Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 10, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ck0001566445 | |
Entity Registrant Name | BRE Select Hotels Corp | |
Entity Central Index Key | 1,566,445 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 100 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Investment in real estate, net of accumulated depreciation of $89,653 and $73,915, respectively | $ 974,578 | $ 986,640 |
Cash and cash equivalents | 18,945 | 29,137 |
Restricted cash | 10,301 | 6,171 |
Due from third party managers, net | 6,102 | 4,961 |
Insurance receivable | 5,331 | 6,496 |
Prepaid expenses | 2,428 | 1,729 |
Goodwill | 126,377 | 126,377 |
Other assets | 2,858 | 791 |
TOTAL ASSETS | 1,146,920 | 1,162,302 |
LIABILITIES | ||
Accounts payable and accrued expenses | 9,048 | 14,852 |
Due to third party managers, net | 1,042 | 1,149 |
Mortgages payable | 844,571 | 842,269 |
Other liabilities | 580 | |
TOTAL LIABILITIES | 855,241 | 858,270 |
Commitments and contingencies (Note 6) | ||
Cumulative Redeemable Preferred Stock, $1.90 initial liquidation preference, 120,000,000 shares authorized; 72,382,848 issued and outstanding at June 30, 2016 and December 31, 2015 | 137,160 | 137,160 |
SHAREHOLDER'S EQUITY | ||
Preferred stock, $0.0001 par value, 30,000,000 shares authorized; none issued and outstanding at June 30, 2016 and December 31, 2015 | ||
Common stock, $0.01 par value, 100,000 shares authorized; 100 shares issued and outstanding at June 30, 2016 and December 31, 2015 | 0 | 0 |
Additional paid-in capital | 154,519 | 166,872 |
TOTAL SHAREHOLDER'S EQUITY | 154,519 | 166,872 |
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | $ 1,146,920 | $ 1,162,302 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accumulated depreciation of Investment in real estate | $ 89,653 | $ 73,915 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 100 | 100 |
Common stock, shares outstanding | 100 | 100 |
7% Series A Cumulative Redeemable Preferred Stock [Member] | ||
Preferred Shares Dividend Percentage | 7.00% | 7.00% |
Preferred stock initial liquidation preference per share | $ 1.90 | $ 1.90 |
Preferred stock, shares authorized | 120,000,000 | 120,000,000 |
Preferred stock, shares issued | 72,382,848 | 72,382,848 |
Preferred stock, shares outstanding | 72,382,848 | 72,382,848 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
REVENUE | ||||
Room revenue | $ 74,125 | $ 71,478 | $ 136,312 | $ 130,787 |
Other revenue | 5,255 | 4,667 | 9,594 | 8,836 |
Total revenue | 79,380 | 76,145 | 145,906 | 139,623 |
EXPENSES | ||||
Operating expense | 17,018 | 17,074 | 32,856 | 32,225 |
Hotel administrative expense | 6,863 | 6,731 | 13,319 | 12,766 |
Sales and marketing | 5,998 | 5,704 | 11,373 | 10,777 |
Utilities | 2,158 | 2,268 | 4,335 | 4,655 |
Repair and maintenance | 2,819 | 2,764 | 5,517 | 5,392 |
Franchise fees | 3,663 | 3,548 | 6,754 | 6,478 |
Management fees | 2,763 | 2,638 | 4,993 | 4,764 |
Taxes, insurance and other | 3,907 | 3,742 | 7,519 | 7,447 |
General and administrative | 1,375 | 1,400 | 2,550 | 2,165 |
Depreciation expense | 9,743 | 8,424 | 20,349 | 15,709 |
Total expenses | 56,307 | 54,293 | 109,565 | 102,378 |
Impairment of investment in real estate | (2,994) | (8,507) | ||
Loss on disposals of investment in real estate | (2,876) | (2,876) | ||
Operating income | 20,079 | 18,976 | 27,834 | 34,369 |
Interest expense, net | (8,178) | (7,620) | (16,294) | (15,118) |
Loss on derivatives | (14) | (53) | ||
Income before income tax expense | 11,901 | 11,342 | 11,540 | 19,198 |
Income tax expense | (1,679) | (1,925) | (72) | (202) |
Net income | 10,222 | 9,417 | 11,468 | 18,996 |
Net income available for common stockholders | $ 7,811 | $ 7,006 | $ 6,647 | $ 14,175 |
Basic and diluted net income per common share | ||||
Total basic and diluted net income per common share available to common stockholders | $ 78,110 | $ 70,060 | $ 66,470 | $ 141,750 |
Dividends declared per common share | $ 100,000 | $ 90,000 | $ 190,000 | $ 90,000 |
Weighted average common shares outstanding - basic and diluted | 100 | 100 | 100 | 100 |
Series A Preferred Stock [Member] | ||||
EXPENSES | ||||
Series A Preferred Stock dividends declared | $ (2,411) | $ (2,411) | $ (4,821) | $ (4,821) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 11,468 | $ 18,996 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 20,349 | 15,709 |
Impairment of investment in real estate | 8,507 | |
Loss on disposals of investment in real estate | 2,876 | |
Fair value adjustment of interest rate cap | 53 | |
Amortization of deferred financing costs | 2,520 | 2,507 |
Other non-cash expenses, net | (15) | (15) |
Changes in operating assets and liabilities: | ||
(Increase) decrease in cash restricted for operating expenses | (4,013) | 4,527 |
Increase in due to/from third party managers, net | (1,248) | (4,253) |
Decrease in insurance receivable | 1,165 | |
Increase in prepaid expenses and other assets | (3,073) | (1,720) |
Decrease in accounts payable and accrued expenses | (1,055) | (838) |
Increase in other liabilities | 580 | |
Net cash provided by operating activities | 35,185 | 37,842 |
Cash flows from investing activities: | ||
Capital improvements | (21,528) | (38,589) |
Property insurance proceeds | 307 | 194 |
(Increase) decrease in cash restricted for property improvements | (117) | 25,898 |
Net cash used in investing activities | (21,338) | (12,497) |
Cash flows from financing activities: | ||
Payments of mortgage debt | (218) | (209) |
Dividends paid to Series A Preferred shareholders | (4,821) | (4,821) |
Dividends paid to common shareholders | (19,000) | (9,000) |
Net cash used in financing activities | (24,039) | (14,030) |
Net (decrease) increase in cash and cash equivalents | (10,192) | 11,315 |
Cash and cash equivalents, beginning of period | 29,137 | 22,776 |
Cash and cash equivalents, end of period | 18,945 | 34,091 |
Supplemental Cash Flow Information, including Non-Cash Activities: | ||
Interest paid | 13,986 | 12,909 |
Taxes paid | 1,410 | 1,531 |
Accrued capital improvements | 1,890 | 2,885 |
