Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2020 | ||
Entity File Number | 001-35169 | ||
Entity Registrant Name | RLJ LODGING TRUST | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 27-4706509 | ||
Entity Address, Address Line One | 3 Bethesda Metro Center, Suite 1000 | ||
Entity Address, City or Town | Bethesda, | ||
Entity Address, State or Province | MD | ||
Entity Address, Postal Zip Code | 20814 | ||
City Area Code | 301 | ||
Local Phone Number | 280-7777 | ||
Title of 12(b) Security | Common Shares of beneficial interest, par value $0.01 per share | ||
Trading Symbol | RLJ | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 165,092,557 | ||
Entity Central Index Key | 0001511337 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | Q2 | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Investment in hotel properties, net | $ 4,555,628 | $ 4,614,966 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 14,862 | 15,171 |
Cash and cash equivalents | 1,048,442 | 882,474 |
Restricted cash reserves | 44,578 | 44,686 |
Hotel and other receivables, net of allowance of $573 and $251, respectively | 11,410 | 39,762 |
Operating Lease, Right-of-Use Asset | 141,651 | 144,358 |
Deferred Income Tax Assets, Net | 64,509 | 51,447 |
Prepaid expense and other assets | 36,357 | 58,536 |
Total assets | 5,917,437 | 5,851,400 |
Liabilities and Equity | ||
Debt, net | 2,591,674 | 2,195,707 |
Accounts payable and other liabilities | 205,186 | 183,408 |
Contract with Customer, Liability | 41,216 | 57,459 |
Operating Lease, Liability | 119,863 | 121,154 |
Accrued interest | 5,292 | 3,024 |
Distributions payable | 8,735 | 64,165 |
Total liabilities | 2,971,966 | 2,624,917 |
Commitments and Contingencies (Note 11) | ||
Shareholders’ equity: | ||
Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at June 30, 2020 and December 31, 2019 | 366,936 | 366,936 |
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 165,092,953 and 169,852,246 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 1,651 | 1,699 |
Additional paid-in capital | 3,071,063 | 3,127,982 |
Accumulated other comprehensive loss | (82,573) | (19,514) |
Retained Earnings | (434,242) | (274,769) |
Total shareholders’ equity | 2,922,835 | 3,202,334 |
Noncontrolling interest: | ||
Noncontrolling interest in consolidated joint ventures | 13,492 | 14,065 |
Noncontrolling interest in the Operating Partnership | 9,144 | 10,084 |
Total noncontrolling interest | 22,636 | 24,149 |
Total equity | 2,945,471 | 3,226,483 |
Total liabilities and equity | $ 5,917,437 | $ 5,851,400 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Hotel and other receivables, allowance | $ 573 | $ 251 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred shares of beneficial interest, shares authorized | 50,000,000 | 50,000,000 |
Preferred shares of beneficial interest, shares issued | 0 | 0 |
Preferred shares of beneficial interest, shares outstanding | 0 | 0 |
Preferred Stock, Liquidation Preference, Value | $ 328,266 | $ 328,266 |
Common shares of beneficial interest, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares of beneficial interest, shares authorized | 450,000,000 | 450,000,000 |
Common shares of beneficial interest, shares issued | 165,092,953 | 169,852,246 |
Common shares of beneficial interest, shares outstanding | 165,092,953 | 169,852,246 |
Series A Cumulative Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred shares of beneficial interest, shares authorized | 12,950,000 | 12,950,000 |
Preferred shares of beneficial interest, shares issued | 12,879,475 | 12,879,475 |
Preferred shares of beneficial interest, shares outstanding | 12,879,475 | 12,879,475 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Total revenues | $ 32,591 | $ 448,727 | $ 298,073 | $ 847,994 |
Expenses | ||||
Management and franchise fees | (1,827) | 35,825 | 15,317 | 69,944 |
Depreciation and amortization | 49,229 | 54,956 | 98,402 | 113,359 |
Property tax, insurance and other | 25,348 | 31,201 | 54,041 | 61,797 |
General and administrative | 11,673 | 11,765 | 23,441 | 22,925 |
Transaction costs | 20 | 425 | 30 | 984 |
Total operating expenses | 136,646 | 360,576 | 414,524 | 710,927 |
Other income | 282 | 349 | 859 | 622 |
Interest income | 579 | 1,073 | 3,545 | 2,245 |
Interest expense | (23,794) | (25,237) | (47,607) | (45,299) |
Gain (loss) on sale of hotel properties, net | (8) | (24,835) | 94 | (24,835) |
(Loss) income before equity in loss from unconsolidated joint ventures | (126,996) | 39,501 | (159,560) | 69,800 |
Income (Loss) from Equity Method Investments | (975) | (2,403) | (390) | (2,784) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (127,971) | 37,098 | (159,950) | 67,016 |
Income tax benefit (expense) | 11,805 | (3,417) | 12,955 | (5,003) |
Net (loss) income | (116,166) | 33,681 | (146,995) | 62,013 |
Net loss (income) attributable to noncontrolling interests: | ||||
Noncontrolling interest in consolidated joint ventures | 524 | (96) | 1,837 | 256 |
Noncontrolling interest in the Operating Partnership | 568 | (141) | 760 | (233) |
Preferred distributions - consolidated joint venture | 0 | 0 | 0 | (186) |
Redemption of preferred equity - consolidated joint venture | 0 | 0 | 0 | (1,153) |
Net Income (Loss) Attributable to Parent | (115,074) | 33,444 | (144,398) | 60,697 |
Preferred dividends | (6,279) | (6,279) | (12,557) | (12,557) |
Net (loss) income attributable to common shareholders | $ (121,353) | $ 27,165 | $ (156,955) | $ 48,140 |
Basic per common share data: | ||||
Net income per share attributable to common shareholders - basic (in dollars per share) | $ (0.74) | $ 0.16 | $ (0.95) | $ 0.27 |
Weighted-average number of common shares - basic (in shares) | 163,543,701 | 172,661,878 | 165,346,717 | 172,729,064 |
Diluted per common share data: | ||||
Net income per share attributable to common shareholders - diluted (in dollars per share) | $ (0.74) | $ 0.16 | $ (0.95) | $ 0.27 |
Weighted-average number of common shares - diluted (in shares) | 163,543,701 | 172,766,091 | 165,346,717 | 172,808,513 |
Comprehensive (loss) income: | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (116,166) | $ 33,681 | $ (146,995) | $ 62,013 |
Unrealized loss on interest rate derivatives | (6,582) | (21,645) | (63,059) | (35,781) |
Reclassification of unrealized gain on discontinued cash flow hedges to interest expense | 0 | 0 | 0 | (2,250) |
Comprehensive (loss) income | (122,748) | 12,036 | (210,054) | 23,982 |
Noncontrolling interest in consolidated joint ventures | 524 | (96) | 1,837 | 256 |
Noncontrolling interest in the Operating Partnership | 568 | (141) | 760 | (233) |
Preferred distributions - consolidated joint venture | 0 | 0 | 0 | (186) |
Redemption of preferred equity - consolidated joint venture | 0 | 0 | 0 | (1,153) |
Comprehensive (loss) income attributable to RLJ | (121,656) | 11,799 | (207,457) | 22,666 |
Occupancy [Member] | ||||
Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 27,853 | 378,857 | 246,745 | 716,527 |
Expenses | ||||
Cost of Goods and Services Sold | 12,469 | 88,898 | 76,222 | 173,086 |
Food and Beverage [Member] | ||||
Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,271 | 49,458 | 32,039 | 93,704 |
Expenses | ||||
Cost of Goods and Services Sold | 1,801 | 35,910 | 28,181 | 70,119 |
Hotel, Other [Member] | ||||
Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,467 | 20,412 | 19,289 | 37,763 |
Expenses | ||||
Cost of Goods and Services Sold | 37,933 | 101,596 | 118,890 | 198,713 |
Hotel [Member] | ||||
Expenses | ||||
Cost of Goods and Services Sold | 50,376 | 262,229 | 238,610 | 511,862 |
AOCI Attributable to Parent [Member] | ||||
Comprehensive (loss) income: | ||||
Unrealized loss on interest rate derivatives | $ (6,582) | $ (21,645) | $ (63,059) | (35,781) |
Reclassification of unrealized gain on discontinued cash flow hedges to interest expense | $ (2,250) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Senior Notes [Member] | Line of Credit | Secured Debt [Member] | Series A Cumulative Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in-Capital | Retained Earnings (Distributions in excess of net earnings) | Accumulated Other Comprehensive Income | Operating Partnership | Consolidated Joint Venture | Preferred Capital in Consolidated Joint Venture [Member] |
Balance (in shares) at Dec. 31, 2018 | 12,879,475 | 174,019,616 | ||||||||||
Balance at Dec. 31, 2018 | $ 3,496,941 | $ 366,936 | $ 1,740 | $ 3,195,381 | $ (150,476) | $ 16,195 | $ 10,827 | $ 11,908 | $ 44,430 | |||
Increase (Decrease) in Owners' Equity | ||||||||||||
Net income (loss) | 62,013 | 233 | (256) | 1,339 | ||||||||
Unrealized loss on interest rate derivatives | (35,781) | (35,781) | ||||||||||
Reclassification of unrealized gain on discontinued cash flow hedges to interest expense | (2,250) | (2,250) | ||||||||||
Redemption of Operating Partnership units | (9) | (9) | ||||||||||
Contributions from consolidated joint venture partners | 2,305 | 2,305 | ||||||||||
Share grants to trustees (in shares) | 530,436 | |||||||||||
Share grants to trustees | 0 | $ 5 | (5) | |||||||||
Amortization of share-based compensation | 6,032 | 6,032 | ||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares) | (34,880) | |||||||||||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | $ 656 | 656 | ||||||||||
Shares acquired as part of a share repurchase program (in shares) | (1,049,215) | (1,049,215) | ||||||||||
Shares acquired as part of a share repurchase program | $ (18,411) | $ (10) | (18,401) | |||||||||
Forfeiture of restricted stock (in shares) | (6,942) | |||||||||||
Restricted Stock Award, Forfeitures | 0 | |||||||||||
Dividends, Preferred Stock | (12,557) | (12,557) | ||||||||||
Distributions on common shares and units | (114,857) | (114,247) | (610) | |||||||||
Preferred distributions - consolidated joint venture | (186) | (186) | ||||||||||
Redemption of preferred equity - consolidated joint venture | (45,583) | (45,583) | ||||||||||
Balance (in shares) at Jun. 30, 2019 | 12,879,475 | 173,459,015 | ||||||||||
Balance at Jun. 30, 2019 | 3,337,001 | $ 366,936 | $ 1,735 | 3,182,351 | (216,583) | (21,836) | 10,441 | 13,957 | 0 | |||
Increase (Decrease) in Owners' Equity | ||||||||||||
Net Income (Loss) Attributable to Parent | 60,697 | 60,697 | ||||||||||
Interest expense | $ 11,888 | $ 20,991 | $ 10,573 | |||||||||
Amortization of deferred financing costs | 1,902 | |||||||||||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | (55) | |||||||||||
Total Interest Expense | 45,299 | |||||||||||
Balance (in shares) at Mar. 31, 2019 | 12,879,475 | 173,667,027 | ||||||||||
Balance at Mar. 31, 2019 | 3,393,222 | $ 366,936 | $ 1,737 | 3,187,285 | (187,092) | (191) | 10,686 | 13,861 | ||||
Increase (Decrease) in Owners' Equity | ||||||||||||
Net income (loss) | 33,681 | 141 | 96 | |||||||||
Unrealized loss on interest rate derivatives | (21,645) | (21,645) | ||||||||||
Reclassification of unrealized gain on discontinued cash flow hedges to interest expense | 0 | |||||||||||
Share grants to trustees (in shares) | 259,408 | |||||||||||
Share grants to trustees | 0 | $ 3 | (3) | |||||||||
Amortization of share-based compensation | 3,204 | 3,204 | ||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares) | (15,606) | |||||||||||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | (290) | (290) | ||||||||||
Shares acquired as part of a share repurchase program (in shares) | (446,906) | |||||||||||
Shares acquired as part of a share repurchase program | (7,850) | $ (5) | (7,845) | |||||||||
Forfeiture of restricted stock (in shares) | (4,908) | |||||||||||
Restricted Stock Award, Forfeitures | 0 | |||||||||||
Dividends, Preferred Stock | (6,279) | (6,279) | ||||||||||
Distributions on common shares and units | (57,042) | (56,656) | (386) | |||||||||
Preferred distributions - consolidated joint venture | 0 | |||||||||||
Balance (in shares) at Jun. 30, 2019 | 12,879,475 | 173,459,015 | ||||||||||
Balance at Jun. 30, 2019 | 3,337,001 | $ 366,936 | $ 1,735 | 3,182,351 | (216,583) | (21,836) | 10,441 | 13,957 | $ 0 | |||
Increase (Decrease) in Owners' Equity | ||||||||||||
Net Income (Loss) Attributable to Parent | 33,444 | 33,444 | ||||||||||
Interest expense | 5,944 | 10,838 | 5,150 | |||||||||
Amortization of deferred financing costs | 1,110 | |||||||||||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 2,195 | |||||||||||
Total Interest Expense | 25,237 | |||||||||||
Balance (in shares) at Dec. 31, 2019 | 12,879,475 | 169,852,246 | ||||||||||
Balance at Dec. 31, 2019 | 3,226,483 | $ 366,936 | $ 1,699 | 3,127,982 | (274,769) | (19,514) | 10,084 | 14,065 | ||||
Increase (Decrease) in Owners' Equity | ||||||||||||
Net income (loss) | (146,995) | (760) | (1,837) | |||||||||
Unrealized loss on interest rate derivatives | (63,059) | (63,059) | ||||||||||
Reclassification of unrealized gain on discontinued cash flow hedges to interest expense | 0 | |||||||||||
Redemption of Operating Partnership units | (8) | (8) | ||||||||||
Contributions from consolidated joint venture partners | 1,264 | 1,264 | ||||||||||
Issuance of restricted stock (in shares) | 801,463 | |||||||||||
Issuance of restricted stock | 0 | $ 8 | (8) | |||||||||
Amortization of share-based compensation | 6,487 | 6,487 | ||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares) | (62,987) | |||||||||||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | (849) | $ (1) | (848) | |||||||||
Shares acquired as part of a share repurchase program (in shares) | (5,489,335) | |||||||||||
Shares acquired as part of a share repurchase program | (62,605) | $ (55) | (62,550) | |||||||||
Forfeiture of restricted stock (in shares) | (8,434) | |||||||||||
Restricted Stock Award, Forfeitures | 0 | $ 0 | 0 | |||||||||
Dividends, Preferred Stock | (12,557) | (12,557) | ||||||||||
Distributions on common shares and units | (2,690) | (2,518) | (172) | |||||||||
Preferred distributions - consolidated joint venture | 0 | |||||||||||
Balance (in shares) at Jun. 30, 2020 | 12,879,475 | 165,092,953 | ||||||||||
Balance at Jun. 30, 2020 | 2,945,471 | $ 366,936 | $ 1,651 | 3,071,063 | (434,242) | (82,573) | 9,144 | 13,492 | ||||
Increase (Decrease) in Owners' Equity | ||||||||||||
Net Income (Loss) Attributable to Parent | (144,398) | |||||||||||
Interest expense | 11,883 | 23,356 | 9,115 | |||||||||
Amortization of deferred financing costs | 2,067 | |||||||||||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 1,186 | |||||||||||
Total Interest Expense | 47,607 | |||||||||||
Balance (in shares) at Mar. 31, 2020 | 12,879,475 | 164,842,781 | ||||||||||
Balance at Mar. 31, 2020 | 3,071,834 | $ 366,936 | $ 1,648 | 3,067,693 | (311,223) | (75,991) | 9,749 | 13,022 | ||||
Increase (Decrease) in Owners' Equity | ||||||||||||
Net income (loss) | (116,166) | (568) | (524) | |||||||||
Unrealized loss on interest rate derivatives | (6,582) | (6,582) | ||||||||||
Reclassification of unrealized gain on discontinued cash flow hedges to interest expense | 0 | |||||||||||
Contributions from consolidated joint venture partners | 994 | 994 | ||||||||||
Issuance of restricted stock (in shares) | 276,294 | |||||||||||
Issuance of restricted stock | 0 | $ 3 | (3) | |||||||||
Amortization of share-based compensation | 3,588 | 3,588 | ||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares) | (24,112) | |||||||||||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | (215) | $ 0 | (215) | |||||||||
Forfeiture of restricted stock (in shares) | (2,010) | |||||||||||
Restricted Stock Award, Forfeitures | 0 | |||||||||||
Dividends, Preferred Stock | (6,279) | (6,279) | ||||||||||
Distributions on common shares and units | (1,703) | (1,666) | (37) | |||||||||
Preferred distributions - consolidated joint venture | 0 | |||||||||||
Balance (in shares) at Jun. 30, 2020 | 12,879,475 | 165,092,953 | ||||||||||
Balance at Jun. 30, 2020 | 2,945,471 | $ 366,936 | $ 1,651 | $ 3,071,063 | $ (434,242) | $ (82,573) | $ 9,144 | $ 13,492 | ||||
Increase (Decrease) in Owners' Equity | ||||||||||||
Net Income (Loss) Attributable to Parent | (115,074) | |||||||||||
Interest expense | $ 5,940 | $ 12,705 | $ 4,475 | |||||||||
Amortization of deferred financing costs | 1,045 | |||||||||||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | (371) | |||||||||||
Total Interest Expense | $ 23,794 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net (loss) income | $ (146,995) | $ 62,013 |
Adjustments to reconcile net (loss) income to cash flow (used in) provided by operating activities: | ||
(Gain) loss on sale of hotel properties, net | (94) | 24,835 |
Depreciation and amortization | 98,402 | 113,359 |
Amortization of deferred financing costs | 2,067 | 1,902 |
Other amortization | (1,192) | (967) |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | 1,186 | (55) |
Income (Loss) from Equity Method Investments | 390 | 2,784 |
Distributions of income from unconsolidated joint ventures | 0 | 1,051 |
Amortization of share-based compensation | 6,021 | 5,760 |
Deferred income taxes | (13,062) | 4,052 |
Changes in assets and liabilities: | ||
Hotel and other receivables, net | 28,352 | (15,655) |
Prepaid expense and other assets | 16,176 | 596 |
Accounts payable and other liabilities | (31,642) | (6,559) |
Increase (Decrease) in Deferred Revenue | (16,243) | 1,027 |
Accrued interest | 2,268 | (991) |
Net cash flow (used in) provided by operating activities | (54,366) | 193,152 |
Cash flows from investing activities | ||
Proceeds from the sale of hotel properties, net | 94 | 447,493 |
Improvements and additions to hotel properties | (44,678) | (90,308) |
Cash Paid to Equity Method Investment, Contribution | (100) | (603) |
Distributions from unconsolidated joint ventures in excess of earnings | 1,577 | 2,436 |
Net cash flow (used in) provided by investing activities | (43,107) | 359,018 |
Cash flows from financing activities | ||
Borrowings under Revolver | 400,000 | 140,000 |
Repayment of borrowings under Revolver | 0 | (140,000) |
Proceeds from mortgage loans | 0 | 381,000 |
Scheduled mortgage loan principal payments | (1,687) | (2,375) |
Proceeds from (Repayments of) Secured Debt | 0 | (374,500) |
Repurchase of common shares under a share repurchase program | (62,605) | (18,411) |
Repurchase of common shares to satisfy employee tax withholding requirements | (849) | (656) |
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | (12,557) | (12,557) |
Distributions on common shares | (57,700) | (114,737) |
Distributions on and redemption of Operating Partnership units | (427) | (620) |
Payments of deferred financing costs | (2,106) | (4,636) |
Payments of Distributions to Affiliates | 0 | (312) |
Redemption of preferred equity - consolidated joint venture | 0 | (45,583) |
Contributions from consolidated joint venture partners | 1,264 | 2,305 |
Net cash flow provided by (used in) financing activities | 263,333 | (191,082) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 165,860 | 361,088 |
Cash, cash equivalents, and restricted cash reserves, beginning of year | 927,160 | 384,842 |
Cash, cash equivalents, and restricted cash reserves, end of period | $ 1,093,020 | $ 745,930 |
Investment in Hotel Properties
