Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
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 | 7373 Wisconsin Avenue | |
Entity Address, Address Line Two | Suite 1500 | |
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 | |
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 | 155,024,153 | |
Entity Central Index Key | 0001511337 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Shares of beneficial interest, par value $0.01 per share | |
Trading Symbol | RLJ | |
Security Exchange Name | NYSE | |
Series A Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | $1.95 Series A Cumulative Convertible Preferred Shares, par value $0.01 per share | |
Trading Symbol | RLJ-A | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Investment in hotel properties, net | $ 4,274,669 | $ 4,136,216 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 7,386 | 7,398 |
Cash and cash equivalents | 371,133 | 516,675 |
Restricted cash reserves | 36,081 | 38,652 |
Hotel and other receivables, net of allowance of $369 and $265, respectively | 30,916 | 26,163 |
Operating lease right of use asset | 130,875 | 136,140 |
Prepaid expense and other assets | 66,967 | 58,051 |
Total assets | 4,918,027 | 4,919,295 |
Liabilities and Equity | ||
Debt, net | 2,222,642 | 2,220,778 |
Accounts payable and other liabilities | 149,682 | 147,819 |
Contract with Customer, Liability | 33,475 | 32,281 |
Operating lease liability | 119,902 | 122,588 |
Accrued interest | 21,934 | 22,539 |
Distributions payable | 22,621 | 22,500 |
Total liabilities | 2,570,256 | 2,568,505 |
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, 2024 and December 31, 2023 | 366,936 | 366,936 |
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 155,240,677 and 155,297,829 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 1,552 | 1,553 |
Additional paid-in capital | 3,000,394 | 3,000,894 |
Retained Earnings | (1,057,061) | (1,055,183) |
Accumulated other comprehensive income | 22,171 | 22,662 |
Total shareholders’ equity | 2,333,992 | 2,336,862 |
Noncontrolling interests: | ||
Noncontrolling interest in the Operating Partnership | 6,318 | 6,294 |
Noncontrolling interest in consolidated joint ventures | 7,461 | 7,634 |
Total noncontrolling interests | 13,779 | 13,928 |
Total equity | 2,347,771 | 2,350,790 |
Total liabilities and equity | $ 4,918,027 | $ 4,919,295 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Hotel and other receivables, allowance | $ 369 | $ 265 |
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 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 | 155,240,677 | 155,297,829 |
Common shares of beneficial interest, shares outstanding | 155,240,677 | 155,297,829 |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | ||||
Total revenues | $ 369,297 | $ 356,960 | $ 693,707 | $ 671,463 |
Expenses | ||||
Operating Costs and Expenses | 224,826 | 211,854 | 438,303 | 412,848 |
Depreciation and amortization | 44,474 | 44,925 | 89,153 | 89,921 |
Property tax, insurance and other | 28,753 | 24,684 | 56,587 | 49,332 |
General and administrative | 13,940 | 14,627 | 29,045 | 28,283 |
Transaction costs | 76 | 4 | 90 | 24 |
Total operating expenses | 312,069 | 296,094 | 613,178 | 580,408 |
Other income, net | 687 | 736 | 3,878 | 1,585 |
Interest income | 4,118 | 5,011 | 8,905 | 8,675 |
Interest expense | (28,049) | (24,543) | (54,507) | (48,673) |
Gain (loss) on sale of hotel properties, net | 3,546 | (44) | 3,546 | (44) |
Loss on extinguishment of indebtedness, net | 0 | (169) | 0 | (169) |
Income before equity in income from unconsolidated joint ventures | 37,530 | 41,857 | 42,351 | 52,429 |
Equity in income from unconsolidated joint ventures | 154 | 220 | 388 | 501 |
Income before income tax expense | 37,684 | 42,077 | 42,739 | 52,930 |
Income tax expense | (393) | (357) | (702) | (696) |
Net income | 37,291 | 41,720 | 42,037 | 52,234 |
Net (income) loss attributable to noncontrolling interests: | ||||
Noncontrolling interest in the Operating Partnership | (169) | (171) | (167) | (188) |
Noncontrolling interest in consolidated joint ventures | (16) | (154) | 173 | (6) |
Net income attributable to RLJ | 37,106 | 41,395 | 42,043 | 52,040 |
Preferred dividends | (6,279) | (6,279) | (12,557) | (12,557) |
Net income attributable to common shareholders | $ 30,827 | $ 35,116 | $ 29,486 | $ 39,483 |
Basic per common share data: | ||||
Net income per share attributable to common shareholders - basic | $ 0.20 | $ 0.22 | $ 0.19 | $ 0.25 |
Weighted-average number of common shares - basic (in shares) | 153,641,065 | 156,424,444 | 153,305,640 | 157,945,406 |
Diluted per common share data: | ||||
Net income per share attributable to common shareholders - diluted | $ 0.20 | $ 0.22 | $ 0.19 | $ 0.25 |
Weighted-average number of common shares - diluted (in shares) | 154,105,871 | 156,741,187 | 154,151,135 | 158,381,380 |
Comprehensive income: | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 37,291 | $ 41,720 | $ 42,037 | $ 52,234 |
Unrealized gain (loss) on interest rate derivatives | (2,773) | 7,558 | (491) | 1,142 |
Comprehensive income | 34,518 | 49,278 | 41,546 | 53,376 |
Noncontrolling interest in the Operating Partnership | (169) | (171) | (167) | (188) |
Noncontrolling interest in consolidated joint ventures | (16) | (154) | 173 | (6) |
Comprehensive income attributable to RLJ | 34,333 | 48,953 | 41,552 | 53,182 |
Accumulated Other Comprehensive Income | ||||
Comprehensive income: | ||||
Unrealized gain (loss) on interest rate derivatives | (2,773) | 7,558 | (491) | 1,142 |
Room Revenue | ||||
Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 303,652 | 295,496 | 570,282 | 556,328 |
Expenses | ||||
Operating Costs and Expenses | 73,941 | 70,333 | 143,327 | 136,384 |
Food and Beverage Revenue | ||||
Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 40,843 | 38,132 | 76,532 | 71,420 |
Expenses | ||||
Operating Costs and Expenses | 30,304 | 28,037 | 58,931 | 54,174 |
Other Revenue | ||||
Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 24,802 | 23,332 | 46,893 | 43,715 |
Expenses | ||||
Operating Costs and Expenses | 90,792 | 84,207 | 180,601 | 166,831 |
Management And Franchise Fee Expense | ||||
Expenses | ||||
Operating Costs and Expenses | $ 29,789 | $ 29,277 | $ 55,444 | $ 55,459 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Series A Cumulative Preferred Stock [Member] | Common Stock | Additional Paid-in-Capital | Retained Earnings (Distributions in excess of net earnings) | Accumulated Other Comprehensive Income | Operating Partnership | Consolidated Joint Venture |
Balance (in shares) at Dec. 31, 2022 | 12,879,475 | 162,003,533 | ||||||
Balance at Dec. 31, 2022 | $ 2,428,646 | $ 366,936 | $ 1,620 | $ 3,054,958 | $ (1,049,441) | $ 40,591 | $ 6,313 | $ 7,669 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income (Loss) Attributable to Parent | 52,040 | |||||||
Net income (loss) | 52,234 | 52,040 | 188 | 6 | ||||
Unrealized gain (loss) on interest rate derivatives | 1,142 | 1,142 | ||||||
Issuance of restricted stock (in shares) | 1,190,961 | |||||||
Issuance of restricted stock | 0 | $ 12 | (12) | |||||
Amortization of share-based compensation | 12,728 | 12,728 | ||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares) | (407,205) | |||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | (4,398) | $ (4) | (4,394) | |||||
Shares acquired as part of a share repurchase program | $ (51,981) | $ (51) | (51,930) | |||||
Shares acquired as part of a share repurchase program (in shares) | (5,100,000) | (5,082,968) | ||||||
Forfeiture of restricted stock (in shares) | (18,130) | |||||||
Restricted Stock Award, Forfeitures | $ 0 | |||||||
Dividends, Preferred Stock | (12,557) | (12,557) | ||||||
Distributions on common shares and units | (25,729) | (25,608) | (121) | |||||
Balance (in shares) at Jun. 30, 2023 | 12,879,475 | 157,686,191 | ||||||
Balance at Jun. 30, 2023 | 2,400,085 | $ 366,936 | $ 1,577 | 3,011,350 | (1,035,566) | 41,733 | 6,380 | 7,675 |
Balance (in shares) at Mar. 31, 2023 | 12,879,475 | 160,077,784 | ||||||
Balance at Mar. 31, 2023 | 2,393,240 | $ 366,936 | $ 1,601 | 3,034,682 | (1,057,939) | 34,175 | 6,264 | 7,521 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income (Loss) Attributable to Parent | 41,395 | 41,395 | ||||||
Net income (loss) | 41,720 | 171 | 154 | |||||
Unrealized gain (loss) on interest rate derivatives | 7,558 | 7,558 | ||||||
Issuance of restricted stock (in shares) | 550,554 | |||||||
Issuance of restricted stock | 0 | $ 6 | (6) | |||||
Amortization of share-based compensation | 6,597 | 6,597 | ||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares) | (244,456) | |||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | (2,509) | $ (3) | (2,506) | |||||
Shares acquired as part of a share repurchase program | (27,444) | $ (27) | (27,417) | |||||
Shares acquired as part of a share repurchase program (in shares) | (2,681,115) | |||||||
Forfeiture of restricted stock (in shares) | (16,576) | |||||||
Restricted Stock Award, Forfeitures | 0 | |||||||
Dividends, Preferred Stock | (6,279) | (6,279) | ||||||
Distributions on common shares and units | (12,798) | (12,743) | (55) | |||||
Balance (in shares) at Jun. 30, 2023 | 12,879,475 | 157,686,191 | ||||||
Balance at Jun. 30, 2023 | 2,400,085 | $ 366,936 | $ 1,577 | 3,011,350 | (1,035,566) | 41,733 | 6,380 | 7,675 |
Balance (in shares) at Dec. 31, 2023 | 12,879,475 | 155,297,829 | ||||||
Balance at Dec. 31, 2023 | 2,350,790 | $ 366,936 | $ 1,553 | 3,000,894 | (1,055,183) | 22,662 | 6,294 | 7,634 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income (Loss) Attributable to Parent | 42,043 | 42,043 | ||||||
Net income (loss) | 42,037 | 42,043 | 167 | (173) | ||||
Unrealized gain (loss) on interest rate derivatives | (491) | (491) | ||||||
Issuance of restricted stock (in shares) | 1,178,779 | |||||||
Issuance of restricted stock | 0 | $ 11 | (11) | |||||
Amortization of share-based compensation | 12,705 | 12,705 | ||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares) | (807,917) | |||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | (9,014) | $ (8) | (9,006) | |||||
Shares acquired as part of a share repurchase program | $ (4,192) | $ (4) | (4,188) | |||||
Shares acquired as part of a share repurchase program (in shares) | (400,000) | (407,857) | ||||||
Forfeiture of restricted stock (in shares) | (20,157) | |||||||
Restricted Stock Award, Forfeitures | $ 0 | |||||||
Dividends, Preferred Stock | (12,557) | (12,557) | ||||||
Distributions on common shares and units | (31,507) | (31,364) | (143) | |||||
Balance (in shares) at Jun. 30, 2024 | 12,879,475 | 155,240,677 | ||||||
Balance at Jun. 30, 2024 | 2,347,771 | $ 366,936 | $ 1,552 | 3,000,394 | (1,057,061) | 22,171 | 6,318 | 7,461 |
Balance (in shares) at Mar. 31, 2024 | 12,879,475 | 155,819,434 | ||||||
Balance at Mar. 31, 2024 | 2,337,566 | $ 366,936 | $ 1,558 | 3,002,588 | (1,072,125) | 24,944 | 6,220 | 7,445 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income (Loss) Attributable to Parent | 37,106 | 37,106 | ||||||
Net income (loss) | 37,291 | 169 | 16 | |||||
Unrealized gain (loss) on interest rate derivatives | (2,773) | (2,773) | ||||||
Issuance of restricted stock (in shares) | 205,414 | |||||||
Issuance of restricted stock | 0 | $ 2 | (2) | |||||
Amortization of share-based compensation | 5,724 | 5,724 | ||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares) | (462,047) | |||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | (4,983) | $ (5) | (4,978) | |||||
Shares acquired as part of a share repurchase program | (2,941) | $ (3) | (2,938) | |||||
Shares acquired as part of a share repurchase program (in shares) | (302,346) | |||||||
Forfeiture of restricted stock (in shares) | (19,778) | |||||||
Restricted Stock Award, Forfeitures | 0 | |||||||
Dividends, Preferred Stock | (6,279) | (6,279) | ||||||
Distributions on common shares and units | (15,834) | (15,763) | (71) | |||||
Balance (in shares) at Jun. 30, 2024 | 12,879,475 | 155,240,677 | ||||||
Balance at Jun. 30, 2024 | $ 2,347,771 | $ 366,936 | $ 1,552 | $ 3,000,394 | $ (1,057,061) | $ 22,171 | $ 6,318 | $ 7,461 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net income (loss) | $ 42,037,000 | $ 52,234,000 |
Adjustments to reconcile net income to cash flow provided by operating activities: | ||
Gain (loss) on sale of hotel properties, net | 3,546,000 | (44,000) |
Loss on extinguishment of indebtedness, net | 0 | 169,000 |
Depreciation and amortization | 89,153,000 | 89,921,000 |
Amortization of deferred financing costs | 3,116,000 | 2,965,000 |
Other amortization | 2,882,000 | 2,172,000 |
Equity in income from unconsolidated joint ventures | (388,000) | (501,000) |
Distributions of income from unconsolidated joint ventures | 400,000 | 0 |
Amortization of share-based compensation | 11,708,000 | 11,781,000 |