7% Series A Cumulative Redeemable Preferred Stock [Member] | ||
Supplemental Cash Flow Information, including Non-Cash Activities: | ||
Accrued 7% Series A Preferred Stock dividends | $ 2,411 | $ 2,411 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization BRE Select Hotels Corp, together with its wholly-owned subsidiaries (the “Company”), is a Delaware corporation that made an election, through the filing of Form 1120-REIT for 2012, to qualify as a real estate investment trust, or REIT, for federal income tax purposes. The Company was formed on November 28, 2012 to invest in income-producing real estate in the United States through the acquisition of Apple REIT Six, Inc. (“Apple Six”) on behalf of BRE Select Hotels Holdings LP (“BRE Holdings”), a Delaware limited partnership and an affiliate of the Company. All of the common stock of the Company is owned by BRE Holdings, which is an affiliate of Blackstone Real Estate Partners VII L.P. (the “Sponsor”). The acquisition of Apple Six (the “Merger”) was completed on May 14, 2013 (the “Acquisition Date”). As of June 30, 2016, the Company owned 62 hotels located in 18 states with an aggregate of 7,346 rooms. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation – Basis of Presentation – Use of Estimates – Reclassifications – Cash and Cash Equivalents – Restricted Cash – Due from Third Party Managers, net – Due to Third Party Managers, net – Investment in Real Estate and Related Depreciation – Impairment of Investment in Real Estate – If events or circumstances change, such as the operating performance of a property declines substantially for an extended period of time, the Company’s carrying value for a particular property may not be recoverable and in such instances an impairment loss may be recorded. Recoverability of assets to be held and used is determined by a comparison of the carrying amount of the assets to the future undiscounted net cash flow expected to be generated by the asset. If the carrying value of such assets exceeds such cash flows, the assets are considered impaired. Impairment losses are measured as the difference between the asset’s fair value and its carrying value. Fair value is determined by using management’s best estimate of the discounted net cash flows over the remaining life of the asset, or other indicators of fair value, such as a property sales agreement, if applicable. During the six months ended June 30, 2016, the Company executed a letter of intent to sell the Hilton Garden Inn – Fredericksburg, Virginia property, which may result in the disposition of the property prior to its previously estimated useful life. As a result, a test for impairment of the property was performed with fair value determined based on the estimated sales proceeds for the property. The Company estimated the sales proceeds based on the agreement of purchase and sale (subject to certain terms) entered into for the property in April 2016. The test resulted in a non-cash impairment of investment in real estate of $5.5 million for the six months ended June 30, 2016. Prior to June 30, 2016, the Company executed a letter of intent to sell the Marriott – Boulder, Colorado property, which may result in the disposition of the property prior to its previously estimated useful life. As a result, a test for impairment of the property was performed at June 30, 2016 with fair value determined based on the estimated sales proceeds for the property. The Company estimated the sales proceeds based on the agreement of purchase and sale (subject to certain terms) entered into for the property in June 2016. The test resulted in a non-cash impairment of investment in real estate of $3.0 million for the six months ended June 30, 2016. The Marriott – Boulder, Colorado property was subsequently sold on August 9, 2016. The Company received estimated net proceeds of $60.8 million, and as part of the sale, the Company repaid $43.2 million of the related mortgage payable. No other triggering events have occurred to indicate that the asset carrying values are not recoverable as of June 30, 2016. Goodwill – Revenue Recognition – Sales and Marketing Costs – Income Taxes – Valuation of Deferred Tax Assets – Income per Common Share Segment Information – New Accounting Pronouncements – Interest – Imputation of Interest (Subtopic 835-30) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern In February 2016, the FASB issued ASU 2016-02, Leases. |
Investment in Real Estate, net
Investment in Real Estate, net | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate [Abstract] | |
Investment in Real Estate, net | 3. Investment in Real Estate, net Investment in real estate, net as of June 30, 2016 and December 31, 2015 consisted of the following (in thousands): June 30, December 31, 2016 2015 Land and Improvements $ 153,927 $ 154,855 Building and Improvements 840,091 835,335 Furniture, Fixtures and Equipment 55,796 49,020 Construction in Progress 14,417 21,345 1,064,231 1,060,555 Less: Accumulated Depreciation (89,653 ) (73,915 ) Investment in Real Estate, net $ 974,578 $ 986,640 |
Mortgages Payable
Mortgages Payable | 6 Months Ended |
Jun. 30, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
Mortgages Payable | 4. Mortgages Payable Mortgages payable as of June 30, 2016 and December 31, 2015 consisted of the following (in thousands): June 30, December 31, 2016 2015 Mortgages payable before unamortized deferred financing costs $ 846,814 $ 847,032 Unamortized deferred financing costs (2,243 ) (4,763 ) Mortgages payable $ 844,571 $ 842,269 On December 3, 2014, certain indirect wholly-owned subsidiaries (the “Borrowers”) of the Company entered into a loan agreement (the “Loan Agreement”) with commercial lenders (collectively, the “Lenders”), pursuant to which the Borrowers obtained an $830 million mortgage loan from the Lenders (the “Loan”). The Loan is secured by first-priority, cross-collateralized mortgage liens on 61 of the 62 properties owned or ground-leased by certain subsidiaries of the Company, all related personal property, reserves, a pledge of all income received by the Borrowers with respect to the properties, a