Watermark Lodging Trust (WRMK) 10-Q 15 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document	3 Months Ended
	Mar. 31, 2015	8-May-15
Entity Registrant Name	Carey Watermark Investors 2 Inc
Entity Central Index Key	1609471
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	-19
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Common Class A
Entity Common Stock, Shares Outstanding		22,222
Common Class T
Entity Common Stock, Shares Outstanding		0

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Assets
Cash	$500,050	$200,035
Other Assets	1,745,616	0
Total assets	2,245,666	200,035
Liabilities:
Due to related parties and affiliates	2,040,679	108,069
Accounts payable, accrued expenses and other	241,370	0
Total liabilities	2,282,049	108,069
Commitments and contingencies (Note 4)
Equity:
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued	0	0
Additional paid-in capital	199,978	199,978
Accumulated losses	-536,383	-108,034
Total CWI 2 stockholder’s (deficit) equity	-336,383	91,966
Noncontrolling interest	300,000	0
Total (deficit) equity	-36,383	91,966
Total liabilities and equity	2,245,666	200,035
Common Class A
Equity:
Common stock	22	22
Common Class T
Equity:
Common stock	$0	$0

Consolidated_Balance_Sheets_Un1

Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Equity:
Preferred stock, par share value	$0.00	$0.00
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, share issued	0	0
Common Class A
Equity:
Common stock, par share value	$0.00	$0.00
Common stock, shares authorized	320,000,000	320,000,000
Common stock, share issued	22,222	22,222
Common shares, outstanding	22,222	22,222
Common Class T
Equity:
Common stock, par share value	$0.00	$0.00
Common stock, shares authorized	80,000,000	80,000,000
Common stock, share issued	0	0

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015
Other Operating Expenses
Corporate general and administrative expenses	($260,722)
Acquisition-related expenses	-167,642
Other operating expenses	-428,364
Other Income
Interest income	15
Net Loss	($428,349)

Consolidated_Statements_of_Equ

Consolidated Statements of Equity (Unaudited) (USD $)	Total	Common Stock	Additional Paid-In Capital	Accumulated Losses	Total CWI 2 Stockholder’s Equity (Deficit)	Noncontrolling Interest
Beginning balance, value at Dec. 31, 2014	$91,966	$22	$199,978	($108,034)	$91,966	$0
Beginning balance, shares at Dec. 31, 2014		22,222
Statement of Equity
Contribution from noncontrolling interest	300,000				0	300,000
Net loss	-428,349			-428,349	-428,349
Ending balance, value at Mar. 31, 2015	($36,383)	$22	$199,978	($536,383)	($336,383)	$300,000
Ending balance, shares at Mar. 31, 2015		22,222

Consolidated_Statement_of_Cash

Consolidated Statement of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015
Cash Flows — Operating Activities
Net Loss	($428,349)
Net changes in other assets	-1,745,616
Net changes in due to related parties and affiliates	1,932,610
Net changes in accounts payable, accrued expenses and other	241,370
Net Cash Provided by Operating Activities	15
Cash Flows — Financing Activities
Contribution from noncontrolling interest	300,000
Net Cash Provided by Financing Activities	300,000
Change in Cash During the Period
Net increase in cash	300,015
Cash, beginning of period	200,035
Cash, end of period	$500,050