Investment in Hotel Properties | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Investment in Hotel Properties | Investment in Hotel Properties Investment in hotel properties consisted of the following (in thousands): June 30, 2020 December 31, 2019 Land and improvements $ 1,089,545 $ 1,088,436 Buildings and improvements 4,066,761 4,039,012 Furniture, fixtures and equipment 695,449 685,699 5,851,755 5,813,147 Accumulated depreciation (1,296,127) (1,198,181) Investment in hotel properties, net $ 4,555,628 $ 4,614,966 For the three and six months ended June 30, 2020, the Company recognized depreciation expense related to its investment in hotel properties of approximately $49.0 million and $97.9 million, respectively. For the three and six months ended June 30, 2019, the Company recognized depreciation expense related to its investment in hotel properties of approximately $54.3 million and $112.0 million, respectively. Impairment |
Supplemental Information to Sta
Supplemental Information to Statements of Cash Flows | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Information to Statements of Cash Flows | Supplemental Information to Statements of Cash Flows (in thousands) For the six months ended June 30, 2020 2019 Reconciliation of cash, cash equivalents, and restricted cash reserves Cash and cash equivalents $ 1,048,442 $ 697,600 Restricted cash reserves 44,578 48,330 Cash, cash equivalents, and restricted cash reserves $ 1,093,020 $ 745,930 Interest paid $ 44,870 $ 47,228 Income taxes paid $ 187 $ 2,506 Operating cash flow lease payments for operating leases $ 6,466 $ 7,489 Supplemental investing and financing transactions In connection with the sale of hotel properties, the Company recorded the following: Sale of hotel properties $ — $ 456,831 Transaction costs 94 (4,435) Operating prorations — (4,903) Proceeds from the sale of hotel properties, net $ 94 $ 447,493 Supplemental non-cash transactions Accrued capital expenditures $ 7,770 $ 5,059 |
Investment in Hotel Properties
Investment in Hotel Properties (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of investment in hotel properties | Investment in hotel properties consisted of the following (in thousands): June 30, 2020 December 31, 2019 Land and improvements $ 1,089,545 $ 1,088,436 Buildings and improvements 4,066,761 4,039,012 Furniture, fixtures and equipment 695,449 685,699 5,851,755 5,813,147 Accumulated depreciation (1,296,127) (1,198,181) Investment in hotel properties, net $ 4,555,628 $ 4,614,966 |
Supplemental Information to S_2
Supplemental Information to Statements of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental information to statements of cash flows | For the six months ended June 30, 2020 2019 Reconciliation of cash, cash equivalents, and restricted cash reserves Cash and cash equivalents $ 1,048,442 $ 697,600 Restricted cash reserves 44,578 48,330 Cash, cash equivalents, and restricted cash reserves $ 1,093,020 $ 745,930 Interest paid $ 44,870 $ 47,228 Income taxes paid $ 187 $ 2,506 Operating cash flow lease payments for operating leases $ 6,466 $ 7,489 Supplemental investing and financing transactions In connection with the sale of hotel properties, the Company recorded the following: Sale of hotel properties $ — $ 456,831 Transaction costs 94 (4,435) Operating prorations — (4,903) Proceeds from the sale of hotel properties, net $ 94 $ 447,493 Supplemental non-cash transactions Accrued capital expenditures $ 7,770 $ 5,059 |
Investment in Hotel Propertie_2
Investment in Hotel Properties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Land and improvements | $ 1,089,545 | $ 1,089,545 | $ 1,088,436 | ||
Buildings and improvements | 4,066,761 | 4,066,761 | 4,039,012 | ||
Furniture, fixtures and equipment | 695,449 | 695,449 | 685,699 | ||
Investment in hotel properties, gross | 5,851,755 | 5,851,755 | 5,813,147 | ||
Accumulated depreciation | (1,296,127) | (1,296,127) | (1,198,181) | ||
Investment in hotel properties, net | 4,555,628 | 4,555,628 | $ 4,614,966 | ||
Real Estate Depreciation Expense, Excluding Discontinued Operations Expense | $ 49,000 | $ 54,300 | $ 97,900 | $ 112,000 |
Supplemental Information to S_3
Supplemental Information to Statements of Cash Flows (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash and cash equivalents | $ 1,048,442,000 | $ 697,600,000 |
Restricted cash reserves | 44,578,000 | 48,330,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 1,093,020,000 | 745,930,000 |
Interest paid | 44,870,000 | 47,228,000 |
Income taxes paid | 187,000 | 2,506,000 |
Operating Lease, Payments | 6,466,000 | 7,489 |
In connection with the sale of hotel properties, the Company recorded the following: | ||
Sale of hotel properties | 0 | 456,831,000 |
Transaction costs | 94,000 | (4,435,000) |
Operating prorations | 0 | (4,903,000) |
Proceeds from the sale of hotel properties, net | 94,000 | 447,493,000 |
Supplemental non-cash transactions | ||
Accrued capital expenditures | $ 7,770,000 | $ 5,059,000 |
General
General | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | General Organization RLJ Lodging Trust (the "Company") was formed as a Maryland real estate investment trust ("REIT") on January 31, 2011. The Company is a self-advised and self-administered REIT that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company elected to be taxed as a REIT, for U.S. federal income tax purposes, commencing with its taxable year ended December 31, 2011. Substantially all of the Company’s assets and liabilities are held by, and all of its operations are conducted through, RLJ Lodging Trust, L.P. (the "Operating Partnership"). The Company is the sole general partner of the Operating Partnership. As of June 30, 2020, there were 165,865,246 units of limited partnership interest in the Operating Partnership ("OP units") outstanding and the Company owned, through a combination of direct and indirect interests, 99.5% of the outstanding OP units. As of June 30, 2020, the Company owned 104 hotel properties with approximately 22,700 rooms, located in 23 states and the District of Columbia. The Company, through wholly-owned subsidiaries, owned a 100% interest in 100 of its hotel properties, a 98.3% controlling interest in the DoubleTree Metropolitan Hotel New York City, a 95% controlling interest in The Knickerbocker, and 50% interests in entities owning two hotel properties. The Company consolidates its real estate interests in the 102 hotel properties in which it holds a controlling financial interest, and the Company records the real estate interests in the two hotel properties in which it holds an indirect 50% interest using the equity method of accounting. The Company leases 103 of the 104 hotel properties to its taxable REIT subsidiaries ("TRS"), of which the Company owns a controlling financial interest. Liquidity and Management's Plans In response to the near elimination of travel and hotel demand resulting from the spread of the novel strain of coronavirus (COVID-19) and the related government mandates, the Company had previously announced the suspension of operations at 57 of its hotel properties. As government mandated stay-in-place restrictions are lifted, the Company has developed a framework to open hotels in a socially and financially responsible way. The Company's primarily transient oriented, select-service and extended stay hotels located in drive-to and leisure markets will re-open sooner than traditional full-service hotels. As of June 30, 2020, the Company had reopened 21 of its hotel properties, has subsequently reopened 15 hotel properties and continues to evaluate reopening additional hotel properties based on market conditions. In the event stay-in-place restrictions are reinstated, the Company would consider temporarily suspending hotel operations where there is no adequate demand. The ongoing effects of the COVID-19 pandemic on the Company's operations continue to have a material adverse impact on its financial results and liquidity, and such adverse impact may continue well beyond the containment of such outbreak. Since the extent to which the COVID-19 pandemic impacts our operations will depend on future developments that are highly uncertain, the Company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with reasonable certainty. Given the impact on lodging demand, the Company has taken various actions to help mitigate the effects of the COVID-19 pandemic on its operating results and to preserve liquidity. Operational measures the Company has taken include: • Suspension of Hotel Operations: The Company suspended operations at many of its hotel properties. As government mandated stay-in-place restrictions have been lifted and lodging demand stabilized and began to recover, the Company began the process of reopening certain hotel properties. • Cost Containment Initiatives: The Company continues to operate with reduced operating expenses by implementing stringent operational cost containment measures. These measures include significantly reduced staffing, reduced energy costs, elimination of non-essential amenities and services and the closure of several floors and most food and beverage outlets at properties that remain open. • Capital Investment Reduction: The Company reduced its 2020 capital expenditure program by deferring all capital investments, other than completing projects that are substantially underway and nearing completion. • Return on Investment ("ROI") Project Suspensions: The Company suspended most of the 2020 ROI projects. In addition, the Company has taken aggressive actions to increase liquidity and preserve cash at the corporate level including: • Common Stock Dividend: The Company’s board of trustees authorized the first, second and third quarter common cash dividends of $0.01 per common share. • Share Repurchase: The Company suspended further repurchases of its common shares and Series A Preferred Shares (defined below), as applicable. • Increased Liquidity: The Company enhanced its liquidity position by drawing down $400.0 million under its $600.0 million revolving credit facility. As of June 30, 2020, the Company had approximately $1.1 billion of cash and cash equivalents and restricted cash reserves. In June 2020, the Company amended its Revolver and unsecured Term Loans, which are defined in Note 7, Debt . The amendments included a waiver of quarterly financial covenants through the first quarter of 2021. Additionally, after the end of the covenant waiver period, certain covenant thresholds were modified through the second quarter of 2022. Refer to Note 7, Debt |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company's Annual Report on Form 10-K for the year ended December 31, 2019 contains a discussion of the Company's significant accounting policies. Other than noted below, there have been no significant changes to the Company's significant accounting policies since December 31, 2019. Basis of Presentation and Principles of Consolidation The unaudited consolidated financial statements and related notes have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP") and in conformity with the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to financial information. The unaudited financial statements include all adjustments that are necessary, in the opinion of management, to fairly state the consolidated balance sheets, statements of operations and comprehensive income, statements of changes in equity and statements of cash flows. The unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2019, included in the Company's Annual Report on Form 10-K filed with the SEC on February 26, 2020. The consolidated financial statements include the accounts of the Company, the Operating Partnership and its wholly-owned subsidiaries, and joint ventures in which the Company has a majority voting interest and control. For the controlled subsidiaries that are not wholly-owned, the third-party ownership interest represents a noncontrolling interest, which is presented separately in the consolidated financial statements. The Company also records the real estate interests in two joint ventures in which it holds an indirect 50% interest using the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain prior year amounts in these financial statements have been reclassified to conform to the current year presentation with no impact to net (loss) income and comprehensive (loss) income, shareholders’ equity or cash flows. Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the amounts of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Given the additional and unforeseen effects from the COVID-19 pandemic, these estimates have become more challenging, and actual results could differ from those estimates. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which modifies the measurement approach for credit losses on financial assets measured on an amortized cost basis from an "incurred loss" method to an "expected loss" method. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses . The Company adopted this new standard on January 1, 2020. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The guidance modifies the disclosure requirements for fair value measurements by removing or modifying some of the disclosures, while also adding new disclosures. The Company adopted this new standard on January 1, 2020. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The guidance provides optional expedients for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued at the end of 2021 because of reference rate reform. The guidance is effective immediately and expires on December 31, 2022. Based on the Company's assessment, the adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements. |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Ventures (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Investment in Unconsolidated Joint Ventures As of June 30, 2020 and December 31, 2019, the Company owned 50% interests in joint ventures that owned two hotel properties. The Company accounts for the investments in these unconsolidated joint ventures under the equity method of accounting. The Company makes adjustments to the equity in loss from unconsolidated joint ventures related to the difference between the Company's basis in the investment in the unconsolidated joint ventures as compared to the historical basis of the assets and liabilities of the joint ventures. As of June 30, 2020 and December 31, 2019, the unconsolidated joint ventures' debt consisted entirely of non-recourse mortgage debt. The following table summarizes the components of the Company's investments in unconsolidated joint ventures (in thousands): June 30, 2020 December 31, 2019 Equity basis of the joint venture investments $ (3,985) $ (4,236) Cost of the joint venture investments in excess of the joint venture book value 18,847 19,407 Investment in unconsolidated joint ventures $ 14,862 $ 15,171 The following table summarizes the components of the Company's equity in loss from unconsolidated joint ventures (in thousands): For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Operating (loss) income $ (695) $ 858 $ 170 $ 845 Depreciation of cost in excess of book value (280) (338) (560) (706) Loss on sale — (2,923) — (2,923) Equity in loss from unconsolidated joint ventures $ (975) $ (2,403) $ (390) $ (2,784) |
Sale of Hotel Properties
Sale of Hotel Properties | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal of Hotel Properties | Sale of Hotel Properties During the six months ended June 30, 2019, Company sold 23 hotel properties in two separate transactions for a total sales price of approximately $465.3 million. The Company also entered into a purchase and sale agreement to sell a portfolio of 18 hotel properties and incurred a loss to write down the held-for-sale portfolio to its fair value less cost to sell. The sale of the 18 hotel portfolio closed in August 2019. In connection with these transactions, the Company recorded a net loss of $24.8 million, which is included in (loss) gain on sale of hotel properties, net, in the accompanying consolidated statements of operations and comprehensive income. On June 25, 2019, the Company sold a portfolio of 21 hotels for $311.9 million. In connection with this transaction, the Company recorded a gain on sale of $44.5 million, which is included in (loss) gain on sale of hotel properties, net, in the accompanying consolidated statements of operations and comprehensive income. On June 27, 2019, the Company sold two resort hotels in Myrtle Beach, South Carolina for $153.3 million. In connection with this transaction, the Company recorded a loss on sale of $21.3 million, which is included in (loss) gain on sale of hotel properties, net, in the accompanying consolidated statements of operations and comprehensive income. The following table discloses the hotel properties that were sold during the six months ended June 30, 2019: Hotel Property Name Location Sale Date Rooms Courtyard Boulder Longmont Longmont, CO June 25, 2019 78 Courtyard Salt Lake City Airport Salt Lake City, UT June 25, 2019 154 Courtyard Fort Lauderdale SW Miramar Miramar, FL June 25, 2019 128 Courtyard Austin Airport Austin, TX June 25, 2019 150 Fairfield Inn & Suites San Antonio Downtown San Antonio, TX June 25, 2019 110 Hampton Inn & Suites Clearwater St. Petersburg Clearwater, FL June 25, 2019 128 Hampton Inn Fort Walton Beach Fort Walton, FL June 25, 2019 100 Hampton Inn & Suites Denver Tech Center Denver, CO June 25, 2019 123 Hampton Inn West Palm Beach Airport Central West Palm Beach, FL June 25, 2019 105 Hilton Garden Inn Bloomington Bloomington, IN June 25, 2019 168 Hilton Garden Inn West Palm Beach Airport West Palm Beach, FL June 25, 2019 100 Hilton Garden Inn Durham Raleigh Research Triangle Park Durham, NC June 25, 2019 177 Residence Inn Longmont Boulder Longmont, CO June 25, 2019 84 Residence Inn Detroit Novi Novi, MI June 25, 2019 107 Residence Inn Chicago Oak Brook Oak Brook, IL June 25, 2019 156 Residence Inn Fort Lauderdale Plantation Plantation, FL June 25, 2019 138 Residence Inn Salt Lake City Airport Salt Lake City, UT June 25, 2019 104 Residence Inn San Antonio Downtown Market Square San Antonio, TX June 25, 2019 95 Residence Inn Fort Lauderdale SW Miramar Miramar, FL June 25, 2019 130 Residence Inn Silver Spring Silver Spring, MD June 25, 2019 130 Springhill Suites Boulder Longmont Longmont, CO June 25, 2019 90 Embassy Suites Myrtle Beach Oceanfront Resort Myrtle Beach, SC June 27, 2019 255 Hilton Myrtle Beach Resort Myrtle Beach, SC June 27, 2019 385 Total 3,195 |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue The Company recognized revenue from the following geographic markets (in thousands): For the three months ended June 30, 2020 For the three months ended June 30, 2019 Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Southern California $ 5,064 $ 270 $ 654 $ 5,988 $ 33,082 $ 3,544 $ 2,524 $ 39,150 Chicago 2,964 385 139 3,488 22,132 3,553 577 26,262 Northern California 2,716 16 483 3,215 52,222 4,929 1,585 58,736 South Florida 2,449 143 291 2,883 30,048 5,146 2,195 37,389 New York City 2,618 6 65 2,689 36,042 4,451 1,197 41,690 Washington, DC 1,931 170 98 2,199 19,081 532 610 20,223 Houston 1,463 6 167 1,636 15,524 1,018 1,223 17,765 Austin 525 28 509 1,062 23,228 2,402 1,071 26,701 Denver 691 6 87 784 18,263 3,321 397 21,981 Louisville 292 — 9 301 13,879 4,530 593 19,002 Other 7,140 241 965 8,346 115,356 16,032 8,440 139,828 Total $ 27,853 $ 1,271 $ 3,467 $ 32,591 $ 378,857 $ 49,458 $ 20,412 $ 448,727 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | = 1.50x N/A (3) Secured indebtedness ratio <= 45.0% N/A (3) Unencumbered indebtedness ratio <= 60.0% N/A (3) Unencumbered debt service coverage ratio >= 2.00x N/A (3) Maintain minimum liquidity level >= $125.0 million Yes (1) Leverage ratio is net indebtedness, as defined in