pledge of the ownership interests in the operating lessee and a security interest in a cash management account. A portion of the proceeds from the Loan were used to repay the mortgage and mezzanine loans obtained on May 14, 2013 by the Borrowers, as well as certain indirect wholly-owned subsidiaries of the Company that own direct and indirect interests in the Borrowers (the “Mezzanine Borrowers”), in the aggregate original principal amount of $775 million and with an aggregate outstanding principal amount of $763.9 million as of the date of repayment. Accordingly, on December 3, 2014, the Borrowers and Mezzanine Borrowers repaid in full, cancelled and terminated their respective mortgage and mezzanine loan agreements outstanding at that date without any penalties incurred. The initial interest rate of the Loan is equal to the one-month London interbank offered rate for deposits, or LIBOR, plus a margin rate of 2.80%. In connection with the Loan, the Borrowers entered into an interest rate cap agreement, which caps the base interest rate before applying the applicable margins on the Loan, for an aggregate notional amount of $830 million, a termination date of December 9, 2016 and a strike rate of 4.50%. The Loan is scheduled to mature on December 9, 2016, with an option for the Borrowers to extend the initial term for three one-year extension terms, subject to certain conditions. The Company plans to exercise the first of three one-year extensions permissible per the Loan Agreement. The Loan is not subject to any mandatory principal amortization. The Loan contains various representations and warranties, as well as certain financial, operating and other covenants that will among other things, limit the Company’s ability to: • incur additional secured or unsecured indebtedness; • make cash distributions at any time that the debt yield, representing the quotient (expressed as a percentage) calculated by dividing the annualized net operating income of the properties subject to the Loan by the outstanding principal amount of the indebtedness under the Loan, is less than 7.50% during the first four years of the Loan and 7.75% during the fifth year of the Loan or if there is a default continuing under the Loan, until such time as the debt yield is equal to or greater than 7.50% during the first four years of the Loan and 7.75% during the fifth year of the Loan or the Loan default has been cured; • make investments or acquisitions; • use assets as security in other transactions; • sell assets (except that the Borrowers are permitted to sell assets so long as the debt yield is not reduced, subject to payment of applicable prepayment premiums and other property release requirements); • guarantee other indebtedness; and • consolidate, merge or transfer all or substantially all of the Company’s assets. Defaults under the Loan include, among other things, the failure to pay interest or principal when due, material misrepresentations, transfers of the underlying security for the Loan without any required consent from the Lender, defaults under certain agreements relating to the properties, including franchise and management agreements, bankruptcy of a Borrower or any guarantor of the Loan, failure to maintain required insurance and a failure to observe other covenants under the Loan, in each case subject to any applicable cure rights. The Borrowers may prepay the Loan, in whole or in part, at any time without any prepayment penalty or fee. In addition, the applicable Borrowers for the Loan and BSHH LLC, a Delaware limited liability company (the “Guarantor”) and an affiliate of BRE Holdings, will have recourse liability under the Loan for certain matters typical of a transaction of this type, including, without limitation, relating to losses arising out of actions by the Borrower, Guarantor, Sponsor or their respective affiliates controlled by the Sponsor which constitute fraud, intentional misrepresentation, misappropriation of funds (including insurance proceeds), removal or disposal of any property after an event of default under the Loan, a material violation of the due on sale/encumbrance covenants set forth in the loan agreements, willful misconduct that results in waste to any property and any material modification or voluntary termination of a ground lease without the Lender’s prior written consent if required under the loan agreements. The Borrowers will also have recourse liability for the Loan in the event any security instrument or loan agreement is deemed a fraudulent conveyance or a preference, and the Borrowers and the Guarantor will have recourse liability for the Loan in the event of a voluntary or collusive involuntary bankruptcy of any Borrower or any operating lessee of the properties or in the event Borrower, Guarantor, Sponsor or their respective affiliates controlled by the Sponsor consents to or joins in the application for the appointment of a custodian, receiver, trustee or examiner of any Borrower or the operating lessee of any of the properties or any property, provided, however, the liability of the Guarantor described in this sentence shall not exceed 15% of the principal amount of the Loan outstanding at the time the event occurred. Concurrent with the execution of the documents reflecting the Loan, the Company executed an Indemnity Agreement in favor of the Guarantor pursuant to which the Company agrees to indemnify and hold the Guarantor harmless from any losses incurred by the Guarantor pursuant to the terms of the guaranty executed by the Guarantor in favor of the Lenders in connection with the Loan. Deferred financing costs consist of amounts paid for direct and indirect costs associated with the origination of the Loan. Deferred financing costs were $2.2 million and $4.8 million as of June 30, 2016 and December 31, 2015, respectively, and are presented as a direct deduction of mortgages payable on the condensed consolidated balance sheets. Such costs are amortized on a straight-line basis (which approximates the effective interest method) over the term of the related debt. Amortization of deferred