Organization_and_Offering

Organization and Offering	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Offering	Organization and Offering
	Organization
	Carey Watermark Investors 2 Incorporated, or CWI 2, and, together with its consolidated subsidiaries, we, us, or our, is a publicly-owned, non-listed real estate investment trust, or REIT, formed as a Maryland corporation on May 22, 2014 for the purpose of investing in lodging and lodging-related properties. We expect to conduct substantially all of our investment activities and own all of our assets through CWI 2 OP, LP, or our Operating Partnership. We are a general partner and a limited partner and own a 99.985% capital interest in the Operating Partnership. Carey Watermark Holdings 2, LLC, or Carey Watermark Holdings 2, which is owned indirectly by W. P. Carey Inc., or WPC, holds a special general partner interest in the Operating Partnership.
	Carey Lodging Advisors, LLC, or our advisor, is an indirect subsidiary of WPC. Our advisor will manage our overall portfolio, including providing oversight and strategic guidance to the independent hotel operators that manage our hotels. Our subadvisor, CWA2, LLC, a subsidiary of Watermark Capital Partners, will provide services to our advisor primarily relating to acquiring, managing, financing and disposing of our hotels and overseeing the independent operators that manage the day-to-day operations of our hotels. In addition, our subadvisor provides us with the services of our chief executive officer during the term of the subadvisory agreement, subject to the approval of our independent directors.
	On May 30, 2014, we received a capital contribution from Carey REIT II, Inc., an indirect subsidiary of WPC, and an affiliate of our advisor, for $200,000 in exchange for 22,222 shares of our common stock, par value $0.001 per share. Carey REIT II, Inc. purchased its shares at $9.00 per share, net of selling commissions and fees, which would have otherwise been payable to Carey Financial, LLC. On March 27, 2015, Carey Watermark Holdings 2 purchased a capital interest in the Operating Partnership representing its special general partnership interest of 0.015% for $300,000.
	Public Offering
	On February 9, 2015, our Registration Statement on Form S-11 (File No. 333-196681), covering an initial public offering of up to $1,400,000,000 of Class A shares at $10.00 per share, was declared effective under the Securities Act of 1933. The Registration Statement also covered the offering of up to $600,000,000 of Class A shares at $9.60 pursuant to our distribution reinvestment plan. On April 1, 2015, we filed an amended Registration Statement to include Class T shares in our initial public offering at $9.45 per share and under our distribution reinvestment plan at $9.07 per share, which was declared effective on April 13, 2015, allowing for the sales of Class A and Class T shares, in any combination, of up to $1,400,000,000 in the offering and up to $600,000,000 through our distribution reinvestment plan. Our initial public offering is being offered on a “best efforts” basis by Carey Financial, LLC, an affiliate of our advisor, and other selected dealers. We intend to use the net proceeds of the offering to acquire, own and manage a portfolio of interests in lodging and lodging related properties. While our core strategy is focused on the lodging industry, we may also invest in other real estate property sectors. At March 31, 2015, subscription proceeds for our common stock have not reached the minimum offering amount of $2,000,000, and therefore we have not begun admitting stockholders.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Basis of Presentation
	Basis of Presentation
	Our interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the U.S.
	In the opinion of management, the unaudited financial information for the interim period presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of financial position, results of operations and cash flows.
	Operating results for interim periods are not necessarily indicative of operating results for an entire year.
	We had no significant operations as of March 31, 2015. We had no operating activity prior to June 30, 2014 and, therefore, no activity is presented for the three months ended March 31, 2014. Our operating expenses for the three months ended March 31, 2015 consist of corporate general and administrative expenses (Note 3), organization costs incurred in connection with our offering (Note 3) and acquisition-related costs associated with future acquisitions. The consolidated financial statements reflect all of our accounts, including those of our majority-owned and/or controlled subsidiaries.
	The preparation of financial statements in conformity with accounting principles general accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.
	Basis of Consolidation
	Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portion of equity in a consolidated subsidiary that is not attributable, directly or indirectly, to us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.
	When we obtain an economic interest in an entity, we evaluate the entity to determine if it is a variable interest entity, or VIE and, if so, whether we are deemed to be the primary beneficiary and are therefore required to consolidate the entity. We performed an analysis of all of our subsidiary entities to determine whether they qualify as variable interest entities and whether they should be consolidated or accounted for as equity investments in an unconsolidated venture. As a result of our assessment, we have concluded that none of our subsidiaries qualified as a variable interest entity. All our subsidiaries are consolidated under the voting interest entity model at March 31, 2015.
	We account for the capital interest held by Carey Watermark Holdings 2 in the Operating Partnership as a noncontrolling interest.
	Accounting for Acquisitions
	In accordance with the guidance for business combinations, we determine whether a transaction or other event is a business combination, which requires that the assets acquired and the liabilities assumed constitute a business. Each business combination is then accounted for by applying the acquisition method of accounting. We will record our investments in hotel properties based on the fair value of the identifiable assets acquired, identifiable intangible assets acquired, liabilities assumed and any noncontrolling interest in the acquired entity, and if applicable, recognizing and measuring any goodwill or gain from a bargain purchase at the acquisition date. Assets and liabilities will be recorded at fair value and allocated to land, buildings, building and site improvements, furniture, fixtures and equipment and intangibles, as applicable, using appraisals and valuations performed by management and independent third parties. Fair values will be based on the exit price (i.e. the price that would be received in an orderly transaction to sell an asset or transfer a liability between market participants at the measurement date). We will evaluate several factors, including market data for similar assets or similar in-place lease contractual agreements for intangible assets, expected cash flows discounted at risk adjusted rates and replacement cost for the assets to determine an appropriate exit cost when evaluating the fair value of our assets. We immediately expense, as incurred, all acquisition costs and fees associated with transactions deemed to be business combinations in which we expect to consolidate the asset and we capitalize these costs for transactions we expect to be acquisitions of an asset, including an equity investment. We will record debt assumed in business combinations at fair value. We will determine the estimated fair value using a discounted cash flow model with rates that take into account the current market interest rate risk. We will also consider the value of the underlying collateral taking into account the quality of the collateral, the time until maturity and the current interest rate. Any resulting premium or discount will be amortized over the remaining term of the obligation.
