investment in Real Estate, net $ 918,311 $ 839,032 As of September 30, 2015, the Company had outstanding contracts for the potential purchase of two additional hotels for a total purchase price of $50.6 million. These two hotels are under construction and are planned to be completed and opened for business over the next three to six months from September 30, 2015. Closing on these two hotels is expected upon completion of construction. 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 a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the location, brand, expected 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 outstanding at September 30, 2015. All dollar amounts are in thousands. Location Brand Rooms Deposits Paid Gross Purchase Price Under Construction (a) Cape Canaveral, FL (b) Homewood Suites 153 $ 3 $ 25,245 Rosemont, IL Hampton Inn & Suites 158 300 25,400 Total 311 $ 303 $ 50,645 (a) These hotels are currently under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise brand. Assuming all conditions to closing are met, the purchase of these hotels is expected to close over the next three to six months from September 30, 2015. (b) 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. 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. The Company intends to use borrowings under its credit facility and additional financing as needed to purchase the hotels currently under contract if a closing occurs. |
Credit Facility and Mortgage De
Credit Facility and Mortgage Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 3. Credit Facility and Mortgage Debt Credit Facility On July 2, 2015, the Company entered into a second amendment of its existing $100 million revolving credit facility. The amendment extends the maturity date to July 2, 2017, reduces the annual interest rate to the one-month LIBOR (the London Inter-Bank Offered Rate for a one-month term) plus a margin ranging from 1.85% to 2.35%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement, and reduces the annual unused facility fee to 0.20% or 0.30% on the average unused portion of the revolving credit facility, based on the amount of borrowings outstanding during each quarter. The Company incurred approximately $0.4 million of loan origination costs related to the amendment, which will be amortized as interest expense through the maturity date. At September 30, 2015 the outstanding balance on the Company’s $100 million revolving credit facility was $0.8 million, increasing from no amounts outstanding at December 31, 2014. The annual interest rate at September 30, 2015 was 2.04%. 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 quarterly financial covenants which include, among others, a minimum net worth requirement, maximum debt limits, minimum debt service and fixed charge coverage ratios, and maximum distribution limits. The Company was in compliance with each of the applicable covenants at September 30, 2015. The amendment to the credit facility increased the Minimum Net Worth (as defined in the amended credit facility) requirement to $580 million and limits, effective July 2, 2016, distributions to 100% of Funds From Operations (as defined in the amended credit facility). Mortgage Debt In September 2015, the Company entered into a secured mortgage loan agreement with a commercial lender. The mortgage loan for approximately $36.9 million is jointly secured by the Company’s Oceanside, California Courtyard and Omaha, Nebraska Hilton Garden Inn. Scheduled payments of interest and principal of approximately $182,000 are due monthly, and the loan will amortize on a 30 year term with a balloon payment due at maturity in October 2025. The mortgage loan has an annual fixed interest rate of approximately 4.28%. At closing, the Company used proceeds from the loan to reduce the outstanding balance on its revolving credit facility, and to pay loan origination costs. Loan origination costs totaling approximately $0.5 million are being amortized as interest expense through the maturity date. In June 2015, the Company entered into a secured mortgage loan agreement with a commercial lender. The mortgage loan for $35.0 million is secured by the Company’s Denver, Colorado Hilton Garden Inn. Scheduled payments of interest and principal of approximately $194,000 are due monthly, and the loan will amortize on a 25 year term with a balloon payment due at maturity in June 2025. The mortgage loan has an annual fixed interest rate of approximately 4.46%. At closing, the Company used proceeds from the loan to reduce the outstanding balance on its revolving credit facility, and to pay loan origination costs. Loan origination costs totaling approximately $0.2 million are being amortized as interest expense through the maturity date. In June 2015, the Company assumed approximately $16.6 million in mortgage debt in connection with the acquisition of the San Juan Capistrano, California Residence Inn. Scheduled payments of interest and principal of approximately $83,000 are due monthly with a balloon payment due at maturity in June 2020. The mortgage loan has an annual fixed interest rate of approximately 4.15%. Loan origination costs totaling approximately $0.02 million are being amortized as interest expense through the maturity date. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 4. Fair Value of Financial Instruments The Company estimates the fair value of its debt by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity of a debt obligation with similar credit terms and credit characteristics, which are Level 3 inputs under the fair value hierarchy. Market rates take into consideration general market conditions and maturity. As of September 30, 2015, the carrying value and estimated fair value of the Company’s debt was $206.5 million and $208.4 million, respectively. As of December 31, 2014, the carrying value and estimated fair value of the Company’s debt was $119.7 million and $122.8 million, respectively. 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, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 5. 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 (including the relationships discussed in this section) and are required to approve any significant modifications to existing relationships, as well as any new significant related party transactions. 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. There have been no changes to the contracts and relationships discussed in the Company’s 2014 Annual Report on Form 10-K. Below is a summary of the related party relationships in effect and transactions that occurred during the nine months ended September 30, 2015 and 2014. The Company is externally managed and does not have any employees. ASRG provides the Company with property acquisition and disposition services. Its advisor, A10A, provides the Company with its day-to-day management services. The Company pays fees and reimburses certain expenses to A10A and ASRG for these services. Effective March 1, 2014, A10A subcontracted its obligations to Apple Hospitality REIT, Inc. (“Apple Hospitality”). The subcontract agreement provides that Apple Hospitality provides to the Company the advisory services contemplated under the A10A advisory agreement (“Advisory Agreement”) and Apple Hospitality receives the fees and expense reimbursements payable under the Advisory Agreement from the Company. The subcontract agreement has no impact on the Company’s Advisory Agreement with A10A. Glade M. Knight, the Company’s Chairman and Chief Executive Officer, is also Executive Chairman of Apple Hospitality, and owns ASRG and A10A. Effective January 1, 2015, Justin G. Knight, the Company’s President, was appointed to the Board of Directors of Apple Hospitality. He also serves as President and Chief Executive Officer of Apple Hospitality. 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, 2015, payments to ASRG for fees under the terms of this contract have totaled approximately $19.4 million since inception. Of this amount, the Company incurred $2.1 million and $0.9 million, respectively, for the nine months ended September 30, 2015 and 2014, which is included in acquisition related costs in the Company’s consolidated statements of operations. A10A Agreement Under the Advisory Agreement, A10A provides management services to the Company. As discussed above, effective March 1, 2014, A10A subcontracts its obligations under this agreement to Apple Hospitality. 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, is payable to Apple Hospitality 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 $1.9 million and $1.0 million for the nine months ended September 30, 2015 and 2014, respectively. The increase from 2014 to 2015 was primarily due to the Company reaching the next fee tier under the Advisory Agreement due to improved results of operations. 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 Apple Hospitality on behalf of ASRG or A10A, approximately $1.9 million and $2.0 million for the nine months ended September 30, 2015 and 2014. 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 Apple Hospitality through its relationships with A10A and ASRG. As part of the cost sharing arrangements, certain day-to-day transactions may result in amounts due to or from Apple Hospitality. To efficiently manage cash disbursements, the Company, Apple Hospitality, A10A or ASRG may make payments for any or all of the related companies. Under the cash management process, each of the companies may advance or defer up to $1 million at any time. Each month, any outstanding amounts are settled among the affected companies. This process allows each company to minimize its cash on hand, which, in turn, reduces the cost of each company’s credit facility. The amounts outstanding at any point in time are not significant to any of the companies. Apple Air Holding, LLC (“Apple Air”) Membership Interest Included in other assets, net on the Company’s consolidated balance sheet as of September 30, 2015 and December 31, 2014 is a 26% equity investment in Apple Air. As of September 30, 2015, the other member of Apple Air was Apple Hospitality, which owned a 74% interest. The Company’s equity investment was approximately $0.7 million and $0.9 million as of September 30, 2015 and December 31, 2014, and is included in other assets, net in the Company’s consolidated balance sheets. 