Changes in assets and liabilities: | ||
Hotel and other receivables, net | (4,771,000) | (3,220,000) |
Prepaid expense and other assets | (11,794,000) | 1,080,000 |
Accounts payable and other liabilities | 4,972,000 | (22,163,000) |
Advance deposits and deferred revenue | 1,130,000 | 1,273,000 |
Accrued interest | (605,000) | 1,360,000 |
Net cash flow provided by operating activities | 134,294,000 | 137,115,000 |
Cash flows from investing activities | ||
Acquisitions, net | 158,345,000 | 0 |
Proceeds from sales of hotel properties, net | (7,679,000) | 44,000 |
Improvements and additions to hotel properties and other assets | (72,372,000) | (65,771,000) |
Purchase deposit | 2,000,000 | 0 |
Net cash flow used in investing activities | (225,038,000) | (65,815,000) |
Cash flows from financing activities | ||
Borrowings under Revolver | 200,000,000 | 0 |
Borrowings on Term Loans | 0 | 320,000,000 |
Repayments of Term Loans | 0 | (318,662,000) |
Repayment of mortgage loan | (200,000,000) | 0 |
Repurchase of common shares under share repurchase programs | (4,192,000) | (51,981,000) |
Repurchase of common shares to satisfy employee tax withholding requirements | (9,014,000) | (4,398,000) |
Distributions on preferred shares | (12,557,000) | (12,557,000) |
Distributions on common shares | (31,244,000) | (20,962,000) |
Distributions on Operating Partnership units | (142,000) | (95,000) |
Payments of deferred financing costs | (220,000) | (7,699,000) |
Net cash flow used in financing activities | (57,369,000) | (96,354,000) |
Net change in cash, cash equivalents, and restricted cash reserves | (148,113,000) | (25,054,000) |
Cash, cash equivalents, and restricted cash reserves, beginning of year | 555,327,000 | 536,386,000 |
Cash, cash equivalents, and restricted cash reserves, end of period | $ 407,214,000 | $ 511,332,000 |
General
General | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 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, rooms-oriented, high-margin, focused-service and compact full-service hotels located within heart of demand locations. 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, 2024, there were 156,012,508 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023, filed with the Securities and Exchange Commission ("SEC") on February 27, 2024 (the "Annual Report"), 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, 2023. 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 SEC applicable to financial information. The unaudited financial statements include all adjustments of a normal recurring nature 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, 2023, included in the Annual Report. 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 interest in one hotel property in which it holds a 50% non-controlling 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 income and comprehensive 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. Actual results could differ from those estimates. Recently Issued Accounting Pronouncements and Disclosure Rules In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures , which is intended to improve reportable segment disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. It also requires disclosure of the amount and description of the composition of other segment items, as well as interim disclosures of a reportable segment’s profit or loss and assets. The ASU also applies to entities with a single reportable segment. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the Company beginning January 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating this ASU to determine its impact on the Company’s consolidated financial statements and related disclosures. In March 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors . In April 2024, the SEC stayed the final climate rules pending the completion of judicial review of an Eighth Circuit challenge seeking to vacate the rules. This rule would require registrants to disclose certain climate-related information in registration statements and annual reports. The disclosure requirements would apply to the Company's fiscal year beginning January 1, 2025. The Company is currently evaluating the final rule to determine its impact on the Company's disclosures. |
Investment in Hotel Properties
Investment in Hotel Properties | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 December 31, 2023 Land and improvements $ 1,129,388 $ 998,417 Buildings and improvements 4,177,665 4,117,210 Furniture, fixtures and equipment 829,382 798,410 6,136,435 5,914,037 Accumulated depreciation (1,861,766) (1,777,821) Investment in hotel properties, net $ 4,274,669 $ 4,136,216 For the three and six months ended June 30, 2024, the Company recognized depreciation expense related to its investment in hotel properties of approximately $44.4 million and $89.1 million, respectively. For the three and six months ended June 30, 2023, the Company recognized depreciation expense related to its investment in hotel properties of approximately $44.9 million and $89.9 million, respectively. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Acquisitions On January 29, 2024, the Company acquired the fee simple interest in its Wyndham Boston Beacon Hill hotel property in Boston, Massachusetts, which was previously owned via a leasehold interest that was subject to a ground lease, for a purchase price of approximately $125.0 million. The acquisition was accounted for as an asset acquisition, whereby approximately $0.2 million of transaction costs were capitalized as part of the cost of the acquisition. The existing right-of-use asset of $1.3 million, lease liability of $0.1 million and $125.2 million cost of the acquisition were recorded as land in the accompanying consolidated balance sheet. Also during the six months ended June 30, 2024, the Company acquired a 100% interest in the following property: Property Location Acquisition Date Management Company Rooms Purchase Price (in thousands) Hotel Teatro Denver, CO June 13, 2024 Sage Hospitality 110 $ 35,500 The acquisition of Hotel Teatro was accounted for as an asset acquisition, whereby approximately $0.6 million of transaction costs were capitalized as part of the cost of the acquisition. The allocation of the costs for the property acquired was as follows (in thousands): June 30, 2024 Land and improvements $ 3,409 Buildings and improvements 29,731 Furniture, fixtures and equipment 2,976 Total purchase price $ 36,116 The value of the asset acquired was primarily based on a sales comparison approach (for land) and a depreciated replacement cost approach (for building and improvements and furniture, fixtures and equipment). The sales comparison approach used inputs of recent land sales in the hotel market. The depreciated replacement cost approach used inputs of both direct and indirect replacement costs using a nationally recognized authority on replacement cost information as well as the age, square footage and number of rooms of the asset. |
Sale of Hotel Properties
Sale of Hotel Properties | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Hotel Properties | Sale of Hotel Property On May 21, 2024, the Company sold the 78-room Residence Inn Merrillville hotel property in Merrillville, Indiana for a sales price of approximately $8.1 million. The Company recorded a net gain of $3.5 million for the three and six months ended June 30, 2024 in connection with the sale of this hotel property. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company recognized revenue from the following geographic markets (in thousands): For the three months ended June 30, 2024 For the three months ended June 30, 2023 Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Southern California $ 35,839 $ 5,022 $ 4,013 $ 44,874 $ 32,569 $ 3,878 $ 3,626 $ 40,073 Northern California 35,062 3,417 2,015 40,494 35,447 3,561 2,030 41,038 South Florida 27,288 5,410 2,864 35,562 27,515 5,484 2,410 35,409 New York City 19,004 3,089 935 23,028 17,600 2,834 908 21,342 Chicago 16,858 2,619 1,092 20,569 17,253 2,730 918 20,901 Louisville 14,133 5,063 995 20,191 12,941 4,137 1,171 18,249 Washington, DC 18,158 416 791 19,365 17,923 514 708 19,145 Boston 15,749 1,250 423 17,422 14,355 1,169 424 15,948 Charleston 12,240 3,196 962 16,398 11,173 2,256 1,238 14,667 Houston 12,244 815 1,326 14,385 12,300 710 1,180 14,190 Other 97,077 10,546 9,386 117,009 96,420 10,859 8,719 115,998 Total $ 303,652 $ 40,843 $ 24,802 $ 369,297 $ 295,496 $ 38,132 $ 23,332 $ 356,960 For the six months ended June 30, 2024 For the six months ended June 30, 2023 Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Room Revenue Food and Beverage Revenue Other Revenue Total Revenue South Florida $ 67,638 $ 11,269 $ 5,988 $ 84,895 $ 66,055 $ 10,908 $ 4,732 $ 81,695 Southern California 66,381 9,249 7,151 82,781 61,500 7,751 6,541 75,792 Northern California 69,799 7,726 3,922 81,447 70,259 7,024 4,018 81,301 New York City 30,680 4,451 1,621 36,752 28,606 4,038 1,570 34,214 Louisville 22,403 9,180 1,812 33,395 21,095 7,530 1,938 30,563 Chicago 26,219 4,735 1,769 32,723 26,695 4,938 1,587 33,220 Washington DC 30,549 553 1,340 32,442 30,430 700 1,263 32,393 Houston 24,615 1,726 2,435 28,776 23,899 1,599 2,344 27,842 Charleston 21,104 5,804 1,837 28,745 18,942 4,278 2,026 25,246 Boston 23,589 2,206 742 26,537 21,290 2,011 743 24,044 Other 187,305 19,633 18,276 225,214 187,557 20,643 16,953 225,153 Total $ 570,282 $ 76,532 $ 46,893 $ 693,707 $ 556,328 $ 71,420 $ 43,715 $ 671,463 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 150.0% Yes Incurrence Covenants Consolidated Indebtedness less than Adjusted Total Assets < .65x Yes Consolidated Secured Indebtedness less than Adjusted Total Assets < .45x Yes Interest Coverage Ratio > 1.5x Yes 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 10, 2027 and either a one-year extension option or up to two six-month extension options if certain conditions are satisfied (the "Revolver"); • $400.0 million term loan with a scheduled maturity date of May 18, 2025 (the "$400 Million Term Loan Maturing 2025"); • $200.0 million term loan with a scheduled maturity date of January 31, 2026 and two one-year extension options if certain conditions are satisfied (the "$200 Million Term Loan Maturing 2026"); and • $225.0 million term loan with a scheduled maturity date of May 10, 2026 and two one-year extension options if certain conditions are satisfied (the "$225 Million Term Loan Maturing 2026"). The $400 Million Term Loan Maturing 2025, the $200 Million Term Loan Maturing 2026, and the $225 Million Term Loan Maturing 2026 are collectively referred to as the "Term Loans." The Company's unsecured credit agreements consisted of the following (dollars in thousands): Carrying Value at Interest Rate at June 30, 2024 (1) Maturity Date June 30, 2024 December 31, 2023 Revolver (2) 7.09% May 2027 $ 200,000 $ — $400 Million Term Loan Maturing 2025 4.72% May 2025 400,000 400,000 $200 Million Term Loan Maturing 2026 7.04% January 2026 (3) 200,000 200,000 $225 Million Term Loan Maturing 2026 4.07% May 2026 (3) 225,000 225,000 1,025,000 825,000 Deferred financing costs, net (4) (2,618) (3,557) Total Revolver and Term Loans, net $ 1,022,382 $ 821,443 (1) Interest rate at June 30, 2024 gives effect to interest rate hedges. (2) At June 30, 2024 and December 31, 2023, there was $400.0 million and $600.0 million, respectively, of remaining capacity on the Revolver. The Company has the ability to extend the maturity date for an additional one-year period or up to two six-month periods ending May 2028 if certain conditions are satisfied. In April 2024, the Company borrowed $200.0 million under the Revolver and utilized the proceeds to repay a $200.0 million maturing mortgage loan. (3) This Term Loan includes two one-year extension options at the Company's discretion, subject to certain conditions. (4) Excludes $4.7 million and $5.6 million as of June 30, 2024 and December 31, 2023, 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) <= 7.25x Yes Fixed charge coverage ratio (2) >= 1.50x Yes Secured indebtedness ratio <= 45.0% Yes Unencumbered indebtedness ratio <= 60.0% Yes Unencumbered debt service coverage ratio >= 2.00x 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. Mortgage Loans The Company's mortgage loans consisted of the following (dollars in thousands): Carrying Value at Number of Assets Encumbered Interest Rate at June 30, 2024 Maturity Date June 30, 2024 December 31, 2023 Mortgage loan (1) — —% — $ — $ 200,000 Mortgage loan (2) 3 5.04% (4) April 2025 (5) 96,000 96,000 Mortgage loan (2) 4 5.61% (4) April 2025 (5) 85,000 85,000 Mortgage loan (3) 1 5.06% January 2029 26,652 26,833 8 207,652 407,833 Deferred financing costs, net (246) (170) Total mortgage loans, net $ 207,406 $ 407,663 (1) In April 2024, the Company fully repaid this mortgage loan using a $200.0 million draw under its Revolver. (2) The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity. (3) Includes $1.7 million and $1.8 million at June 30, 2024 and December 31, 2023, respectively, related to a fair value adjustment on this mortgage loan from purchase price allocation at hotel property acquisition. This mortgage loan requires payments of interest only through maturity. (4) Interest rate at June 30, 2024 gives effect to interest rate hedges. (5) This mortgage loan provides for a one-year extension option to April 2026, subject to certain conditions. 