	Real Estate
	We will carry land, buildings and personal property at cost less accumulated depreciation. We will capitalize improvements and will expense replacements, maintenance and repairs that do not improve or extend the life of the respective assets. Renovations and/or replacements at the hotel properties that improve or extend the life of the assets will be capitalized and depreciated over their useful lives, and repairs and maintenance will be expensed as incurred. We will capitalize interest and certain other costs, such as incremental labor costs relating to hotels undergoing major renovations and redevelopments.
	Cash
	Our cash is held in the custody of a major financial institution, and this balance may, at times, exceed federally insurable limits, however management believes the credit risk related to this deposit is minimal.
	Other Assets
	Other assets consists of a deposit placed on our behalf by our affiliate, Carey Watermark Investors Incorporated, or CWI or CWI 1, a publicly owned non-listed REIT investing in lodging properties that is also managed by our advisor, on the Courtyard Nashville Downtown, which we acquired during the second quarter of 2015, and deferred acquisition-related costs related to a potential future acquisition that we expect to be accounted for under the equity method of accounting.
	Federal Income Taxes
	We intend to qualify as a REIT, under the Internal Revenue Code, beginning with our taxable year ending December 31, 2015. Maintaining our qualification as a REIT will require us to distribute at least 90% of our REIT taxable income to our stockholders and to meet certain tests regarding the nature of our income and assets.  In addition, REITs are subject to numerous organizational and operational requirements including limitations on certain types of gross income. As a REIT, we generally will not be subject to U.S. federal income tax on income that we distribute to stockholders as long as we meet such requirements and distribute all of our net taxable income on an annual basis. If we fail to qualify for taxation as a REIT for any taxable year, our income will be taxed at regular corporate rates, and we may not be able to elect REIT status in that year and for the next four years.  As a REIT for U.S. federal income tax purposes, we may be subject to state and local income or excise taxes on our income, property or capital, and may pay federal, state and local income and excise taxes on undistributed income.
	We may elect to treat one or more of our corporate subsidiaries as a taxable REIT subsidiary, or TRS. In general, a TRS may perform additional services for our tenants and generally may engage in any real estate or non-real estate related business (except for the operation or management of lodging facilities or providing to any person, under a franchise, license or otherwise, rights to any brand name under which any lodging facility is operated). The Internal Revenue Code permits a TRS to lease from a REIT a lodging facility if the TRS engages an Eligible Independent Contractor to operate the facility under a management agreement or other service contract.  We intend to engage an Eligible Independent Contractor, as defined in the Internal Revenue Code, whenever required to maintain our REIT status.  A TRS is subject to corporate federal, state and local income taxes.
	As of March 31, 2015 and December 31, 2014, the Company has determined that it has no uncertain tax positions.
	Depreciation
	We will compute depreciation for hotels and related building improvements using the straight-line method over the estimated useful lives of the properties, site improvements and furniture, fixtures and equipment.
	Organization and Offering Costs
	During the offering period, costs incurred in connection with the raising of capital will be recorded as deferred offering costs. Upon receipt of offering proceeds, we will charge the deferred costs to stockholder’s equity. Under the terms of our advisory agreement as described in Note 3, we will reimburse our advisor for organization and offering costs incurred; however, such reimbursements will not exceed regulatory limitations. Organization costs are expensed as incurred and are included in corporate general and administrative expenses in the financial statements.
	Distributions
	We will begin to accrue daily distributions once subscription proceeds for our common stock reach the minimum offering amount of $2,000,000 and we begin admitting stockholders.
	Our first quarter 2015 declared daily distribution was $0.0016665 per share for our Class A common stock, comprised of $0.0013888 per day payable in cash and $0.0002777 per day payable in shares of our Class A common stock. As of March 31, 2015, we had not raised the minimum amount of subscription proceeds and, therefore, no distributions had accrued at that date.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our financial statements and the accompanying notes. Actual results could differ from those estimates.
	Recent Accounting Requirements
	The following Accounting Standards Updates, or ASUs, promulgated by the Financial Accounting Standards Board is applicable to us:
	ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Additionally, this guidance modifies disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In April 2015, the Financial Accounting Standards Board issued a proposed ASU to defer the effective date of ASU 2014-09 by one year. Under the proposal, ASU 2014-09 would be effective beginning in 2018, and early adoption is permitted but not before 2017, the original public company effective date. We are currently evaluating the impact of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard.
	ASU 2015-02, Consolidation (Topic 810). ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, and affects the evaluation of fee arrangements in the primary beneficiary determination. ASU 2015-02 is effective for periods beginning after December 15, 2015 and early adoption is permitted. We are currently evaluating the impact of ASU 2015-02 on our consolidated financial statements.
	ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30). ASU 2015-03 changes the presentation of debt issuance costs, which are currently recognized as a deferred charge (that is, an asset) and requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 does not affect the recognition and measurement guidance for debt issuance costs. ASU 2015-03 is effective for periods beginning after December 15, 2015, early adoption is permitted and retrospective application is required. We are currently evaluating the impact of ASU 2015-03 on our consolidated financial statements.

