Watermark Lodging Trust (WRMK) 10-Q 12 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 05, 2016
Document Information [Line Items]
Entity Registrant Name	Carey Watermark Investors 2 Inc
Entity Central Index Key	1,609,471
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		19,564,770
Common Class T
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		31,751,597

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investments in real estate:
Hotels, at cost	$ 611,767	$ 364,624
Accumulated depreciation	(13,316)	(5,359)
Net investments in hotels	598,451	359,265
Equity investment in real estate	38,817	37,599
Cash	151,253	51,081
Restricted cash	22,958	11,741
Accounts receivable	7,541	4,676
Other assets	21,360	14,617
Total assets	840,380	478,979
Liabilities:
Non-recourse and limited-recourse debt, net	352,768	207,888
Due to related parties and affiliates	11,717	4,985
Accounts payable, accrued expenses and other liabilities	28,852	18,068
Distributions payable	5,565	1,846
Total liabilities	398,902	232,787
Commitments and contingencies (Note 9)
Equity:
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued	0	0
Additional paid-in capital	433,157	228,401
Distributions and accumulated losses	(27,831)	(15,109)
Accumulated other comprehensive loss	(1,886)	(94)
Total CWI 2 stockholders’ equity	403,489	213,224
Noncontrolling interests	37,989	32,968
Total equity	441,478	246,192
Total liabilities and equity	840,380	478,979
Common Class A
Equity:
Common stock	19	11
Total equity	19	11
Common Class T
Equity:
Common stock	30	15
Total equity	$ 30	$ 15

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Equity:
Preferred stock, par share value	$ 0.001	$ 0.001
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	$ 0.001	$ 0.001
Common stock, shares authorized	320,000,000	320,000,000
Common shares, outstanding	18,775,547	10,792,296
Common Class T
Equity:
Common stock, par share value	$ 0.001	$ 0.001
Common stock, shares authorized	80,000,000	80,000,000
Common shares, outstanding	29,888,623	14,983,012

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Hotel Revenues
Rooms	$ 23,561	$ 9,649	$ 41,702	$ 9,649
Food and beverage	10,391	6,634	20,351	6,634
Other operating revenue	3,009	2,250	5,761	2,250
Total Hotel Revenues	36,961	18,533	67,814	18,533
Hotel Expenses
Rooms	3,954	1,808	7,385	1,808
Food and beverage	6,151	4,077	11,984	4,077
Other hotel operating expenses	1,476	1,129	2,722	1,129
Sales and marketing	3,301	1,444	6,001	1,444
General and administrative	2,632	1,272	5,096	1,272
Property taxes, insurance, rent and other	1,615	818	3,136	818
Repairs and maintenance	1,010	683	1,961	683
Utilities	990	643	1,900	643
Management fees	1,575	700	2,667	700
Depreciation and amortization	4,142	1,638	7,957	1,638
Total Hotel Expenses	26,846	14,212	50,809	14,212
Other Operating Expenses
Acquisition-related expenses	2,672	7,693	7,538	7,861
Corporate general and administrative expenses	1,344	601	2,358	862
Asset management fees to affiliate and other expenses	931	208	1,848	208
Other operating expenses	4,947	8,502	11,744	8,931
Operating Income (Loss)	5,168	(4,181)	5,261	(4,610)
Other Income and (Expenses)
Interest expense	(3,297)	(1,165)	(6,214)	(1,165)
Equity in earnings of equity method investment in real estate	817	330	1,615	330
Other income and (expenses)	13	(28)	23	(28)
Other Income and (Expenses)	(2,467)	(863)	(4,576)	(863)
Income (Loss) from Operations Before Income Taxes	2,701	(5,044)	685	(5,473)
Provision for income taxes	(717)	(99)	(747)	(99)
Net Income (Loss)	1,984	(5,143)	(62)	(5,572)
Income attributable to noncontrolling interests (inclusive of Available Cash Distributions to a related party of $336, $0, $865, and $0, respectively)	(1,532)	(1,197)	(3,187)	(1,197)
Net Income (Loss) Attributable to CWI 2 Stockholders	452	(6,340)	(3,249)	(6,769)
Common Class A
Other Income and (Expenses)
Net Income (Loss) Attributable to CWI 2 Stockholders	$ 217	$ (3,126)	$ (1,253)	$ (3,275)
Basic and diluted weighted-average shares outstanding (shares)	18,072,222	336,876	16,256,702	231,455
Basic and diluted loss per share (usd per share)	$ 0.01	$ (9.28)	$ (0.08)	$ (14.15)
Distributions Declared Per Share (usd per share)	$ 0.1644	$ 0.0775	$ 0.3144	$ 0.0775
Common Class T
Other Income and (Expenses)
Net Income (Loss) Attributable to CWI 2 Stockholders	$ 235	$ (3,214)	$ (1,996)	$ (3,494)
Basic and diluted weighted-average shares outstanding (shares)	27,739,509	345,911	24,434,472	246,690
Basic and diluted loss per share (usd per share)	$ 0.01	$ (9.29)	$ (0.08)	$ (14.16)
Distributions Declared Per Share (usd per share)	$ 0.1381	$ 0.0653	$ 0.2645	$ 0.0653