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. At June 30, 2024, all mortgage loans exceeded the minimum debt yield or DSCR thresholds. 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, 2024 2023 2024 2023 Senior Notes $ 9,688 $ 9,688 $ 19,375 $ 19,375 Revolver and Term Loans 13,787 7,266 22,847 15,810 Mortgage loans 2,612 5,616 8,269 9,559 Amortization of deferred financing costs 1,544 1,491 3,116 2,965 Non-cash interest expense related to interest rate hedges 418 482 900 964 Total interest expense $ 28,049 $ 24,543 $ 54,507 $ 48,673 " id="sjs-B4" xml:space="preserve">Debt The Company's debt consisted of the following (in thousands): June 30, 2024 December 31, 2023 Senior Notes, net $ 992,854 $ 991,672 Revolver Outstanding 200,000 — Term Loans, net 822,382 821,443 Mortgage loans, net 207,406 407,663 Debt, net $ 2,222,642 $ 2,220,778 Senior Notes The Company's senior notes (collectively, the "Senior Notes") consisted of the following (dollars in thousands): Carrying Value at Interest Rate Maturity Date June 30, 2024 December 31, 2023 2029 Senior Notes (1) 4.00% September 2029 $ 500,000 $ 500,000 2026 Senior Notes (1) 3.75% July 2026 500,000 500,000 1,000,000 1,000,000 Deferred financing costs, net (7,146) (8,328) Total senior notes, net $ 992,854 $ 991,672 (1) Requires payment of interest only through maturity. The indentures governing the Senior Notes contain customary covenants that limit the Operating Partnership’s ability and, in certain instances, the ability of its subsidiaries, to incur additional debt, create liens on assets, make distributions and pay dividends, make certain types of investments, issue guarantees of indebtedness, and make certain restricted payments. These limitations are subject to a number of exceptions and qualifications set forth in the indentures. A summary of the various restrictive covenants for the Senior Notes are as follows: Covenant Compliance Maintenance Covenant Unencumbered Asset to Unencumbered Debt Ratio > 150.0% Yes Incurrence Covenants Consolidated Indebtedness less than Adjusted Total Assets < .65x Yes Consolidated Secured Indebtedness less than Adjusted Total Assets < .45x Yes Interest Coverage Ratio > 1.5x Yes 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 10, 2027 and either a one-year extension option or up to two six-month extension options if certain conditions are satisfied (the "Revolver"); • $400.0 million term loan with a scheduled maturity date of May 18, 2025 (the "$400 Million Term Loan Maturing 2025"); • $200.0 million term loan with a scheduled maturity date of January 31, 2026 and two one-year extension options if certain conditions are satisfied (the "$200 Million Term Loan Maturing 2026"); and • $225.0 million term loan with a scheduled maturity date of May 10, 2026 and two one-year extension options if certain conditions are satisfied (the "$225 Million Term Loan Maturing 2026"). The $400 Million Term Loan Maturing 2025, the $200 Million Term Loan Maturing 2026, and the $225 Million Term Loan Maturing 2026 are collectively referred to as the "Term Loans." The Company's unsecured credit agreements consisted of the following (dollars in thousands): Carrying Value at Interest Rate at June 30, 2024 (1) Maturity Date June 30, 2024 December 31, 2023 Revolver (2) 7.09% May 2027 $ 200,000 $ — $400 Million Term Loan Maturing 2025 4.72% May 2025 400,000 400,000 $200 Million Term Loan Maturing 2026 7.04% January 2026 (3) 200,000 200,000 $225 Million Term Loan Maturing 2026 4.07% May 2026 (3) 225,000 225,000 1,025,000 825,000 Deferred financing costs, net (4) (2,618) (3,557) Total Revolver and Term Loans, net $ 1,022,382 $ 821,443 (1) Interest rate at June 30, 2024 gives effect to interest rate hedges. (2) At June 30, 2024 and December 31, 2023, there was $400.0 million and $600.0 million, respectively, of remaining capacity on the Revolver. The Company has the ability to extend the maturity date for an additional one-year period or up to two six-month periods ending May 2028 if certain conditions are satisfied. In April 2024, the Company borrowed $200.0 million under the Revolver and utilized the proceeds to repay a $200.0 million maturing mortgage loan. (3) This Term Loan includes two one-year extension options at the Company's discretion, subject to certain conditions. (4) Excludes $4.7 million and $5.6 million as of June 30, 2024 and December 31, 2023, 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) <= 7.25x Yes Fixed charge coverage ratio (2) >= 1.50x Yes Secured indebtedness ratio <= 45.0% Yes Unencumbered indebtedness ratio <= 60.0% Yes Unencumbered debt service coverage ratio >= 2.00x 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. Mortgage Loans The Company's mortgage loans consisted of the following (dollars in thousands): Carrying Value at Number of Assets Encumbered Interest Rate at June 30, 2024 Maturity Date June 30, 2024 December 31, 2023 Mortgage loan (1) — —% — $ — $ 200,000 Mortgage loan (2) 3 5.04% (4) April 2025 (5) 96,000 96,000 Mortgage loan (2) 4 5.61% (4) April 2025 (5) 85,000 85,000 Mortgage loan (3) 1 5.06% January 2029 26,652 26,833 8 207,652 407,833 Deferred financing costs, net (246) (170) Total mortgage loans, net $ 207,406 $ 407,663 (1) In April 2024, the Company fully repaid this mortgage loan using a $200.0 million draw under its Revolver. (2) The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity. (3) Includes $1.7 million and $1.8 million at June 30, 2024 and December 31, 2023, respectively, related to a fair value adjustment on this mortgage loan from purchase price allocation at hotel property acquisition. This mortgage loan requires payments of interest only through maturity. (4) Interest rate at June 30, 2024 gives effect to interest rate hedges. (5) This mortgage loan provides for a one-year extension option to April 2026, subject to certain conditions. 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. At June 30, 2024, all mortgage loans exceeded the minimum debt yield or DSCR thresholds. 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, 2024 2023 2024 2023 Senior Notes $ 9,688 $ 9,688 $ 19,375 $ 19,375 Revolver and Term Loans 13,787 7,266 22,847 15,810 Mortgage loans 2,612 5,616 8,269 9,559 Amortization of deferred financing costs 1,544 1,491 3,116 2,965 Non-cash interest expense related to interest rate hedges 418 482 900 964 Total interest expense $ 28,049 $ 24,543 $ 54,507 $ 48,673 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 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 Swap Effective Date Maturity Date June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Swap-cash flow-Daily SOFR 2.44% January 2021 December 2023 $ — $ 75,000 $ — $ — Swap-cash flow-Daily SOFR 2.31% January 2021 December 2023 — 75,000 — — Swap-cash flow-Daily SOFR 1.08% April 2021 April 2024 — 50,000 — 827 Swap-cash flow-Daily SOFR 1.13% April 2021 April 2024 — 50,000 — 819 Swap-cash flow-Daily SOFR 1.08% April 2021 April 2024 — 50,000 — 829 Swap-cash flow-Daily SOFR 0.97% April 2021 April 2024 — 50,000 — 849 Swap-cash flow-Daily SOFR 0.85% April 2021 April 2024 — 25,000 — 436 Swap-cash flow-Daily SOFR 0.88% April 2021 April 2024 — 25,000 — 434 Swap-cash flow-Daily SOFR 0.86% April 2021 April 2024 — 25,000 — 436 Swap-cash flow-Daily SOFR 0.83% April 2021 April 2024 — 25,000 — 439 Swap-cash flow-Term SOFR 4.37% April 2023 April 2024 — 200,000 — 673 Swap-cash flow-Daily SOFR 0.77% June 2020 December 2024 50,000 50,000 1,119 2,011 Swap-cash flow-Daily SOFR 0.63% June 2020 December 2024 50,000 50,000 1,154 2,081 Swap-cash flow-Daily SOFR 1.16% September 2021 September 2025 150,000 150,000 6,859 7,969 Swap-cash flow-Daily SOFR 0.56% July 2021 January 2026 50,000 50,000 3,212 3,556 Swap-cash flow-Daily SOFR 2.95% April 2024 April 2027 125,000 125,000 4,641 1,769 Swap-cash flow-Daily SOFR 2.85% April 2024 April 2027 65,000 65,000 2,592 1,103 Swap-cash flow-Daily SOFR 2.75% April 2024 April 2027 60,000 60,000 2,558 1,188 Swap-cash flow-Daily SOFR 3.70% July 2024 July 2027 25,000 25,000 377 (254) Swap-cash flow-Daily SOFR 3.45% July 2024 July 2027 25,000 25,000 557 (77) Swap-cash flow-Daily SOFR 3.71% July 2024 July 2027 25,000 25,000 372 (259) $ 625,000 $ 1,275,000 $ 23,441 $ 24,829 As of June 30, 2024 and December 31, 2023, the aggregate fair value of the interest rate swap assets of $23.4 million and $25.4 million, respectively, was included in prepaid expense and other assets in the accompanying consolidated balance sheets. As of December 31, 2023, the aggregate fair value of the interest rate swap liabilities of $0.6 million was included in accounts payable and other liabilities in the accompanying consolidated balance sheets. interest expense interest expense |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2024 | |
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 1 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 2 and 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, 2024 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Senior Notes, net $ 992,854 $ 917,880 $ 991,672 $ 928,750 Revolver and Term Loans, net 1,022,382 1,018,500 821,443 817,960 Mortgage loans, net 207,406 198,545 407,663 394,458 Debt, net $ 2,222,642 $ 2,134,925 $ 2,220,778 $ 2,141,168 Recurring Fair Value Measurements The following table presents the Company’s fair value hierarchy for those financial assets measured at fair value on a recurring basis as of June 30, 2024 (in thousands): Fair Value at June 30, 2024 Level 1 Level 2 Level 3 Total Interest rate swap asset $ — $ 23,441 $ — $ 23,441 Total $ — $ 23,441 $ — $ 23,441 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, 2023 (in thousands): Fair Value at December 31, 2023 Level 1 Level 2 Level 3 Total Interest rate swap asset $ — $ 25,419 $ — $ 25,419 Interest rate swap liability — (590) — (590) Total $ — $ 24,829 $ — $ 24,829 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, 2024, 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, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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 ("NOL"), 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 is still continuing to provide a full valuation allowance against the deferred tax assets related to the NOL carryforwards of RLJ Lodging Trust Master TRS, Inc., the Company's primary TRS. The Company had no accruals for tax uncertainties as of June 30, 2024 and December 31, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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, real estate taxes, insurance, and debt obligations where lenders hold restricted cash due to cash trap events. 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 for future capital expenditures (including the periodic replacement or refurbishment of FF&E). 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, 2024 and December 31, 2023, approximately $36.1 million and $38.7 million, respectively, was available in the restricted cash reserves for future capital expenditures, real estate taxes, and insurance. Litigation 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. Management Agreements As of June 30, 2024, 96 of the Company's consolidated hotel properties were operated pursuant to management agreements with initial terms ranging from three Management fees are included in management and franchise fee expense in the accompanying consolidated statements of operations and comprehensive income. For the three and six months ended June 30, 2024, the Company incurred management fee expense of approximately $11.3 million and $21.2 million, respectively. For the three and six months ended June 30, 2023, the Company incurred management fee expense of approximately $11.1 million and $21.9 million, respectively. Franchise Agreements As of June 30, 2024, 58 of the Company’s consolidated hotel properties were operated under franchise agreements with initial terms ranging from one Franchise fees are included in management and franchise fee expense in the accompanying consolidated statements of operations and comprehensive income. For the three and six months ended June 30, 2024, the Company incurred franchise fee expense of approximately $18.5 million and $34.3 million, respectively. For the three and six months ended June 30, 2023, the Company incurred franchise fee expense of approximately $18.1 million and $33.5 million, respectively. |