Agreements_and_Transactions_wi

Agreements and Transactions with Related Parties	3 Months Ended
	Mar. 31, 2015
Related Party Transactions [Abstract]
Agreements and Transactions with Related Parties	Agreements and Transactions with Related Parties
	Agreements with our Advisor and Affiliates
	Effective February 9, 2015, we entered into an agreement with our advisor to perform certain services for us, including managing our offering, the identification, evaluation, negotiation, purchase and disposition of lodging and lodging-related properties, and our overall business. Pursuant to the advisory agreement, after we have reached the minimum offering amount of $2,000,000, our advisor shall be reimbursed for all organization expenses and offering costs incurred in connection with our offering (excluding selling commissions and the dealer manager fees) of between 1.5% and 4.0% of the gross proceeds of our offering and distribution reinvestment plan, depending on the gross offering proceeds. See Note 4 for details of the maximum expense reimbursement cap range. For the three months ended March 31, 2015, organization expenses totaled $68,999 and were included in Corporate general and administrative expenses in the consolidated financial statements. From inception through March 31, 2015, organization expenses and offering costs were approximately $177,068 and $2,045,516, respectively. During the offering period, costs incurred in connection with the raising of capital will be recorded as deferred offering costs. Upon receipt of offering proceeds, we will charge the deferred offering costs to stockholder’s equity. Reimbursement of organization expenses and offering costs is contingent on raising the minimum offering amount of $2,000,000.
	Our advisor will receive acquisition fees of 2.5% of the total investment cost of the properties acquired, as defined in our advisory agreement, described above. The total fees to be paid may not exceed 6% of the aggregate contract purchase price of all investments, as measured over a period specified in our advisory agreement. We also will pay our advisor an annual asset management fee equal to 0.55% of the aggregate average market value of our investments. Carey Watermark Holdings 2, an affiliate of our advisor, will also receive 10% of Available Cash distributions, as defined in the limited partnership agreement of the Operating Partnership. Our advisor may also receive disposition fees of up to 1.5% of the contract sales price of a property and loan refinancing fees of up to 1.0% of the principal amount of the refinanced loan. No such fees were earned by our advisor during the three months ended March 31, 2015. The limited partnership agreement of the Operating Partnership also provides Carey Watermark Holdings 2 with an interest in subordinated disposition proceeds and subordinated incentive distributions upon a stock exchange listing.
	Effective February 9, 2015, our advisor entered into a subadvisory agreement with our subadvisor whereby our advisor will pay 25% of the aforementioned fees and Available Cash distributions and 30% of the subordinated incentive distributions to our subadvisor. No such fees or distributions were incurred during the three months ended March 31, 2015.
	Effective February 9, 2015, we have entered into a dealer manager agreement with Carey Financial, LLC, an affiliate of our advisor, whereby Carey Financial, LLC will receive a selling commission of up to $0.70 per share sold and a dealer manager fee of up to $0.30 per share sold. No shares were sold during the three months ended March 31, 2015.
	Amounts Due to Related Parties and Affiliates
	At March 31, 2015, amounts due to related parties and affiliates of $2,040,679 represented amounts due to our advisor totaling $205,241 and amounts due to CWI totaling $1,835,438. Amounts due to our advisor represent organization expenses, as discussed above, as well as reimbursement for the services of Michael G. Medzigian, our chief executive officer, which will subsequently be reimbursed to our subadvisor. Our subadvisor provides us with these services, during the term of the subadvisory agreement, subject to the approval of our board of directors. Amounts due to CWI primarily represent a deposit of $1,500,000 placed on our behalf by CWI on Courtyard Nashville Downtown, which we acquired during the second quarter of 2015. Amounts due to CWI also include audit-related fees incurred in connection with our acquisition with CWI of an interest in a joint venture owning the Marriott Sawgrass Golf Resort & Spa (Note 5) and acquisition-related costs incurred in connection with a potential future acquisition and our acquisition of the Courtyard Nashville Downtown (Note 5) totaling $335,438, that were paid by CWI on our behalf during the first quarter of 2015, of which $86,800 was included in Corporate general and administrative expenses in our consolidated financial statements.
	Operating Expenses