financing costs totaled $1.3 million and $2.5 million for each of the three and six months ended June 30, 2016 and 2015, respectively, and are included in interest expense in the condensed consolidated statements of operations. As part of the Merger, the Company assumed an existing loan with a commercial lender secured by the Company’s Fort Worth, Texas Residence Inn property. The loan matures on October 6, 2022 and carries a fixed interest rate of 4.73%. The outstanding principal balance was $16.8 million and $17.0 million as of June 30, 2016 and December 31, 2015, respectively, and is included in mortgages payable in the condensed consolidated balance sheets. Future scheduled principal payments of debt obligations (assuming exercise of first extension option under the Loan Agreement) as of June 30, 2016 are as follows (in thousands): 2016 (remaining months) $ 222 2017 830,464 2018 487 2019 510 2020 534 Thereafter 14,597 Total $ 846,814 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments In accordance with the authoritative guidance on fair value measurements and disclosures, the Company measures nonfinancial assets and liabilities subject to nonrecurring measurement and financial assets and liabilities subject to recurring measurement based on a hierarchy that prioritizes inputs to valuation techniques used to measure the fair value. Inputs used in determining fair value should be from the highest level available in the following hierarchy: Level 1 Level 2 Level 3 Determining estimated fair values of the Company’s financial instruments such as mortgages payable requires considerable judgment to interpret market data. The market assumptions and/or estimation methodologies used may have a material effect on estimated fair value amounts. Accordingly, the estimates presented are not necessarily indicative of the amounts by which these instruments could be purchased, sold, or settled. The table excludes cash and cash equivalents, restricted cash, due from third party managers, net, accounts payable and accrued expenses, and due to third party managers, net, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. Carrying amounts and estimated fair values of financial instruments, for periods indicated, were as follows (in thousands): June 30, 2016 December 31, 2015 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Financial liabilities not measured at fair value: Mortgages payable $ 846,814 $ 847,173 $ 847,032 $ 846,684 Mortgages payable – Impairment of investment in real estate – |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Insurance – Litigation – Franchise Agreements Management Agreements – TRS Lease Agreements – Ground Leases 2016 (remaining months) $ 137 2017 240 2018 206 2019 206 2020 144 Thereafter 281 Total $ 1,214 |
7% Series A Cumulative Redeemab
7% Series A Cumulative Redeemable Preferred Stock | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
7% Series A Cumulative Redeemable Preferred Stock | 7. 7% Series A Cumulative Redeemable Preferred Stock In connection with the Merger, the Company issued 97,032,848 shares of Series A Preferred Stock. The terms of these shares provide the Company with the right to redeem such shares at any time for an amount equal to the liquidation preference, plus any accumulated and unpaid dividends. In addition, the terms of these shares include an option for a holder of such shares to require the Company to redeem all or a portion of such holder’s shares on or after November 14, 2020 for an amount equal to the liquidation preference, plus any accumulated and unpaid dividends. The initial dividend rate on these shares is 7% per annum. The dividend rate will increase to 9% per annum if dividends are not paid in cash for more than six quarters, and to 11% per annum if they are not redeemed after the earlier of certain change of control events and May 14, 2018. Due to the put option provided to the holders of these shares, such shares have been classified outside permanent shareholder’s equity. On December 31, 2014, approximately $47.5 million of the proceeds of the Loan were used to redeem 24,650,000 shares of the Series A Preferred Stock. Shares were redeemed on a pro rata basis from each shareholder at a redemption price of $1.9281 per share, which was comprised of the $1.90 liquidation preference per share plus $0.0281 in accumulated and unpaid dividends earned through the December 31, 2014 redemption date. On September 30, 2013, BRE Holdings purchased approximately 2.0 million shares of the Series A Preferred Stock for $1.30 per share as part of a tender offer extended to all shareholders. As of June 30, 2016, BRE Holdings owned approximately 1.5 million shares of the Series A Preferred Stock due to the redemption. On March 23, 2016, the Board of Directors of the Company declared a dividend on the Series A Preferred Stock of $0.0333 per share, which was paid on April 15, 2016 to shareholders of record on April 1, 2016. On May 23, 2016, the Board of Directors of the Company declared a dividend on the Series A Preferred Stock of $0.0333 per share, which was paid on July 15, 2016 to shareholders of record on July 1, 2016. As of June 30, 2016, the Company accrued $2.4 million for this dividend, which is included in accounts payable and accrued expenses in the condensed consolidated balance sheet. |
Shareholder's Equity