Consolidated Statements of Ope5

Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Advisor
Available cash distribution	$ 336	$ 0	$ 865	$ 0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 1,984	$ (5,143)	$ (62)	$ (5,572)
Other Comprehensive Loss
Unrealized loss on derivative instruments	(607)	(37)	(1,795)	(37)
Comprehensive Income (Loss)	1,377	(5,180)	(1,857)	(5,609)
Amounts Attributable to Noncontrolling Interests
Net income	(1,532)	(1,197)	(3,187)	(1,197)
Unrealized loss on derivative instruments	1	0	3	0
Comprehensive income attributable to noncontrolling interests	(1,531)	(1,197)	(3,184)	(1,197)
Comprehensive Loss Attributable to CWI 2 Stockholders	$ (154)	$ (6,377)	$ (5,041)	$ (6,806)

Consolidated Statements of Equi

Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	Additional Paid-In Capital	Distributions and Accumulated Losses	Accumulated Other Comprehensive Loss	Total CWI 2 Stockholders’ Equity	Noncontrolling Interest	Common Class A	Common Class T
Beginning balance, value at Dec. 31, 2014	$ 92	$ 200	$ (108)	$ 0	$ 92
Beginning balance, shares at Dec. 31, 2014							22,222
Statement of Equity
Net (loss) income	(5,572)		(6,769)		(6,769)	$ 1,197
Shares issued, net of offering costs, value	15,731	15,729			15,731		$ 1	$ 1
Shares issued, net of offering costs, shares							801,920	951,436
Shares issued to affiliates, value	36	36			36		$ 0
Shares issued to affiliates, shares							3,567
Contributions from noncontrolling interests	34,058					34,058
Stock-based compensation to directors, value	126	126			126
Stock-based compensation to directors, shares							12,500
Distributions declared ($0.3144 and $0.2645 per share to Class A and Class T, respectively)	(46)		(46)		(46)
Other comprehensive loss:
Change in net unrealized loss on derivative instruments	(37)			(37)	(37)
Ending balance, value at Jun. 30, 2015	44,388	16,091	(6,923)	(37)	9,133	35,255	$ 1	$ 1
Ending balance, shares at Jun. 30, 2015							840,209	951,436
Statement of Equity
Net (loss) income	(5,143)
Other comprehensive loss:
Change in net unrealized loss on derivative instruments	(37)
Ending balance, value at Jun. 30, 2015	44,388	16,091	(6,923)	(37)	9,133	35,255	$ 1	$ 1
Ending balance, shares at Jun. 30, 2015							840,209	951,436
Beginning balance, value at Dec. 31, 2015	246,192	228,401	(15,109)	(94)	213,224	32,968	$ 11	$ 15
Beginning balance, shares at Dec. 31, 2015							10,792,296	14,983,012
Statement of Equity
Distributions declared ($0.3144 and $0.2645 per share to Class A and Class T, respectively)	(3,900)
Beginning balance, value at Dec. 31, 2015	246,192	228,401	(15,109)	(94)	213,224	32,968	$ 11	$ 15
Beginning balance, shares at Dec. 31, 2015							10,792,296	14,983,012
Statement of Equity
Net (loss) income	(62)		(3,249)		(3,249)	3,187
Shares issued, net of offering costs, value	203,146	203,123			203,146		$ 8	$ 15
Shares issued, net of offering costs, shares							7,773,911	14,835,914
Shares issued to affiliates, value	1,511	1,511			1,511		$ 0
Shares issued to affiliates, shares							144,374
Contributions from noncontrolling interests	4,000					4,000
Distributions to noncontrolling interests	(2,163)					(2,163)
Shares issued under share incentive plans, value	51	51			51
Shares issued under share incentive plans, shares							6,656
Stock-based compensation to directors, value	105	105			105
Stock-based compensation to directors, shares							10,000
Stock dividends issued, shares							51,302	70,102
Distributions declared ($0.3144 and $0.2645 per share to Class A and Class T, respectively)	(9,473)		(9,473)		(9,473)
Other comprehensive loss:
Change in net unrealized loss on derivative instruments	(1,795)			(1,792)	(1,792)	(3)
Repurchase of shares, value	(34)	(34)			(34)
Repurchase of shares, shares							(2,992)	(405)
Ending balance, value at Jun. 30, 2016	441,478	433,157	(27,831)	(1,886)	403,489	37,989	$ 19	$ 30
Ending balance, shares at Jun. 30, 2016							18,775,547	29,888,623
Statement of Equity
Net (loss) income	1,984
Other comprehensive loss:
Change in net unrealized loss on derivative instruments	(607)
Ending balance, value at Jun. 30, 2016	$ 441,478	$ 433,157	$ (27,831)	$ (1,886)	$ 403,489	$ 37,989	$ 19	$ 30
Ending balance, shares at Jun. 30, 2016							18,775,547	29,888,623