	Pursuant to the advisory agreement, our advisor is obligated to reimburse us for “operating expenses” to the extent that these expenses exceed the greater of 2% of “average invested assets” or 25% of our “adjusted net income,” as defined in that agreement. At March 31, 2015, we had no invested assets or net income, and therefore all operating expenses were the responsibility of our advisor. However, pursuant to the advisory agreement, if a majority of the independent directors finds these expenses are justified based on unusual and non-recurring factors as they deem sufficient, the Operating Partnership may reimburse our advisor in future quarters for the full amount of these expenses to the extent such reimbursements would not cause the operating expenses to exceed the 2%/25% guidelines in the 12-month period ended on the last day of such quarter. In April 2015, the independent directors approved the future reimbursement to our advisor for certain expenses incurred during the three months ended March 31, 2015 totaling $104,924, which is included in Corporate general and administrative expenses in the consolidated financial statements.
	Other Transactions with Affiliates
	In April 2015, our board of directors and the board of directors of WPC approved unsecured loans to us and CWI of up to an aggregate of $110,000,000, at an interest rate equal to the rate at which WPC is able to borrow funds under its senior unsecured credit facility, for the purpose of facilitating acquisitions that we might not otherwise have sufficient available funds to complete. Any such loans are solely at the discretion of WPC’s management. At March 31, 2015, there were no such loans outstanding. See Note 5 for descriptions of such loans obtained subsequent to March 31, 2015.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies
	At March 31, 2015, we were not involved in any litigation. Various claims and lawsuits may arise against us in the normal course of business, but we do not expect the results of such proceedings to have a material adverse effect on our consolidated financial position or results of operations.
	We will be liable for certain expenses of our initial public offering, including filing, legal, accounting, printing and escrow fees, which are to be deducted from the gross proceeds of the offering. We will reimburse Carey Financial, LLC or selected dealers for certain organization and offering costs. The total underwriting compensation to Carey Financial, LLC and selected dealers in connection with the offering shall not exceed limitations prescribed by the Financial Industry Regulatory Authority Inc. Our advisor has agreed to be responsible for the repayment of (i) organization and offering expenses (excluding selling commissions and dealer manager fees paid to Carey Financial, LLC with respect to shares held by any clients of it and selected dealers and fees paid and expenses reimbursed to selected dealers) which exceed in the aggregate 4% of the gross proceeds from the offering if the gross proceeds are less than $500,000,000, 2% of the gross proceeds from the offering if the gross proceeds are $500,000,000 or more but less than $750,000,000, and 1.5% of the gross proceeds from the offering if the gross proceeds are $750,000,000 or more; and (ii) organization and offering expenses (including selling commissions, dealer manager fees, and expenses reimbursed to selected dealers) which exceed 15% of the gross proceeds of the offering.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events
	Acquisitions
	On April 1, 2015, we acquired a 50% interest in a joint venture owning the Marriott Sawgrass Golf Resort & Spa from our affiliate, CWI, which acquired the hotel in October 2014. The 511-room resort is located in Ponte Vedra Beach, Florida. The joint venture’s total investment in the property is approximately $141,000,000, including debt and acquisition-related expenses. Our investment in the property is approximately $70,520,000 in the aggregate, including our allocated portion of debt, acquisition-related costs and the reimbursement to CWI for 50% of the acquisition fee it paid to the advisor in October 2014, of which our portion totaled approximately $1,996,000. The purchase price for our interest was 50% of CWI’s total equity investment. Our investment was financed, in part, by a loan from a subsidiary of WPC (Note 3). We are the managing member of the joint venture and will consolidate this hotel. The preliminary purchase price allocation for the real estate assets acquired by the joint venture in connection with this acquisition totaled approximately $130,000,000 and was comprised of land, building and furniture, fixtures and equipment totaling approximately $26,000,000, $95,000,000 and $9,000,000, respectively.
	On May 1, 2015, we acquired a 100% interest in Courtyard Nashville Downtown from Worthington Hyde Partners, an unaffiliated third party. The 192-room, select-service hotel is located in Nashville, Tennessee. Our total investment in the property is approximately $69,700,000, which was partially financed by a loan from a subsidiary of WPC (Note 3). We also obtained a non-recourse mortgage loan at closing of $42,000,000. We paid acquisition fees of approximately $1,746,000. The hotel will continue to be managed by Marriott International.
	It was not practicable to disclose the preliminary purchase price allocation for the Courtyard Nashville Downtown acquisition or consolidated pro forma financial information for the acquisition of Marriott Sawgrass Golf Resort & Spa and Courtyard Nashville Downtown, given the short period of time between the acquisition date and the issuance of this Report.
	Loans from Affiliate
	Through the date of this Report, we have obtained loans aggregating approximately $102,500,000 from a subsidiary of WPC, of which approximately $65,000,000 has been used to finance, in part, the acquisitions discussed above (Note 3).