Equity
Equity | 3 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Equity | Equity Common Shares of Beneficial Interest During the six months ended June 30, 2024, the Company declared a cash dividend of $0.10 per common share in each of the first and second quarters of 2024. During the six months ended June 30, 2023, the Company declared a cash dividend of $0.08 per common share in each of the first and second quarters of 2023. On April 26, 2024, the Company's board of trustees approved a new share repurchase program to acquire up to an aggregate of $250.0 million of common and preferred shares from May 9, 2024 to May 8, 2025 (the "2024 Share Repurchase Program"). During the six months ended June 30, 2024, the Company repurchased and retired approximately 0.4 million common shares for approximately $4.2 million, of which $1.3 million was repurchased under a share repurchase program authorized by the Company’s board of trustees in 2023, which expired May 8, 2024, and $2.9 million was repurchased under the 2024 Share Repurchase Program. Subsequent to June 30, 2024, the Company repurchased and retired approximately 0.2 million common shares for approximately $2.1 million. As of August 2, 2024, the 2024 Share Repurchase Program had a remaining capacity of $245.0 million. During the six months ended June 30, 2023, the Company repurchased and retired approximately 5.1 million common shares for approximately $52.0 million. Series A Preferred Shares During the six months ended June 30, 2024 and 2023, the Company declared a cash dividend of $0.4875 on each Series A Preferred Share in each of the first and second quarters of 2024 and 2023. The Series A Preferred Shares are convertible, in whole or in part, at any time, at the option of the holders into common shares at a conversion rate of 0.2806 common shares for each Series A Preferred Share. Noncontrolling Interest in Consolidated Joint Ventures The Company consolidates the joint venture that owns The Knickerbocker hotel property, which has a third-party partner that owns a noncontrolling 5% ownership interest in the joint venture. The third-party ownership interest is 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, 2024, 771,831 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, 2024 | |
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 2021 Equity Incentive Plan (the "2021 Plan"). The 2021 Plan provides for a maximum of 6,828,527 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 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 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, 2024 is as follows: 2024 Number of Weighted-Average Unvested at January 1, 2024 2,305,303 $ 13.52 Granted 925,731 11.57 Vested (1,569,836) 14.28 Forfeited (20,157) 11.26 Unvested at June 30, 2024 1,641,041 $ 11.72 For the three and six months ended June 30, 2024, the Company recognized approximately $3.0 million and $7.1 million, respectively, of share-based compensation expense related to restricted share awards. For the three and six months ended June 30, 2023, the Company recognized approximately $3.8 million and $7.4 million, respectively, of share-based compensation expense related to restricted share awards. As of June 30, 2024, there was $16.0 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 2.0 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, 2024 and 2023 was approximately $17.4 million and $9.5 million, respectively. Performance Units The Company aligns its executive officers with its long-term investors by awarding a significant percentage of their equity compensation in the form of multi-year performance unit awards that use both absolute and relative total shareholder return as the primary metrics. The performance units vest at the end of a three year period (the “performance units measurement period”). The performance units granted in 2024 may convert into restricted shares at a range of 0% to 200% of the number of performance units granted contingent upon the Company achieving a relative shareholder return over the measurement period at specified percentiles of the peer group, as defined by the awards. These performance units are subject to modification based on the Company's absolute total shareholder return performance as follows: (1) if at the end of the measurement period the relative total shareholder return performance exceeds target and absolute total shareholder return is less than zero, payouts will be reduced by 25%, but not below target and (2) if the absolute total shareholder return is down more than 15% during the entire measurement period, the maximum payout will be capped at 115% of target. The performance units granted prior to 2024 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 (25% of award) and a relative shareholder return (75% of award) over the measurement period at specified percentiles of the peer group, as defined by the awards. At the end of the performance units measurement period, if the target criterion is met, 100% of the performance units that are earned will vest immediately. The fair value of the performance units was determined using a Monte Carlo simulation. The Company estimates the compensation expense for the performance units on a straight-line basis using a calculation that recognizes 100% of the grant date fair value over three years. A summary of the performance unit awards is as follows: Date of Award Number of Grant Date Fair Conversion Range Risk Free Interest Rate Volatility February 2021 (1) 431,151 $20.90 0% to 200% 0.23% 69.47% February 2022 407,024 $21.96 0% to 200% 1.70% 70.15% February 2023 574,846 $16.90 0% to 200% 4.33% 66.70% February 2024 703,325 $15.13 0% to 200% 4.43% 35.60% (1) In February 2024, following the end of the measurement period, the Company met certain threshold criterion and the performance units converted into approximately 253,000 restricted shares, all of which vested immediately. The total fair value of the vested shares related to the conversion of the performance units (calculated as the number of vested shares multiplied by the vesting date share price) during the six months ended June 30, 2024 was approximately $3.0 million. For the three and six months ended June 30, 2024, the Company recognized approximately $2.3 million and $4.6 million, respectively, of share-based compensation expense related to the performance unit awards. For the three and six months ended June 30, 2023, the Company recognized approximately $2.3 million and $4.4 million, respectively, of share-based compensation expense related to the performance unit awards. As of June 30, 2024, there was $16.4 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 2.1 years. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2024 | |
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 and unvested performance units 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, and convertible Series A Preferred Shares, calculated using the if-converted 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, 2024 and 2023, 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, 2024 2023 2024 2023 Numerator: Net income attributable to RLJ $ 37,106 $ 41,395 $ 42,043 $ 52,040 Less: Preferred dividends (6,279) (6,279) (12,557) (12,557) Less: Dividends paid on unvested restricted shares (164) (197) (414) (399) Less: Undistributed earnings attributable to unvested restricted shares (162) (351) — (219) Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ 30,501 $ 34,568 $ 29,072 $ 38,865 Denominator: Weighted-average number of common shares - basic 153,641,065 156,424,444 153,305,640 157,945,406 Unvested restricted shares 385,801 316,743 774,210 435,974 Unvested performance units 79,005 — 71,285 — Weighted-average number of common shares - diluted 154,105,871 156,741,187 154,151,135 158,381,380 Net income per share attributable to common shareholders - basic $ 0.20 $ 0.22 $ 0.19 $ 0.25 Net income per share attributable to common shareholders - diluted $ 0.20 $ 0.22 $ 0.19 $ 0.25 |
Supplemental Information to Sta
Supplemental Information to Statements of Cash Flows | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 2023 Reconciliation of cash, cash equivalents, and restricted cash reserves Cash and cash equivalents $ 371,133 $ 476,936 Restricted cash reserves 36,081 34,396 Cash, cash equivalents, and restricted cash reserves $ 407,214 $ 511,332 Interest paid $ 50,355 $ 44,386 Income taxes paid $ 2,055 $ 1,924 Operating cash flow lease payments for operating leases $ 7,821 $ 8,630 Right-of-use asset obtained in exchange for lease obligation $ — $ 5,016 Right-of-use asset and lease liability adjustments due to remeasurement $ (1,221) $ — Right-of-use asset and lease liability reclassifications to land due to acquisition $ 1,187 $ — Supplemental investing and financing transactions In connection with acquisitions, the Company recorded the following: Purchase price $ 160,500 $ — Application of purchase deposit (2,400) — Transaction costs 488 — Operating prorations (243) — Acquisitions, net $ 158,345 $ — In connection with the sales of hotel properties, the Company recorded the following: Sales price $ 8,078 $ — Transaction costs (394) (44) Operating prorations (5) — Proceeds from sales of hotel properties, net $ 7,679 $ (44) Supplemental non-cash transactions Accrued capital expenditures $ 18,440 $ 10,854 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 37,106 | $ 41,395 | $ 42,043 | $ 52,040 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 SEC applicable to financial information. The unaudited financial statements include all adjustments of a normal recurring nature 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, 2023, included in the Annual Report. 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 interest in one hotel property in which it holds a 50% non-controlling 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 income and comprehensive 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. Actual results could differ from those estimates. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements and Disclosure Rules In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures , which is intended to improve reportable segment disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. It also requires disclosure of the amount and description of the composition of other segment items, as well as interim disclosures of a reportable segment’s profit or loss and assets. The ASU also applies to entities with a single reportable segment. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the Company beginning January 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating this ASU to determine its impact on the Company’s consolidated financial statements and related disclosures. In March 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors . In April 2024, the SEC stayed the final climate rules pending the completion of judicial review of an Eighth Circuit challenge seeking to vacate the rules. This rule would require registrants to disclose certain climate-related information in registration statements and annual reports. The disclosure requirements would apply to the Company's fiscal year beginning January 1, 2025. The Company is currently evaluating the final rule to determine its impact on the Company's disclosures. |
Management Agreements | Management Agreements As of June 30, 2024, 96 of the Company's consolidated hotel properties were operated pursuant to management agreements with initial terms ranging from three |
Franchise Agreements | Franchise Agreements As of June 30, 2024, 58 of the Company’s consolidated hotel properties were operated under franchise agreements with initial terms ranging from one Franchise fees are included in management and franchise fee expense in the accompanying consolidated statements of operations and comprehensive income. For the three and six months ended June 30, 2024, the Company incurred franchise fee expense of approximately $18.5 million and $34.3 million, respectively. For the three and six months ended June 30, 2023, the Company incurred franchise fee expense of approximately $18.1 million and $33.5 million, respectively. |
Share-Based Compensation | Share Awards From time to time, the Company may award unvested restricted shares 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 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. |
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 and unvested performance units 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, and convertible Series A Preferred Shares, calculated using the if-converted 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, 2024 and 2023, since the limited partners’ share of income would also be added back to net income attributable to common shareholders. |