Consolidated Statements of Equ8

Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Common Class A
Statement of Equity
Distributions Declared Per Share (usd per share)	$ 0.1644	$ 0.0775	$ 0.3144	$ 0.0775
Common Class T
Statement of Equity
Distributions Declared Per Share (usd per share)	$ 0.1381	$ 0.0653	$ 0.2645	$ 0.0653

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows — Operating Activities
Net (loss) income	$ (62)	$ (5,572)
Adjustments to net loss:
Depreciation and amortization	7,957	1,638
Asset management fees to affiliates settled in shares	1,612	204
Equity in earnings of equity method investment in real estate in excess of distributions received	(1,218)	(330)
Amortization of stock-based compensation	193	125
Amortization of deferred key money, deferred financing costs and other	118	(149)
Increase in due to related parties and affiliates	2,403	615
Net changes in other assets and liabilities	1,128	(358)
Receipt of key money and other deferred incentive payments	375	0
Net Cash Provided by (Used In) Operating Activities	12,506	(3,827)
Cash Flows — Investing Activities
Acquisitions of hotels	(234,812)	(117,020)
Funds placed in escrow	(35,856)	(6,033)
Funds released from escrow	22,554	432
Payments for Deposits on Real Estate Acquisitions	12,681	0
Capital expenditures	(8,393)	(1,973)
Deposits released for hotel investments	5,541	0
Purchase of equity interest	0	(37,559)
Net Cash Used in Investing Activities	(263,647)	(162,153)
Cash Flows — Financing Activities
Proceeds from issuance of shares, net of offering costs	212,516	15,003
Proceeds from mortgage financing	146,300	42,000
Proceeds from notes payable to affiliate	20,000	102,447
Repayment of notes payable to affiliate	(20,000)	0
Distributions paid	(5,754)	0
Contributions from noncontrolling interests	4,000	34,058
Distributions to noncontrolling interests	(2,163)	0
Deposits for mortgage financing	(1,835)	0
Deferred financing costs	(1,635)	(589)
Purchase of interest rate cap	(46)	(103)
Withholding on RSUs	(36)	0
Repurchase of shares	(34)	0
Net Cash Provided by Financing Activities	351,313	192,816
Change in Cash During the Period
Net increase in cash	100,172	26,836
Cash, beginning of period	51,081	200
Cash, end of period	$ 151,253	$ 27,036