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Consolidation	Basis of Consolidation
	Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portion of equity in a consolidated subsidiary that is not attributable, directly or indirectly, to us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.
	When we obtain an economic interest in an entity, we evaluate the entity to determine if it is a variable interest entity, or VIE and, if so, whether we are deemed to be the primary beneficiary and are therefore required to consolidate the entity. We performed an analysis of all of our subsidiary entities to determine whether they qualify as variable interest entities and whether they should be consolidated or accounted for as equity investments in an unconsolidated venture. As a result of our assessment, we have concluded that none of our subsidiaries qualified as a variable interest entity. All our subsidiaries are consolidated under the voting interest entity model at March 31, 2015.
	We account for the capital interest held by Carey Watermark Holdings 2 in the Operating Partnership as a noncontrolling interest.
	Accounting for Acquisitions
	In accordance with the guidance for business combinations, we determine whether a transaction or other event is a business combination, which requires that the assets acquired and the liabilities assumed constitute a business. Each business combination is then accounted for by applying the acquisition method of accounting. We will record our investments in hotel properties based on the fair value of the identifiable assets acquired, identifiable intangible assets acquired, liabilities assumed and any noncontrolling interest in the acquired entity, and if applicable, recognizing and measuring any goodwill or gain from a bargain purchase at the acquisition date. Assets and liabilities will be recorded at fair value and allocated to land, buildings, building and site improvements, furniture, fixtures and equipment and intangibles, as applicable, using appraisals and valuations performed by management and independent third parties. Fair values will be based on the exit price (i.e. the price that would be received in an orderly transaction to sell an asset or transfer a liability between market participants at the measurement date). We will evaluate several factors, including market data for similar assets or similar in-place lease contractual agreements for intangible assets, expected cash flows discounted at risk adjusted rates and replacement cost for the assets to determine an appropriate exit cost when evaluating the fair value of our assets. We immediately expense, as incurred, all acquisition costs and fees associated with transactions deemed to be business combinations in which we expect to consolidate the asset and we capitalize these costs for transactions we expect to be acquisitions of an asset, including an equity investment. We will record debt assumed in business combinations at fair value. We will determine the estimated fair value using a discounted cash flow model with rates that take into account the current market interest rate risk. We will also consider the value of the underlying collateral taking into account the quality of the collateral, the time until maturity and the current interest rate. Any resulting premium or discount will be amortized over the remaining term of the obligation.
Real Estate	Real Estate
	We will carry land, buildings and personal property at cost less accumulated depreciation. We will capitalize improvements and will expense replacements, maintenance and repairs that do not improve or extend the life of the respective assets. Renovations and/or replacements at the hotel properties that improve or extend the life of the assets will be capitalized and depreciated over their useful lives, and repairs and maintenance will be expensed as incurred. We will capitalize interest and certain other costs, such as incremental labor costs relating to hotels undergoing major renovations and redevelopments.
Cash and Cash Equivalents	Cash
	Our cash is held in the custody of a major financial institution, and this balance may, at times, exceed federally insurable limits, however management believes the credit risk related to this deposit is minimal.
Other Assets and Liabilities	Other Assets
	Other assets consists of a deposit placed on our behalf by our affiliate, Carey Watermark Investors Incorporated, or CWI or CWI 1, a publicly owned non-listed REIT investing in lodging properties that is also managed by our advisor, on the Courtyard Nashville Downtown, which we acquired during the second quarter of 2015, and deferred acquisition-related costs related to a potential future acquisition that we expect to be accounted for under the equity method of accounting.
Income Tax	Federal Income Taxes
	We intend to qualify as a REIT, under the Internal Revenue Code, beginning with our taxable year ending December 31, 2015. Maintaining our qualification as a REIT will require us to distribute at least 90% of our REIT taxable income to our stockholders and to meet certain tests regarding the nature of our income and assets.  In addition, REITs are subject to numerous organizational and operational requirements including limitations on certain types of gross income. As a REIT, we generally will not be subject to U.S. federal income tax on income that we distribute to stockholders as long as we meet such requirements and distribute all of our net taxable income on an annual basis. If we fail to qualify for taxation as a REIT for any taxable year, our income will be taxed at regular corporate rates, and we may not be able to elect REIT status in that year and for the next four years.  As a REIT for U.S. federal income tax purposes, we may be subject to state and local income or excise taxes on our income, property or capital, and may pay federal, state and local income and excise taxes on undistributed income.
	We may elect to treat one or more of our corporate subsidiaries as a taxable REIT subsidiary, or TRS. In general, a TRS may perform additional services for our tenants and generally may engage in any real estate or non-real estate related business (except for the operation or management of lodging facilities or providing to any person, under a franchise, license or otherwise, rights to any brand name under which any lodging facility is operated). The Internal Revenue Code permits a TRS to lease from a REIT a lodging facility if the TRS engages an Eligible Independent Contractor to operate the facility under a management agreement or other service contract.  We intend to engage an Eligible Independent Contractor, as defined in the Internal Revenue Code, whenever required to maintain our REIT status.  A TRS is subject to corporate federal, state and local income taxes.
	As of March 31, 2015 and December 31, 2014, the Company has determined that it has no uncertain tax positions.
Depreciation	Depreciation
	We will compute depreciation for hotels and related building improvements using the straight-line method over the estimated useful lives of the properties, site improvements and furniture, fixtures and equipment.
Organization and Offering Cost	Organization and Offering Costs
	During the offering period, costs incurred in connection with the raising of capital will be recorded as deferred offering costs. Upon receipt of offering proceeds, we will charge the deferred costs to stockholder’s equity. Under the terms of our advisory agreement as described in Note 3, we will reimburse our advisor for organization and offering costs incurred; however, such reimbursements will not exceed regulatory limitations. Organization costs are expensed as incurred and are included in corporate general and administrative expenses in the financial statements.
Use of Estimates	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our financial statements and the accompanying notes. Actual results could differ from those estimates
New Accounting Pronouncements	Recent Accounting Requirements
	The following Accounting Standards Updates, or ASUs, promulgated by the Financial Accounting Standards Board is applicable to us:
	ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Additionally, this guidance modifies disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In April 2015, the Financial Accounting Standards Board issued a proposed ASU to defer the effective date of ASU 2014-09 by one year. Under the proposal, ASU 2014-09 would be effective beginning in 2018, and early adoption is permitted but not before 2017, the original public company effective date. We are currently evaluating the impact of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard.
	ASU 2015-02, Consolidation (Topic 810). ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, and affects the evaluation of fee arrangements in the primary beneficiary determination. ASU 2015-02 is effective for periods beginning after December 15, 2015 and early adoption is permitted. We are currently evaluating the impact of ASU 2015-02 on our consolidated financial statements.
	ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30). ASU 2015-03 changes the presentation of debt issuance costs, which are currently recognized as a deferred charge (that is, an asset) and requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 does not affect the recognition and measurement guidance for debt issuance costs. ASU 2015-03 is effective for periods beginning after December 15, 2015, early adoption is permitted and retrospective application is required. We are currently evaluating the impact of ASU 2015-03 on our consolidated financial statements.