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 both the nine months ended September 30, 2015 and 2014, the Company recorded a loss of approximately $0.2 million 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 primarily for acquisition, asset management and renovation purposes. Total costs paid for the usage of the aircraft for the nine months ended September 30, 2015 and 2014 were approximately $0.06 million and $0.1 million. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 6. Shareholders’ Equity 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, 2015, the Company has redeemed approximately 6.4 million Units in the amount of $65.3 million, including 1.4 million Units in the amount of $13.9 million and 1.2 million Units in the amount of $12.5 million during the nine months ended September 30, 2015 and 2014. As contemplated in the program, the Company has redeemed Units on a pro-rata basis due to the 3% limitation discussed above, including in the first quarter of 2014 where the Company redeemed approximately 68% of all requested redemptions. Since the beginning of the second quarter of 2014, the Company has redeemed 100% of the redemption requests. The following is a summary of the Unit redemptions during 2014 and the first nine months of 2015: Redemption Date Total Requested Unit Redemptions at Redemption Date Units Redeemed Total Redemption Requests Not Redeemed at Redemption Date First Quarter 2014 357,013 242,644 114,369 Second Quarter 2014 479,078 479,078 0 Third Quarter 2014 496,839 496,839 0 Fourth Quarter 2014 296,642 296,642 0 First Quarter 2015 425,833 425,833 0 Second Quarter 2015 402,201 402,201 0 Third Quarter 2015 524,458 524,458 0 Distributions The Company’s annual distribution rate as of September 30, 2015 was $0.825 per common share, payable monthly. For the three months ended September 30, 2015 and 2014, the Company made distributions of $0.20625 per common share for a total of $18.5 million and $18.6 million. For the nine months ended September 30, 2015 and 2014, the Company made distributions of $0.61875 per common share for a total of $55.9 million and $52.2 million. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 7. Subsequent Events In October 2015, the Company declared and paid approximately $6.2 million, or $0.06875 per outstanding common share, in distributions to its common shareholders. In October 2015, under the guidelines of the Company’s Unit Redemption Program, the Company redeemed approximately 0.9 million Units in the amount of $9.2 million, representing 100% of the requested Unit redemptions. On October 29, 2015, the Company closed on the purchase of a 158-room Hampton Inn & Suites hotel in Rosemont, Illinois. The gross purchase price was $25.4 million. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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 concluded its best-efforts offering on July 31, 2014. 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 interests in potential variable interest entities through 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 these entities, and therefore does not consolidate the entities. As of September 30, 2015, the Company owned 54 hotels located in 17 states with an aggregate of 6,898 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 2014 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2015. |
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. |
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, 2015 and 2014. As a result, basic and diluted earnings per common share 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Standards In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, Simplifying the ccounting for Measurement-Period Adjustments, In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The Company acquired three hotels during the first nine months of 2015. 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 Tustin CA Fairfield Inn & Suites Marriott 2/5/2015 145 $ 31,000 Tustin CA Residence Inn Marriott 2/5/2015 149 42,800 San Juan Capistrano CA Residence Inn Marriott 6/5/2015 130 29,200 Total 424 $ 103,000 |
Property, Plant and Equipment [Table Text Block] | As of September 30, 2015, the Company owned 54 hotels located in 17 states with an aggregate of 6,898 rooms, and the Company’s investment in real estate consisted of the following (in thousands): September 30, December 31, 2015 2014 Land $ 87,439 $ 77,943 Building and Improvements 848,456 762,134 Furniture, Fixtures and Equipment 77,146 67,529 Franchise Fees 3,532 3,532 1,016,573 911,138 Less Accumulated Depreciation (98,262 ) (72,106 ) Investment in Real Estate, net $ 918,311 $ 839,032 |