Business

Business	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business	Business 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 in May 2014 for the purpose of acquiring, owning, disposing of and, through our advisor, managing and seeking to enhance the value of interests in lodging and lodging-related properties primarily in the United States. We conduct substantially all of our investment activities and own all of our assets through CWI 2 OP, LP, or the 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. We are managed by Carey Lodging Advisors, LLC, or our Advisor, an indirect subsidiary of WPC. Our Advisor manages our overall portfolio, including providing oversight and strategic guidance to the independent hotel operators that manage our hotels. CWA 2, LLC, a subsidiary of Watermark Capital Partners, or the Subadvisor, provides 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, the Subadvisor provides us with the services of Michael G. Medzigian, our chief executive officer, subject to the approval of our independent directors. We held ownership interests in six hotels at June 30, 2016 . See Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 — Portfolio Overview for a complete listing of the hotels that we consolidate, or our Consolidated Hotels, and the hotel that we record as an equity investment, or our Unconsolidated Hotel, at June 30, 2016 . 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 $1.4 billion of Class A shares, was declared effective by the SEC under the Securities Act of 1933, as amended, or the Securities Act. The Registration Statement also covered the offering of up to $600.0 million of Class A shares pursuant to our distribution reinvestment plan, or DRIP. On April 1, 2015, we filed an amended Registration Statement to include Class T shares in our initial public offering and under our DRIP, which was declared effective by the SEC on April 13, 2015, allowing for the sales of Class A and Class T shares, in any combination, of up to $1.4 billion in the initial public offering and up to $600.0 million through our DRIP. Our initial public offering is being offered on a “best efforts” basis by Carey Financial, LLC, or Carey Financial, an affiliate of our Advisor, and other selected dealers. On May 15, 2015, aggregate subscription proceeds for our Class A and Class T common stock exceeded the minimum offering amount of $2.0 million and we began to admit stockholders. From May 22, 2014, which we refer to as our Inception, through June 30, 2016 , we raised offering proceeds of $183.8 million from our Class A common stock and $286.5 million from our Class T common stock. During the same period, we also raised $1.7 million and $2.3 million through our DRIP from our Class A and Class T common stock, respectively. 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. We currently intend to sell shares through our initial public offering until March 31, 2017.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	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 generally accepted accounting principles in the United States, or GAAP. In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of financial position, results of operations and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 2015 , which are included in our 2015 Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this Report. Operating results for interim periods are not necessarily indicative of operating results for an entire year. The preparation of financial statements in conformity with GAAP 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. For purposes of determining the weighted-average number of shares of Class A and Class T common stock outstanding, amounts for the three and six months ended June 30, 2016 and 2015 have been adjusted to treat stock distributions declared and effective through the date of this Report as if they were outstanding as of January 1, 2015. Basis of Consolidation Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. On January 1, 2016, we adopted the Financial Accounting Standards Board’s, or FASB’s, Accounting Standards Update, or ASU, 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , as described in the Recent Accounting Pronouncements section below, which amends the current consolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities. When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a variable interest entity, or VIE, and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Certain decision-making rights within a loan or joint-venture agreement can cause us to consider an entity a VIE. Limited partnerships and other similar entities which operate as a partnership will be considered a VIE unless the limited partners hold substantive kick-out rights or participation rights. Significant judgment is required to determine whether a VIE should be consolidated. We review the contractual arrangements provided for in the partnership agreement or other related contracts to determine whether the entity is considered a VIE, and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those of the other variable interest holders to determine which party is the primary beneficiary of the VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. We performed this analysis on all of our subsidiary entities following the guidance in ASU 2015-02 to determine whether they qualify as VIEs and whether they should be consolidated or accounted for as equity investments in an unconsolidated venture. As a result of this change in guidance, we determined that two entities that were previously classified as voting interest entities should now be classified as VIEs as of January 1, 2016 and therefore included in our VIE disclosure. However, there was no change in determining whether or not we consolidate these entities as a result of the new guidance. We elected to retrospectively adopt ASU 2015-02, which resulted in changes to our VIE disclosures within the consolidated balance sheets. There were no other changes to our consolidated balance sheets or results of operations for the period presented. At June 30, 2016 , we considered three entities to be VIEs, two of which we consolidated as we are considered the primary beneficiary. The following table presents a summary of selected financial data of consolidated VIEs included in the consolidated balance sheets (in thousands): June 30, 2016 December 31, 2015 Net investments in real estate $ 314,918 $ 129,778 Total assets 345,184 143,131 Non-recourse and limited-recourse debt, net $ 177,054 $ 66,700 Total liabilities 196,046 77,860 Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. On January 1, 2016, we adopted ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30) as described in the Recent Accounting Pronouncements section below. ASU 2015-03 changes the presentation of debt issuance costs, which were previously recognized as an asset and requires that they be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. As a result of adopting this guidance, we reclassified $0.8 million of deferred financing costs from Other assets to Non-recourse and limited-recourse debt, net as of December 31, 2015. Recent Accounting Pronouncements In May 2014, the FASB issued 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 August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all entities by one year, beginning in 2018, with early adoption 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. In February 2015 , the FASB issued ASU 2015-02, Consolidation (Topic 810). ASU 2015-02 amends the current consolidation guidance, including modification of the guidance for evaluating whether limited partnerships and similar legal entities are VIEs or voting interest entities. The guidance does not amend the existing disclosure requirements for VIEs or voting interest model entities. The guidance, however, modified the requirements to qualify under the voting interest model. Under the revised guidance, ASU 2015-02 requires an entity to classify a limited liability company or a limited partnership as a VIE unless the partnership provides partners with either substantive kick-out rights or substantive participating rights over the managing member or general partner. Refer to the discussion in the Basis of Consolidation section above. In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30). ASU 2015-03 changes the presentation of debt issuance costs, which were previously recognized as an asset, and requires that they be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. 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 and retrospective application is required. We adopted ASU 2015-03 on January 1, 2016 and have disclosed the reclassification of our debt issuance costs in the Reclassifications section above. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). ASU 2015-16 eliminates the requirement that an acquirer in a business combination account for measurement period adjustments retrospectively. Instead, an acquirer will recognize a measurement period adjustment during the period in which it determines the amount of the adjustment, including the effect on earnings of any amounts it would have recorded in previous periods if the accounting had been completed at the acquisition date. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, early adoption is permitted and prospective application is required for adjustments that are identified after the effective date of this update. We elected to early adopt ASU 2015-16 and implemented the standard prospectively beginning July 1, 2015. The adoption and implementation of the standard did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 outlines a new model for accounting by lessees, whereby their rights and obligations under substantially all leases, existing and new, would be capitalized and recorded on the balance sheet. For lessors, however, the accounting remains largely unchanged from the current model, with the distinction between operating and financing leases retained, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Additionally, the new standard requires extensive quantitative and qualitative disclosures. ASU 2016-02 is effective for U.S. GAAP public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years; for all other entities, the final lease standard will be effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application will be permitted for all entities. The new standard must be adopted using a modified retrospective transition of the new guidance and provides for certain practical expedients. Transition will require application of the new model at the beginning of the earliest comparative period presented. We are evaluating the impact of the new standard and have not yet determined if it will have a material impact on our business or our consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815) : Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. ASU 2016-05 clarifies that a change in counterparty to a derivative contract in and of itself, does not require the dedesignation of a hedging relationship. ASU 2016-05 is effective for fiscal years beginning after December 15, 2016, including interim periods within those years. Early adoption is permitted and entities have the option of adopting this guidance on a prospective basis to new derivative contracts or on a modified retrospective basis. We elected to early adopt ASU 2016-05 on January 1, 2016 on a prospective basis and there was no impact on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323). ASU 2016-07 simplifies the transition to the equity method of accounting. ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. Instead, the equity method of accounting will be applied prospectively from the date significant influence is obtained. The new standard should be applied prospectively for investments that qualify for the equity method of accounting in interim and annual periods beginning after December 15, 2016. Early adoption is permitted and we elected to early adopt this standard as of January 1, 2016. The adoption of this standard had no impact on our consolidated financial statements.