Investment in Hotel Properties
Investment in Hotel Properties (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of investment in hotel properties | Investment in hotel properties consisted of the following (in thousands): June 30, 2024 December 31, 2023 Land and improvements $ 1,129,388 $ 998,417 Buildings and improvements 4,177,665 4,117,210 Furniture, fixtures and equipment 829,382 798,410 6,136,435 5,914,037 Accumulated depreciation (1,861,766) (1,777,821) Investment in hotel properties, net $ 4,274,669 $ 4,136,216 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Asset Acquisition | Also during the six months ended June 30, 2024, the Company acquired a 100% interest in the following property: Property Location Acquisition Date Management Company Rooms Purchase Price (in thousands) Hotel Teatro Denver, CO June 13, 2024 Sage Hospitality 110 $ 35,500 |
Asset Acquisition, Allocation Of Transaction Costs | The allocation of the costs for the property acquired was as follows (in thousands): June 30, 2024 Land and improvements $ 3,409 Buildings and improvements 29,731 Furniture, fixtures and equipment 2,976 Total purchase price $ 36,116 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company recognized revenue from the following geographic markets (in thousands): For the three months ended June 30, 2024 For the three months ended June 30, 2023 Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Southern California $ 35,839 $ 5,022 $ 4,013 $ 44,874 $ 32,569 $ 3,878 $ 3,626 $ 40,073 Northern California 35,062 3,417 2,015 40,494 35,447 3,561 2,030 41,038 South Florida 27,288 5,410 2,864 35,562 27,515 5,484 2,410 35,409 New York City 19,004 3,089 935 23,028 17,600 2,834 908 21,342 Chicago 16,858 2,619 1,092 20,569 17,253 2,730 918 20,901 Louisville 14,133 5,063 995 20,191 12,941 4,137 1,171 18,249 Washington, DC 18,158 416 791 19,365 17,923 514 708 19,145 Boston 15,749 1,250 423 17,422 14,355 1,169 424 15,948 Charleston 12,240 3,196 962 16,398 11,173 2,256 1,238 14,667 Houston 12,244 815 1,326 14,385 12,300 710 1,180 14,190 Other 97,077 10,546 9,386 117,009 96,420 10,859 8,719 115,998 Total $ 303,652 $ 40,843 $ 24,802 $ 369,297 $ 295,496 $ 38,132 $ 23,332 $ 356,960 For the six months ended June 30, 2024 For the six months ended June 30, 2023 Room Revenue Food and Beverage Revenue Other Revenue Total Revenue Room Revenue Food and Beverage Revenue Other Revenue Total Revenue South Florida $ 67,638 $ 11,269 $ 5,988 $ 84,895 $ 66,055 $ 10,908 $ 4,732 $ 81,695 Southern California 66,381 9,249 7,151 82,781 61,500 7,751 6,541 75,792 Northern California 69,799 7,726 3,922 81,447 70,259 7,024 4,018 81,301 New York City 30,680 4,451 1,621 36,752 28,606 4,038 1,570 34,214 Louisville 22,403 9,180 1,812 33,395 21,095 7,530 1,938 30,563 Chicago 26,219 4,735 1,769 32,723 26,695 4,938 1,587 33,220 Washington DC 30,549 553 1,340 32,442 30,430 700 1,263 32,393 Houston 24,615 1,726 2,435 28,776 23,899 1,599 2,344 27,842 Charleston 21,104 5,804 1,837 28,745 18,942 4,278 2,026 25,246 Boston 23,589 2,206 742 26,537 21,290 2,011 743 24,044 Other 187,305 19,633 18,276 225,214 187,557 20,643 16,953 225,153 Total $ 570,282 $ 76,532 $ 46,893 $ 693,707 $ 556,328 $ 71,420 $ 43,715 $ 671,463 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt consisted of the following (in thousands): June 30, 2024 December 31, 2023 Senior Notes, net $ 992,854 $ 991,672 Revolver Outstanding 200,000 — Term Loans, net 822,382 821,443 Mortgage loans, net 207,406 407,663 Debt, net $ 2,222,642 $ 2,220,778 |
Schedule of Senior Notes | The Company's senior notes (collectively, the "Senior Notes") consisted of the following (dollars in thousands): Carrying Value at Interest Rate Maturity Date June 30, 2024 December 31, 2023 2029 Senior Notes (1) 4.00% September 2029 $ 500,000 $ 500,000 2026 Senior Notes (1) 3.75% July 2026 500,000 500,000 1,000,000 1,000,000 Deferred financing costs, net (7,146) (8,328) Total senior notes, net $ 992,854 $ 991,672 (1) Requires payment of interest only through maturity. |
Schedule Of Debt Instrument Covenants | A summary of the various restrictive covenants for the Senior Notes are as follows: Covenant Compliance Maintenance Covenant Unencumbered Asset to Unencumbered Debt Ratio > 150.0% Yes Incurrence Covenants Consolidated Indebtedness less than Adjusted Total Assets < .65x Yes Consolidated Secured Indebtedness less than Adjusted Total Assets < .45x Yes Interest Coverage Ratio > 1.5x Yes 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) <= 7.25x Yes Fixed charge coverage ratio (2) >= 1.50x Yes Secured indebtedness ratio <= 45.0% Yes Unencumbered indebtedness ratio <= 60.0% Yes Unencumbered debt service coverage ratio >= 2.00x 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 (dollars in thousands): Carrying Value at Interest Rate at June 30, 2024 (1) Maturity Date June 30, 2024 December 31, 2023 Revolver (2) 7.09% May 2027 $ 200,000 $ — $400 Million Term Loan Maturing 2025 4.72% May 2025 400,000 400,000 $200 Million Term Loan Maturing 2026 7.04% January 2026 (3) 200,000 200,000 $225 Million Term Loan Maturing 2026 4.07% May 2026 (3) 225,000 225,000 1,025,000 825,000 Deferred financing costs, net (4) (2,618) (3,557) Total Revolver and Term Loans, net $ 1,022,382 $ 821,443 (1) Interest rate at June 30, 2024 gives effect to interest rate hedges. (2) At June 30, 2024 and December 31, 2023, there was $400.0 million and $600.0 million, respectively, of remaining capacity on the Revolver. The Company has the ability to extend the maturity date for an additional one-year period or up to two six-month periods ending May 2028 if certain conditions are satisfied. In April 2024, the Company borrowed $200.0 million under the Revolver and utilized the proceeds to repay a $200.0 million maturing mortgage loan. (3) This Term Loan includes two one-year extension options at the Company's discretion, subject to certain conditions. (4) Excludes $4.7 million and $5.6 million as of June 30, 2024 and December 31, 2023, 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 (dollars in thousands): Carrying Value at Number of Assets Encumbered Interest Rate at June 30, 2024 Maturity Date June 30, 2024 December 31, 2023 Mortgage loan (1) — —% — $ — $ 200,000 Mortgage loan (2) 3 5.04% (4) April 2025 (5) 96,000 96,000 Mortgage loan (2) 4 5.61% (4) April 2025 (5) 85,000 85,000 Mortgage loan (3) 1 5.06% January 2029 26,652 26,833 8 207,652 407,833 Deferred financing costs, net (246) (170) Total mortgage loans, net $ 207,406 $ 407,663 (1) In April 2024, the Company fully repaid this mortgage loan using a $200.0 million draw under its Revolver. (2) The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity. (3) Includes $1.7 million and $1.8 million at June 30, 2024 and December 31, 2023, respectively, related to a fair value adjustment on this mortgage loan from purchase price allocation at hotel property acquisition. This mortgage loan requires payments of interest only through maturity. (4) Interest rate at June 30, 2024 gives effect to interest rate hedges. (5) |
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, 2024 2023 2024 2023 Senior Notes $ 9,688 $ 9,688 $ 19,375 $ 19,375 Revolver and Term Loans 13,787 7,266 22,847 15,810 Mortgage loans 2,612 5,616 8,269 9,559 Amortization of deferred financing costs 1,544 1,491 3,116 2,965 Non-cash interest expense related to interest rate hedges 418 482 900 964 Total interest expense $ 28,049 $ 24,543 $ 54,507 $ 48,673 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 Swap Effective Date Maturity Date June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Swap-cash flow-Daily SOFR 2.44% January 2021 December 2023 $ — $ 75,000 $ — $ — Swap-cash flow-Daily SOFR 2.31% January 2021 December 2023 — 75,000 — — Swap-cash flow-Daily SOFR 1.08% April 2021 April 2024 — 50,000 — 827 Swap-cash flow-Daily SOFR 1.13% April 2021 April 2024 — 50,000 — 819 Swap-cash flow-Daily SOFR 1.08% April 2021 April 2024 — 50,000 — 829 Swap-cash flow-Daily SOFR 0.97% April 2021 April 2024 — 50,000 — 849 Swap-cash flow-Daily SOFR 0.85% April 2021 April 2024 — 25,000 — 436 Swap-cash flow-Daily SOFR 0.88% April 2021 April 2024 — 25,000 — 434 Swap-cash flow-Daily SOFR 0.86% April 2021 April 2024 — 25,000 — 436 Swap-cash flow-Daily SOFR 0.83% April 2021 April 2024 — 25,000 — 439 Swap-cash flow-Term SOFR 4.37% April 2023 April 2024 — 200,000 — 673 Swap-cash flow-Daily SOFR 0.77% June 2020 December 2024 50,000 50,000 1,119 2,011 Swap-cash flow-Daily SOFR 0.63% June 2020 December 2024 50,000 50,000 1,154 2,081 Swap-cash flow-Daily SOFR 1.16% September 2021 September 2025 150,000 150,000 6,859 7,969 Swap-cash flow-Daily SOFR 0.56% July 2021 January 2026 50,000 50,000 3,212 3,556 Swap-cash flow-Daily SOFR 2.95% April 2024 April 2027 125,000 125,000 4,641 1,769 Swap-cash flow-Daily SOFR 2.85% April 2024 April 2027 65,000 65,000 2,592 1,103 Swap-cash flow-Daily SOFR 2.75% April 2024 April 2027 60,000 60,000 2,558 1,188 Swap-cash flow-Daily SOFR 3.70% July 2024 July 2027 25,000 25,000 377 (254) Swap-cash flow-Daily SOFR 3.45% July 2024 July 2027 25,000 25,000 557 (77) Swap-cash flow-Daily SOFR 3.71% July 2024 July 2027 25,000 25,000 372 (259) $ 625,000 $ 1,275,000 $ 23,441 $ 24,829 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The fair value of the Company's debt was as follows (in thousands): June 30, 2024 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Senior Notes, net $ 992,854 $ 917,880 $ 991,672 $ 928,750 Revolver and Term Loans, net 1,022,382 1,018,500 821,443 817,960 Mortgage loans, net 207,406 198,545 407,663 394,458 Debt, net $ 2,222,642 $ 2,134,925 $ 2,220,778 $ 2,141,168 |
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 measured at fair value on a recurring basis as of June 30, 2024 (in thousands): Fair Value at June 30, 2024 Level 1 Level 2 Level 3 Total Interest rate swap asset $ — $ 23,441 $ — $ 23,441 Total $ — $ 23,441 $ — $ 23,441 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, 2023 (in thousands): Fair Value at December 31, 2023 Level 1 Level 2 Level 3 Total Interest rate swap asset $ — $ 25,419 $ — $ 25,419 Interest rate swap liability — (590) — (590) Total $ — $ 24,829 $ — $ 24,829 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Grant Date Fair Conversion Range Risk Free Interest Rate Volatility February 2021 (1) 431,151 $20.90 0% to 200% 0.23% 69.47% February 2022 407,024 $21.96 0% to 200% 1.70% 70.15% February 2023 574,846 $16.90 0% to 200% 4.33% 66.70% February 2024 703,325 $15.13 0% to 200% 4.43% 35.60% (1) In February 2024, following the end of the measurement period, the Company met certain threshold criterion and the performance units converted into approximately 253,000 restricted shares, all of which vested immediately. The total fair value of the vested shares related to the conversion of the performance units (calculated as the number of vested shares multiplied by the vesting date share price) during the six months ended June 30, 2024 was approximately $3.0 million. |
Restricted share awards | |
Equity Incentive Plan | |
Summary of the unvested restricted shares | A summary of the unvested restricted shares as of June 30, 2024 is as follows: 2024 Number of Weighted-Average Unvested at January 1, 2024 2,305,303 $ 13.52 Granted 925,731 11.57 Vested (1,569,836) 14.28 Forfeited (20,157) 11.26 Unvested at June 30, 2024 1,641,041 $ 11.72 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 2023 2024 2023 Numerator: Net income attributable to RLJ $ 37,106 $ 41,395 $ 42,043 $ 52,040 Less: Preferred dividends (6,279) (6,279) (12,557) (12,557) Less: Dividends paid on unvested restricted shares (164) (197) (414) (399) Less: Undistributed earnings attributable to unvested restricted shares (162) (351) — (219) Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares $ 30,501 $ 34,568 $ 29,072 $ 38,865 Denominator: Weighted-average number of common shares - basic 153,641,065 156,424,444 153,305,640 157,945,406 Unvested restricted shares 385,801 316,743 774,210 435,974 Unvested performance units 79,005 — 71,285 — Weighted-average number of common shares - diluted 154,105,871 156,741,187 154,151,135 158,381,380 Net income per share attributable to common shareholders - basic $ 0.20 $ 0.22 $ 0.19 $ 0.25 Net income per share attributable to common shareholders - diluted $ 0.20 $ 0.22 $ 0.19 $ 0.25 |
Supplemental Information to S_2