the Revolver and Term Loan agreements, to corporate earnings before interest, taxes, depreciation, and amortization ("EBITDA"), as defined in the Revolver and Term Loan agreements. (2) Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the Revolver and Term Loan agreements as EBITDA less furniture, fixtures and equipment ("FF&E") reserves, to fixed charges, which is generally defined in the Revolver and Term Loan agreements as interest expense, all regularly scheduled principal payments, preferred dividends paid, and cash taxes paid. (3) The Company received a waiver for this covenant, see details below. In June 2020, the Company amended its Revolver and Term Loans. The amendments suspend the testing of all existing financial maintenance covenants under the Revolver and the Term Loan agreements for all periods through and including the fiscal quarter ending March 31, 2021 (the “Covenant Relief Period”). In addition, for periods following the Covenant Relief Period, the amendments modify the covenant thresholds for the leverage ratio and unencumbered debt service coverage ratio as follows: • Increasing the maximum leverage ratio to 8.50x for the first two quarters following the Covenant Relief Period, 8.00x for the third and fourth quarters following the Covenant Relief Period, 7.50x for the fifth quarter following the Covenant Relief Period, and returning to 7.00x for the quarter ending September 30, 2022. • Reducing the minimum unencumbered debt service coverage ratio to 1.65x for the first three quarters following the Covenant Relief Period until the minimum unencumbered debt service coverage ratio returns to 2.00x for the quarter ending March 31, 2022. Pursuant to the amendments and through the date that the financial statements are delivered for the quarter ending June 30, 2021 (the "Restriction Period"), the Company is subject to the following restrictions: • The Company will be required to maintain a minimum liquidity level of $125.0 million. • The net cash proceeds from asset sales, equity issuances and incurrences of indebtedness will, subject to various exceptions, be required to be applied as a mandatory prepayment of certain amounts outstanding under the Revolver and the Term Loans. • Additional negative covenants that limit the ability of the Company and its subsidiaries to incur additional indebtedness, make prepayments of other indebtedness, make dividends and distributions (with certain exceptions, including for the payment of a quarterly cash dividend of $0.01 per common share, the payment of a quarterly cash dividend on the Company’s Series A Cumulative Convertible Preferred Shares and other payments for purposes of maintaining REIT status) and stock repurchases, make approximately $260.0 million of capital expenditures, and make investments, including up to $200.0 million of acquisitions or mergers, in each case, subject to various exceptions. • Requirement to pledge the equity interests in certain subsidiaries that own unencumbered properties to secure the Revolver and Term Loans. The equity pledge requirement is also required to be satisfied following the Restriction Period until such time as the leverage ratio is no greater than 6.50x for two consecutive fiscal quarters. The amendments further provide that, until the earlier of (1) the earlier of July 1, 2022 or the day after the end of the fifth quarter immediately following the end of the Covenant Relief Period and (2) such time as the leverage ratio is less than or equal to 7.00x, borrowings under the Revolver and the Term Loan agreements will bear interest, at the Company's election, at a per annum rate of (i) in the case of the Revolver, (a) LIBOR plus a margin of 230 basis points or (b) a base rate plus a margin of 130 basis points, and (ii) in the case of each of the Term Loans, (a) LIBOR plus a margin of 225 basis points or (b) a base rate plus a margin of 125 basis points. The amendments also add a floor of 0.25% to the LIBOR interest rate determination, subject to certain exceptions, under both the Revolver and the Term Loan agreements. At the Company's election, the Restriction Period and the Covenant Relief Period may be terminated early if the Company is at such time able to comply with the applicable financial covenants. Mortgage Loans The Company's mortgage loans consisted of the following (in thousands): Outstanding Borrowings at Number of Assets Encumbered Interest Rate at June 30, 2020 Maturity Date June 30, 2020 December 31, 2019 Mortgage loan (2) 7 1.68 % (1) April 2022 (6) $ 200,000 $ 200,000 Mortgage loan (3) 1 5.25 % June 2022 30,773 31,215 Mortgage loan (4) 3 4.95 % October 2022 88,038 89,299 Mortgage loan (5) 1 4.94 % October 2022 28,379 28,785 Mortgage loan (2) 4 1.83 % (1) April 2024 (6) 85,000 85,000 Mortgage loan (2) 3 2.88 % (1) April 2024 (6) 96,000 96,000 19 528,190 530,299 Deferred financing costs, net (3,136) (3,869) Total mortgage loans, net $ 525,054 $ 526,430 (1) Interest rate at June 30, 2020 gives effect to interest rate hedges. (2) The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity. (3) Includes $0.4 million and $0.5 million at June 30, 2020 and December 31, 2019, respectively, related to a fair value adjustment on a mortgage loan. (4) Includes $1.1 million and $1.4 million at June 30, 2020 and December 31, 2019, respectively, related to fair value adjustments on the mortgage loans. (5) Includes $0.4 million and $0.4 million at June 30, 2020 and December 31, 2019, respectively, related to a fair value adjustment on the mortgage loan. (6) The mortgage loan provides two one year extension options. Certain mortgage agreements are subject to various maintenance covenants requiring the Company to maintain a minimum debt yield or debt service coverage ratio ("DSCR"). Failure to meet the debt yield or DSCR thresholds is not an event of default, but instead triggers a cash trap event. During the cash trap event, the lender or servicer of the mortgage loan controls cash outflows until the loan is covenant compliant. In addition certain mortgage loans have other requirements including continued operation and maintenance of the hotel property. While operations at certain hotel properties securing the mortgage loans have been temporarily suspended, the business operations remain that of a hotel, not another form of business, and the hotel properties continue to be maintained. At June 30, 2020, one mortgage loan failed to meet the DSCR threshold and was in a cash trap event, and another four mortgages had failed to meet the DSCR threshold and will be in a cash trap event. The Company was in compliance with all other maintenance covenants associated with the other mortgage loans at June 30, 2020. Interest Expense The components of the Company's interest expense consisted of the following (in thousands): For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Senior Notes $ 5,940 $ 5,944 $ 11,883 $ 11,888 Revolver and Term Loans 12,705 10,838 23,356 20,991 Mortgage loans 4,475 5,150 9,115 10,573 Amortization of deferred financing costs 1,045 1,110 2,067 1,902 Undesignated interest rate swaps (371) 2,195 1,186 (55) Total interest expense $ 23,794 $ 25,237 $ 47,607 $ 45,299 " id="sjs-B4" xml:space="preserve">Debt The Company's debt consisted of the following (in thousands): June 30, 2020 December 31, 2019 Senior Notes $ 498,122 $ 500,484 Revolver and Term Loans, net 1,568,498 1,168,793 Mortgage loans, net 525,054 526,430 Debt, net $ 2,591,674 $ 2,195,707 Senior Notes The Company's senior unsecured notes are referred to as the "Senior Notes." The Company's Senior Notes consisted of the following (in thousands): Outstanding Borrowings at Interest Rate Maturity Date June 30, 2020 December 31, 2019 Senior unsecured notes (1) (2) (3) 6.00% June 2025 $ 498,122 $ 500,484 (1) Requires payments of interest only through maturity. (2) The senior unsecured notes include $23.2 million and $25.6 million at June 30, 2020 and December 31, 2019, respectively, related to acquisition related fair value adjustments on the senior unsecured notes. (3) Beginning June 1, 2020, the Company has the option to redeem the senior unsecured notes at a price of 103.0% of face value. The Senior Notes are subject to a maximum unsecured leverage maintenance covenant, which is based on asset value that is calculated at historical cost. In addition, the Senior Notes are subject to various incurrence covenants that limit the ability of the Company's subsidiary, FelCor Lodging Limited Partnership, to incur additional debt if these covenants are violated. As of June 30, 2020, the Company was in compliance with all maintenance and incurrence covenants associated with the Senior Notes. Revolver and Term Loans The Company has the following unsecured credit agreements in place: • $600.0 million revolving credit facility with a scheduled maturity date of May 18, 2024 and a one year extension option if certain conditions are satisfied (the "Revolver"); • $150.0 million term loan with a scheduled maturity date of January 22, 2022 (the "$150 Million Term Loan Maturing 2022"); • $400.0 million term loan with a scheduled maturity date of January 25, 2023 (the "$400 Million Term Loan Maturing 2023"); • $225.0 million term loan with a scheduled maturity date of January 25, 2023 (the "$225 Million Term Loan Maturing 2023"); and • $400.0 million term loan with a scheduled maturity date of May 18, 2025 (the "$400 Million Term Loan Maturing 2025"). The $150 Million Term Loan Maturing 2022, the $400 Million Term Loan Maturing 2023, the $225 Million Term Loan Maturing 2023, and the $400 Million Term Loan Maturing 2025 are collectively the "Term Loans." The Company's unsecured credit agreements consisted of the following (in thousands): Outstanding Borrowings at Interest Rate at June 30, 2020 (1) Maturity Date June 30, 2020 December 31, 2019 Revolver (2) 3.76% May 2024 $ 400,000 $ — $150 Million Term Loan Maturing 2022 3.88% January 2022 150,000 150,000 $400 Million Term Loan Maturing 2023 4.58% January 2023 400,000 400,000 $225 Million Term Loan Maturing 2023 4.58% January 2023 225,000 225,000 $400 Million Term Loan Maturing 2025 3.77% May 2025 400,000 400,000 1,575,000 1,175,000 Deferred financing costs, net (3) (6,502) (6,207) Total Revolver and Term Loans, net $ 1,568,498 $ 1,168,793 (1) Interest rate at June 30, 2020 gives effect to interest rate hedges. (2) At June 30, 2020 and December 31, 2019, there was $200.0 million and $600.0 million, respectively, undrawn on the Revolver. The Company also has the ability to extend the maturity date for an additional one year period ending May 2025 if certain conditions are satisfied. (3) Excludes $3.9 million and $3.4 million as of June 30, 2020 and December 31, 2019, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets. The Revolver and Term Loans are subject to various financial covenants. A summary of the most restrictive covenants is as follows: Covenant Compliance Leverage ratio (1) <= 7.00x N/A (3) Fixed charge coverage ratio (2) >= 1.50x N/A (3) Secured indebtedness ratio <= 45.0% N/A (3) Unencumbered indebtedness ratio <= 60.0% N/A (3) Unencumbered debt service coverage ratio >= 2.00x N/A (3) Maintain minimum liquidity level >= $125.0 million Yes (1) Leverage ratio is net indebtedness, as defined in the Revolver and Term Loan agreements, to corporate earnings before interest, taxes, depreciation, and amortization ("EBITDA"), as defined in the Revolver and Term Loan agreements. (2) Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the Revolver and Term Loan agreements as EBITDA less furniture, fixtures and equipment ("FF&E") reserves, to fixed charges, which is generally defined in the Revolver and Term Loan agreements as interest expense, all regularly scheduled principal payments, preferred dividends paid, and cash taxes paid. (3) The Company received a waiver for this covenant, see details below. In June 2020, the Company amended its Revolver and Term Loans. The amendments suspend the testing of all existing financial maintenance covenants under the Revolver and the Term Loan agreements for all periods through and including the fiscal quarter ending March 31, 2021 (the “Covenant Relief Period”). In addition, for periods following the Covenant Relief Period, the amendments modify the covenant thresholds for the leverage ratio and unencumbered debt service coverage ratio as follows: • Increasing the maximum leverage ratio to 8.50x for the first two quarters following the Covenant Relief Period, 8.00x for the third and fourth quarters following the Covenant Relief Period, 7.50x for the fifth quarter following the Covenant Relief Period, and returning to 7.00x for the quarter ending September 30, 2022. • Reducing the minimum unencumbered debt service coverage ratio to 1.65x for the first three quarters following the Covenant Relief Period until the minimum unencumbered debt service coverage ratio returns to 2.00x for the quarter ending March 31, 2022. Pursuant to the amendments and through the date that the financial statements are delivered for the quarter ending June 30, 2021 (the "Restriction Period"), the Company is subject to the following restrictions: • The Company will be required to maintain a minimum liquidity level of $125.0 million. • The net cash proceeds from asset sales, equity issuances and incurrences of indebtedness will, subject to various exceptions, be required to be applied as a mandatory prepayment of certain amounts outstanding under the Revolver and the Term Loans. • Additional negative covenants that limit the ability of the Company and its subsidiaries to incur additional indebtedness, make prepayments of other indebtedness, make dividends and distributions (with certain exceptions, including for the payment of a quarterly cash dividend of $0.01 per common share, the payment of a quarterly cash dividend on the Company’s Series A Cumulative Convertible Preferred Shares and other payments for purposes of maintaining REIT status) and stock repurchases, make approximately $260.0 million of capital expenditures, and make investments, including up to $200.0 million of acquisitions or mergers, in each case, subject to various exceptions. • Requirement to pledge the equity interests in certain subsidiaries that own unencumbered properties to secure the Revolver and Term Loans. The equity pledge requirement is also required to be satisfied following the Restriction Period until such time as the leverage ratio is no greater than 6.50x for two consecutive fiscal quarters. The amendments further provide that, until the earlier of (1) the earlier of July 1, 2022 or the day after the end of the fifth quarter immediately following the end of the Covenant Relief Period and (2) such time as the leverage ratio is less than or equal to 7.00x, borrowings under the Revolver and the Term Loan agreements will bear interest, at the Company's election, at a per annum rate of (i) in the case of the Revolver, (a) LIBOR plus a margin of 230 basis points or (b) a base rate plus a margin of 130 basis points, and (ii) in the case of each of the Term Loans, (a) LIBOR plus a margin of 225 basis points or (b) a base rate plus a margin of 125 basis points. The amendments also add a floor of 0.25% to the LIBOR interest rate determination, subject to certain exceptions, under both the Revolver and the Term Loan agreements. At the Company's election, the Restriction Period and the Covenant Relief Period may be terminated early if the Company is at such time able to comply with the applicable financial covenants. Mortgage Loans The Company's mortgage loans consisted of the following (in thousands): Outstanding Borrowings at Number of Assets Encumbered Interest Rate at June 30, 2020 Maturity Date June 30, 2020 December 31, 2019 Mortgage loan (2) 7 1.68 % (1) April 2022 (6) $ 200,000 $ 200,000 Mortgage loan (3) 1 5.25 % June 2022 30,773 31,215 Mortgage loan (4) 3 4.95 % October 2022 88,038 89,299 Mortgage loan (5) 1 4.94 % October 2022 28,379 28,785 Mortgage loan (2) 4 1.83 % (1) April 2024 (6) 85,000 85,000 Mortgage loan (2) 3 2.88 % (1) April 2024 (6) 96,000 96,000 19 528,190 530,299 Deferred financing costs, net (3,136) (3,869) Total mortgage loans, net $ 525,054 $ 526,430 (1) Interest rate at June 30, 2020 gives effect to interest rate hedges. (2) The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity. (3) Includes $0.4 million and $0.5 million at June 30, 2020 and December 31, 2019, respectively, related to a fair value adjustment on a mortgage loan. (4) Includes $1.1 million and $1.4 million at June 30, 2020 and December 31, 2019, respectively, related to fair value adjustments on the mortgage loans. (5) Includes $0.4 million and $0.4 million at June 30, 2020 and December 31, 2019, respectively, related to a fair value adjustment on the mortgage loan. (6) The mortgage loan provides two one year extension options. Certain mortgage agreements are subject to various maintenance covenants requiring the Company to maintain a minimum debt yield or debt service coverage ratio ("DSCR"). Failure to meet the debt yield or DSCR thresholds is not an event of default, but instead triggers a cash trap event. During the cash trap event, the lender or servicer of the mortgage loan controls cash outflows until the loan is covenant compliant. In addition certain mortgage loans have other requirements including continued operation and maintenance of the hotel property. While operations at certain hotel properties securing the mortgage loans have been temporarily suspended, the business operations remain that of a hotel, not another form of business, and the hotel properties continue to be maintained. At June 30, 2020, one mortgage loan failed to meet the DSCR threshold and was in a cash trap event, and another four mortgages had failed to meet the DSCR threshold and will be in a cash trap event. The Company was in compliance with all other maintenance covenants associated with the other mortgage loans at June 30, 2020. Interest Expense The components of the Company's interest expense consisted of the following (in thousands): For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Senior Notes $ 5,940 $ 5,944 $ 11,883 $ 11,888 Revolver and Term Loans 12,705 10,838 23,356 20,991 Mortgage loans 4,475 5,150 9,115 10,573 Amortization of deferred financing costs 1,045 1,110 2,067 1,902 Undesignated interest rate swaps (371) 2,195 1,186 (55) Total interest expense $ 23,794 $ 25,237 $ 47,607 $ 45,299 |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging Activities The following interest rate swaps have been designated as cash flow hedges (in thousands): Notional value at Fair value at Hedge type Interest Maturity June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Swap-cash flow 1.15% April 2021 $ 100,000 $ 100,000 $ (893) $ 607 Swap-cash flow 1.20% April 2021 100,000 100,000 (938) 538 Swap-cash flow 2.15% April 2021 75,000 75,000 (1,347) (590) Swap-cash flow 1.91% April 2021 75,000 75,000 (1,183) (337) Swap-cash flow 1.61% June 2021 50,000 50,000 (799) (32) Swap-cash flow 1.56% June 2021 50,000 50,000 (768) 13 Swap-cash flow 1.71% June 2021 50,000 50,000 (852) (109) Swap-cash flow 2.29% December 2022 200,000 200,000 (11,285) (4,587) Swap-cash flow 2.29% December 2022 125,000 125,000 (7,047) (2,859) Swap-cash flow 2.38% December 2022 200,000 200,000 (11,772) (5,155) Swap-cash flow 2.38% December 2022 100,000 100,000 (5,883) (2,574) Swap-cash flow (1) 2.75% November 2023 100,000 100,000 (7,937) (3,590) Swap-cash flow (2) 2.51% December 2023 75,000 75,000 (5,360) (2,120) Swap-cash flow (2) 2.39% December 2023 75,000 75,000 (5,088) (1,858) Swap-cash flow 1.35% September 2021 49,000 49,000 (748) 181 Swap-cash flow 1.28% September 2022 100,000 100,000 (2,632) 690 Swap-cash flow (3) 1.24% September 2025 150,000 150,000 (5,968) 2,268 Swap-cash flow (4) 1.16% April 2024 50,000 — (1,524) — Swap-cash flow (4) 1.20% April 2024 50,000 — (1,586) — Swap-cash flow (4) 1.15% April 2024 50,000 — (1,510) — Swap-cash flow (4) 1.10% April 2024 50,000 — (1,434) — Swap-cash flow (4) 0.98% April 2024 25,000 — (626) — Swap-cash flow (4) 0.95% April 2024 25,000 — (603) — Swap-cash flow (4) 0.93% April 2024 25,000 — (587) — Swap-cash flow (4) 0.90% April 2024 25,000 — (564) — Swap-cash flow 0.85% December 2024 50,000 — (1,510) — Swap-cash flow 0.75% December 2024 50,000 — (1,282) — Swap-cash flow (5) 0.65% January 2026 50,000 — (847) — $ 2,124,000 $ 1,674,000 $ (82,573) $ (19,514) (1) Effective in November 2020. (2) Effective in January 2021. (3) Effective in September 2021. (4) Effective in April 2021. (5) Effective in July 2021. The following interest rate swaps have not been designated as hedging instruments (in thousands): Notional value at Fair value at Derivative type Interest Maturity June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Interest rate swap (1) 1.80% September 2020 $ 29,865 $ 30,195 $ (136) $ (34) Interest rate swap (1) 1.80% September 2020 74,210 75,030 (339) (86) Interest rate swap (1) 1.80% September 2020 31,675 32,025 (145) (37) Interest rate swap (1) 1.81% October 2020 141,094 142,500 (942) (219) $ 276,844 $ 279,750 $ (1,562) $ (376) (1) During the year ended December 31, 2019, the Company discontinued accounting for these interest rate swaps as cash flow hedges. The Company recognizes all changes in the fair value of these interest rate swaps in interest expense in the consolidated statements of operations and comprehensive income. As of December 31, 2019, the aggregate fair value of the interest rate swap assets of $4.3 million was included in prepaid expense and other assets in the accompanying consolidated balance sheets. As of June 30, 2020 and December 31, 2019, the aggregate fair value of the interest rate swap liabilities of $84.1 million and $24.2 million, respectively, was included in accounts payable and other liabilities in the accompanying consolidated balance sheets. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Value Measurement Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The fair value hierarchy has three levels of inputs, both observable and unobservable: • Level 1 — Inputs include quoted market prices in an active market for identical assets or liabilities. • Level 2 — Inputs are market data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. • Level 3 — Inputs are unobservable and corroborated by little or no market data. Fair Value of Financial Instruments The Company used the following market assumptions and/or estimation methods: • Cash and cash equivalents, restricted cash reserves, hotel and other receivables, accounts payable and other liabilities — The carrying amounts reported in the consolidated balance sheets for these financial instruments approximate fair value because of their short term maturities. • Debt — The Company estimated the fair value of the Senior Notes by using publicly available trading prices, which are Level 2 inputs in the fair value hierarchy. The Company estimated the fair value of the Revolver and Term Loans by using a discounted cash flow model and incorporating various inputs and assumptions for the effective borrowing rates for debt with similar terms, which are Level 3 inputs in the fair value hierarchy. The Company estimated the fair value of the mortgage loans by using a discounted cash flow model and incorporating various inputs and assumptions for the effective borrowing rates for debt with similar terms and the loan to estimated fair value of the collateral, which are Level 3 inputs in the fair value hierarchy. The fair value of the Company's debt was as follows (in thousands): June 30, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Senior Notes $ 498,122 $ 461,339 $ 500,484 $ 497,835 Revolver and Term Loans, net 1,568,498 1,524,469 1,168,793 1,176,068 Mortgage loans, net 525,054 512,134 526,430 532,249 Debt, net $ 2,591,674 $ 2,497,942 $ 2,195,707 $ 2,206,152 Recurring Fair Value Measurements The following table presents the Company’s fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 (in thousands): Fair Value at June 30, 2020 Level 1 Level 2 Level 3 Total Interest rate swap liability $ — $ (84,135) $ — $ (84,135) Total $ — $ (84,135) $ — $ (84,135) The following table presents the Company’s fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 (in thousands): Fair Value at December 31, 2019 Level 1 Level 2 Level 3 Total Interest rate swap asset $ — $ 4,297 $ — $ 4,297 Interest rate swap liability — (24,187) — (24,187) Total $ — $ (19,890) $ — $ (19,890) The fair values of the derivative financial instruments are determined using widely accepted valuation techniques including a discounted cash flow analysis on the expected cash flows for each derivative. The Company determined that the significant inputs, such as interest yield curves and discount rates, used to value its derivatives fall within Level 2 of the fair value hierarchy and that the credit valuation adjustments associated with the Company’s counterparties and its own credit risk utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of June 30, 2020, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"). To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it distribute at least 90% of its REIT taxable income, subject to certain adjustments and excluding any net capital gain, to shareholders. The Company’s intention is to adhere to the REIT qualification requirements and to maintain its qualification for taxation as a REIT. As a REIT, the Company is generally not subject to federal corporate income tax on the portion of taxable income that is distributed to shareholders. If the Company fails to qualify for taxation as a REIT in any taxable year, the Company will be subject to U.S. federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and it may not be able to qualify as a REIT for four subsequent taxable years. As a REIT, the Company may be subject to certain state and local taxes on its income and property, and to U.S. federal income and excise taxes on undistributed taxable income. The Company’s TRSs will generally be subject to U.S. federal, state, and local income taxes at the applicable rates. The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company had no accruals for tax uncertainties as of June 30, 2020 and December 31, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Restricted Cash Reserves The Company is obligated to maintain cash reserve funds for future capital expenditures at the hotels (including the periodic replacement or refurbishment of FF&E as determined pursuant to the management agreements, franchise agreements and/or mortgage loan documents. The management agreements, franchise agreements and/or mortgage loan documents require the Company to reserve cash ranging typically from 3.0% to 5.0% of the individual hotel’s revenues. Any unexpended amounts will remain the property of the Company upon termination of the management agreements, franchise agreements or mortgage loan documents. As of June 30, 2020 and December 31, 2019, approximately $44.6 million and $44.7 million, respectively, was available in the restricted cash reserves for future capital expenditures, real estate taxes and insurance. In addition, due to the effects of the COVID-19 pandemic on its operations, the Company has worked with the brands, third-party managers and lenders to allow the use of a portion of the available restricted cash reserves to cover operating shortfalls at certain hotels. Litigation Other than the legal proceeding mentioned below, neither the Company nor any of its subsidiaries is currently involved in any regulatory or legal proceedings that management believes will have a material and adverse effect on the Company's financial position, results of operations or cash flows. Prior to the Company's merger with FelCor, an affiliate of InterContinental Hotels Group PLC ("IHG"), which previously managed three of FelCor's hotels, notified FelCor that National Retirement Fund had assessed an employee withdrawal liability of $8.3 million, with required quarterly payments including interest, in connection with the termination of IHG’s management of those hotels. FelCor's management agreements with IHG stated that it may be obligated to indemnify and hold IHG harmless for some or all of any amount ultimately paid to National Retirement Fund with respect to the claim. The Company plans to vigorously defend the claim and, if appropriate, IHG’s demand for indemnification. Management Agreements As of June 30, 2020, 103 of the Company's hotel properties were operated pursuant to long-term management agreements with initial terms ranging from one to 25 years. This number includes 29 hotel properties that receive the benefits of a franchise agreement pursuant to management agreements with Hilton, Hyatt, or Marriott. Each management company receives a base management fee between 1.75% and 3.5% of hotel revenues. Management agreements that include the benefits of a franchise agreement incur a base management fee between 3.0% and 7.0% of hotel revenues. The management companies are also eligible to receive an incentive management fee if hotel operating income, as defined in the management agreements, exceeds certain thresholds. The incentive management fee is generally calculated as a percentage of hotel operating income after the Company has received a priority return on its investment in the hotel. Management fees are included in management and franchise fees in the accompanying consolidated statements of operations and comprehensive income. For the three and six months ended June 30, 2020, the Company incurred management fee expense of approximately $0.6 million and $8.5 million, respectively. For the three and six months ended June 30, 2019, the Company incurred management fee expense of approximately $13.7 million and $27.8 million, respectively. Franchise Agreements As of June 30, 2020, 73 of the Company’s hotel properties were operated under franchise agreements with initial terms ranging from one to 30 years. This number excludes 29 hotel properties that receive the benefits of a franchise agreement pursuant to management agreements with Hilton, Hyatt, or Marriott. In addition, one hotel is not operated with a hotel brand so it does not have a franchise agreement. Franchise agreements allow the hotel properties to operate under the respective brands. Pursuant to the franchise agreements, the Company pays a royalty fee, between 3.0% and 6.0% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs between 1.0% and 4.3% of room revenue. Certain hotels are also charged a royalty fee of 3.0% of food and beverage revenues. Franchise fees are included in management and franchise fees in the accompanying consolidated statements of operations and comprehensive income. For the three and six months ended June 30, 2020, the Company incurred franchise fee expense of approximately $1.8 million and $15.6 million, respectively. For the three and six months ended June 30, 2019, the Company incurred franchise fee expense of approximately $22.1 million and $42.1 million, respectively. Wyndham Agreements |
Equity
Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity and Share-based Payments | Equity Common Shares of Beneficial Interest On February 14, 2020, the Company's board of trustees approved a new share repurchase program to repurchase up to $250.0 million of common shares from March 1, 2020 to February 28, 2021 (the "2020 Share Repurchase Program"). During the six months ended June 30, 2020, the Company repurchased and retired 5,489,335 common shares for approximately $62.6 million, of which $26.0 million was repurchased under a share repurchase program authorized by the Company's board of trustees in 2019, which expired February 29, 2020 (the "2019 Share Repurchase Program"), and $36.6 million was repurchased under the 2020 Share Repurchase Program. As of June 30, 2020, the 2020 Share Repurchase Program had a remaining capacity of $213.4 million. In April 2020, however, the Company suspended further repurchases of its common shares pursuant to the 2020 Share Repurchase Program due to the effects of the COVID-19 pandemic. During the six months ended June 30, 2019, the Company repurchased and retired 1,049,215 common shares for approximately $18.4 million, of which $10.3 million was repurchased under a share repurchase program that expired February 28, 2019 and $8.1 million was repurchased under the 2019 Share Repurchase Program. During the six months ended June 30, 2020, the Company declared a cash dividend of $0.01 per common share in each of the first and second quarters of 2020. During the six months ended June 30, 2019, the Company declared a cash dividend of$0.33 per common share in each of the first and second quarters of 2019. Series A Preferred Shares On March 13, 2020, the Company's board of trustees approved an amendment to the 2020 Share Repurchase Program, pursuant to which the Company is authorized, in addition to the repurchase of common shares, to repurchase outstanding $1.95 Series A Cumulative Convertible Preferred Shares of the Company, par value $0.01 per share (the “Series A Preferred Shares”). Such purchases, if any, are authorized to be made during the period beginning March 13, 2020 through and including February 28, 2021, provided that the aggregate purchase price of common shares, Series A Preferred Shares or a combination thereof (including common shares repurchased prior to the date of the amendment) may not exceed $250.0 million. During the six months ended June 30, 2020, the Company did not repurchase any Series A Preferred Shares. Furthermore, in April 2020, the Company suspended repurchases of its Series A Preferred Shares pursuant to the 2020 Share Repurchase Program due to the effects of the COVID-19 pandemic. During the six months ended June 30, 2020 and 2019, the Company declared a cash dividend of $0.4875 on each Series A Preferred Share in each of the first and second quarters of 2020 and 2019. Noncontrolling Interest in Consolidated Joint Ventures The Company consolidates the joint venture that owns the DoubleTree Metropolitan Hotel New York City, which has a third-party partner that owns a noncontrolling 1.7% ownership interest in the joint venture. In addition, the Company consolidates the joint venture that owns The Knickerbocker, which has a third-party partner that owns a noncontrolling 5% ownership interest in the joint venture. Lastly, the Company owns a controlling financial interest in the operating lessee of the Embassy Suites Secaucus Meadowlands, which has a third-party partner that owns a noncontrolling 49% ownership interest in the joint venture. The third-party ownership interests are included in the noncontrolling interest in consolidated joint ventures on the consolidated balance sheets. Noncontrolling Interest in the Operating Partnership The Company consolidates the Operating Partnership, which is a majority-owned limited partnership that has a noncontrolling interest. The outstanding OP Units held by the limited partners are redeemable for cash, or at the option of the Company, for a like number of common shares. As of June 30, 2020, 772,293 outstanding OP Units were held by the limited partners. The noncontrolling interest is included in the noncontrolling interest in the Operating Partnership on the consolidated balance sheets. |
Equity Incentive Plan
Equity Incentive Plan | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plan | Equity Incentive Plan The Company may issue share-based awards to officers, employees, non-employee trustees and other eligible persons under the RLJ Lodging Trust 2015 Equity Incentive Plan (the "2015 Plan"). The 2015 Plan provides for a maximum of 7,500,000 common shares to be issued in the form of share options, share appreciation rights, restricted share awards, unrestricted share awards, share units, dividend equivalent rights, long-term incentive units, other equity-based awards and cash bonus awards. Share Awards From time to time, the Company may award unvested restricted shares under the 2015 Plan as compensation to officers, employees and non-employee trustees. The issued shares vest over a period of time as determined by the board of trustees at the date of grant. The Company recognizes compensation expense for time-based unvested restricted shares on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of issuance, adjusted for forfeitures. Non-employee trustees may also elect to receive unrestricted shares under the 2015 Plan as compensation that would otherwise be paid in cash for their services. The shares issued to non-employee trustees in lieu of cash compensation are unrestricted and include no vesting conditions. The Company recognizes compensation expense for the unrestricted shares issued in lieu of cash compensation on the date of issuance based upon the fair market value of the shares on that date. A summary of the unvested restricted shares as of June 30, 2020 is as follows: 2020 Number of Weighted-Average Unvested at January 1, 2020 940,202 $ 20.21 Granted (1) 801,463 11.95 Vested (206,484) 19.83 Forfeited (8,434) 19.43 Unvested at June 30, 2020 1,526,747 $ 15.93 (1) During the six months ended June 30, 2020, the Company issued restricted shares to officers and employees that vest on an annual basis over service periods between two and four years. For the three and six months ended June 30, 2020, the Company recognized approximately $2.3 million and $4.4 million, respectively, of share-based compensation expense related to restricted share awards. For the three and six months ended June 30, 2019, the Company recognized approximately $2.2 million and $4.3 million, respectively, of share-based compensation expense related to restricted share awards. As of June 30, 2020, there was $18.7 million of total unrecognized compensation costs related to unvested restricted share awards and these costs are expected to be recognized over a weighted-average period of 2.7 years. The total fair value of the shares vested (calculated as the number of shares multiplied by the vesting date share price) during the six months ended June 30, 2020 and 2019 was approximately $2.8 million and $2.2 million, respectively. Performance Units From time to time, the Company may award performance units under the 2015 Plan as compensation to officers and employees. The performance units vest over a four year period, including three years of performance-based vesting (the “performance units measurement period”) plus an additional one year of time-based vesting. These performance units may convert into restricted shares at a range of 0% to 200% of the number of performance units granted contingent upon the Company achieving an absolute total shareholder return (40% of award) and a relative total shareholder return (60% of award) over the measurement period at specified percentiles of the peer group, as defined by the awards. If at the end of the performance units measurement period the target criterion is met, then 50% of the performance units that are earned will vest at the end of the measurement period. The remaining 50% convert to restricted shares that will vest on the one year anniversary of the end of the measurement period. The award recipients will not be entitled to receive any dividends prior to the date of conversion. For any restricted shares issued upon conversion, the award recipient will be entitled to receive payment of an amount equal to all dividends that would have been paid if such restricted shares had been issued at the beginning of the performance units measurement period. The fair value of the performance units is determined using a Monte Carlo simulation, and an expected term equal to the requisite service period for the awards of four years. The Company estimates the compensation expense for the performance units on a straight-line basis using a calculation that recognizes 50% of the grant date fair value over three years and 50% of the grant date fair value over four years. A summary of the performance unit awards is as follows: Date of Award Number of Conversion Range Risk Free Interest Rate Volatility February 2017 (1) 259,000 $14.93 0% to 150% 1.57% 25.73% February 2018 264,000 $13.99 0% to 150% 2.42% 27.44% February 2019 260,000 $19.16 0% to 200% 2.52% 27.19% February 2020 489,000 $12.06 0% to 200% 1.08% 23.46% (1) In February 2020, following the end of the measurement period, the Company did not meet certain target criterion and no performance units were converted into restricted shares. For the three and six months ended June 30, 2020, the Company recognized approximately $1.1 million and $1.6 million, respectively, of share-based compensation expense related to the performance unit awards. For the three and six months ended June 30, 2019, the Company recognized approximately $0.8 million and $1.5 million, respectively, of share-based compensation expense related to the performance unit awards. As of June 30, 2020, there was $9.0 million of total unrecognized compensation costs related to the performance unit awards and these costs are expected to be recognized over a weighted-average period of 2.7 years. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period excluding the weighted-average number of unvested restricted shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period, plus any shares that could potentially be outstanding during the period. The potential shares consist of the unvested restricted share grants and unvested performance units, calculated using the treasury stock method. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating shares and are considered in the computation of earnings per share pursuant to the two-class method. If there were any undistributed earnings allocable to the participating shares, they would be deducted from net income attributable to common shareholders used in the basic and diluted earnings per share calculations. The limited partners’ outstanding OP Units (which may be redeemed for common shares under certain circumstances) have been excluded from the diluted earnings per share calculation as there was no effect on the amounts for the three and six months ended June 30, 2020 and 2019, since the limited partners’ share of income would also be added back to net income attributable to common shareholders. The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share data): For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Numerator: Net (loss) income attributable to RLJ $ (115,074) $ 33,444 $ (144,398) $ 60,697 Less: Preferred dividends (6,279) (6,279) (12,557) (12,557) Less: Dividends paid on unvested restricted shares (15) (378) (29) (690) Less: Undistributed earnings attributable to unvested restricted shares — — — — Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ (121,368) $ 26,787 $ (156,984) $ 47,450 Denominator: Weighted-average number of common shares - basic 163,543,701 172,661,878 165,346,717 172,729,064 Unvested restricted shares — 104,213 — 79,449 Weighted-average number of common shares - diluted 163,543,701 172,766,091 165,346,717 172,808,513 Net (loss) income per share attributable to common shareholders - basic $ (0.74) $ 0.16 $ (0.95) $ 0.27 Net (loss) income per share attributable to common shareholders - diluted $ (0.74) $ 0.16 $ (0.95) $ 0.27 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The unaudited consolidated financial statements and related notes have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP") and in conformity with the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to financial information. The unaudited financial statements include all adjustments that are necessary, in the opinion of management, to fairly state the consolidated balance sheets, statements of operations and comprehensive income, statements of changes in equity and statements of cash flows. The unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2019, included in the Company's Annual Report on Form 10-K filed with the SEC on February 26, 2020. The consolidated financial statements include the accounts of the Company, the Operating Partnership and its wholly-owned subsidiaries, and joint ventures in which the Company has a majority voting interest and control. For the controlled subsidiaries that are not wholly-owned, the third-party ownership interest represents a noncontrolling interest, which is presented separately in the consolidated financial statements. The Company also records the real estate interests in two joint ventures in which it holds an indirect 50% interest using the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications Certain prior year amounts in these financial statements have been reclassified to conform to the current year presentation with no impact to net (loss) income and comprehensive (loss) income, shareholders’ equity or cash flows. |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the amounts of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Given the additional and unforeseen effects from the COVID-19 pandemic, these estimates have become more challenging, and actual results could differ from those estimates. |
Share-Based Compensation | Share Awards From time to time, the Company may award unvested restricted shares under the 2015 Plan as compensation to officers, employees and non-employee trustees. The issued shares vest over a period of time as determined by the board of trustees at the date of grant. The Company recognizes compensation expense for time-based unvested restricted shares on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of issuance, adjusted for forfeitures. Non-employee trustees may also elect to receive unrestricted shares under the 2015 Plan as compensation that would otherwise be paid in cash for their services. The shares issued to non-employee trustees in lieu of cash compensation are unrestricted and include no vesting conditions. The Company recognizes compensation expense for the unrestricted shares issued in lieu of cash compensation on the date of issuance based upon the fair market value of the shares on that date. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which modifies the measurement approach for credit losses on financial assets measured on an amortized cost basis from an "incurred loss" method to an "expected loss" method. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses . The Company adopted this new standard on January 1, 2020. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The guidance modifies the disclosure requirements for fair value measurements by removing or modifying some of the disclosures, while also adding new disclosures. The Company adopted this new standard on January 1, 2020. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The guidance provides optional expedients for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued at the end of 2021 because of reference rate reform. The guidance is effective immediately and expires on December 31, 2022. Based on the Company's assessment, the adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements. |
Management Agreements | Management Agreements As of June 30, 2020, 103 of the Company's hotel properties were operated pursuant to long-term management agreements with initial terms ranging from one to 25 years. This number includes 29 hotel properties that receive the benefits of a franchise agreement pursuant to management agreements with Hilton, Hyatt, or Marriott. Each management company receives a base management fee between 1.75% and 3.5% of hotel revenues. Management agreements that include the benefits of a franchise agreement incur a base management fee between 3.0% and 7.0% of hotel revenues. The management companies are also eligible to receive an incentive management fee if hotel operating income, as defined in the management agreements, exceeds certain thresholds. The incentive management fee is generally calculated as a percentage of hotel operating income after the Company has received a priority return on its investment in the hotel. |
Franchise Agreements | Franchise Agreements As of June 30, 2020, 73 of the Company’s hotel properties were operated under franchise agreements with initial terms ranging from one to 30 years. This number excludes 29 hotel properties that receive the benefits of a franchise agreement pursuant to management agreements with Hilton, Hyatt, or Marriott. In addition, one hotel is not operated with a hotel brand so it does not have a franchise agreement. Franchise agreements allow the hotel properties to operate under the respective brands. Pursuant to the franchise agreements, the Company pays a royalty fee, between 3.0% and 6.0% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs between 1.0% and 4.3% of room revenue. Certain hotels are also charged a royalty fee of 3.0% of food and beverage revenues. |
Earnings Per Share | Basic earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period excluding the weighted-average number of unvested restricted shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period, plus any shares that could potentially be outstanding during the period. The potential shares consist of the unvested restricted share grants and unvested performance units, calculated using the treasury stock method. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating shares and are considered in the computation of earnings per share pursuant to the two-class method. If there were any undistributed earnings allocable to the participating shares, they would be deducted from net income attributable to common shareholders used in the basic and diluted earnings per share calculations. The limited partners’ outstanding OP Units (which may be redeemed for common shares under certain circumstances) have been excluded from the diluted earnings per share calculation as there was no effect on the amounts for the three and six months ended June 30, 2020 and 2019, since the limited partners’ share of income would also be added back to net income attributable to common shareholders. |
Commitment and Contingencies (P
Commitment and Contingencies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Management Agreements | Management Agreements As of June 30, 2020, 103 of the Company's hotel properties were operated pursuant to long-term management agreements with initial terms ranging from one to 25 years. This number includes 29 hotel properties that receive the benefits of a franchise agreement pursuant to management agreements with Hilton, Hyatt, or Marriott. Each management company receives a base management fee between 1.75% and 3.5% of hotel revenues. Management agreements that include the benefits of a franchise agreement incur a base management fee between 3.0% and 7.0% of hotel revenues. The management companies are also eligible to receive an incentive management fee if hotel operating income, as defined in the management agreements, exceeds certain thresholds. The incentive management fee is generally calculated as a percentage of hotel operating income after the Company has received a priority return on its investment in the hotel. |
Franchise Agreements | Franchise Agreements As of June 30, 2020, 73 of the Company’s hotel properties were operated under franchise agreements with initial terms ranging from one to 30 years. This number excludes 29 hotel properties that receive the benefits of a franchise agreement pursuant to management agreements with Hilton, Hyatt, or Marriott. In addition, one hotel is not operated with a hotel brand so it does not have a franchise agreement. Franchise agreements allow the hotel properties to operate under the respective brands. Pursuant to the franchise agreements, the Company pays a royalty fee, between 3.0% and 6.0% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs between 1.0% and 4.3% of room revenue. Certain hotels are also charged a royalty fee of 3.0% of food and beverage revenues. |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Components of Investment In Unconsolidated Entities [Table Text Block] | The following table summarizes the components of the Company's investments in unconsolidated joint ventures (in thousands): June 30, 2020 December 31, 2019 Equity basis of the joint venture investments $ (3,985) $ (4,236) Cost of the joint venture investments in excess of the joint venture book value 18,847 19,407 Investment in unconsolidated joint ventures $ 14,862 $ 15,171 |
Schedule of Components of Equity In Income (Loss) from Unconsolidated Entities [Table Text Block] | The following table summarizes the components of the Company's equity in loss from unconsolidated joint ventures (in thousands): For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Operating (loss) income $ (695) $ 858 $ 170 $ 845 Depreciation of cost in excess of book value (280) (338) (560) (706) Loss on sale — (2,923) — (2,923) Equity in loss from unconsolidated joint ventures $ (975) $ (2,403) $ (390) $ (2,784) |
Sale of Hotel Properties (Table
Sale of Hotel Properties (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of major assets held for sale | The following table discloses the hotel properties that were sold during the six months ended June 30, 2019: Hotel Property Name Location Sale Date Rooms Courtyard Boulder Longmont Longmont, CO June 25, 2019 78 Courtyard Salt Lake City Airport Salt Lake City, UT June 25, 2019 154 Courtyard Fort Lauderdale SW Miramar Miramar, FL June 25, 2019 128 Courtyard Austin Airport Austin, TX June 25, 2019 150 Fairfield Inn & Suites San Antonio Downtown San Antonio, TX June 25, 2019 110 Hampton Inn & Suites Clearwater St. Petersburg Clearwater, FL June 25, 2019 128 Hampton Inn Fort Walton Beach Fort Walton, FL June 25, 2019 100 Hampton Inn & Suites Denver Tech Center Denver, CO June 25, 2019 123 Hampton Inn West Palm Beach Airport Central West Palm Beach, FL June 25, 2019 105 Hilton Garden Inn Bloomington Bloomington, IN June 25, 2019 168 Hilton Garden Inn West Palm Beach Airport West Palm Beach, FL June 25, 2019 100 Hilton Garden Inn Durham Raleigh Research Triangle Park Durham, NC June 25, 2019 177 Residence Inn Longmont Boulder Longmont, CO June 25, 2019 84 Residence Inn Detroit Novi Novi, MI June 25, 2019 107 Residence Inn Chicago Oak Brook Oak Brook, IL June 25, 2019 156 Residence Inn Fort Lauderdale Plantation Plantation, FL June 25, 2019 138 Residence Inn Salt Lake City Airport Salt Lake City, UT June 25, 2019 104 Residence Inn San Antonio Downtown Market Square San Antonio, TX June 25, 2019 95 Residence Inn Fort Lauderdale SW Miramar Miramar, FL June 25, 2019 130 Residence Inn Silver Spring Silver Spring, MD June 25, 2019 130 Springhill Suites Boulder Longmont Longmont, CO June 25, 2019 90 Embassy Suites Myrtle Beach Oceanfront Resort Myrtle Beach, SC June 27, 2019 255 Hilton Myrtle Beach Resort Myrtle Beach, SC June 27, 2019 385 Total 3,195 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The Company recognized revenue from the following geographic markets (in thousands): For the three months ended June 30, 2020 For the three months ended June 30, 2019 Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Southern California $ 5,064 $ 270 $ 654 $ 5,988 $ 33,082 $ 3,544 $ 2,524 $ 39,150 Chicago 2,964 385 139 3,488 22,132 3,553 577 26,262 Northern California 2,716 16 483 3,215 52,222 4,929 1,585 58,736 South Florida 2,449 143 291 2,883 30,048 5,146 2,195 37,389 New York City 2,618 6 65 2,689 36,042 4,451 1,197 41,690 Washington, DC 1,931 170 98 2,199 19,081 532 610 20,223 Houston 1,463 6 167 1,636 15,524 1,018 1,223 17,765 Austin 525 28 509 1,062 23,228 2,402 1,071 26,701 Denver 691 6 87 784 18,263 3,321 397 21,981 Louisville 292 — 9 301 13,879 4,530 593 19,002 Other 7,140 241 965 8,346 115,356 16,032 8,440 139,828 Total $ 27,853 $ 1,271 $ 3,467 $ 32,591 $ 378,857 $ 49,458 $ 20,412 $ 448,727 For the six months ended June 30, 2020 For the six months ended June 30, 2019 Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Northern California $ 36,227 $ 3,801 $ 1,788 $ 41,816 $ 103,103 $ 9,885 $ 3,006 $ 115,994 South Florida 33,572 4,639 2,243 40,454 74,694 10,994 4,252 89,940 Southern California 28,924 3,132 2,798 34,854 62,146 7,236 4,614 73,996 New York City 18,913 2,140 999 22,052 58,701 7,355 2,160 68,216 Chicago 11,878 2,606 605 15,089 35,038 6,517 1,013 42,568 Houston 12,402 720 1,141 14,263 31,776 1,982 2,393 36,151 Washington DC 10,755 370 639 11,764 32,448 867 1,160 34,475 Austin 8,033 1,289 1,759 11,081 47,325 5,361 2,021 54,707 Louisville 6,190 3,778 871 10,839 23,269 8,360 1,123 32,752 Denver 7,450 2,274 423 10,147 31,393 6,166 704 38,263 Other 72,401 7,290 6,023 85,714 216,634 28,981 15,317 260,932 Total $ 246,745 $ 32,039 $ 19,289 $ 298,073 $ 716,527 $ 93,704 $ 37,763 $ 847,994 Trade Receivables |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt consisted of the following (in thousands): June 30, 2020 December 31, 2019 Senior Notes $ 498,122 $ 500,484 Revolver and Term Loans, net 1,568,498 1,168,793 Mortgage loans, net 525,054 526,430 Debt, net $ 2,591,674 $ 2,195,707 |
Schedule Of Debt Instrument Covenants | The Revolver and Term Loans are subject to various financial covenants. A summary of the most restrictive covenants is as follows: Covenant Compliance Leverage ratio (1) <= 7.00x N/A (3) Fixed charge coverage ratio (2) >= 1.50x N/A (3) Secured indebtedness ratio <= 45.0% N/A (3) Unencumbered indebtedness ratio <= 60.0% N/A (3) Unencumbered debt service coverage ratio >= 2.00x N/A (3) Maintain minimum liquidity level >= $125.0 million Yes (1) Leverage ratio is net indebtedness, as defined in the Revolver and Term Loan agreements, to corporate earnings before interest, taxes, depreciation, and amortization ("EBITDA"), as defined in the Revolver and Term Loan agreements. (2) Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the Revolver and Term Loan agreements as EBITDA less furniture, fixtures and equipment ("FF&E") reserves, to fixed charges, which is generally defined in the Revolver and Term Loan agreements as interest expense, all regularly scheduled principal payments, preferred dividends paid, and cash taxes paid. |