Agreements and Transactions wit

Agreements and Transactions with Related Parties	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Agreements and Transactions with Related Parties	Agreements and Transactions with Related Parties Agreements with Our Advisor and Affiliates We have an advisory agreement with our Advisor to perform certain services for us under a fee arrangement, including managing our overall business and our offering; the identification, evaluation, negotiation, purchase and disposition of lodging and lodging-related properties; and the performance of certain administrative duties. The advisory agreement has a term of one year and may be renewed for successive one-year periods. Our Advisor also has a subadvisory agreement with the Subadvisor, whereby our Advisor pays 25% of the fees that it earns under the advisory agreement and Available Cash Distributions and 30% of the subordinated incentive distributions to the Subadvisor and the Subadvisor provides certain services to us, as discussed below. The following tables present a summary of fees we paid; expenses we reimbursed and distributions we made to our Advisor, the Subadvisor and other affiliates, as described below, in accordance with the terms of those agreements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Amounts Included in the Consolidated Statements of Operations To our Advisor: Acquisition fees $ 1,488 $ 1,742 $ 6,161 $ 1,742 Asset management fees 840 204 1,612 204 Personnel and overhead reimbursements 743 187 1,188 216 Available Cash Distribution 336 — 865 — Accretion of interest on annual distribution and shareholder servicing fee 98 — 111 — Interest expense — 259 18 259 To CWI 1: Acquisition fee to CWI 1 — 3,411 — 3,411 $ 3,505 $ 5,803 $ 9,955 $ 5,832 Other Transaction Fees Incurred to Our Advisor and Affiliates Selling commissions and dealer manager fees $ 3,965 $ 1,186 $ 13,861 $ 1,186 Annual distribution and shareholder servicing fee 1,754 — 6,786 — Organization and offering costs 870 502 1,907 571 Capitalized acquisition fees for equity method investment — 1,862 — 1,862 $ 6,589 $ 3,550 $ 22,554 $ 3,619 The following table presents a summary of amounts included in Due to related parties and affiliates in the consolidated financial statements (in thousands): June 30, 2016 December 31, 2015 Amounts Due to Related Parties and Affiliates To our Advisor: Other $ 1,768 $ 186 Reimbursable costs 772 215 Organization and offering costs 497 454 To Others: Due to Carey Financial (Annual distribution and shareholder servicing fee) 8,582 2,407 Due to Carey Financial (Other) 74 191 Due to CWI 1 20 1,521 Other 4 11 $ 11,717 $ 4,985 Acquisition Fees to our Advisor Our Advisor receives 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. Asset Management Fees, Disposition Fees and Loan Refinancing Fees We pay our Advisor an annual asset management fee equal to 0.55% of the aggregate average market value of our investments. Our Advisor is also entitled to receive disposition fees of up to 1.5% of the contract sales price of a property, as well as a loan refinancing fee of up to 1.0% of the principal amount of a refinanced loan, if certain described conditions in the advisory agreement are met. If our Advisor elects to receive all or a portion of its fees in shares of our common stock, the number of shares issued is determined by dividing the dollar amount of fees by our most recently published estimated net asset value, or NAV, per share for Class A shares (while before our initial NAV was published in March 2016, we used our offering price for Class A shares of $10.00 per share). For the three and six months ended June 30, 2016 and 2015, our Advisor elected to receive its fees in shares of our Class A common stock rather than in cash. For the six months ended June 30, 2016 and 2015, $1.5 million and less than $0.1 million , respectively, in asset management fees were settled in shares of our common stock. At June 30, 2016 , our Advisor owned 244,564 shares ( 1.3% ) of our outstanding Class A common stock. Asset management fees are included in Asset management fees to affiliate and other in the consolidated financial statements. During the three and six months ended June 30, 2016 and 2015 , we had not paid any disposition fees or loan refinancing fees. Available Cash Distributions Carey Watermark Holdings 2 will receive 10% of Available Cash Distributions, as defined in the limited partnership agreement of the Operating Partnership. The limited partnership agreement of the Operating Partnership also provides Carey Watermark Holdings 2 with an interest in subordinated disposition proceeds and subordinated listing distributions. Personnel and Overhead Reimbursements/Reimbursable Costs Pursuant to the subadvisory agreement, after we reimburse our Advisor, it will subsequently reimburse the Subadvisor for personnel costs and other charges. The Subadvisor provides us with the services of Michael G. Medzigian, our chief executive officer, subject to the approval of our board of directors. In addition, pursuant to the advisory agreement, we reimburse our Advisor for the actual cost of personnel allocable to their time devoted to providing administrative services to us, as well as rent expense. These reimbursements are included in Corporate general and administrative expenses and Due to related parties and affiliates in the consolidated financial statements and are being settled in cash. We have also granted restricted stock units, or RSUs, to employees of the Subadvisor pursuant to our 2016 