Shareholder's Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Shareholder's Equity | 8. Shareholder’s Equity The Company is authorized to issue 150,100,000 shares of capital stock pursuant to its Amended and Restated Certificate of Incorporation, consisting of (i) 100,000 shares of common stock, par value $0.01 per share, and (ii) 150,000,000 shares of preferred stock, par value $0.0001 per share. Holders of the Company’s common stock are entitled to one vote for each share of common stock held. At June 30, 2016 and December 31, 2015, there were 100 shares of common stock issued and outstanding. On February 16, 2016, the Board of Directors of the Company declared a dividend on its common stock of $90,000 per share, which was paid on February 17, 2016. On May 10, 2016, the Board of Directors of the Company declared a dividend on its common stock of $100,000 per share, which was paid on May 11, 2016. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The Company accounts for TRS income taxes using the asset and liability 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 tax bases. The analysis utilized by the Company in determining the deferred tax valuation allowance involves considerable management judgment and assumptions. For the three months ended June 30, 2016 and 2015, the Company recorded $1.7 million and $1.9 million of income tax expense, respectively. For the six months ended June 30, 2016 and 2015, the Company recorded $0.1 million and $0.2 million of income tax expense, respectively. The income tax expense for the three and six months ended June 30, 2016 and 2015 is comprised of federal and state income taxes. The income tax expense for the six months ended June 30, 2016 includes a discrete income tax benefit of $0.1 million due to the contribution of certain investments in real estate from the REIT to a TRS during the period. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions The Sponsor and its affiliates are in the business of making investments in companies and real estate assets and currently own, and may, from time to time acquire and hold, in each case, interests in businesses or assets that compete directly or indirectly with the Company. In addition, certain affiliates of the Sponsor have significant influence over Hilton, which indirectly owns the entities that serve as franchisors and receive franchise fees for 27 of the hotels owned by the Company. In accordance with the Company’s certificate of incorporation, the Sponsor has no obligation to present any corporate opportunities to the Company or to conduct its other business and investment affairs in the best interests of the Company, common stockholders, or holders of Series A Preferred Shares. In connection with the Sponsor’s and its affiliates’ business activities, the Sponsor, BRE Holdings or any of their affiliates, including, without limitation, Hilton or its subsidiaries, may from time to time enter into arrangements with the Company or its subsidiaries. These arrangements may be subject to restrictions on affiliate transactions contained in agreements entered into in connection with the Loan. The Company incurred $4.6 million of franchise fees, marketing fees and other expenses during both the three months ended June 30, 2016 and 2015, respectively, under agreements with Hilton or its subsidiaries. The Company incurred $8.4 million and $8.5 million of franchise fees, marketing fees and other expenses during the six months ended June 30, 2016 and 2015, respectively, under agreements with Hilton or its subsidiaries. In addition, the Company uses Hilton to procure select capital improvements for its hotels. Under this arrangement, the Company paid Hilton $0.3 million during the three months ended June 30, 2015 and $3.1 million during the six months ended June 30, 2015. No amounts were paid to Hilton during the three or six months ended June 30, 2016 and no amounts were outstanding to Hilton as of June 30, 2016 or December 31, 2015. A management company provides services to the Company including financial, accounting, administrative and other services that may be requested from time to time pursuant to a corporate services agreement. Affiliates of the Sponsor hold a management interest in this management company. The Company paid $0.5 million and $0.3 million to this management company during the three months ended June 30, 2016 and 2015, respectively, and $1.0 million and $0.8 million during the six months ended June 30, 2016 and 2015, respectively. In addition, the Company owed this management company $0 and $0.1 million as of June 30, 2016 and December 31, 2015, respectively, which is included in accounts payable and accrued expenses in the condensed consolidated balance sheets. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation – |
Basis of Presentation | Basis of Presentation – |
Use of Estimates | Use of Estimates – |
Reclassifications | Reclassifications – |
Cash and Cash Equivalents | Cash and Cash Equivalents – |
Restricted Cash | Restricted Cash – |
Due from Third Party Managers, net | Due from Third Party Managers, net – |
Due to Third Party Managers, net | Due to Third Party Managers, net – |
Investment in Real Estate and Related Depreciation | Investment in Real Estate and Related Depreciation – |
Impairment of Investment in Real Estate | Impairment of Investment in Real Estate – If events or circumstances change, such as the operating performance of a property declines substantially for an extended period of time, the Company’s carrying value for a particular property may not be recoverable and in such instances an impairment loss may be recorded. Recoverability of assets to be held and used is determined by a comparison of the carrying amount of the assets to the future undiscounted net cash flow expected to be generated by the asset. If the carrying value of such assets exceeds such cash flows, the assets are considered impaired. Impairment losses are measured as the difference between the asset’s fair value and its carrying value. Fair value is determined by using management’s best estimate of the discounted net cash flows over the remaining life of the asset, or other indicators of fair value, such as a property sales agreement, if applicable. During the six months ended June 30, 2016, the Company executed a letter of intent to sell the Hilton Garden Inn – Fredericksburg, Virginia property, which may result in the disposition of the property prior to its previously estimated useful life. As a result, a test for impairment of the property was performed with fair value determined based on the estimated sales proceeds for the property. The Company estimated the sales proceeds based on the agreement of purchase and sale (subject to certain terms) entered into for the property in April 2016. The test resulted in a non-cash impairment of investment in real estate of $5.5 