Schedule of Outstanding Contracts for Potential Purchase of Hotels [Table Text Block] | As of September 30, 2015, the Company had outstanding contracts for the potential purchase of two additional hotels for a total purchase price of $50.6 million. These two hotels are under construction and are planned to be completed and opened for business over the next three to six months from September 30, 2015. Closing on these two hotels is expected upon completion of construction. 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 a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the location, brand, expected 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 outstanding at September 30, 2015. All dollar amounts are in thousands. Location Brand Rooms Deposits Paid Gross Purchase Price Under Construction (a) Cape Canaveral, FL (b) Homewood Suites 153 $ 3 $ 25,245 Rosemont, IL Hampton Inn & Suites 158 300 25,400 Total 311 $ 303 $ 50,645 (a) These hotels are currently under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise brand. Assuming all conditions to closing are met, the purchase of these hotels is expected to close over the next three to six months from September 30, 2015. (b) 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. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Summary of Unit Redemptions [Table Text Block] | The following is a summary of the Unit redemptions during 2014 and the first nine months of 2015: Redemption Date Total Requested Unit Redemptions at Redemption Date Units Redeemed Total Redemption Requests Not Redeemed at Redemption Date First Quarter 2014 357,013 242,644 114,369 Second Quarter 2014 479,078 479,078 0 Third Quarter 2014 496,839 496,839 0 Fourth Quarter 2014 296,642 296,642 0 First Quarter 2015 425,833 425,833 0 Second Quarter 2015 402,201 402,201 0 Third Quarter 2015 524,458 524,458 0 |
Organization and Summary of S16
Organization and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015shares | Sep. 30, 2014shares | Sep. 30, 2015shares | Sep. 30, 2014shares | Dec. 31, 2014shares | |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Unit Description | one common share and one Series A preferred share | ||||
Preferred Stock, Shares Issued | 0 | 0 | 0 | ||
Number of Reportable Segments | 1 | ||||
Number of Hotels | 54 | 54 | |||
Number of States in which Hotels Are Located | 17 | 17 | |||
Aggregate Number of Hotel Rooms | 6,898 | 6,898 | |||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | 0 | |
Series B Convertible Preferred Stock [Member] | |||||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Preferred Stock, Shares Issued | 480,000 | 480,000 | 480,000 | ||
Issued on August 13, 2010 (Initial Capitalization) [Member] | Series B Convertible Preferred Stock [Member] | |||||
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Units sold at inception | 10 | 10 | |||
Preferred Stock, Shares Issued | 480,000 | 480,000 |
Investment in Real Estate (Deta
Investment in Real Estate (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 62 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | |
Investment in Real Estate (Details) [Line Items] | |||||
Assumed Mortgage Debt | $ 16,569 | $ 0 | |||
Business Combination, Acquisition Related Costs | $ 14 | $ 13 | 2,236 | 1,054 | |
Revenues | 69,280 | 56,791 | 199,734 | 166,585 | |
Operating Income (Loss) | 16,788 | $ 13,051 | 45,937 | 36,768 | |
Goodwill | $ 0 | $ 0 | $ 0 | ||
Number of Hotels | 54 | 54 | 54 | ||
Number of States in which Hotels Are Located | 17 | 17 | 17 | ||
Aggregate Number of Hotel Rooms | 6,898 | 6,898 | 6,898 | ||
Costs Other Than ASRG Fee [Member] | Acquisition-related Costs [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Business Combination, Acquisition Related Costs | $ 100 | ||||
Apple Suites Realty Group (ASRG) [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Real estate acquisition and disposal fee, Related Party, Percent | 2.00% | ||||
Apple Suites Realty Group (ASRG) [Member] | Real Estate Acquisition and Disposal Fees Incurred [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Costs and Expenses, Related Party | $ 2,100 | $ 900 | $ 19,400 | ||
Chairman and CEO of Company [Member] | Apple Suites Realty Group (ASRG) [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 | 3 | ||||
Business Combination, Acquisition Related Costs | $ 2,200 | ||||
Revenues | 11,500 | ||||
Operating Income (Loss) | $ 3,600 | ||||
Potential Purchase of Additional Hotels [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Number of Hotels | 2 | 2 | 2 | ||
Aggregate Number of Hotel Rooms | 311 | 311 | 311 | ||
Business Acquisition, Gross Purchase Price | $ 50,645 | $ 50,645 | $ 50,645 | ||
Hotel Construction, Time to Completion | over the next three to six months | ||||
Residence Inn San Juan Capistrano, CA [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Aggregate Number of Hotel Rooms | 130 | 130 | 130 | ||
Business Acquisition, Gross Purchase Price | $ 29,200 | $ 29,200 | $ 29,200 | ||
Residence Inn San Juan Capistrano, CA [Member] | Hotel Acquisitions [Member] | |||||
Investment in Real Estate (Details) [Line Items] | |||||
Assumed Mortgage Debt | $ 16,600 | ||||
Land Lease, Remaining Initial Term | 27 years | ||||
Number of Renewal Options on Land Lease | 4 | ||||
Land Lease Renewal Period | 30 years | ||||
Finite-Lived Intangible Asset, Off-market Lease, Favorable, Gross | 4,400 | $ 4,400 | 4,400 | ||
Operating Leases, Future Minimum Payments Due | $ 46,400 | $ 46,400 | $ 46,400 |
Investment in Real Estate (Det