Schedule of Revolver and Term Loans | The Company's unsecured credit agreements consisted of the following (in thousands): Outstanding Borrowings at Interest Rate at June 30, 2020 (1) Maturity Date June 30, 2020 December 31, 2019 Revolver (2) 3.76% May 2024 $ 400,000 $ — $150 Million Term Loan Maturing 2022 3.88% January 2022 150,000 150,000 $400 Million Term Loan Maturing 2023 4.58% January 2023 400,000 400,000 $225 Million Term Loan Maturing 2023 4.58% January 2023 225,000 225,000 $400 Million Term Loan Maturing 2025 3.77% May 2025 400,000 400,000 1,575,000 1,175,000 Deferred financing costs, net (3) (6,502) (6,207) Total Revolver and Term Loans, net $ 1,568,498 $ 1,168,793 (1) Interest rate at June 30, 2020 gives effect to interest rate hedges. (2) At June 30, 2020 and December 31, 2019, there was $200.0 million and $600.0 million, respectively, undrawn on the Revolver. The Company also has the ability to extend the maturity date for an additional one year period ending May 2025 if certain conditions are satisfied. (3) Excludes $3.9 million and $3.4 million as of June 30, 2020 and December 31, 2019, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets. |
Schedule of mortgage loans | The Company's mortgage loans consisted of the following (in thousands): Outstanding Borrowings at Number of Assets Encumbered Interest Rate at June 30, 2020 Maturity Date June 30, 2020 December 31, 2019 Mortgage loan (2) 7 1.68 % (1) April 2022 (6) $ 200,000 $ 200,000 Mortgage loan (3) 1 5.25 % June 2022 30,773 31,215 Mortgage loan (4) 3 4.95 % October 2022 88,038 89,299 Mortgage loan (5) 1 4.94 % October 2022 28,379 28,785 Mortgage loan (2) 4 1.83 % (1) April 2024 (6) 85,000 85,000 Mortgage loan (2) 3 2.88 % (1) April 2024 (6) 96,000 96,000 19 528,190 530,299 Deferred financing costs, net (3,136) (3,869) Total mortgage loans, net $ 525,054 $ 526,430 (1) Interest rate at June 30, 2020 gives effect to interest rate hedges. (2) The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity. (3) Includes $0.4 million and $0.5 million at June 30, 2020 and December 31, 2019, respectively, related to a fair value adjustment on a mortgage loan. (4) Includes $1.1 million and $1.4 million at June 30, 2020 and December 31, 2019, respectively, related to fair value adjustments on the mortgage loans. (5) Includes $0.4 million and $0.4 million at June 30, 2020 and December 31, 2019, respectively, related to a fair value adjustment on the mortgage loan. |
Schedule of Interest Expense Components | The components of the Company's interest expense consisted of the following (in thousands): For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Senior Notes $ 5,940 $ 5,944 $ 11,883 $ 11,888 Revolver and Term Loans 12,705 10,838 23,356 20,991 Mortgage loans 4,475 5,150 9,115 10,573 Amortization of deferred financing costs 1,045 1,110 2,067 1,902 Undesignated interest rate swaps (371) 2,195 1,186 (55) Total interest expense $ 23,794 $ 25,237 $ 47,607 $ 45,299 |
Schedule of Senior Notes [Table Text Block] | The Company's senior unsecured notes are referred to as the "Senior Notes." The Company's Senior Notes consisted of the following (in thousands): Outstanding Borrowings at Interest Rate Maturity Date June 30, 2020 December 31, 2019 Senior unsecured notes (1) (2) (3) 6.00% June 2025 $ 498,122 $ 500,484 (1) Requires payments of interest only through maturity. (2) The senior unsecured notes include $23.2 million and $25.6 million at June 30, 2020 and December 31, 2019, respectively, related to acquisition related fair value adjustments on the senior unsecured notes. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | The following interest rate swaps have not been designated as hedging instruments (in thousands): Notional value at Fair value at Derivative type Interest Maturity June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Interest rate swap (1) 1.80% September 2020 $ 29,865 $ 30,195 $ (136) $ (34) Interest rate swap (1) 1.80% September 2020 74,210 75,030 (339) (86) Interest rate swap (1) 1.80% September 2020 31,675 32,025 (145) (37) Interest rate swap (1) 1.81% October 2020 141,094 142,500 (942) (219) $ 276,844 $ 279,750 $ (1,562) $ (376) |
Schedule of interest rate swaps | The following interest rate swaps have been designated as cash flow hedges (in thousands): Notional value at Fair value at Hedge type Interest Maturity June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Swap-cash flow 1.15% April 2021 $ 100,000 $ 100,000 $ (893) $ 607 Swap-cash flow 1.20% April 2021 100,000 100,000 (938) 538 Swap-cash flow 2.15% April 2021 75,000 75,000 (1,347) (590) Swap-cash flow 1.91% April 2021 75,000 75,000 (1,183) (337) Swap-cash flow 1.61% June 2021 50,000 50,000 (799) (32) Swap-cash flow 1.56% June 2021 50,000 50,000 (768) 13 Swap-cash flow 1.71% June 2021 50,000 50,000 (852) (109) Swap-cash flow 2.29% December 2022 200,000 200,000 (11,285) (4,587) Swap-cash flow 2.29% December 2022 125,000 125,000 (7,047) (2,859) Swap-cash flow 2.38% December 2022 200,000 200,000 (11,772) (5,155) Swap-cash flow 2.38% December 2022 100,000 100,000 (5,883) (2,574) Swap-cash flow (1) 2.75% November 2023 100,000 100,000 (7,937) (3,590) Swap-cash flow (2) 2.51% December 2023 75,000 75,000 (5,360) (2,120) Swap-cash flow (2) 2.39% December 2023 75,000 75,000 (5,088) (1,858) Swap-cash flow 1.35% September 2021 49,000 49,000 (748) 181 Swap-cash flow 1.28% September 2022 100,000 100,000 (2,632) 690 Swap-cash flow (3) 1.24% September 2025 150,000 150,000 (5,968) 2,268 Swap-cash flow (4) 1.16% April 2024 50,000 — (1,524) — Swap-cash flow (4) 1.20% April 2024 50,000 — (1,586) — Swap-cash flow (4) 1.15% April 2024 50,000 — (1,510) — Swap-cash flow (4) 1.10% April 2024 50,000 — (1,434) — Swap-cash flow (4) 0.98% April 2024 25,000 — (626) — Swap-cash flow (4) 0.95% April 2024 25,000 — (603) — Swap-cash flow (4) 0.93% April 2024 25,000 — (587) — Swap-cash flow (4) 0.90% April 2024 25,000 — (564) — Swap-cash flow 0.85% December 2024 50,000 — (1,510) — Swap-cash flow 0.75% December 2024 50,000 — (1,282) — Swap-cash flow (5) 0.65% January 2026 50,000 — (847) — $ 2,124,000 $ 1,674,000 $ (82,573) $ (19,514) (1) Effective in November 2020. (2) Effective in January 2021. (3) Effective in September 2021. (4) Effective in April 2021. (5) Effective in July 2021. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The fair value of the Company's debt was as follows (in thousands): June 30, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Senior Notes $ 498,122 $ 461,339 $ 500,484 $ 497,835 Revolver and Term Loans, net 1,568,498 1,524,469 1,168,793 1,176,068 Mortgage loans, net 525,054 512,134 526,430 532,249 Debt, net $ 2,591,674 $ 2,497,942 $ 2,195,707 $ 2,206,152 |
Schedule of fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 (in thousands): Fair Value at June 30, 2020 Level 1 Level 2 Level 3 Total Interest rate swap liability $ — $ (84,135) $ — $ (84,135) Total $ — $ (84,135) $ — $ (84,135) The following table presents the Company’s fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 (in thousands): Fair Value at December 31, 2019 Level 1 Level 2 Level 3 Total Interest rate swap asset $ — $ 4,297 $ — $ 4,297 Interest rate swap liability — (24,187) — (24,187) Total $ — $ (19,890) $ — $ (19,890) |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Incentive Plan | |
Share-based Compensation Arrangements by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block] | A summary of the performance unit awards is as follows: Date of Award Number of Conversion Range Risk Free Interest Rate Volatility February 2017 (1) 259,000 $14.93 0% to 150% 1.57% 25.73% February 2018 264,000 $13.99 0% to 150% 2.42% 27.44% February 2019 260,000 $19.16 0% to 200% 2.52% 27.19% February 2020 489,000 $12.06 0% to 200% 1.08% 23.46% (1) In February 2020, following the end of the measurement period, the Company did not meet certain target criterion and no performance units were converted into restricted shares. |
Restricted share awards | |
Equity Incentive Plan | |
Summary of the unvested restricted shares | A summary of the unvested restricted shares as of June 30, 2020 is as follows: 2020 Number of Weighted-Average Unvested at January 1, 2020 940,202 $ 20.21 Granted (1) 801,463 11.95 Vested (206,484) 19.83 Forfeited (8,434) 19.43 Unvested at June 30, 2020 1,526,747 $ 15.93 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per common share | The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share data): For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Numerator: Net (loss) income attributable to RLJ $ (115,074) $ 33,444 $ (144,398) $ 60,697 Less: Preferred dividends (6,279) (6,279) (12,557) (12,557) Less: Dividends paid on unvested restricted shares (15) (378) (29) (690) Less: Undistributed earnings attributable to unvested restricted shares — — — — Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ (121,368) $ 26,787 $ (156,984) $ 47,450 Denominator: Weighted-average number of common shares - basic 163,543,701 172,661,878 165,346,717 172,729,064 Unvested restricted shares — 104,213 — 79,449 Weighted-average number of common shares - diluted 163,543,701 172,766,091 165,346,717 172,808,513 Net (loss) income per share attributable to common shareholders - basic $ (0.74) $ 0.16 $ (0.95) $ 0.27 Net (loss) income per share attributable to common shareholders - diluted $ (0.74) $ 0.16 $ (0.95) $ 0.27 |
General (Details)
General (Details) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2020USD ($)propertyroomstate$ / sharesshares | Mar. 31, 2020$ / shares | Mar. 31, 2019$ / shares | Jun. 30, 2020USD ($)propertyroomstate$ / sharesshares | Jun. 30, 2019USD ($)$ / shares | Jul. 31, 2020 | Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($) | Sep. 30, 2016hotel | |
Sale of Stock | |||||||||
OP units outstanding (in units) | shares | 165,865,246 | 165,865,246 | |||||||
Company's Ownership interest in OP units through a combination of direct and indirect interests (as a percent) | 99.50% | ||||||||
Number of Real Estate Properties | 104 | 104 | 29 | ||||||
Number of hotel rooms owned | room | 22,700 | 22,700 | |||||||
Number of states in which hotels owned by the entity are located | state | 23 | 23 | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||||||
Dividends | $ / shares | $ 0.01 | $ 0.01 | $ 0.33 | $ 0.01 | $ 0.33 | ||||
Cash and cash equivalents | $ | $ 1,048,442,000 | $ 1,048,442,000 | $ 697,600,000 | $ 882,474,000 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ | $ 1,093,020,000 | $ 1,093,020,000 | $ 745,930,000 | $ 927,160,000 | $ 384,842,000 | ||||
Doubletree Metropolitan Hotel New York City (Joint Venture) | |||||||||
Sale of Stock | |||||||||
Hotel property ownership interest (as a percent) | 98.30% | ||||||||
Wholly Owned Properties [Member] | |||||||||
Sale of Stock | |||||||||
Number of Real Estate Properties | property | 100 | 100 | |||||||
Hotel property ownership interest (as a percent) | 100.00% | ||||||||
Consolidated Properties [Member] | |||||||||
Sale of Stock | |||||||||
Number of Real Estate Properties | property | 102 | 102 | |||||||
Unconsolidated Properties [Member] | |||||||||
Sale of Stock | |||||||||
Number of Real Estate Properties | property | 2 | 2 | 2 | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | ||||||
Leased Hotel Properties [Member] | |||||||||
Sale of Stock | |||||||||
Number of Real Estate Properties | property | 103 | 103 | |||||||
Operations Suspended [Member] | |||||||||
Sale of Stock | |||||||||
Number of Real Estate Properties | 57 | 57 | |||||||
Operations Resumed [Member] | |||||||||
Sale of Stock | |||||||||
Number of Real Estate Properties | 21 | 21 | |||||||
Operations Resumed [Member] | Subsequent Event [Member] | |||||||||
Sale of Stock | |||||||||
Number of Real Estate Properties | 15 | ||||||||
Ninety Five Percent Owned [Member] | Partially Owned Properties [Member] | |||||||||
Sale of Stock | |||||||||
Hotel property ownership interest (as a percent) | 95.00% | ||||||||
Fifty Percent Owned [Member] | Partially Owned Properties [Member] | |||||||||
Sale of Stock | |||||||||
Hotel property ownership interest (as a percent) | 50.00% | ||||||||
Line of Credit | The Revolver | |||||||||
Sale of Stock | |||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ | $ 400,000,000 | $ 400,000,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ | $ 600,000,000 | $ 600,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | Jun. 30, 2020USD ($)joint_venture | Dec. 31, 2019USD ($) |
Summary of Significant Accounting Policies | ||
Real Estate Interests, Number of Joint Ventures | joint_venture | 2 | |
Equity Method Investment, Ownership Percentage | 50.00% | |
Operating Lease, Right-of-Use Asset | $ 141,651 | $ 144,358 |
Accounts payable and other liabilities | 205,186 | 183,408 |
Operating Lease, Liability | $ 119,863 | $ 121,154 |
Investment in Unconsolidated _3
Investment in Unconsolidated Joint Ventures (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($)property | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)property | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)property | Sep. 30, 2016hotel | |
Schedule of Equity Method Investments [Line Items] | ||||||
Income (Loss) from Equity Method Investments | $ (975) | $ (2,403) | $ (390) | $ (2,784) | ||
Equity Method Investments | $ 14,862 | $ 14,862 | $ 15,171 | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||
Number of Real Estate Properties | 104 | 104 | 29 | |||
Gain (loss) on sale of hotel properties, net | $ (8) | (24,835) | $ 94 | (24,835) | ||
Unconsolidated Properties [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | |||
Number of Real Estate Properties | property | 2 | 2 | 2 | |||
Equity Method Investments [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Income (Loss) from Equity Method Investments | $ (695) | 858 | $ 170 | 845 | ||
Equity Method Investments | (3,985) | (3,985) | $ (4,236) | |||
Cost in Excess of Book Value of Hotel Investments [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Income (Loss) from Equity Method Investments | (280) | (338) | (560) | (706) | ||
Equity Method Investments | 18,847 | 18,847 | $ 19,407 | |||
Investment Income (Expense) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Income (Loss) from Equity Method Investments | $ 0 | $ (2,923) | $ 0 | $ (2,923) | ||
Fifty Percent Owned [Member] | Partially Owned Properties [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Real Estate Properties, Ownership Interest, Percentage | 50.00% |
Sale of Hotel Properties (Narra
Sale of Hotel Properties (Narrative) (Details) $ in Thousands | Jun. 27, 2019USD ($)hotel | Jun. 25, 2019USD ($)hotel | Aug. 31, 2019USD ($)hotel | Jun. 30, 2020USD ($)property | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)property | Jun. 30, 2019USD ($)incrementhotel | Sep. 30, 2016hotel |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from the sale of hotel properties, net | $ 94 | $ 447,493 | ||||||
Number of Real Estate Properties | 104 | 104 | 29 | |||||
Loss on sale of hotel properties and hotel properties held for sale, net | $ 8 | $ 24,835 | $ (94) | $ 24,835 | ||||
Disposals 2019 [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Hotel properties sold, Number | hotel | 2 | 21 | 18 | 23 | ||||
Disposal Group, Number of Transactions | increment | 2 | |||||||
Proceeds from the sale of hotel properties, net | $ 153,300 | $ 311,900 | $ 465,300 | |||||
Gain (Loss) on Disposition of Assets | $ 21,300 | $ 44,500 | $ 24,800 | $ 48,100 |
Sale of Hotel Properties (Sched
Sale of Hotel Properties (Schedule of Properties Disposed) (Details) $ in Thousands | Jun. 27, 2019USD ($)hotel | Jun. 25, 2019USD ($)hotel | Aug. 31, 2019USD ($)hotel | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($)room | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($)roomhotel |
Discontinued operations | |||||||
Proceeds from the sale of hotel properties, net | $ | $ 94 | $ 447,493 | |||||
Gain (loss) on sale of hotel properties, net | $ | $ (8) | $ (24,835) | $ 94 | (24,835) | |||
Disposals 2019 [Member] | |||||||
Discontinued operations | |||||||
Proceeds from the sale of hotel properties, net | $ | $ 153,300 | $ 311,900 | $ 465,300 | ||||
Property disposed, number of rooms | 3,195 | 3,195 | |||||
Disposal Group, Number of Properties Disposed During Period | hotel | 2 | 21 | 18 | 23 | |||
Gain (Loss) on Disposition of Assets | $ | $ 21,300 | $ 44,500 | $ 24,800 | $ 48,100 | |||
Courtyard Boulder Longmont [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 78 | 78 | |||||
Courtyard Salt Lake City Airport [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 154 | 154 | |||||
Courtyard Fort Lauderdale SW Maramar [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 128 | 128 | |||||
Courtyard Austin Airport [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 150 | 150 | |||||
Fairfield Inn & Suites San Antonio Downtown [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 110 | 110 | |||||
Hampton Inn & Suites Clearwater St. Petersburg [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 128 | 128 | |||||
Hampton Inn Fort Walton Beach [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 100 | 100 | |||||
Hampton Inn & Suites Denver Tech Center [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 123 | 123 | |||||
Hampton Inn West Palm Beach Airport Central [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 105 | 105 | |||||
Hilton Garden Inn Bloomington [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 168 | 168 | |||||
Hilton Garden Inn West Palm Beach Airport [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 100 | 100 | |||||
Hilton Garden Inn Durham Raleigh Research Triangle Park [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 177 | 177 | |||||
Residence Inn Longmont Boulder [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 84 | 84 | |||||
Residence Inn Detroit Novi [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 107 | 107 | |||||
Residence Inn Chicago Oak Brook [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 156 | 156 | |||||
Residence Inn Fort Lauderdale Plantation [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 138 | 138 | |||||
Residence Inn Salt Lake City Airport [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 104 | 104 | |||||
Residence Inn San Antonio Downtown Market Square [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 95 | 95 | |||||
Residence Inn Fort Lauderdale SW Miramar [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 130 | 130 | |||||
Residence Inn Silver Spring [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 130 | 130 | |||||
Springhill Suites Boulder Longmont [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 90 | 90 | |||||
Embassy Suites Myrtle Beach - Oceanfront Resort [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 255 | 255 | |||||
Hilton Myrtle Beach Resort [Member] | |||||||
Discontinued operations | |||||||
Property disposed, number of rooms | 385 | 385 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 32,591 | $ 448,727 | $ 298,073 | $ 847,994 |
Northern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,215 | 58,736 | 41,816 | 115,994 |
South Florida | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,883 | 37,389 | 40,454 | 89,940 |
Southern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,988 | 39,150 | 34,854 | 73,996 |
New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,689 | 41,690 | 22,052 | 68,216 |
Houston, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,636 | 17,765 | 14,263 | 36,151 |
Chicago, Illinois | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,488 | 26,262 | 15,089 | 42,568 |
Washington, D.C. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,199 | 20,223 | 11,764 | 34,475 |
Austin, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,062 | 26,701 | 11,081 | 54,707 |
Denver, Colorado | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 784 | 21,981 | 10,147 | 38,263 |