million for the six months ended June 30, 2016. Prior to June 30, 2016, the Company executed a letter of intent to sell the Marriott – Boulder, Colorado property, which may result in the disposition of the property prior to its previously estimated useful life. As a result, a test for impairment of the property was performed at June 30, 2016 with fair value determined based on the estimated sales proceeds for the property. The Company estimated the sales proceeds based on the agreement of purchase and sale (subject to certain terms) entered into for the property in June 2016. The test resulted in a non-cash impairment of investment in real estate of $3.0 million for the six months ended June 30, 2016. The Marriott – Boulder, Colorado property was subsequently sold on August 9, 2016. The Company received estimated net proceeds of $60.8 million, and as part of the sale, the Company repaid $43.2 million of the related mortgage payable. No other triggering events have occurred to indicate that the asset carrying values are not recoverable as of June 30, 2016. |
Goodwill | Goodwill – |
Revenue Recognition | Revenue Recognition – |
Sales and Marketing Costs | Sales and Marketing Costs – |
Income Taxes | Income Taxes – |
Valuation of Deferred Tax Assets | Valuation of Deferred Tax Assets – |
Income per Common Share | Income per Common Share |
Segment Information | Segment Information – |
New Accounting Pronouncements | New Accounting Pronouncements – Interest – Imputation of Interest (Subtopic 835-30) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern In February 2016, the FASB issued ASU 2016-02, Leases. |
Investment in Real Estate, net
Investment in Real Estate, net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate [Abstract] | |
Investment in Real Estate | Investment in real estate, net as of June 30, 2016 and December 31, 2015 consisted of the following (in thousands): June 30, December 31, 2016 2015 Land and Improvements $ 153,927 $ 154,855 Building and Improvements 840,091 835,335 Furniture, Fixtures and Equipment 55,796 49,020 Construction in Progress 14,417 21,345 1,064,231 1,060,555 Less: Accumulated Depreciation (89,653 ) (73,915 ) Investment in Real Estate, net $ 974,578 $ 986,640 |
Mortgages Payable (Tables)
Mortgages Payable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedule of Mortgages Payable | Mortgages payable as of June 30, 2016 and December 31, 2015 consisted of the following (in thousands): June 30, December 31, 2016 2015 Mortgages payable before unamortized deferred financing costs $ 846,814 $ 847,032 Unamortized deferred financing costs (2,243 ) (4,763 ) Mortgages payable $ 844,571 $ 842,269 |
Schedule of Future Principal Payments of Debt Obligations | Future scheduled principal payments of debt obligations (assuming exercise of first extension option under the Loan Agreement) as of June 30, 2016 are as follows (in thousands): 2016 (remaining months) $ 222 2017 830,464 2018 487 2019 510 2020 534 Thereafter 14,597 Total $ 846,814 |
Fair Value of Financial Instr19
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Estimated Fair Values of Financial Instruments | Carrying amounts and estimated fair values of financial instruments, for periods indicated, were as follows (in thousands): June 30, 2016 December 31, 2015 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Financial liabilities not measured at fair value: Mortgages payable $ 846,814 $ 847,173 $ 847,032 $ 846,684 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate Amounts of Minimum Lease Payments under Lease Agreements | The aggregate amounts of minimum lease payments under these lease agreements for the five years subsequent to June 30, 2016 and thereafter are as follows (in thousands): 2016 (remaining months) $ 137 2017 240 2018 206 2019 206 2020 144 Thereafter 281 Total $ 1,214 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2016HotelRoomState | Dec. 03, 2014Hotel | |
Organization [Line Items] | ||
Number of hotels owned | Hotel | 62 | 62 |
Number of states the hotels located | State | 18 | |
Aggregate number of rooms | Room | 7,346 | |
Apple REIT Six, Inc. [Member] | ||
Organization [Line Items] | ||
Acquisition date | May 14, 2013 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Additional Information (Detail) | Aug. 09, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($)Segment | Dec. 31, 2015USD ($) |
Property, Plant and Equipment [Line Items] | ||||
Deposits within financial institutions | $ 250,000 | $ 250,000 | ||
Impairment of investment in real estate | $ 2,994,000 | 8,507,000 | ||
Goodwill impairment | $ 0 | |||
Number of operating segment | Segment | 1 | |||
ASU 2015-03 [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Debt issuance costs | $ 4,800,000 | |||
Hilton Garden Inn Fredericksburg Virginia Property [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of investment in real estate | $ 5,500,000 | |||
Marriott Boulder Colorado Property [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of investment in real estate | $ 3,000,000 | |||
Marriott Boulder Colorado Property [Member] | Subsequent Event [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated net proceed from sale of business | $ 60,800,000 | |||
Payment of mortgage loans | $ 43,200,000 | |||
Buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of assets | 39 years | |||
Land and Building Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of assets | 10 years | |||
Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Percentage of adjusted taxable income to be distributed to shareholders | 90.00% | |||
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of assets | 3 years | |||
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of assets | 7 years |
Investment in Real Estate, ne23
Investment in Real Estate, net - Investment in Real Estate (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Real Estate Properties [Line Items] | ||
Investment in Real Estate, gross | $ 1,064,231 | $ 1,060,555 |
Less: Accumulated Depreciation | (89,653) | (73,915) |
Investment in Real Estate, net | 974,578 | 986,640 |