Supplemental Information to Statements of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental information to statements of cash flows | For the six months ended June 30, 2024 2023 Reconciliation of cash, cash equivalents, and restricted cash reserves Cash and cash equivalents $ 371,133 $ 476,936 Restricted cash reserves 36,081 34,396 Cash, cash equivalents, and restricted cash reserves $ 407,214 $ 511,332 Interest paid $ 50,355 $ 44,386 Income taxes paid $ 2,055 $ 1,924 Operating cash flow lease payments for operating leases $ 7,821 $ 8,630 Right-of-use asset obtained in exchange for lease obligation $ — $ 5,016 Right-of-use asset and lease liability adjustments due to remeasurement $ (1,221) $ — Right-of-use asset and lease liability reclassifications to land due to acquisition $ 1,187 $ — Supplemental investing and financing transactions In connection with acquisitions, the Company recorded the following: Purchase price $ 160,500 $ — Application of purchase deposit (2,400) — Transaction costs 488 — Operating prorations (243) — Acquisitions, net $ 158,345 $ — In connection with the sales of hotel properties, the Company recorded the following: Sales price $ 8,078 $ — Transaction costs (394) (44) Operating prorations (5) — Proceeds from sales of hotel properties, net $ 7,679 $ (44) Supplemental non-cash transactions Accrued capital expenditures $ 18,440 $ 10,854 |
General (Details)
General (Details) | 6 Months Ended |
Jun. 30, 2024 property state room shares | |
Sale of Stock | |
OP units outstanding (in units) | shares | 156,012,508 |
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 | 97 |
Number of hotel rooms owned | room | 21,500 |
Number of states in which hotels owned by the entity are located | state | 23 |
Wholly Owned Properties [Member] | |
Sale of Stock | |
Number of Real Estate Properties | 95 |
Hotel property ownership interest (as a percent) | 100% |
Partially Owned Properties [Member] | |
Sale of Stock | |
Number of Real Estate Properties | 1 |
Partially Owned Properties [Member] | Ninety Five Percent Owned [Member] | |
Sale of Stock | |
Hotel property ownership interest (as a percent) | 95% |
Partially Owned Properties [Member] | Fifty Percent Owned [Member] | |
Sale of Stock | |
Hotel property ownership interest (as a percent) | 50% |
Unconsolidated Properties [Member] | |
Sale of Stock | |
Number of Real Estate Properties | 1 |
Unconsolidated Properties [Member] | Fifty Percent Owned [Member] | |
Sale of Stock | |
Equity Method Investment, Ownership Percentage | 50% |
Consolidated Properties [Member] | |
Sale of Stock | |
Number of Real Estate Properties | 96 |
Leased Hotel Properties [Member] | |
Sale of Stock | |
Number of Real Estate Properties | 96 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | Jun. 30, 2024 joint_venture |
Subsidiary or Equity Method Investee [Line Items] | |
Real Estate Interests, Number of Joint Ventures | 1 |
Fifty Percent Owned [Member] | Unconsolidated Properties [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Equity Method Investment, Ownership Percentage | 50% |
Investment in Hotel Propertie_2
Investment in Hotel Properties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |||||
Land and improvements | $ 1,129,388 | $ 1,129,388 | $ 998,417 | ||
Buildings and improvements | 4,177,665 | 4,177,665 | 4,117,210 | ||
Furniture, fixtures and equipment | 829,382 | 829,382 | 798,410 | ||
Investment in hotel properties, gross | 6,136,435 | 6,136,435 | 5,914,037 | ||
Accumulated depreciation | (1,861,766) | (1,861,766) | (1,777,821) | ||
Investment in hotel properties, net | 4,274,669 | 4,274,669 | $ 4,136,216 | ||
Real Estate Depreciation Expense, Excluding Discontinued Operations Expense | $ 44,400 | $ 44,900 | $ 89,100 | $ 89,900 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) $ in Thousands | 6 Months Ended | |||
Jan. 29, 2024 USD ($) | Jun. 30, 2024 USD ($) room | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Schedule of Asset Acquisition [Line Items] | ||||
Acquisitions, net | $ 158,345 | $ 0 | ||
Transaction costs | $ 200 | 600 | ||
Operating lease right of use asset | 130,875 | $ 136,140 | ||
Operating lease liability | 119,902 | $ 122,588 | ||
Consideration transferred, net assets acquired and liabilities assumed | 125,200 | 36,116 | ||
Asset Acquisition, Land and improvements | 3,409 | |||
Asset Acquisition, building and improvements | 29,731 | |||
Asset Acquisition, Furniture, fixtures and equipment | 2,976 | |||
Wyndham Boston Beacon Hill | ||||
Schedule of Asset Acquisition [Line Items] | ||||
Acquisitions, net | 125,000 | |||
Operating lease right of use asset | 1,300 | |||
Operating lease liability | $ 100 | |||
Hotel Teatro | ||||
Schedule of Asset Acquisition [Line Items] | ||||
Acquisitions, net | $ 35,500 | |||
Asset Acquisition, Percentage Of Ownership Acquired | 100% | |||
Number of rooms | room | 110 |
Sale of Hotel Properties (Narra
Sale of Hotel Properties (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) room | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) room | Jun. 30, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sales of hotel properties, net | $ 7,679 | $ 44 | ||
Gain (loss) on sale of hotel properties, net | $ 3,546 | $ (44) | $ 3,546 | $ (44) |
Residence Inn Merrillville | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Property disposed, number of rooms | room | 78 | 78 | ||
Disposals 2024 | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sales of hotel properties, net | $ 8,100 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 369,297 | $ 356,960 | $ 693,707 | $ 671,463 |
Southern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 44,874 | 40,073 | 82,781 | 75,792 |
South Florida | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35,562 | 35,409 | 84,895 | 81,695 |
Northern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40,494 | 41,038 | 81,447 | 81,301 |
Chicago, Illinois | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,569 | 20,901 | 32,723 | 33,220 |
Washington, D.C. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 19,365 | 19,145 | 32,442 | 32,393 |
New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23,028 | 21,342 | 36,752 | 34,214 |
Houston, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,385 | 14,190 | 28,776 | 27,842 |
Louisville, Kentucky | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,191 | 18,249 | 33,395 | 30,563 |
Charleston, South Carolina | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,398 | 14,667 | 28,745 | 25,246 |
Other Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 117,009 | 115,998 | 225,214 | 225,153 |
Boston | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,422 | 15,948 | 26,537 | 24,044 |
Room Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 303,652 | 295,496 | 570,282 | 556,328 |
Room Revenue | Southern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 35,839 | 32,569 | 66,381 | 61,500 |
Room Revenue | South Florida | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 27,288 | 27,515 | 67,638 | 66,055 |
Room Revenue | Northern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 35,062 | 35,447 | 69,799 | 70,259 |
Room Revenue | Chicago, Illinois | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 16,858 | 17,253 | 26,219 | 26,695 |
Room Revenue | Washington, D.C. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 18,158 | 17,923 | 30,549 | 30,430 |
Room Revenue | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 19,004 | 17,600 | 30,680 | 28,606 |
Room Revenue | Houston, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 12,244 | 12,300 | 24,615 | 23,899 |
Room Revenue | Louisville, Kentucky | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 14,133 | 12,941 | 22,403 | 21,095 |
Room Revenue | Charleston, South Carolina | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 12,240 | 11,173 | 21,104 | 18,942 |
Room Revenue | Other Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 97,077 | 96,420 | 187,305 | 187,557 |
Room Revenue | Boston | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 15,749 | 14,355 | 23,589 | 21,290 |
Food and Beverage Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 40,843 | 38,132 | 76,532 | 71,420 |
Food and Beverage Revenue | Southern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,022 | 3,878 | 9,249 | 7,751 |
Food and Beverage Revenue | South Florida | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,410 | 5,484 | 11,269 | 10,908 |
Food and Beverage Revenue | Northern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,417 | 3,561 | 7,726 | 7,024 |
Food and Beverage Revenue | Chicago, Illinois | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,619 | 2,730 | 4,735 | 4,938 |
Food and Beverage Revenue | Washington, D.C. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 416 | 514 | 553 | 700 |
Food and Beverage Revenue | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,089 | 2,834 | 4,451 | 4,038 |
Food and Beverage Revenue | Houston, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 815 | 710 | 1,726 | 1,599 |
Food and Beverage Revenue | Louisville, Kentucky | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,063 | 4,137 | 9,180 | 7,530 |
Food and Beverage Revenue | Charleston, South Carolina | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,196 | 2,256 | 5,804 | 4,278 |
Food and Beverage Revenue | Other Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,546 | 10,859 | 19,633 | 20,643 |
Food and Beverage Revenue | Boston | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,250 | 1,169 | 2,206 | 2,011 |
Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 24,802 | 23,332 | 46,893 | 43,715 |
Other Revenue | Southern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,013 | 3,626 | 7,151 | 6,541 |
Other Revenue | South Florida | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,864 | 2,410 | 5,988 | 4,732 |
Other Revenue | Northern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,015 | 2,030 | 3,922 | 4,018 |
Other Revenue | Chicago, Illinois | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,092 | 918 | 1,769 | 1,587 |
Other Revenue | Washington, D.C. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 791 | 708 | 1,340 | 1,263 |
Other Revenue | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 935 | 908 | 1,621 | 1,570 |
Other Revenue | Houston, Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,326 | 1,180 | 2,435 | 2,344 |
Other Revenue | Louisville, Kentucky | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 995 | 1,171 | 1,812 | 1,938 |
Other Revenue | Charleston, South Carolina | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 962 | 1,238 | 1,837 | 2,026 |
Other Revenue | Other Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,386 | 8,719 | 18,276 | 16,953 |
Other Revenue | Boston | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 423 | $ 424 | $ 742 | $ 743 |
Debt (Senior Notes, Term Loans,
Debt (Senior Notes, Term Loans, and Revolver) (Details) | 6 Months Ended | ||||
Apr. 09, 2024 USD ($) | Apr. 05, 2024 USD ($) | Jun. 30, 2024 USD ($) option | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Debt | |||||
Unsecured Debt, Gross | $ 1,025,000,000 | $ 825,000,000 | |||
Unamortized debt issuance costs on term loans | (2,618,000) | (3,557,000) | |||
Debt, net | 2,222,642,000 | 2,220,778,000 | |||
Deferred financing costs, net | $ (7,146,000) | (8,328,000) | |||
Number of extension options | option | 2 | ||||
Borrowings under Revolver | $ 200,000,000 | $ 200,000,000 | $ 0 | ||
Repayments of Secured Debt | $ (200,000,000) | ||||
Prepaid expenses and other assets | |||||
Debt | |||||
Debt Issuance Costs, Net | (4,700,000) | (5,600,000) | |||
Secured Debt | Fair Value, Inputs, Level 3 | |||||
Debt | |||||
Secured Debt | 207,406,000 | 407,663,000 | |||
Unsecured Debt | |||||
Debt | |||||
Unsecured Debt | 822,382,000 | 821,443,000 | |||
Unsecured Debt | Fair Value, Inputs, Level 3 | |||||
Debt | |||||
Unsecured Debt | 1,022,382,000 | 821,443,000 | |||
$500 Million Senior Notes Due 2029 | Level 1 | |||||
Debt | |||||
Long-term Debt, Gross | 500,000,000 | 500,000,000 | |||
$500 Million Senior Notes Due 2026 | Level 1 | |||||
Debt | |||||
Long-term Debt, Gross | 500,000,000 | 500,000,000 | |||
Senior Notes | Level 1 | |||||
Debt | |||||
Long-term Debt, Gross | 1,000,000,000 | 1,000,000,000 | |||
Senior Notes | |||||
Debt | |||||
Long-term Debt, Gross | 992,854,000 | 991,672,000 | |||
The Revolver | Line of Credit | |||||
Debt | |||||
Unsecured Debt | $ 200,000,000 | 0 | |||
Interest Rate | 7.09% | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 600,000,000 | ||||
Remaining borrowing capacity | $ 400,000,000 | 600,000,000 | |||
The Revolver | Line of Credit | Extension Option 1 | |||||
Debt | |||||
Additional maturity term | 1 year | ||||
The Revolver | Line of Credit | Extension Option 2 | |||||
Debt | |||||
Additional maturity term | 6 months | ||||
Number of extension options | option | 2 | ||||
$500 Million Senior Notes Due 2029 | Unsecured Debt | |||||
Debt | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4% | ||||
$500 Million Senior Notes Due 2026 | Unsecured Debt | |||||