Organization_and_Offering_Narr

Organization and Offering (Narratives) (Details) (USD $)	0 Months Ended
	Mar. 27, 2015	30-May-14	Mar. 31, 2015	Apr. 13, 2015	Feb. 09, 2015	Dec. 31, 2014	Apr. 01, 2015
Organization and Offering
Capital interest ownership in operating partnership			99.99%
Common stock, par value on public offering		$9
Proceeds from issuance of common stock		$200,000
Common stock, share issued		22,222
Common stock, par share value		$0.00
Special general partners interest	0.02%
Payments to acquire special general partners interest	300,000
Initial minimum offering amount			2,000,000
Subsequent Event
Organization and Offering
Common stock maximum offering amount				1,400,000,000
Common stock, maximum authorized under dividend reinvestment plan				600,000,000
Common Class A
Organization and Offering
Common stock maximum offering amount					1,400,000,000
Common stock, par value on public offering					$10
Common stock, maximum authorized under dividend reinvestment plan					$600,000,000
Common stock, par or stated value per share, pursuant to DRIP					$9.60
Common stock, share issued			22,222			22,222
Common stock, par share value			$0.00			$0.00
Common Class T
Organization and Offering
Common stock, share issued			0			0
Common stock, par share value			$0.00			$0.00
Common Class T | Subsequent Event
Organization and Offering
Common stock, par value on public offering							$9.45
Common stock, par or stated value per share, pursuant to DRIP							$9.07