Land and Improvements [Member] | ||
Real Estate Properties [Line Items] | ||
Investment in Real Estate, gross | 153,927 | 154,855 |
Building and Improvements [Member] | ||
Real Estate Properties [Line Items] | ||
Investment in Real Estate, gross | 840,091 | 835,335 |
Furniture, Fixtures and Equipment [Member] | ||
Real Estate Properties [Line Items] | ||
Investment in Real Estate, gross | 55,796 | 49,020 |
Construction in Progress [Member] | ||
Real Estate Properties [Line Items] | ||
Investment in Real Estate, gross | $ 14,417 | $ 21,345 |
Mortgages Payable - Schedule of
Mortgages Payable - Schedule of Mortgages Payable (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate [Abstract] | ||
Mortgages payable before unamortized deferred financing costs | $ 846,814 | $ 847,032 |
Unamortized deferred financing costs | (2,243) | (4,763) |
Mortgages payable | $ 844,571 | $ 842,269 |
Mortgages Payable - Additional
Mortgages Payable - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016USD ($)Hotel | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Hotel | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 03, 2014USD ($)PropertyHotel | May 14, 2013USD ($) | |
Mortgage Loans on Real Estate [Line Items] | |||||||
Number of properties leased | Property | 61 | ||||||
Number of hotels owned | Hotel | 62 | 62 | 62 | ||||
Deferred financing costs associated with Loan | $ 2,243,000 | $ 2,243,000 | $ 4,763,000 | ||||
Amortization of deferred financing costs | $ 1,300,000 | $ 1,300,000 | $ 2,520,000 | $ 2,507,000 | |||
Mortgage and Mezzanine Loans [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Borrowings on mortgage loan | $ 830,000,000 | ||||||
Loans maturity, description | The Loan is scheduled to mature on December 9, 2016, with an option for the Borrowers to extend the initial term for three one-year extension terms, subject to certain conditions. | ||||||
Loan Agreement [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Borrowings on mortgage loan | $ 775,000,000 | ||||||
Loan outstanding principal amount | $ 763,900,000 | ||||||
Maximum [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Percentage of guarantor liability on principal of loan outstanding | 15.00% | 15.00% | |||||
Interest Rate Cap [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Derivative, maturity date | Dec. 9, 2016 | ||||||
Net proceeds from borrowings on mortgage payable and mezzanine loans | $ 830,000,000 | $ 830,000,000 | |||||
Fort Worth, Texas Residence Inn [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Loan, maturity date | Oct. 6, 2022 | ||||||
Loan, interest rate | 4.73% | ||||||
Fort Worth, Texas Residence Inn [Member] | Mortgages Payable [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Loan, Outstanding principal balance | $ 16,800,000 | $ 16,800,000 | $ 17,000,000 | ||||
LIBOR [Member] | Mortgage and Mezzanine Loans [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Margin rate | 2.80% | ||||||
One-Month LIBOR [Member] | Interest Rate Cap [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Margin rate | 4.50% | 4.50% | |||||
Mezzanine Loans [Member] | Year One [Member] | Minimum [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Debt yield | 7.50% | 7.50% | |||||
Mezzanine Loans [Member] | Year One [Member] | Maximum [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Debt yield | 7.50% | 7.50% | |||||
Mezzanine Loans [Member] | Year Two [Member] | Minimum [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Debt yield | 7.50% | 7.50% | |||||
Mezzanine Loans [Member] | Year Two [Member] | Maximum [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Debt yield | 7.50% | 7.50% | |||||
Mezzanine Loans [Member] | Year Three [Member] | Minimum [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Debt yield | 7.50% | 7.50% | |||||
Mezzanine Loans [Member] | Year Three [Member] | Maximum [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Debt yield | 7.50% | 7.50% | |||||
Mezzanine Loans [Member] | Year Four [Member] | Minimum [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Debt yield | 7.50% | 7.50% | |||||
Mezzanine Loans [Member] | Year Four [Member] | Maximum [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Debt yield | 7.50% | 7.50% | |||||
Mezzanine Loans [Member] | Year Five [Member] | Minimum [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Debt yield | 7.75% | 7.75% | |||||
Mezzanine Loans [Member] | Year Five [Member] | Maximum [Member] | |||||||
Mortgage Loans on Real Estate [Line Items] | |||||||
Debt yield | 7.75% | 7.75% |
Mortgages Payable - Schedule 26
Mortgages Payable - Schedule of Future Principal Payments of Debt Obligations (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
2016 (remaining months) | $ 222 |
2,017 | 830,464 |
2,018 | 487 |
2,019 | 510 |
2,020 | 534 |
Thereafter | 14,597 |
Total | $ 846,814 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments - Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Mortgages payable, Carrying Value | $ 846,814 | $ 847,032 |
Mortgages payable, Estimated Fair Value | $ 847,173 | $ 846,684 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($)Hotel | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)PropertyHotel | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 03, 2014Hotel | |
Long-term Purchase Commitment [Line Items] | ||||||
Insurance receivable | $ | $ 5,331 | $ 5,331 | $ 6,496 | |||
Insurance receivable collected | $ | $ 1,100 | $ 1,200 | ||||
Number of hotels owned | Hotel | 62 | 62 | 62 | |||
Number of subset of hotels with ground leases | Hotel | 4 | 4 | ||||
Ground lease expenses | $ | $ 100 | $ 100 | $ 100 | $ 100 | ||
Affiliated Entity [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Management agreement terms, description | The agreements with less than one year remaining in their term generally automatically renew on annual or month-to-month terms unless either party to the agreement gives prior notice of the termination thereof. | |||||
Affiliated Entity [Member] | Management Agreements [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Number of hotels owned | Hotel | 62 | 62 | ||||