Louisville, Kentucky | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 301 | 19,002 | 10,839 | 32,752 |
Other Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,346 | 139,828 | 85,714 | 260,932 |
Occupancy [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 27,853 | 378,857 | 246,745 | 716,527 |
Occupancy [Member] | Northern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,716 | 52,222 | 36,227 | 103,103 |
Occupancy [Member] | South Florida | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,449 | 30,048 | 33,572 | 74,694 |
Occupancy [Member] | Southern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,064 | 33,082 | 28,924 | 62,146 |
Occupancy [Member] | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,618 | 36,042 | 18,913 | 58,701 |
Occupancy [Member] | Houston, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,463 | 15,524 | 12,402 | 31,776 |
Occupancy [Member] | Chicago, Illinois | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,964 | 22,132 | 11,878 | 35,038 |
Occupancy [Member] | Washington, D.C. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,931 | 19,081 | 10,755 | 32,448 |
Occupancy [Member] | Austin, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 525 | 23,228 | 8,033 | 47,325 |
Occupancy [Member] | Denver, Colorado | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 691 | 18,263 | 7,450 | 31,393 |
Occupancy [Member] | Louisville, Kentucky | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 292 | 13,879 | 6,190 | 23,269 |
Occupancy [Member] | Other Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 7,140 | 115,356 | 72,401 | 216,634 |
Food and Beverage [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,271 | 49,458 | 32,039 | 93,704 |
Food and Beverage [Member] | Northern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 16 | 4,929 | 3,801 | 9,885 |
Food and Beverage [Member] | South Florida | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 143 | 5,146 | 4,639 | 10,994 |
Food and Beverage [Member] | Southern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 270 | 3,544 | 3,132 | 7,236 |
Food and Beverage [Member] | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6 | 4,451 | 2,140 | 7,355 |
Food and Beverage [Member] | Houston, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6 | 1,018 | 720 | 1,982 |
Food and Beverage [Member] | Chicago, Illinois | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 385 | 3,553 | 2,606 | 6,517 |
Food and Beverage [Member] | Washington, D.C. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 170 | 532 | 370 | 867 |
Food and Beverage [Member] | Austin, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 28 | 2,402 | 1,289 | 5,361 |
Food and Beverage [Member] | Denver, Colorado | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6 | 3,321 | 2,274 | 6,166 |
Food and Beverage [Member] | Louisville, Kentucky | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 4,530 | 3,778 | 8,360 |
Food and Beverage [Member] | Other Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 241 | 16,032 | 7,290 | 28,981 |
Hotel, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,467 | 20,412 | 19,289 | 37,763 |
Hotel, Other [Member] | Northern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 483 | 1,585 | 1,788 | 3,006 |
Hotel, Other [Member] | South Florida | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 291 | 2,195 | 2,243 | 4,252 |
Hotel, Other [Member] | Southern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 654 | 2,524 | 2,798 | 4,614 |
Hotel, Other [Member] | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 65 | 1,197 | 999 | 2,160 |
Hotel, Other [Member] | Houston, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 167 | 1,223 | 1,141 | 2,393 |
Hotel, Other [Member] | Chicago, Illinois | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 139 | 577 | 605 | 1,013 |
Hotel, Other [Member] | Washington, D.C. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 98 | 610 | 639 | 1,160 |
Hotel, Other [Member] | Austin, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 509 | 1,071 | 1,759 | 2,021 |
Hotel, Other [Member] | Denver, Colorado | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 87 | 397 | 423 | 704 |
Hotel, Other [Member] | Louisville, Kentucky | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9 | 593 | 871 | 1,123 |
Hotel, Other [Member] | Other Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 965 | $ 8,440 | $ 6,023 | $ 15,317 |
Debt (Senior Notes, Term Loans,
Debt (Senior Notes, Term Loans, and Revolver) (Details) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020USD ($)asset$ / shares | Mar. 31, 2020$ / shares | Mar. 31, 2019$ / shares | Jun. 30, 2020USD ($)asset$ / shares | Jun. 30, 2019$ / shares | Jun. 30, 2022 | Dec. 31, 2019USD ($) | |
Debt | |||||||
Debt, net | $ 2,591,674,000 | $ 2,591,674,000 | $ 2,195,707,000 | ||||
Unsecured Debt, Gross | 1,575,000,000 | 1,575,000,000 | 1,175,000,000 | ||||
Unamortized debt issuance costs on term loans | (6,502,000) | (6,502,000) | (6,207,000) | ||||
Debt Instrument, Covenant, Minimum Liquidity Level | $ 125,000,000 | $ 125,000,000 | |||||
Dividends | $ / shares | $ 0.01 | $ 0.01 | $ 0.33 | $ 0.01 | $ 0.33 | ||
Leverage ratio | 0.0700 | 0.0700 | 7.50 | ||||
Secured Debt [Member] | |||||||
Debt | |||||||
Number of Assets Encumbered | asset | 19 | 19 | |||||
Six Point Zero Zero Percent Due June 2025 [Member] | Unsecured Debt [Member] | |||||||
Debt | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |||||
Senior Unsecured Notes [Member] | |||||||
Debt | |||||||
Debt Instrument, Redemption Price, Percentage | 103.00% | ||||||
Senior Unsecured Notes [Member] | Unsecured Debt [Member] | |||||||
Debt | |||||||
Debt Instrument, Fair Value Adjustment, Net | $ 23,200,000 | $ 23,200,000 | 25,600,000 | ||||
The Revolver | Line of Credit | |||||||
Debt | |||||||
Maximum borrowing capacity | 600,000,000 | $ 600,000,000 | |||||
Additional maturity term | 1 year | ||||||
Unsecured Debt | $ 400,000,000 | $ 400,000,000 | 0 | ||||
Interest Rate | 3.76% | 3.76% | |||||
Remaining borrowing capacity | $ 200,000,000 | $ 200,000,000 | 600,000,000 | ||||
$400 Million Term Loan Maturing 2023 | Unsecured Debt [Member] | |||||||
Debt | |||||||
Maximum borrowing capacity | 400,000,000 | 400,000,000 | |||||
Unsecured Debt | $ 400,000,000 | $ 400,000,000 | 400,000,000 | ||||
Interest Rate | 4.58% | 4.58% | |||||
$225 Million Term Loan Maturing 2023 | Unsecured Debt [Member] | |||||||
Debt | |||||||
Maximum borrowing capacity | $ 225,000,000 | $ 225,000,000 | |||||
Unsecured Debt | $ 225,000,000 | $ 225,000,000 | 225,000,000 | ||||
Interest Rate | 4.58% | 4.58% | |||||
$150 Million Term Loan Maturing 2022 | Unsecured Debt [Member] | |||||||
Debt | |||||||
Maximum borrowing capacity | $ 150,000,000 | $ 150,000,000 | |||||
Unsecured Debt | $ 150,000,000 | $ 150,000,000 | 150,000,000 | ||||
Interest Rate | 3.88% | 3.88% | |||||
$400 Million Term Loan Maturing 2025 [Member] | Unsecured Debt [Member] | |||||||
Debt | |||||||
Maximum borrowing capacity | $ 400,000,000 | $ 400,000,000 | |||||
Unsecured Debt | $ 400,000,000 | $ 400,000,000 | 400,000,000 | ||||
Interest Rate | 3.77% | 3.77% | |||||
Prepaid expenses and other assets | |||||||
Debt | |||||||
Deferred financing costs | $ 3,900,000 | $ 3,900,000 | 3,400,000 | ||||
Fair Value, Inputs, Level 3 [Member] | Secured Debt [Member] | |||||||
Debt | |||||||
Secured Debt | 525,054,000 | 525,054,000 | 526,430,000 | ||||
Fair Value, Inputs, Level 3 [Member] | Unsecured Debt [Member] | |||||||
Debt | |||||||
Unsecured Debt | $ 1,568,498,000 | $ 1,568,498,000 | $ 1,168,793,000 | ||||
Minimum | |||||||
Debt | |||||||
Leverage ratio | 7 | 7 | |||||
Maximum | |||||||
Debt | |||||||
Leverage ratio | 6.50 | 6.50 |
Debt (Mortgage Loans) (Details)
Debt (Mortgage Loans) (Details) | 1 Months Ended | 6 Months Ended | |
Apr. 30, 2019increment | Jun. 30, 2020USD ($)assetloan | Dec. 31, 2019USD ($) | |
Debt | |||
Mortgage loans, gross | $ 528,190,000 | $ 530,299,000 | |
Unamortized debt issuance costs on mortgage loans | $ (3,136,000) | (3,869,000) | |
Mortgage Loan in Cash Trap Event | loan | 1 | ||
Mortgage Loans Will Be in Cash Trap Event | loan | 4 | ||
Secured Debt [Member] | |||
Debt | |||
Number of Assets Encumbered | asset | 19 | ||
Secured Debt [Member] | Four Point Nine Four Percent Due October 2022 [Member] | |||
Debt | |||
Debt Instrument, Fair Value Adjustment, Net | $ 400,000 | 400,000 | |
Secured Debt [Member] | Wells Fargo 3 | |||
Debt | |||
Number of Assets Encumbered | asset | 1 | ||
Interest Rate | 5.25% | ||
Mortgage loans, net | $ 30,773,000 | 31,215,000 | |
Debt Instrument, Fair Value Adjustment, Net | 400,000 | 500,000 | |
Secured Debt [Member] | Four Point Nine Five Percent Due October 2022 [Member] | |||
Debt | |||
Debt Instrument, Fair Value Adjustment, Net | $ 1,100,000 | 1,400,000 | |
Three Point Four Three Percent Due March 2024 [Member] | Secured Debt [Member] | |||
Debt | |||
Number of Assets Encumbered | asset | 4 | ||
Mortgage loans, net | $ 85,000,000 | 85,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.83% | ||
Three Point Three Two Percent Due April 2022 [Member] | Secured Debt [Member] | |||
Debt | |||
Number of Assets Encumbered | asset | 7 | ||
Mortgage loans, net | $ 200,000,000 | 200,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.68% | ||
Four Point Nine Five Percent Due October 2022 [Member] | Secured Debt [Member] | |||
Debt | |||
Number of Assets Encumbered | asset | 3 | ||
Mortgage loans, net | $ 88,038,000 | 89,299,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.95% | ||
The Revolver | Line of Credit | |||
Debt | |||
Interest Rate | 3.76% | ||
Unsecured Debt | $ 400,000,000 | 0 | |
Additional maturity term | 1 year | ||
Remaining borrowing capacity | $ 200,000,000 | 600,000,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 600,000,000 | ||
Four Point Nine Four Percent Due October 2022 [Member] | Secured Debt [Member] | |||
Debt | |||
Number of Assets Encumbered | asset | 1 | ||
Mortgage loans, net | $ 28,379,000 | 28,785,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.94% | ||
Four Point Zero Zero Percent Due April 2024 [Member] | Secured Debt [Member] | |||
Debt | |||
Number of Assets Encumbered | asset | 3 | ||
Mortgage loans, net | $ 96,000,000 | 96,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.88% | ||
LIBOR Plus One Point Six Zero Percent [Member] | Secured Debt [Member] | |||
Debt | |||
Additional maturity term | 1 year | ||
Number of additional maturity terms | increment | 2 | ||
$225 Million Term Loan Maturing 2023 | Unsecured Debt [Member] | |||
Debt | |||
Interest Rate | 4.58% | ||
Unsecured Debt | $ 225,000,000 | 225,000,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 225,000,000 | ||
$400 Million Term Loan Maturing 2025 [Member] | Unsecured Debt [Member] | |||
Debt | |||
Interest Rate | 3.77% | ||
Unsecured Debt | $ 400,000,000 | $ 400,000,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 |
Debt (Components of Interest Ex
Debt (Components of Interest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt | ||||
Amortization of deferred financing costs | $ 1,045 | $ 1,110 | $ 2,067 | $ 1,902 |
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | (371) | 2,195 | 1,186 | (55) |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | 1,186 | (55) | ||
Total Interest Expense | 23,794 | 25,237 | 47,607 | 45,299 |
Senior Notes [Member] | ||||
Debt | ||||
Interest expense | 5,940 | 5,944 | 11,883 | 11,888 |
Secured Debt [Member] | ||||
Debt | ||||
Interest expense | 4,475 | 5,150 | 9,115 | 10,573 |
Revolver and Term Loans | ||||
Debt | ||||
Interest expense | $ 12,705 | $ 10,838 | $ 23,356 | $ 20,991 |
Debt (Covenants) (Details)
Debt (Covenants) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Debt Instrument Covenant [Abstract] | ||||||||
Leverage ratio | 0.0700 | 0.0700 | 7.50 | |||||
Fixed charge coverage ratio | 0.0150 | 0.0150 | ||||||
Debt Instrument, Covenant, Maximum, Secured Indebtedness Ratio | 45.00% | 45.00% | ||||||
Debt Instrument, Covenant, Maximum, Unsecured Indebtedness Ratio | 60.00% | 60.00% | ||||||
Debt Instrument, Covenant, Minimum, Unsecured Interest Coverage Ratio | 0.0200 | 0.0200 | ||||||
Debt Instrument, Actual [Abstract] | ||||||||
Leverage ratio | 0.0423 | 0.0423 | ||||||
Fixed charge coverage ratio | 2.52% | 2.52% | ||||||
Debt Instrument, Actual, Secured Indebtedness Ratio | 1.86% | 1.86% | ||||||
Debt Instrument, Actual, Unsecured Indebtedness Ratio | 24.70% | 24.70% | ||||||
Debt Instrument, Actual, Unsecured Interest Coverage Ratio | 0.0169 | 0.0169 | ||||||
Debt Instrument, Covenant, Minimum Liquidity Level | $ 125 | $ 125 | ||||||
Minimum | ||||||||
Debt Instrument Covenant [Abstract] | ||||||||
Leverage ratio | 7 | 7 | ||||||
Minimum | LIBOR | ||||||||
Debt | ||||||||
Basis spread on variable rate (percent) | 0.25% | |||||||
Maximum | ||||||||
Debt | ||||||||
Payments for capital expenditures | $ 260 | |||||||
Payments to acquire businesses | $ 200 | |||||||
Debt Instrument Covenant [Abstract] | ||||||||
Leverage ratio | 6.50 | 6.50 | ||||||
Revolving Credit Facility | LIBOR | ||||||||
Debt | ||||||||
Basis spread on variable rate (percent) | 23000.00% | |||||||
Revolving Credit Facility | Base Rate | ||||||||
Debt | ||||||||
Basis spread on variable rate (percent) | 13000.00% | |||||||
Term Loan | LIBOR | ||||||||
Debt | ||||||||
Basis spread on variable rate (percent) | 22500.00% | |||||||
Term Loan | Base Rate | ||||||||
Debt | ||||||||
Basis spread on variable rate (percent) | 12500.00% | |||||||
Forecast | ||||||||
Debt Instrument Covenant [Abstract] | ||||||||
Leverage ratio | 7 | 8 | 8 | 8.50 | ||||
Fixed charge coverage ratio | 2 | 1.65 | 1.65 | 1.65 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | |
Interest Rate Derivatives | ||||||
Notional value | $ 2,124,000,000 | $ 2,124,000,000 | $ 1,674,000,000 | |||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | (1,186,000) | $ 55,000 | ||||
Unrealized gains (losses) included in accumulated other comprehensive loss | (82,600,000) | (82,600,000) | (19,500,000) | |||
Amount of hedge ineffectiveness | 0 | 0 | $ 0 | |||
Reclassification of unrealized gain on discontinued cash flow hedges to interest expense | 0 | $ 0 | 0 | (2,250,000) | ||
Net unrealized gains in accumulated other comprehensive income expected to be reclassified into interest expense within the next 12 months | (27,800,000) | (27,800,000) | ||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | (82,573,000) | (82,573,000) | (19,514,000) | |||
Designated as Hedging Instrument | Interest Rate Swap, 1.15% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | 100,000,000 | 100,000,000 | 100,000,000 | |||
Interest rate swap liability | $ (893,000) | $ (893,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 607,000 | |||||
Interest rate | 1.15% | 1.15% | ||||
Designated as Hedging Instrument | interest Rate Swap, 1.20% | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 100,000,000 | $ 100,000,000 | 100,000,000 | |||
Interest rate swap liability | $ (938,000) | $ (938,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 538,000 | |||||
Interest rate | 1.20% | 1.20% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 2.15% | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 75,000,000 | $ 75,000,000 | 75,000,000 | |||
Interest rate swap liability | $ (1,347,000) | $ (1,347,000) | (590,000) | |||
Interest rate | 2.15% | 2.15% | ||||
Designated as Hedging Instrument | Interest Rate Swap 1.91% | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 75,000,000 | $ 75,000,000 | 75,000,000 | |||
Interest rate swap liability | $ (1,183,000) | $ (1,183,000) | (337,000) | |||
Interest rate | 1.91% | 1.91% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 1.61% | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 50,000,000 | $ 50,000,000 | 50,000,000 | |||
Interest rate swap liability | $ (799,000) | $ (799,000) | (32,000) | |||
Interest rate | 1.61% | 1.61% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 1.56% | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 50,000,000 | $ 50,000,000 | 50,000,000 | |||
Interest rate swap liability | $ (768,000) | $ (768,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 13,000 | |||||
Interest rate | 1.56% | 1.56% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 1.71% | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 50,000,000 | $ 50,000,000 | 50,000,000 | |||
Interest rate swap liability | $ (852,000) | $ (852,000) | (109,000) | |||
Interest rate | 1.71% | 1.71% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 2.29% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 200,000,000 | $ 200,000,000 | 200,000,000 | |||
Interest rate swap liability | $ (11,285,000) | $ (11,285,000) | (4,587,000) | |||
Interest rate | 2.29% | 2.29% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 2.290% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 125,000,000 | $ 125,000,000 | 125,000,000 | |||
Interest rate swap liability | $ (7,047,000) | $ (7,047,000) | (2,859,000) | |||
Interest rate | 2.29% | 2.29% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 2.38% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 200,000,000 | $ 200,000,000 | 200,000,000 | |||
Interest rate swap liability | $ (11,772,000) | $ (11,772,000) | (5,155,000) | |||
Interest rate | 2.38% | 2.38% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 2.380% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 100,000,000 | $ 100,000,000 | 100,000,000 | |||
Interest rate swap liability | $ (5,883,000) | $ (5,883,000) | (2,574,000) | |||
Interest rate | 2.38% | 2.38% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 2.75% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 100,000,000 | $ 100,000,000 | 100,000,000 | |||
Interest rate swap liability | $ (7,937,000) | $ (7,937,000) | (3,590,000) | |||
Interest rate | 2.75% | 2.75% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 2.51% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 75,000,000 | $ 75,000,000 | 75,000,000 | |||
Interest rate swap liability | $ (5,360,000) | $ (5,360,000) | (2,120,000) | |||
Interest rate | 2.51% | 2.51% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 2.39% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 75,000,000 | $ 75,000,000 | 75,000,000 | |||
Interest rate swap liability | $ (5,088,000) | $ (5,088,000) | (1,858,000) | |||
Interest rate | 2.39% | 2.39% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 1.35% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 49,000,000 | $ 49,000,000 | 49,000,000 | |||
Interest rate swap liability | $ (748,000) | $ (748,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 181,000 | |||||
Interest rate | 1.35% | 1.35% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 1.28% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 100,000,000 | $ 100,000,000 | 100,000,000 | |||
Interest rate swap liability | $ (2,632,000) | $ (2,632,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 690,000 | |||||
Interest rate | 1.28% | 1.28% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 1.24% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 150,000,000 | $ 150,000,000 | 150,000,000 | |||
Interest rate swap liability | $ (5,968,000) | $ (5,968,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 2,268,000 | |||||
Interest rate | 1.24% | 1.24% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 1.16% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 50,000,000 | $ 50,000,000 | 0 | |||