Equity Incentive Plan. Selling Commissions and Dealer Manager Fees We have a dealer manager agreement with Carey Financial, whereby Carey Financial receives a selling commission, for the Class A and Class T common stock. Until we adjusted our offering prices in March 2016, Carey Financial received a selling commission of up to $0.70 and $0.19 per share sold and a dealer manager fee of up to $0.30 and $0.26 per share sold for the Class A and Class T common stock, respectively. After we adjusted our offering prices in March 2016, Carey Financial receives a selling commission of $0.82 and $0.22 and a dealer manager fee of $0.35 and $0.30 per share sold for the Class A and Class T common stock, respectively. The selling commissions are re-allowed and a portion of the dealer manager fees may be re-allowed to selected dealers. These amounts are recorded in Additional paid-in capital in the consolidated financial statements. Carey Financial also receives an annual distribution and shareholder servicing fee in connection with our Class T common stock, which it may re-allow to selected dealers. The amount of the shareholder servicing fee is 1.0% of the amount of our NAV per Class T share (while before our NAV was published, the fee was 1.0% of the selling price per share for the Class T common stock in our initial public offering). The shareholder servicing fee accrues daily and is payable quarterly in arrears. We will no longer incur the shareholder servicing fee after the sixth anniversary of the end of the quarter in which the initial public offering terminates, and the fees may end sooner if the total underwriting compensation that is paid in respect of the offering reaches 10.0% of the gross offering proceeds or if we undertake a liquidity event, as described in our prospectus, before that sixth anniversary. During the six months ended June 30, 2016 , $6.8 million of distribution and shareholder servicing fees were charged to stockholders’ equity. Notes Payable to WPC and Other Transactions with Affiliates In April 2015, our board of directors and the board of directors of WPC approved unsecured loans to us and our affiliate, Carey Watermark Investors Incorporated, or CWI 1, another lodging fund advised by our Advisor, of up to an aggregate of $110.0 million , 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, approved by our respective investment committees, that we might not otherwise have sufficient available funds to complete. As of December 31, 2015, CWI 1’s access to these unsecured loans was terminated by WPC, and as a result, the entire $110.0 million became available to be borrowed by us. Any such loans are solely at the discretion of WPC’s management. On January 20, 2016, we borrowed $20.0 million from WPC at the London Interbank Offered Rate, or LIBOR, plus 1.1% with a maturity date of February 17, 2016, which we used to fund, in part, the acquisition of the Seattle Marriott Bellevue ( Note 4 ). This loan was repaid in full on February 10, 2016 using proceeds from our initial public offering. The interest expense on this note payable to our affiliate is included in Interest expense on the consolidated statements of operations. At June 30, 2016 , $110.0 million was available to be borrowed from WPC by us. Organization and Offering Costs Pursuant to our advisory agreement, we are liable for certain expenses related to our public offering, including filing, legal, accounting, printing, advertising, transfer agent and escrow fees, which are deducted from the gross proceeds of the offering. We reimburse Carey Financial and selected dealers for reasonable bona fide due diligence expenses incurred that are supported by a detailed and itemized invoice. The total underwriting compensation to Carey Financial and selected dealers in connection with the offering cannot exceed limitations prescribed by the Financial Industry Regulatory Authority, Inc. Our Advisor will be reimbursed for all organization expenses and offering costs incurred in connection with our offering (excluding selling commissions and the dealer manager fees) limited to 4% of the gross proceeds from the offering if the gross proceeds are less than $500.0 million , 2% of the gross proceeds from the offering if the gross proceeds are $500.0 million or more but less than $750.0 million , and 1.5% of the gross proceeds from the offering if the gross proceeds are $750.0 million or more. Through June 30, 2016 , our Advisor incurred organization and offering costs on our behalf of approximately $6.6 million , all of which we were obligated to pay. Unpaid costs of $0.5 million were included in Due to affiliates in the consolidated financial statements at June 30, 2016 . During the offering period, costs incurred in connection with raising of capital are recorded as deferred offering costs. Upon receipt of offering proceeds, we charge the deferred offering costs to stockholders’ equity. During the six months ended June 30, 2016 , $3.0 million of deferred offering costs were charged to stockholders’ equity. Other Amounts Due to Our Advisor At June 30, 2016 , other amounts due to our Advisor primarily represented acquisition fees of $1.5 million payable with regard to the acquisition of Le Méridien Arlington on June 28, 2016, which was paid in the third quarter of 2016. Jointly-Owned Investments At June 30, 2016 , we owned interests in two jointly-owned investments with CWI 1: the Marriott Sawgrass Golf Resort & Spa, a Consolidated Hotel, and the Ritz-Carlton Key Biscayne, an Unconsolidated Hotel ( Note 5 ).