Ground Leases [Member] | Courtyard and Fairfield Inn [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Number of properties leased under single ground lease | Property | 2 | |||||
Ground Leases [Member] | PA Residence Inn [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Lease obligation remaining period | 17 years | |||||
Minimum [Member] | Franchise Agreements [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Royalty fee | 4.50% | |||||
Minimum [Member] | Affiliated Entity [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Payment of management fee as percentage of revenues | 2.00% | |||||
Management agreement remaining terms, period | 1 year | |||||
Minimum [Member] | Ground Leases [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Lease obligation remaining period | 2 years | |||||
Maximum [Member] | Franchise Agreements [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Royalty fee | 6.00% | |||||
Maximum [Member] | Affiliated Entity [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Payment of management fee as percentage of revenues | 7.00% | |||||
Management agreement remaining terms, period | 18 years | |||||
Maximum [Member] | Ground Leases [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Lease obligation remaining period | 8 years |
Commitments and Contingencies29
Commitments and Contingencies - Aggregate Amounts of Minimum Lease Payments under Lease Agreements (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2016 (remaining months) | $ 137 |
2,017 | 240 |
2,018 | 206 |
2,019 | 206 |
2,020 | 144 |
Thereafter | 281 |
Total | $ 1,214 |
7% Series A Cumulative Redeem30
7% Series A Cumulative Redeemable Preferred Stock - Additional Information (Detail) - 7% Series A Cumulative Redeemable Preferred Stock [Member] - USD ($) $ / shares in Units, $ in Millions | May 23, 2016 | Mar. 23, 2016 | Sep. 30, 2013 | Jun. 30, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | Nov. 29, 2012 |
Class of Stock [Line Items] | |||||||
Preferred stock, shares issued | 72,382,848 | 72,382,848 | 97,032,848 | ||||
Initial date for redemption of shares | Nov. 14, 2020 | ||||||
Preferred Stock, dividend rate | 7.00% | ||||||
Increase in dividend rate of preferred stock per annum, if not paid in cash for more than six quarters | 9.00% | ||||||
Increase in dividend rate of preferred stock if not redeemed after control events and May 14, 2018 | 11.00% | ||||||
Increase in dividend rate, trigger date | May 14, 2018 | ||||||
Redemption of Series A Preferred Stock | $ 47.5 | ||||||
Number of preferred stock redeemed | 24,650,000 | ||||||
Redemption price per share | $ 1.9281 | ||||||
Preferred stock initial liquidation preference per share | $ 1.90 | 1.90 | $ 1.90 | ||||
Accumulated and unpaid dividends earned per share | $ 0.0281 | ||||||
Number of preferred stock owned by company due to redemption | 72,382,848 | 72,382,848 | |||||
Accrued dividend | $ 2.4 | ||||||
Installment One Financial Year Two Thousand Sixteen [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, dividend declared per share | $ 0.0333 | ||||||
Dividend paid, date | Apr. 15, 2016 | ||||||
Preferred Stock, dividend record date | Apr. 1, 2016 | ||||||
Dividend payable, date declared | Mar. 23, 2016 | ||||||
Installment Two Financial Year Two Thousand Sixteen [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, dividend declared per share | $ 0.0333 | ||||||
Dividend paid, date | Jul. 15, 2016 | ||||||
Preferred Stock, dividend record date | Jul. 1, 2016 | ||||||
Dividend payable, date declared | May 23, 2016 | ||||||
BRE Holdings [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock tender offer number of shares | 2,000,000 | ||||||
Preferred Stock, purchase price | $ 1.30 | ||||||
Number of preferred stock owned by company due to redemption | 1,500,000 |
Shareholder's Equity - Addition
Shareholder's Equity - Additional Information (Detail) - $ / shares | May 10, 2016 | Feb. 16, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||||||
Capital stock, shares authorized | 150,100,000 | 150,100,000 | |||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Common stock voting rights | Company's common stock are entitled to one vote for each share of common stock | ||||||
Common stock, shares issued | 100 | 100 | 100 | ||||
Common stock, shares outstanding | 100 | 100 | 100 | ||||
Common Stock, dividend declared per share | $ 100,000 | $ 90,000 | $ 190,000 | $ 90,000 | |||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Capital stock, shares authorized | 100,000 | 100,000 | |||||
Dividend payable, date declared | May 10, 2016 | Feb. 16, 2016 | |||||
Dividend payable, date to be paid | May 11, 2016 | Feb. 17, 2016 | |||||
Common Stock, dividend declared per share | $ 100,000 | $ 90,000 | |||||
Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Capital stock, shares authorized | 150,000,000 | 150,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ (1,679) | $ (1,925) | $ (72) | $ (202) |
Discrete income tax benefit | $ 100 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($)Hotel | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Hotel | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 03, 2014Hotel | |
Related Party Transaction [Line Items] | ||||||
Number of hotels owned | Hotel | 62 | 62 | 62 | |||
Capital improvements payable | $ 1,042,000 | $ 1,042,000 | $ 1,149,000 | |||
Hilton Worldwide Inc [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Franchise fees, marketing fees, and other expenses | 4,600,000 | $ 4,600,000 | 8,400,000 | $ 8,500,000 | ||
Amount paid for capital improvements | 0 | 300,000 | 0 | 3,100,000 | ||
Capital improvements payable | 0 | 0 | 0 | |||
Affiliated Entity [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Professional fees paid to management company | 500,000 | $ 300,000 | 1,000,000 | $ 800,000 | ||
Management Company [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Capital improvements payable | $ 0 | $ 0 | $ 100,000 | |||
Hilton Worldwide Holdings Inc. Franchisor [Member] | Hilton Worldwide Inc [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Number of hotels owned | Hotel | 27 | 27 |