Debt | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | ||||
$400 Million Term Loan Maturing 2025 | Unsecured Debt | |||||
Debt | |||||
Unsecured Debt | $ 400,000,000 | 400,000,000 | |||
Interest Rate | 4.72% | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 | ||||
$200 Million Term Loan Maturing 2026 | |||||
Debt | |||||
Additional maturity term | 1 year | ||||
$200 Million Term Loan Maturing 2026 | Unsecured Debt | |||||
Debt | |||||
Unsecured Debt | $ 200,000,000 | 200,000,000 | |||
Interest Rate | 7.04% | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | ||||
Additional maturity term | 1 year | ||||
Number of extension options | option | 2 | ||||
$225 Million Term Loan Maturing 2026 | Unsecured Debt | |||||
Debt | |||||
Unsecured Debt | $ 225,000,000 | $ 225,000,000 | |||
Interest Rate | 4.07% | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 225,000,000 | ||||
Additional maturity term | 1 year | ||||
Number of extension options | option | 2 |
Debt (Covenants) (Details)
Debt (Covenants) (Details) | Jun. 30, 2024 |
$500 Million Senior Note Maturing 2026 | Senior Notes | |
Debt | |
Debt Instrument, Covenant, Minimum, Unencumbered Asset To Unencumbered Debt Ratio | 150% |
Debt Instrument, Covenant, Maximum, Consolidated Indebtedness Ratio | 0.65 |
Debt Instrument, Covenant, Maximum, Secured Indebtedness Ratio | 0.45 |
Debt Instrument, Covenant, Minimum, Unsecured Interest Coverage Ratio | 1.5 |
Original Covenant | |
Debt | |
Debt Instrument, Covenant, Maximum, Secured Indebtedness Ratio | 0.450 |
Debt Instrument, Covenant, Minimum, Unsecured Interest Coverage Ratio | 2 |
Leverage ratio | 7.25 |
Fixed charge coverage ratio | 1.50 |
Debt Instrument, Covenant, Maximum, Unsecured Indebtedness Ratio | 60% |
Debt (Mortgage Loans) (Details)
Debt (Mortgage Loans) (Details) $ in Thousands | 6 Months Ended | ||
Apr. 09, 2024 USD ($) | Jun. 30, 2024 USD ($) asset | Dec. 31, 2023 USD ($) | |
Debt | |||
Mortgage loans, gross | $ 207,652 | $ 407,833 | |
Unamortized debt issuance costs on mortgage loans | $ (246) | (170) | |
Restricted Cash | 38,700 | ||
Repayments of Secured Debt | $ (200,000) | ||
Secured Debt | |||
Debt | |||
Number of Assets Encumbered | asset | 8 | ||
Secured Debt | Fair Value, Inputs, Level 3 | |||
Debt | |||
Secured Debt | $ 207,406 | 407,663 | |
Secured Debt | Wells Fargo 3 | |||
Debt | |||
Number of Assets Encumbered | asset | 1 | ||
Secured Debt | $ 26,652 | 26,833 | |
Interest Rate | 5.06% | ||
Debt Instrument, Fair Value Adjustment, Net | $ 1,700 | 1,800 | |
Five Point Nine Four Percent Due April 2024 [Member] | Secured Debt | |||
Debt | |||
Number of Assets Encumbered | asset | 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0% | ||
Secured Debt | $ 0 | 200,000 | |
Five Point Zero Four Percent Due April 2025 [Member] | Secured Debt | |||
Debt | |||
Number of Assets Encumbered | asset | 3 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.04% | ||
Secured Debt | $ 96,000 | 96,000 | |
Additional maturity term | 1 year | ||
Five Point Six One Percent Due April 2025 [Member] | Secured Debt | |||
Debt | |||
Number of Assets Encumbered | asset | 4 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.61% | ||
Secured Debt | $ 85,000 | $ 85,000 |
Debt (Components of Interest Ex
Debt (Components of Interest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt | ||||
Amortization of deferred financing costs | $ 1,544 | $ 1,491 | $ 3,116 | $ 2,965 |
Non-cash interest expense related to interest rate hedges | 418 | 482 | 900 | 964 |
Total Interest Expense | 28,049 | 24,543 | 54,507 | 48,673 |
Senior Notes | ||||
Debt | ||||
Interest expense | 9,688 | 9,688 | 19,375 | 19,375 |
Revolver and Term Loans | ||||
Debt | ||||
Interest expense | 13,787 | 7,266 | 22,847 | 15,810 |
Secured Debt | ||||
Debt | ||||
Interest expense | $ 2,612 | $ 5,616 | $ 8,269 | $ 9,559 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Interest Rate Derivatives | |||||
Notional value | $ 625,000,000 | $ 625,000,000 | $ 1,275,000,000 | ||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 23,441,000 | 23,441,000 | 24,829,000 | ||
Accumulated other comprehensive income | 22,171,000 | 22,171,000 | 22,662,000 | ||
Amount of hedge ineffectiveness | $ 0 | $ 0 | $ 0 | $ 0 | |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest income | Interest income | Interest income | Interest income | |
Net unrealized gains in accumulated other comprehensive income expected to be reclassified into interest expense within the next 12 months | $ (14,700,000) | $ (14,700,000) | |||
Interest rate swap | Recurring | |||||
Interest Rate Derivatives | |||||
Interest rate swap liability | (590,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 23,441,000 | 23,441,000 | 25,419,000 | ||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 23,441,000 | 23,441,000 | 24,829,000 | ||
Interest rate swap | Fair Value, Inputs, Level 2 [Member] | Recurring | |||||
Interest Rate Derivatives | |||||
Interest rate swap liability | (590,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 23,441,000 | 23,441,000 | 25,419,000 | ||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 23,441,000 | 23,441,000 | 24,829,000 | ||
Designated as Hedging Instrument | |||||
Interest Rate Derivatives | |||||
Reclassification of unrealized gains on discontinued cash flow hedges to other income, net | 4,800,000 | $ 7,500,000 | 11,500,000 | $ 13,500,000 | |
Designated as Hedging Instrument | Interest Rate Swap, 2.44% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | 0 | 0 | 75,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 0 | ||
Interest rate | 2.44% | 2.44% | |||
Designated as Hedging Instrument | Interest Rate Swap, 2.31% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 0 | $ 0 | 75,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 0 | ||
Interest rate | 2.31% | 2.31% | |||
Designated as Hedging Instrument | Interest Rate Swap, 1.16% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 150,000,000 | $ 150,000,000 | 150,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 6,859,000 | $ 6,859,000 | 7,969,000 | ||
Interest rate | 1.16% | 1.16% | |||
Designated as Hedging Instrument | Interest Rate Swap, 1.08% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 0 | $ 0 | 50,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 827,000 | ||
Interest rate | 1.08% | 1.08% | |||
Designated as Hedging Instrument | Interest Rate Swap, 1.13% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 0 | $ 0 | 50,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 819,000 | ||
Interest rate | 1.13% | 1.13% | |||
Designated as Hedging Instrument | Interest Rate Swap, 1.08% #2 [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 0 | $ 0 | 50,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 829,000 | ||
Interest rate | 1.08% | 1.08% | |||
Designated as Hedging Instrument | Interest Rate Swap, 0.97% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 0 | $ 0 | 50,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 849,000 | ||
Interest rate | 0.97% | 0.97% | |||
Designated as Hedging Instrument | Interest Rate Swap, 0.85% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 0 | $ 0 | 25,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 436,000 | ||
Interest rate | 0.85% | 0.85% | |||
Designated as Hedging Instrument | Interest Rate Swap, 0.88% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 0 | $ 0 | 25,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 434,000 | ||
Interest rate | 0.88% | 0.88% | |||
Designated as Hedging Instrument | Interest Rate Swap, 0.86% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 0 | $ 0 | 25,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 436,000 | ||
Interest rate | 0.86% | 0.86% | |||
Designated as Hedging Instrument | Interest Rate Swap, 0.83% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 0 | $ 0 | 25,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 439,000 | ||
Interest rate | 0.83% | 0.83% | |||
Designated as Hedging Instrument | Interest Rate Swap, 0.77% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 50,000,000 | $ 50,000,000 | 50,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 1,119,000 | $ 1,119,000 | 2,011,000 | ||
Interest rate | 0.77% | 0.77% | |||
Designated as Hedging Instrument | Interest Rate Swap, 0.63% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 50,000,000 | $ 50,000,000 | 50,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 1,154,000 | $ 1,154,000 | 2,081,000 | ||
Interest rate | 0.63% | 0.63% | |||
Designated as Hedging Instrument | Interest Rate Swap, 0.56% [Member] | |||||
Interest Rate Derivatives | |||||
Notional value | $ 50,000,000 | $ 50,000,000 | 50,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 3,212,000 | $ 3,212,000 | 3,556,000 | ||
Interest rate | 0.56% | 0.56% | |||
Designated as Hedging Instrument | Interest Rate Swap, 4.37% | |||||
Interest Rate Derivatives | |||||
Notional value | $ 0 | $ 0 | 200,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | 673,000 | ||
Interest rate | 4.37% | 4.37% | |||
Designated as Hedging Instrument | Interest Rate Swap, 2.95% | |||||
Interest Rate Derivatives | |||||
Notional value | $ 125,000,000 | $ 125,000,000 | 125,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 4,641,000 | $ 4,641,000 | 1,769,000 | ||
Interest rate | 2.95% | 2.95% | |||
Designated as Hedging Instrument | Interest Rate Swap, 2.75% | |||||
Interest Rate Derivatives | |||||
Notional value | $ 60,000,000 | $ 60,000,000 | 60,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 2,558,000 | $ 2,558,000 | 1,188,000 | ||
Interest rate | 2.75% | 2.75% | |||
Designated as Hedging Instrument | Interest Rate Swap, 2.85% | |||||
Interest Rate Derivatives | |||||
Notional value | $ 65,000,000 | $ 65,000,000 | 65,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 2,592,000 | $ 2,592,000 | 1,103,000 | ||
Interest rate | 2.85% | 2.85% | |||
Designated as Hedging Instrument | Interest Rate Swap, 3.70% | |||||
Interest Rate Derivatives | |||||
Notional value | $ 25,000,000 | $ 25,000,000 | 25,000,000 | ||
Interest rate swap liability | (254,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 377,000 | $ 377,000 | |||
Interest rate | 3.70% | 3.70% | |||
Designated as Hedging Instrument | Interest Rate Swap, 3.45% | |||||
Interest Rate Derivatives | |||||
Notional value | $ 25,000,000 | $ 25,000,000 | 25,000,000 | ||
Interest rate swap liability | (77,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 557,000 | $ 557,000 | |||
Interest rate | 3.45% | 3.45% | |||
Designated as Hedging Instrument | Interest Rate Swap, 3.71% | |||||
Interest Rate Derivatives | |||||
Notional value | $ 25,000,000 | $ 25,000,000 | 25,000,000 | ||
Interest rate swap liability | (259,000) | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 372,000 | $ 372,000 | |||
Interest rate | 3.71% | 3.71% | |||
Prepaid expenses and other assets | Interest rate swap | |||||
Interest Rate Derivatives | |||||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 23,400,000 | $ 23,400,000 | 25,400,000 | ||
Accounts payable and other liabilities | Interest rate swap | |||||
Interest Rate Derivatives | |||||
Interest rate swap liability | $ (600,000) |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt, net | $ 2,222,642 | $ 2,220,778 |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 23,441 | 24,829 |
Interest rate swap | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | (23,441) | (25,419) |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 23,441 | 24,829 |
Interest rate swap liability | 590 | |
Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unsecured Debt | 822,382 | 821,443 |
Level 1 | Interest rate swap | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0 | 0 |
Interest rate swap liability | 0 | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Long-term Debt, Fair Value | 2,134,925 | 2,141,168 |
Fair Value, Inputs, Level 3 | Interest rate swap | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0 | 0 |
Interest rate swap liability | 0 | |
Fair Value, Inputs, Level 3 | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unsecured Debt | 1,022,382 | 821,443 |
Long-term Debt, Fair Value | 1,018,500 | 817,960 |
Fair Value, Inputs, Level 3 | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Secured Debt | 207,406 | 407,663 |
Long-term Debt, Fair Value | 198,545 | 394,458 |
Fair Value, Inputs, Level 2 [Member] | Interest rate swap | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | (23,441) | (25,419) |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 23,441 | 24,829 |
Interest rate swap liability | 590 | |
Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Long-term Debt, Gross | 992,854 | 991,672 |