Net Investments in Hotels

Net Investments in Hotels	6 Months Ended
	Jun. 30, 2016
Real Estate [Abstract]
Net Investments in Hotels	Net Investments in Hotels Net investments in hotels are summarized as follows (in thousands): June 30, 2016 December 31, 2015 Buildings $ 486,306 $ 294,352 Land 76,567 47,900 Furniture, fixtures and equipment 32,904 16,496 Building and site improvements 1,002 815 Construction in progress 14,988 5,061 Hotels, at cost 611,767 364,624 Less: Accumulated depreciation (13,316 ) (5,359 ) Net investments in hotels $ 598,451 $ 359,265 2016 Acquisitions During the six months ended June 30, 2016 , we acquired two hotels, which were considered to be business combinations. We refer to these investments as our 2016 Acquisitions. Seattle Marriott Bellevue On January 22, 2016, we acquired a 95.4% interest in the Seattle Marriott Bellevue hotel from an unaffiliated third party, which includes real estate and other hotel assets, net of assumed liabilities and noncontrolling interest, with a fair value totaling $175.9 million , as detailed in the table that follows. The remaining 4.6% interest is retained by the original owner. The original owners’ contribution, which is held in a restricted cash account, was in the form of a $4.0 million Net Operating Interest, or NOI, Guarantee Reserve, which guarantees minimum predetermined NOI amounts to us over a period of approximately four years. The 384 -room full-service hotel is located in Bellevue, Washington. The hotel continues to be managed by HEI Hotels & Resorts. In connection with this acquisition, we expensed acquisition costs of $5.3 million (of which $4.9 million was expensed during the six months ended June 30, 2016 and $0.4 million was expensed during the year ended December 31, 2015), including acquisition fees of $4.7 million paid to our Advisor. We obtained a limited-recourse mortgage loan on the property of $100.0 million upon acquisition ( Note 8 ). In addition, the equity portion of our investment was financed, in part, by a loan of $20.0 million from WPC, which was fully repaid in February 2016 ( Note 3 ). Le Méridien Arlington On June 28, 2016, we acquired a 100% interest in the Le Méridien Arlington from an unaffiliated third party, which includes real estate and other hotel assets, net of assumed liabilities and noncontrolling interest, with a fair value totaling $54.9 million , as detailed in the table that follows. The 154 -room, full-service hotel is located in Rosslyn, Virginia. The hotel continues to be managed by HEI Hotels & Resorts. In connection with this acquisition, we expensed acquisition costs of $2.0 million during the six months ended June 30, 2016 , including acquisition fees of $1.5 million paid to our Advisor. We obtained a non-recourse mortgage loan on the property of $35.0 million upon acquisition ( Note 8 ). The following tables present a summary of assets acquired and liabilities assumed in these business combinations, at the dates of acquisition, and revenues and earnings thereon, since the respective date of acquisition through June 30, 2016 (in thousands): Seattle Marriott Bellevue (a) Le Méridien Arlington (a) Acquisition Date January 22, 2016 June 28, 2016 Cash consideration $ 175,921 $ 54,891 Assets acquired at fair value: Building $ 149,111 $ 42,791 Land 19,500 9,167 Furniture, fixtures and equipment 11,600 4,567 Accounts receivable 176 41 Other assets 388 290 Liabilities assumed at fair value: Accounts payable, accrued expenses and other liabilities (854 ) (1,965 ) Contribution from noncontrolling interest at fair value (4,000 ) — Net assets acquired at fair value $ 175,921 $ 54,891 From Acquisition Dates Through June 30, 2016 Revenues $ 13,963 $ 110 Income from operations before income taxes $ 3,280 $ 23 ___________ (a) The purchase price was allocated to the assets acquired and liabilities assumed based upon their preliminary fair values. The information in this table is based on the current best estimates of management. We are in the process of finalizing our assessment of the fair value of the assets acquired and liabilities assumed. Accordingly, the fair value of these assets acquired and liabilities assumed is subject to change. Pro Forma Financial Information The following unaudited consolidated pro forma financial information presents our financial results as if our acquisition of the Seattle Marriott Bellevue, and the new financing related to this acquisition, had occurred on July 14, 2015, the opening date of the acquired hotel and as if our acquisition of the Le Méridien Arlington, and the new financing related to this acquisition, had occurred on January 1, 2015. These transactions were accounted for as business combinations. The pro forma financial information is not necessarily indicative of what the actual results would have been had the acquisitions actually occurred on the dates listed above, nor does it purport to represent the results of operations for future periods. (Dollars in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Pro forma total revenues $ 40,607 $ 23,681 $ 75,060 $ 42,420 Pro forma net income $ 4,614 $ 3,573 $ 7,072 $ 2,327 Pro forma income attributable to noncontrolling interests (1,532 ) (1,197 ) (3,187 ) (1,900 ) Pro forma net income attributable to CWI 2 stockholders $ 3,082 $ 2,376 $ 3,885 $ 427 Pro forma income per Class A share: Net income attributable to CWI 2 stockholders $ 1,347 $ 2,117 $ 1,782 $ 395 Basic and diluted pro forma weighted-average shares outstanding 20,391,733 2,786,748 19,658,405 2,681,327 Basic and diluted pro forma income per share $ 0.07 $ 0.76 $ 0.09 $ 0.15 Pro forma income per Class T share: Net income attributable to CWI 2 stockholders $ 1,735 $ 259 $ 2,103 $ 32 Basic and diluted pro forma weighted-average shares outstanding 27,739,509 345,911 24,434,472 246,690 Basic and diluted pro forma income per share $ 0.06 $ 0.75 $ 0.09 $ 0.13 The pro forma weighted-average shares outstanding were determined as if the number of shares issued in our initial public offering in order to raise the funds used for our acquisitions of the Seattle Marriott Bellevue and Le Méridien Arlington were issued on July 14, 2015 and January 1, 2015, respectively. We assumed that we would have issued Class A shares to raise such funds. All acquisition costs for the Seattle Marriott Bellevue and Le Méridien Arlington are presented as if they were incurred on July 14, 2015 and January 1, 2015, respectively. Construction in Progress At June 30, 2016 and December 31, 2015 , construction in progress, recorded at cost, was $15.0 million and $5.1 million , respectively, and in each case related primarily to planned renovations at the Marriott Sawgrass Golf Resort & Spa ( Note 9 ). We capitalize interest expense and certain other costs, such as property taxes, property insurance and hotel incremental labor costs, related to hotels undergoing major renovations. We capitalized $0.1 million and $0.2 million during the three and six months ended June 30, 2016 , respectively. No such costs were capitalized during the three and six months ended June 30, 2015 . During the six months ended June 30, 2016 and 2015 , accrued capital expenditures increased by $1.9 million and $0.3 million , respectively, representing non-cash investing activity.