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Narratives) (Details) (USD $)	Mar. 31, 2015
Dividends Payable
Initial minimum offering amount	$2,000,000
Common Class A
Dividends Payable
Daily Distribution Declared Per Share	$0.00
Common Class A | Cash
Dividends Payable
Daily Distribution Declared Per Share	$0.00
Common Class A | Stock
Dividends Payable
Daily Distribution Declared Per Share	$0.00

Agreements_and_Transactions_wi1

Agreements and Transactions with Related Parties (Narratives) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Apr. 30, 2015
Related Party Transaction
Initial minimum offering amount	$2,000,000
Organization costs paid by advisor	68,999
Cumulative organizational expenses through inception	177,068
Cumulative offering costs incurred though inception	2,045,516
Percentage of asset management fees	0.55%
Percentage of available cash distribution to advisor	10.00%
Percentage of subordinated disposition fees	1.50%
Loan refinancing fee, percentage	1.00%
Percentage of fees earned by advisor paid to subadvisor	25.00%
Subordinated incentive distribution	30.00%
Selling commission fee	$0.70
Dealer manager fee	$0.30
Due to related parties and affiliates	2,040,679	108,069
Other acquisition related fees	335,438
Reimbursement expenses	104,924
General and Administrative Expense
Related Party Transaction
Other acquisition related fees	86,800
Advisor
Related Party Transaction
Due to related parties and affiliates	205,241
CWI
Related Party Transaction
Due to related parties and affiliates	1,835,438
CWI | Courtyard Nashville
Related Party Transaction
Due to related parties and affiliates	1,500,000
Invested asset
Related Party Transaction
Percentage of acquisition fees	2.50%
Average invested assets
Related Party Transaction
Percentage of operating expenses reimbursements	2.00%
Adjusted net income
Related Party Transaction
Percentage of operating expenses reimbursements	25.00%
Minimum
Related Party Transaction
Organization and offering reimbursement rate	1.50%
Maximum
Related Party Transaction
Organization and offering reimbursement rate	4.00%
Maximum | Contract purchase price
Related Party Transaction
Percentage of acquisition fees	6.00%
Subsequent Event
Related Party Transaction
Line of credit facility, maximum borrowing capacity			$110,000,000

Commitments_and_Contingencies_

Commitments and Contingencies (Narratives) (Details) (USD $)	Mar. 31, 2015
Scenario One
Loss Contingencies
Aggregate gross proceeds threshold	4.00%
Scenario Two
Loss Contingencies
Aggregate gross proceeds threshold	2.00%
Scenario Three
Loss Contingencies
Aggregate gross proceeds threshold	1.50%
Minimum | Scenario Two
Loss Contingencies
Potential gross proceeds from offering	500,000,000
Minimum | Scenario Three
Loss Contingencies
Potential gross proceeds from offering	750,000,000
Maximum
Loss Contingencies
Aggregate gross proceeds threshold	15.00%
Maximum | Scenario One
Loss Contingencies
Potential gross proceeds from offering	500,000,000
Maximum | Scenario Two
Loss Contingencies
Potential gross proceeds from offering	750,000,000

Subsequent_Events_Narratives_D

Subsequent Events (Narratives) (Details) (Subsequent Event, USD $)	0 Months Ended
	Apr. 01, 2015	1-May-15	14-May-15
Acquisitions
Notes payable, related party		$65,000,000	$102,500,000
Marriott Sawgrass Golf Resort and Spa
Acquisitions
Ownership percentage	50.00%
Investment purchase price	70,520,000
Rooms	511
Net assets of investment	130,000,000
Land	26,000,000
Building furniture and fixture	95,000,000
Fixtures and equipment	9,000,000
Acquisition costs expensed	1,996,000
Notes payable, related party	37,200,000
Marriott Sawgrass Golf Resort and Spa | Joint Venture
Acquisitions
Net assets of investment	141,000,000
Courtyard Nashville
Acquisitions
Ownership percentage		100.00%
Investment purchase price		69,700,000
Rooms		192
Non-recourse mortgage debt assumed		42,000,000
Acquisition costs expensed		1,746,000
Notes payable, related party		$27,800,000