Investment in Real Estate (Details) - Hotel Acquisitions $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Business Acquisition [Line Items] | |
Rooms | 6,898 |
Fairfield Inn & Suites Tustin, CA [Member] | |
Business Acquisition [Line Items] | |
State | CA |
Brand | Fairfield Inn & Suites |
Manager | Marriott |
Date Acquired | Feb. 5, 2015 |
Rooms | 145 |
Gross Purchase Price | $ 31,000 |
Residence Inn Tustin, CA [Member] | |
Business Acquisition [Line Items] | |
State | CA |
Brand | Residence Inn |
Manager | Marriott |
Date Acquired | Feb. 5, 2015 |
Rooms | 149 |
Gross Purchase Price | $ 42,800 |
Residence Inn San Juan Capistrano, CA [Member] | |
Business Acquisition [Line Items] | |
State | CA |
Brand | Residence Inn |
Manager | Marriott |
Date Acquired | Jun. 5, 2015 |
Rooms | 130 |
Gross Purchase Price | $ 29,200 |
Total [Member] | |
Business Acquisition [Line Items] | |
Rooms | 424 |
Gross Purchase Price | $ 103,000 |
Investment in Real Estate (D19
Investment in Real Estate (Details) - Investment in Real Estate - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investment in Real Estate [Abstract] | ||
Land | $ 87,439 | $ 77,943 |
Building and Improvements | 848,456 | 762,134 |
Furniture, Fixtures and Equipment | 77,146 | 67,529 |
Franchise Fees | 3,532 | 3,532 |
1,016,573 | 911,138 | |
Less Accumulated Depreciation | (98,262) | (72,106) |
Investment in Real Estate, net | $ 918,311 | $ 839,032 |
Investment in Real Estate (D20
Investment in Real Estate (Details) - Outstanding Contracts $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | ||
Under Construction (a) | |||
Rooms | 6,898 | ||
Deposits Paid | $ 150 | $ 325 | |
Potential Purchase of Additional Hotels [Member] | |||
Under Construction (a) | |||
Rooms | 311 | ||
Deposits Paid | $ 303 | ||
Gross Purchase Price | $ 50,645 | ||
Homewood Suites Cape Canaveral, FL [Member] | Potential Purchase of Additional Hotels Under Construction [Member] | |||
Under Construction (a) | |||
Brand | [1],[2] | Homewood Suites | |
Rooms | 153 | ||
Deposits Paid | $ 3 | ||
Gross Purchase Price | $ 25,245 | ||
Hampton Inn & Suites Rosemont, IL [Member] | Potential Purchase of Additional Hotels Under Construction [Member] | |||
Under Construction (a) | |||
Brand | [2] | Hampton Inn & Suites | |
Rooms | 158 | ||
Deposits Paid | $ 300 | ||
Gross Purchase Price | $ 25,400 | ||
[1] | 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. | ||
[2] | These hotels are currently under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise brand. Assuming all conditions to closing are met, the purchase of these hotels is expected to close over the next three to six months from September 30, 2015. |
Credit Facility and Mortgage 21
Credit Facility and Mortgage Debt (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Long-term Line of Credit | $ 800,000 | $ 0 | |
Assumed Mortgage Debt | 16,569,000 | $ 0 | |
Revolving Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | ||
Debt Instrument, Maturity Date, Description | July 2, 2017 | ||
Debt Issuance Cost | $ 400,000 | ||
Long-term Line of Credit | $ 800,000 | $ 0 | |
Line of Credit Facility, Interest Rate at Period End | 2.04% | ||
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 quarterly financial covenants which include, among others, a minimum net worth requirement, maximum debt limits, minimum debt service and fixed charge coverage ratios, and maximum distribution limits. The Company was in compliance with each of the applicable covenants at September 30, 2015. The amendment to the credit facility increased the Minimum Net Worth (as defined in the amended credit facility) requirement to $580 million and limits, effective July 2, 2016, distributions to 100% of Funds From Operations (as defined in the amended credit facility). | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | ||
Courtyard Oceanside, CA and Hilton Garden Inn Omaha, NE [Member] | Mortgage Debt [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Issuance Cost | $ 500,000 | ||
Debt Instrument, Face Amount | $ 36,900,000 | ||
Debt Instrument, Collateral | by the Company’s Oceanside, California Courtyard and Omaha, Nebraska Hilton Garden Inn | ||
Debt Instrument, Periodic Payment | $ 182,000 | ||
Debt Instrument, Frequency of Periodic Payment | monthly | ||
Debt Instrument, Payment Terms | loan will amortize on a 30 year term with a balloon payment due at maturity in October 2025 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.28% | ||
Hilton Garden Inn Denver, CO [Member] | Mortgage Debt [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Issuance Cost | $ 200,000 | ||
Debt Instrument, Face Amount | $ 35,000,000 | ||
Debt Instrument, Collateral | the Company’s Denver, Colorado Hilton Garden Inn | ||
Debt Instrument, Periodic Payment | $ 194,000 | ||
Debt Instrument, Frequency of Periodic Payment | monthly | ||
Debt Instrument, Payment Terms | loan will amortize on a 25 year term with a balloon payment due at maturity in June 2025 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.46% | ||
Residence Inn San Juan Capistrano, CA [Member] | Mortgage Debt [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Issuance Cost | $ 20,000 | ||