Interest rate swap liability | $ (1,524,000) | $ (1,524,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||||
Interest rate | 1.16% | 1.16% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 1.200% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 50,000,000 | $ 50,000,000 | 0 | |||
Interest rate swap liability | $ (1,586,000) | $ (1,586,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||||
Interest rate | 1.20% | 1.20% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 1.150% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 50,000,000 | $ 50,000,000 | 0 | |||
Interest rate swap liability | $ (1,510,000) | $ (1,510,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||||
Interest rate | 1.15% | 1.15% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 1.10% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 50,000,000 | $ 50,000,000 | 0 | |||
Interest rate swap liability | $ (1,434,000) | $ (1,434,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||||
Interest rate | 1.10% | 1.10% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 0.98% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 25,000,000 | $ 25,000,000 | 0 | |||
Interest rate swap liability | $ (626,000) | $ (626,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||||
Interest rate | 0.98% | 0.98% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 0.95% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 25,000,000 | $ 25,000,000 | 0 | |||
Interest rate swap liability | $ (603,000) | $ (603,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||||
Interest rate | 0.95% | 0.95% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 0.93% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 25,000,000 | $ 25,000,000 | 0 | |||
Interest rate swap liability | $ (587,000) | $ (587,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||||
Interest rate | 0.93% | 0.93% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 0.90% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 25,000,000 | $ 25,000,000 | 0 | |||
Interest rate swap liability | $ (564,000) | $ (564,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||||
Interest rate | 0.90% | 0.90% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 0.85% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 50,000,000 | $ 50,000,000 | 0 | |||
Interest rate swap liability | $ (1,510,000) | $ (1,510,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||||
Interest rate | 0.85% | 0.85% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 0.75% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 50,000,000 | $ 50,000,000 | 0 | |||
Interest rate swap liability | $ (1,282,000) | $ (1,282,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||||
Interest rate | 0.75% | 0.75% | ||||
Designated as Hedging Instrument | Interest Rate Swap, 0.65% [Member] | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 50,000,000 | $ 50,000,000 | 0 | |||
Interest rate swap liability | $ (847,000) | $ (847,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||||
Interest rate | 0.65% | 0.65% | ||||
Not Designated as Hedging Instrument | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 276,844,000 | $ 276,844,000 | 279,750,000 | |||
Interest Rate Derivative Instruments Not Designated as Heding Instruments, Liability at Fair Value | (1,562,000) | (1,562,000) | (376,000) | |||
Not Designated as Hedging Instrument | Swap-cash flow, hedge type one | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 29,865,000 | $ 29,865,000 | 30,195,000 | |||
Interest rate | 1.80% | 1.80% | ||||
Interest Rate Derivative Instruments Not Designated as Heding Instruments, Liability at Fair Value | $ (136,000) | $ (136,000) | (34,000) | |||
Not Designated as Hedging Instrument | Swap-cash flow, hedge type two | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 74,210,000 | $ 74,210,000 | 75,030,000 | |||
Interest rate | 1.80% | 1.80% | ||||
Interest Rate Derivative Instruments Not Designated as Heding Instruments, Liability at Fair Value | $ (339,000) | $ (339,000) | (86,000) | |||
Not Designated as Hedging Instrument | Swap-cash flow, hedge type three | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 31,675,000 | $ 31,675,000 | 32,025,000 | |||
Interest rate | 1.80% | 1.80% | ||||
Interest Rate Derivative Instruments Not Designated as Heding Instruments, Liability at Fair Value | $ (145,000) | $ (145,000) | (37,000) | |||
Not Designated as Hedging Instrument | Swap-cash flow, hedge type four | ||||||
Interest Rate Derivatives | ||||||
Notional value | $ 141,094,000 | $ 141,094,000 | 142,500,000 | |||
Interest rate | 1.81% | 1.81% | ||||
Interest Rate Derivative Instruments Not Designated as Heding Instruments, Liability at Fair Value | $ (942,000) | $ (942,000) | (219,000) | |||
Interest Expense | ||||||
Interest Rate Derivatives | ||||||
Reclassification of unrealized gain on discontinued cash flow hedges to interest expense | 5,500,000 | $ 1,900,000 | 6,300,000 | $ 4,400,000 | ||
Accounts payable and other liabilities | Interest rate swap | ||||||
Interest Rate Derivatives | ||||||
Interest rate swap liability | $ (84,100,000) | $ (84,100,000) | (24,200,000) | |||
Prepaid expenses and other assets | Interest rate swap | ||||||
Interest Rate Derivatives | ||||||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 4,300,000 |
Fair Value (Details)
Fair Value (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | $ (82,573,000) | $ (19,514,000) |
Debt, net | 2,591,674,000 | 2,195,707,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Long-term Debt, Fair Value | 2,497,942,000 | 2,206,152,000 |
Recurring | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap asset | 4,297,000 | |
Interest rate swap liability | (84,135,000) | (24,187,000) |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | (84,135,000) | (19,890,000) |
Recurring | Level 1 | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap asset | 0 | |
Interest rate swap liability | 0 | 0 |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0 | 0 |
Recurring | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap asset | 4,297,000 | |
Interest rate swap liability | (84,135,000) | (24,187,000) |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | (84,135,000) | (19,890,000) |
Recurring | Fair Value, Inputs, Level 3 [Member] | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap asset | 0 | |
Interest rate swap liability | 0 | 0 |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0 | 0 |
Senior Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Long-term Debt, Gross | 498,122,000 | 500,484,000 |
Long-term Debt, Fair Value | 461,339,000 | 497,835,000 |
Unsecured Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Long-term Debt, Fair Value | 1,524,469,000 | 1,176,068,000 |
Unsecured Debt | 1,568,498,000 | 1,168,793,000 |
Secured Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Long-term Debt, Fair Value | 512,134,000 | 532,249,000 |
Secured Debt | $ 525,054,000 | $ 526,430,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Minimum percent of adjusted taxable income to be distributed to shareholders to qualify as a REIT | 90.00% | |
Accruals for tax uncertainties | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($)property | Jun. 30, 2016USD ($)hotel | Jun. 30, 2020USD ($)property | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2016hotel | |
Loss Contingencies [Line Items] | ||||||
Minimum restricted cash reserve escrows to be maintained as a percentage of the hotel's revenue | 3.00% | |||||
Maximum restricted cash reserve escrows to be maintained as percentage of hotel's revenue | 5.00% | |||||
Restricted cash reserves for future capital expenditures, real estate taxes and insurance | $ 44,578 | $ 44,578 | $ 44,686 | $ 48,330 | ||
Number of Real Estate Properties | 104 | 104 | 29 | |||
Loss Contingency, Damages Sought, Value | $ 8,300 | |||||
NOI Guarantee Termination Payment | $ 35,000 | |||||
Reduction of Management Fee Expense | $ 4,200 | $ 8,800 | ||||
InterContinental Hotels Group PLC [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of Real Estate Properties | hotel | 3 |
Commitments and Contingencies_2
Commitments and Contingencies (Management Agreements) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)hotelproperty | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)hotelproperty | Jun. 30, 2019USD ($) | Sep. 30, 2016hotel | |
Other Commitments | |||||
Number of Hotel Properties Operated under Management Agreements | hotel | 103 | 103 | |||
Number of Real Estate Properties | 104 | 104 | 29 | ||
Minimum | |||||
Other Commitments | |||||
Management Agreement Term | 1 year | ||||
Base Management Fee as Percentage of Hotel Revenues | 1.75% | ||||
Management Agreements which include Franchise Agreement, Base Management Fee as Percentage of Hotel Revenues | 3.00% | ||||
Maximum | |||||
Other Commitments | |||||
Management Agreement Term | 25 years | ||||
Base Management Fee as Percentage of Hotel Revenues | 3.50% | ||||
Management Agreements which include Franchise Agreement, Base Management Fee as Percentage of Hotel Revenues | 7.00% | ||||
Management Service [Member] | |||||
Other Commitments | |||||
Cost of Goods and Services Sold | $ | $ 600,000 | $ 13,700,000 | $ 8,500,000 | $ 27,800,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Franchise Agreements) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)hotelproperty | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)hotelproperty | Jun. 30, 2019USD ($) | Sep. 30, 2016hotel | |
Other Commitments | |||||
Number of Hotel Properties Operated under Franchise Agreements | hotel | 73 | 73 | |||
Number of Real Estate Properties | 104 | 104 | 29 | ||
Minimum | |||||
Other Commitments | |||||
Franchise Agreements Term | 1 year | ||||
Franchise Agreements, Royalty Fee as Percentage of Room Revenue | 3.00% | ||||
Franchise Agreements, Additional Fees for Marketing Central Reservation Systems and Other Franchisor Costs as Percentage of Room Revenue | 1.00% | ||||
Maximum | |||||
Other Commitments | |||||
Franchise Agreements Term | 30 years | ||||
Franchise Agreements, Royalty Fee as Percentage of Room Revenue | 6.00% | ||||
Franchise Agreements, Additional Fees for Marketing Central Reservation Systems and Other Franchisor Costs as Percentage of Room Revenue | 4.30% | ||||
Franchise Agreements, Royalty Fee as Percentage of Food and Beverage Revenue | 3.00% | ||||
Franchise [Member] | |||||
Other Commitments | |||||
Cost of Goods and Services Sold | $ | $ 1.8 | $ 22.1 | $ 15.6 | $ 42.1 |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Feb. 14, 2020 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock | ||||||||
Common shares repurchased and retired (in shares) | 1,049,215 | |||||||
Stock repurchased during the period, Value | $ 7,850,000 | $ 62,605,000 | $ 18,411,000 | |||||
Dividends declared per common share | $ 0.01 | $ 0.01 | $ 0.33 | $ 0.01 | $ 0.33 | |||
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Share repurchase program, remaining authorized amount | $ 213,400,000 | $ 213,400,000 | ||||||
Limited Partners | ||||||||
Equity, Class of Treasury Stock | ||||||||
Remaining limited partner ownership interest in Operating Partnership units (in shares) | 772,293 | 772,293 | ||||||
Series A Cumulative Preferred Stock [Member] | ||||||||
Equity, Class of Treasury Stock | ||||||||
Preferred Stock, Shares Authorized | 12,950,000 | 12,950,000 | 12,950,000 | |||||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $ 1.95 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | 0.01 | $ 0.01 | |||||
Preferred Stock, Dividends Per Share, Declared | $ 0.4875 | $ 0.04875 | ||||||
2015 Share Repurchase Program [Member] | ||||||||
Equity, Class of Treasury Stock | ||||||||
Stock repurchased during the period, Value | $ 10,300,000 | |||||||
2019 Share Repurchase Program [Member] | ||||||||
Equity, Class of Treasury Stock | ||||||||
Stock repurchased during the period, Value | $ 8,100,000 | |||||||
2019 Share Repurchase Program [Member] | ||||||||
Equity, Class of Treasury Stock | ||||||||
Stock repurchased during the period, Value | $ 26,000,000 | |||||||
2020 Share Repurchase Program [Member] | ||||||||
Equity, Class of Treasury Stock | ||||||||
Share repurchase program, authorized amount | $ 250,000,000 | |||||||
Share repurchase program, additional authorized amount | $ 250,000,000 | $ 250,000,000 | ||||||
Common shares repurchased and retired (in shares) | 5,489,335 | |||||||
Stock repurchased during the period, Value | $ 36,600,000 | |||||||
Embassy Suites Secaucus [Member] | ||||||||
Equity, Class of Treasury Stock | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | 49.00% | ||||||
The Knickerbocker New York [Member] | ||||||||
Equity, Class of Treasury Stock | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | 5.00% | ||||||
DBT Met Hotel Venture LP [Member] | ||||||||
Equity, Class of Treasury Stock | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 1.70% | 1.70% |
Equity Incentive Plan (Details)
Equity Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity Incentive Plan | ||||||
Maximum number of common shares available for issuance (in shares) | 7,500,000 | 7,500,000 | ||||
2017 Performance Shares [Member] | ||||||
Summary of non-vested shares/units | ||||||
Granted (in shares) | 259,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share | $ 14.93 | |||||
Other Disclosures | ||||||
Fair value assumptions, risk free interest rate | 1.57% | |||||
Fair value assumptions, expected volatility rate | 25.73% | |||||
Restricted share awards | ||||||
Summary of non-vested shares/units | ||||||
Unvested at the beginning of the period (in shares) | 940,202 | |||||
Granted (in shares) | 801,463 | |||||
Vested (in shares) | (206,484) | |||||
Forfeited (in shares) | (8,434) | |||||
Unvested at the end of the period (in shares) | 1,526,747 | 1,526,747 | ||||
Weighted Average Grant Date Fair Value | ||||||
Unvested at the beginning of the period (in dollars per share) | $ 20.21 | |||||
Granted (in dollars per share) | 11.95 | |||||
Vested (in dollars per share) | 19.83 | |||||
Forfeited (in dollars per share) | 19.43 | |||||
Unvested at the end of the period (in dollars per share) | $ 15.93 | $ 15.93 | ||||
Other Disclosures | ||||||
Share-based compensation expense | $ 2.3 | $ 2.2 | $ 4.4 | $ 4.3 | ||
Total unrecognized compensation costs | $ 18.7 | $ 18.7 | ||||
Weighted-average period of recognition of unrecognized share-based compensation expense | 2 years 8 months 12 days | |||||
Total fair value of shares vested | $ 2.8 | $ 2.2 | ||||
2015 Share Repurchase Program [Member] | ||||||
Other Disclosures | ||||||
Performance-based vesting period | 3 years | |||||
Time-based vesting period | 1 year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Contingent on Absolute Total Shareholder Return | 40.00% | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Contingent on Relative Total Shareholder Return | 60.00% | |||||
Vesting percentage upon satisfaction of performance-based vesting period | 50.00% | |||||
Vesting percentage upon satisfaction of time-based vesting period | 50.00% | |||||
Percentage of grant date fair value to be recognized over three years | 50.00% | |||||
Employee service share based compensation cost period of recognition | 3 years | |||||
Percentage of grant date fair value to be recognized over four years | 50.00% | |||||
Employee service share based compensation cost period of recognition | 4 years | |||||
Common shares available for future grant (in shares) | 762,185 | 762,185 | ||||
2018 Performance Shares | ||||||
Summary of non-vested shares/units | ||||||
Granted (in shares) | 264,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share | $ 13.99 | |||||
Other Disclosures | ||||||
Fair value assumptions, risk free interest rate | 2.42% | |||||
Fair value assumptions, expected volatility rate | 27.44% | |||||
2019 Performance Shares [Member] | ||||||
Summary of non-vested shares/units | ||||||
Granted (in shares) | 489,000 | 260,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share | $ 19.16 | |||||
Other Disclosures | ||||||
Fair value assumptions, risk free interest rate | 2.52% | |||||
Fair value assumptions, expected volatility rate | 27.19% | |||||
Performance Units | ||||||
Other Disclosures | ||||||
Share-based compensation expense | $ 1.1 | $ 0.8 | $ 1.6 | $ 1.5 | ||
Total unrecognized compensation costs | $ 9 | $ 9 | ||||
Weighted-average period of recognition of unrecognized share-based compensation expense | 2 years 8 months 12 days | |||||
2020 Performance Shares [Member] | ||||||
Summary of non-vested shares/units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share | $ 12.06 | |||||
Other Disclosures | ||||||
Fair value assumptions, risk free interest rate | 1.08% | |||||
Fair value assumptions, expected volatility rate | 23.46% | |||||
Minimum | 2017 Performance Shares [Member] | ||||||
Equity Incentive Plan | ||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 0.00% | |||||
Minimum | 2015 Share Repurchase Program [Member] | ||||||
Other Disclosures | ||||||
Percentage of performance units that will convert into restricted shares | 0.00% | |||||
Minimum | 2018 Performance Shares | ||||||
Equity Incentive Plan | ||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 0.00% | |||||
Minimum | 2019 Performance Shares [Member] | ||||||
Equity Incentive Plan | ||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 0.00% | |||||
Minimum | 2020 Performance Shares [Member] | ||||||
Equity Incentive Plan | ||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 0.00% | |||||
Maximum | 2017 Performance Shares [Member] | ||||||
Equity Incentive Plan | ||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 150.00% | |||||
Maximum | Restricted share awards | ||||||
Other Disclosures | ||||||
Vesting period | 4 years | |||||
Maximum | 2015 Share Repurchase Program [Member] | ||||||
Other Disclosures | ||||||
Percentage of performance units that will convert into restricted shares | 200.00% | |||||
Maximum | 2018 Performance Shares | ||||||
Equity Incentive Plan | ||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 150.00% | |||||
Maximum | 2019 Performance Shares [Member] | ||||||
Equity Incentive Plan | ||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 200.00% | |||||
Maximum | 2020 Performance Shares [Member] | ||||||
Equity Incentive Plan | ||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 200.00% |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net Income (Loss) Attributable to Parent | $ (115,074) | $ 33,444 | $ (144,398) | $ 60,697 |
Preferred Stock Dividends, Income Statement Impact | (6,279) | (6,279) | (12,557) | (12,557) |
Less: Dividends paid on unvested restricted shares | (15) | (378) | (29) | (690) |
Less: Undistributed Earnings allocated to unvested restricted shares | 0 | 0 | 0 | 0 |
Net (loss) income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ (121,368) | $ 26,787 | $ (156,984) | $ 47,450 |
Denominator: | ||||
Weighted-average number of common shares - basic (in shares) | 163,543,701 | 172,661,878 | 165,346,717 | 172,729,064 |
Unvested restricted shares (in shares) | 0 | 104,213 | 0 | 79,449 |
Weighted-average number of common shares - diluted (in shares) | 163,543,701 | 172,766,091 | 165,346,717 | 172,808,513 |
Net income per share attributable to common shareholders - basic (in dollars per share) | $ (0.74) | $ 0.16 | $ (0.95) | $ 0.27 |
Net income per share attributable to common shareholders - diluted (in dollars per share) | $ (0.74) | $ 0.16 | $ (0.95) | $ 0.27 |