Senior Notes | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Long-term Debt, Fair Value | $ 917,880 | $ 928,750 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Accruals for tax uncertainties | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 USD ($) hotel property | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Loss Contingencies [Line Items] | |||
Minimum restricted cash reserve escrows to be maintained as a percentage of the hotel's revenue | 3% | ||
Maximum restricted cash reserve escrows to be maintained as percentage of hotel's revenue | 5% | ||
Restricted cash reserves for future capital expenditures, real estate taxes and insurance | $ 36,081 | $ 38,652 | $ 34,396 |
Number of Real Estate Properties | property | 97 | ||
Restricted Cash | $ 38,700 | ||
Number of real estate properties with manchise agreements | hotel | 35 |
Commitments and Contingencies_2
Commitments and Contingencies (Management Agreements) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) hotel property | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) hotel property | Jun. 30, 2023 USD ($) | |
Other Commitments | ||||
Number of Hotel Properties Operated under Management Agreements | hotel | 96 | 96 | ||
Number of Real Estate Properties | property | 97 | 97 | ||
Minimum | ||||
Other Commitments | ||||
Management Agreement Term | 3 years | |||
Base Management Fee as Percentage of Hotel Revenues | 1.50% | |||
Management Agreements which include Franchise Agreement, Base Management Fee as Percentage of Hotel Revenues | 1% | |||
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% | |||
Management Service [Member] | ||||
Other Commitments | ||||
Cost of Goods and Services Sold | $ | $ 11.3 | $ 11.1 | $ 21.2 | $ 21.9 |
Commitments and Contingencies_3
Commitments and Contingencies (Franchise Agreements) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) hotel property | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) hotel property | Jun. 30, 2023 USD ($) | |
Other Commitments | ||||
Number of Hotel Properties Operated under Franchise Agreements | 58 | 58 | ||
Number of Real Estate Properties | property | 97 | 97 | ||
Number of Hotels Without Franchise Agreements | 3 | 3 | ||
Minimum | ||||
Other Commitments | ||||
Franchise Agreements Term | 1 year | |||
Franchise Agreements, Royalty Fee as Percentage of Room Revenue | 2% | |||
Franchise Agreements, Additional Fees for Marketing Central Reservation Systems and Other Franchisor Costs as Percentage of Room Revenue | 1% | |||
Franchise Agreements, Royalty Fee as Percentage of Food and Beverage Revenue | 1.50% | |||
Maximum | ||||
Other Commitments | ||||
Franchise Agreements Term | 30 years | |||
Franchise Agreements, Royalty Fee as Percentage of Room Revenue | 6% | |||
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% | |||
Franchise [Member] | ||||
Other Commitments | ||||
Cost of Goods and Services Sold | $ | $ 18.5 | $ 18.1 | $ 34.3 | $ 33.5 |
Equity (Details)
Equity (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Aug. 02, 2024 USD ($) shares | Jun. 30, 2024 USD ($) $ / shares shares | Mar. 31, 2024 $ / shares | Jun. 30, 2023 USD ($) $ / shares | Mar. 31, 2023 $ / shares | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) shares | Apr. 26, 2024 USD ($) | |
Equity, Class of Treasury Stock | ||||||||
Dividends | $ / shares | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.08 | ||||
Common shares repurchased and retired (in shares) | shares | 400,000 | 5,100,000 | ||||||
Stock repurchased during the period, Value | $ 2,941 | $ 27,444 | $ 4,192 | $ 51,981 | ||||
Preferred Stock, Convertible, Conversion Ratio | 0.2806 | 0.2806 | ||||||
Limited Partners | ||||||||
Equity, Class of Treasury Stock | ||||||||
Partners' Capital Account, Units | shares | 771,831 | 771,831 | ||||||
The Knickerbocker New York [Member] | ||||||||
Equity, Class of Treasury Stock | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5% | 5% | ||||||
Series A Cumulative Preferred Stock [Member] | ||||||||
Equity, Class of Treasury Stock | ||||||||
Preferred Stock, Dividends Per Share, Declared | $ / shares | $ 0.4875 | $ 0.4875 | $ 0.4875 | $ 0.4875 | ||||
Subsequent Event | ||||||||
Equity, Class of Treasury Stock | ||||||||
Share repurchase program, remaining authorized amount | $ 245,000 | |||||||
2023 Share Repurchase Program | ||||||||
Equity, Class of Treasury Stock | ||||||||
Stock repurchased during the period, Value | $ 1,300 | |||||||
2024 Share Repurchase Program | ||||||||
Equity, Class of Treasury Stock | ||||||||
Share repurchase program, authorized amount | $ 250,000 | |||||||
Stock repurchased during the period, Value | $ 2,900 | |||||||
2024 Share Repurchase Program | Subsequent Event | ||||||||
Equity, Class of Treasury Stock | ||||||||
Common shares repurchased and retired (in shares) | shares | 200,000 | |||||||
Stock repurchased during the period, Value | $ 2,100 |
Equity Incentive Plan (Details)
Equity Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Feb. 29, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity Incentive Plan | |||||||
Maximum number of common shares available for issuance (in shares) | 6,828,527 | 6,828,527 | |||||
Other Disclosures | |||||||
Common shares available for future grant (in shares) | 2,041,822 | 2,041,822 | |||||
Restricted share awards | |||||||
Summary of non-vested shares/units | |||||||
Unvested at the beginning of the period (in shares) | 2,305,303 | ||||||
Granted (in shares) | 925,731 | ||||||
Vested (in shares) | (1,569,836) | ||||||
Forfeited (in shares) | (20,157) | ||||||
Unvested at the end of the period (in shares) | 1,641,041 | 1,641,041 | |||||
Weighted Average Grant Date Fair Value | |||||||
Unvested at the beginning of the period (in dollars per share) | $ 13.52 | ||||||
Granted (in dollars per share) | 11.57 | ||||||
Vested (in dollars per share) | 14.28 | ||||||
Forfeited (in dollars per share) | 11.26 | ||||||
Unvested at the end of the period (in dollars per share) | $ 11.72 | $ 11.72 | |||||
Other Disclosures | |||||||
Share-based compensation expense | $ 3 | $ 3.8 | $ 7.1 | $ 7.4 | |||
Total unrecognized compensation costs | 16 | $ 16 | |||||
Weighted-average period of recognition of unrecognized share-based compensation expense | 2 years | ||||||
Total fair value of shares vested | $ 17.4 | 9.5 | |||||
Performance Units | |||||||
Other Disclosures | |||||||
Share-based compensation expense | 2.3 | $ 2.3 | 4.6 | $ 4.4 | |||
Total unrecognized compensation costs | $ 16.4 | $ 16.4 | |||||
Weighted-average period of recognition of unrecognized share-based compensation expense | 2 years 1 month 6 days | ||||||
Performance-based vesting period | 3 years | ||||||
Percentage of grant date fair value to be recognized over three years | 100% | ||||||
Employee service share based compensation cost period of recognition | 3 years | ||||||
Share-based compensation arrangement, by share based payment award, vesting rights percentage immediately | 100% | ||||||
2021 Performance Shares | |||||||
Summary of non-vested shares/units | |||||||
Granted (in shares) | 253,000 | 431,151 | |||||
Other Disclosures | |||||||
Total fair value of shares vested | $ 3 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Contingent on Absolute Total Shareholder Return | 25% | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Contingent on Relative Total Shareholder Return | 75% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share | $ 20.90 | ||||||
Fair value assumptions, risk free interest rate | 0.23% | ||||||
Fair value assumptions, expected volatility rate | 69.47% | ||||||
2022 Performance Shares | |||||||
Summary of non-vested shares/units | |||||||
Granted (in shares) | 407,024 | ||||||
Other Disclosures | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share | $ 21.96 | ||||||
Fair value assumptions, risk free interest rate | 1.70% | ||||||
Fair value assumptions, expected volatility rate | 70.15% | ||||||
2023 Performance Shares | |||||||
Summary of non-vested shares/units | |||||||
Granted (in shares) | 574,846 | ||||||
Other Disclosures | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share | $ 16.90 | ||||||
Fair value assumptions, risk free interest rate | 4.33% | ||||||
Fair value assumptions, expected volatility rate | 66.70% | ||||||
2024 Performance Shares [Domain] | |||||||
Summary of non-vested shares/units | |||||||
Granted (in shares) | 703,325 | ||||||
Other Disclosures | |||||||
Shared-based compensation arrangement by share based payment award, maximum absolute total shareholder return decline before payout percentage cap | 15% | ||||||
Shared-based compensation arrangement by share based payment award, payout percentage cap | 115% | ||||||
Shared-based compensation arrangement by share based payment award, payout percentage reduction | 25% | ||||||
Shared-based compensation arrangement by share based payment award, absolute total shareholder return minimum before payout percentage reduction | 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share | $ 15.13 | ||||||
Fair value assumptions, risk free interest rate | 4.43% | ||||||
Fair value assumptions, expected volatility rate | 35.60% | ||||||
Minimum | 2021 Performance Shares | |||||||
Other Disclosures | |||||||
Percentage of performance units that will convert into restricted shares | 0% | ||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 0% | ||||||
Minimum | 2022 Performance Shares | |||||||
Other Disclosures | |||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 0% | ||||||
Minimum | 2023 Performance Shares | |||||||
Other Disclosures | |||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 0% | ||||||
Minimum | 2024 Performance Shares [Domain] | |||||||
Other Disclosures | |||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 0% | ||||||
Maximum | 2021 Performance Shares | |||||||
Other Disclosures | |||||||
Percentage of performance units that will convert into restricted shares | 200% | ||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 200% | ||||||
Maximum | 2022 Performance Shares | |||||||
Other Disclosures | |||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 200% | ||||||
Maximum | 2023 Performance Shares | |||||||
Other Disclosures | |||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 200% | ||||||
Maximum | 2024 Performance Shares [Domain] | |||||||
Other Disclosures | |||||||
Shared-Based Compensation Arrangement by Share-Based Payment Award, Conversion Percentage Range | 200% |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net Income (Loss) Attributable to Parent | $ 37,106 | $ 41,395 | $ 42,043 | $ 52,040 |
Preferred Stock Dividends, Income Statement Impact | (6,279) | (6,279) | (12,557) | (12,557) |
Less: Dividends paid on unvested restricted shares | (164) | (197) | (414) | (399) |
Less: Undistributed earnings attributable to unvested restricted shares | (162) | (351) | 0 | (219) |
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $ 30,501 | $ 34,568 | $ 29,072 | $ 38,865 |
Denominator: | ||||
Weighted-average number of common shares - basic (in shares) | 153,641,065 | 156,424,444 | 153,305,640 | 157,945,406 |
Unvested restricted shares (in shares) | 385,801 | 316,743 | 774,210 | 435,974 |
Unvested performance units | 79,005 | 0 | 71,285 | 0 |
Weighted-average number of common shares - diluted (in shares) | 154,105,871 | 156,741,187 | 154,151,135 | 158,381,380 |
Net income per share attributable to common shareholders - basic | $ 0.20 | $ 0.22 | $ 0.19 | $ 0.25 |
Net income per share attributable to common shareholders - diluted | $ 0.20 | $ 0.22 | $ 0.19 | $ 0.25 |
Supplemental Information to S_3
Supplemental Information to Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 371,133 | $ 476,936 | $ 516,675 | |
Restricted cash reserves | 36,081 | 34,396 | 38,652 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 407,214 | 511,332 | $ 555,327 | $ 536,386 |
Interest paid | 50,355 | 44,386 | ||
Income taxes paid | 2,055 | 1,924 | ||
Operating Lease, Payments | 7,821 | 8,630 | ||
Right-of-use asset obtained in exchange for lease obligation | 0 | 5,016 | ||
Right-of-use asset and lease liability adjustments due to remeasurement | (1,221) | 0 | ||
Right-of-use asset and lease liability reclassifications to land due to acquisition | 1,187 | 0 | ||
In connection with acquisitions, the Company recorded the following: | ||||
Purchase price | 160,500 | 0 | ||
Increase (Decrease) in Deposit Assets | (2,400) | 0 | ||
Asset Acquisition, Consideration Transferred, Transaction Cost | 488 | 0 | ||
Operating prorations | (243) | 0 | ||
Acquisitions, net | 158,345 | 0 | ||
In connection with the sales of hotel properties, the Company recorded the following: | ||||
Sales price | 8,078 | 0 | ||
Transaction costs | (394) | (44) | ||
Operating prorations | (5) | 0 | ||
Proceeds from sales of hotel properties, net | (7,679) | (44) | ||
Supplemental non-cash transactions | ||||
Accrued capital expenditures | $ 18,440 | $ 10,854 |