Debt Instrument, Periodic Payment | $ 83,000 | ||
Debt Instrument, Frequency of Periodic Payment | monthly | ||
Debt Instrument, Payment Terms | balloon payment due at maturity in June 2020 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | ||
Assumed Mortgage Debt | $ 16,600,000 | ||
Minimum [Member] | Revolving Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
Minimum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.85% | ||
Maximum [Member] | Revolving Credit Facility [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||
Maximum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Credit Facility and Mortgage Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.35% |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Long-term Debt | $ 206.5 | $ 119.7 |
Long-term Debt, Fair Value | $ 208.4 | $ 122.8 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 9 Months Ended | 62 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Related Parties (Details) [Line Items] | ||||
Related Party Transaction, Description of Transaction | To efficiently manage cash disbursements, the Company, Apple Hospitality, A10A or ASRG may make payments for any or all of the related companies. Under the cash management process, each of the companies may advance or defer up to $1 million at any time. Each month, any outstanding amounts are settled among the affected companies. | |||
Apple Hospitality's Interest in Apple Air Holding, LLC [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 74.00% | 74.00% | ||
Apple Suites Realty Group (ASRG) [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Real estate acquisition and disposal fee, Related Party, Percent | 2.00% | |||
Apple Suites Realty Group (ASRG) [Member] | Real Estate Acquisition and Disposal Fees Incurred [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Costs and Expenses, Related Party | $ 2,100 | $ 900 | $ 19,400 | |
Apple Ten Advisors (A10A) [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Management Advisory Fee, Related Party, Percent | 0.1% to 0.25% | |||
Apple Ten Advisors (A10A) [Member] | Advisory Fees Incurred [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Costs and Expenses, Related Party | $ 1,900 | 1,000 | ||
ASRG and A10A [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Costs and Expenses, Related Party | $ 1,900 | 2,000 | ||
Apple Air Holding, LLC [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 26.00% | 26.00% | 26.00% | |
Equity Method Investments | $ 700 | $ 700 | $ 900 | |
Income (Loss) from Equity Method Investments | (200) | (200) | ||
Apple Air Holding, LLC [Member] | Aircraft Usage Fees [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Costs and Expenses, Related Party | $ 60 | $ 100 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | 18 Months Ended | 42 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | |
Shareholders' Equity (Details) [Line Items] | |||||||
Payments for Repurchase of Equity | $ 13,896 | $ 12,508 | |||||
Payments of Ordinary Dividends, Common Stock | $ 55,885 | $ 52,218 | |||||
Unit Redemption Program [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
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) | 1.4 | 1.2 | 6.4 | ||||
Payments for Repurchase of Equity | $ 13,900 | $ 12,500 | $ 65,300 | ||||
Redemption requests redeemed, description | pro-rata basis | ||||||
Redemption requests redeemed, percentage | 68.00% | 100.00% | |||||
Distributions [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Annual Distribution rate (in Dollars per share) | $ 0.825 | ||||||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $ 0.20625 | $ 0.20625 | $ 0.61875 | $ 0.61875 | |||
Payments of Ordinary Dividends, Common Stock | $ 18,500 | $ 18,600 | $ 55,900 | $ 52,200 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of Unit Redemption - Redemptions [Member] - shares | 3 Months Ended | ||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Shareholders' Equity (Details) - Schedule of Unit Redemption [Line Items] | |||||||
Total Requested Unit Redemptions at Redemption Date | 524,458 | 402,201 | 425,833 | 296,642 | 496,839 | 479,078 | 357,013 |
Units Redeemed | 524,458 | 402,201 | 425,833 | 296,642 | 496,839 | 479,078 | 242,644 |
Total Redemption Requests Not Redeemed at Redemption Date | 0 | 0 | 0 | 0 | 0 | 0 | 114,369 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Oct. 29, 2015USD ($) | |
Subsequent Events (Details) [Line Items] | ||||
Payments of Ordinary Dividends, Common Stock | $ 55,885 | $ 52,218 | ||
Payments for Repurchase of Equity | $ 13,896 | $ 12,508 | ||
Number of Units in Real Estate Property | 6,898 | |||
Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Payments of Ordinary Dividends, Common Stock | $ 6,200 | |||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $ / shares | $ 0.06875 | |||
Units Redeemed (in Shares) | shares | 0.9 | |||
Payments for Repurchase of Equity | $ 9,200 | |||
Redemption requests redeemed, percentage | 100.00% | |||
Hampton Inn & Suites Rosemont, IL [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Number of Units in Real Estate Property | 158 | |||
Business Acquisition, Gross Purchase Price | $ 25,400 |