Equity Investments in Real Esta

Equity Investments in Real Estate	6 Months Ended
	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments in Real Estate	Equity Investment in Real Estate At June 30, 2016 , we owned an equity interest in one Unconsolidated Hotel, together with CWI 1 and an unrelated third party. We do not control the venture that owns this hotel, but we exercise significant influence over it. We account for this investment under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences from acquisition costs paid to our Advisor that we incur and other-than-temporary impairment charges, if any). Under the conventional approach of accounting for equity method investments, an investor applies its percentage ownership interest to the venture’s net income to determine the investor’s share of the earnings or losses of the venture. This approach is inappropriate if the venture’s capital structure gives different rights and priorities to its investors. We have priority returns on our equity method investment. Therefore, we follow the hypothetical liquidation at book value method in determining our share of the venture’s earnings or losses for the reporting period as this method better reflects our claim on the venture’s book value at the end of each reporting period. Earnings for our equity method investment are recognized in accordance with the related investment agreement and, where applicable, based upon the allocation of the investment’s net assets at book value as if the investment was hypothetically liquidated at the end of each reporting period. The following table sets forth our ownership interest in our equity investment in real estate and its carrying value. The carrying value of this venture is affected by the timing and nature of distributions (dollars in thousands): Unconsolidated Hotel State Number of Rooms % Owned Our Initial Investment (a) Acquisition Date Hotel Type Renovation Status at June 30, 2016 Carrying Value at June 30, 2016 December 31, 2015 Ritz-Carlton Key Biscayne Venture (b) (c) FL 458 19.3 % $ 37,559 5/29/2015 Resort Planned Future $ 38,817 $ 37,599 ___________ (a) This amount represents purchase price plus capitalized costs, inclusive of fees paid to our Advisor, at the time of acquisition. (b) CWI 1 acquired a 47.4% interest in the venture on the same date. The remaining 33.3% interest is retained by the original owner. The number of rooms presented includes 156 condo-hotel units that participate in the resort rental program. This investment is considered a VIE ( Note 2 ). We do not consolidate this entity because we are not the primary beneficiary and the nature of our involvement in the activities of the entity allows us to exercise significant influence but does not give us power over decisions that significantly affect the economic performance of the entity. (c) We received cash distributions of $0.4 million from this investment during the six months ended June 30, 2016 . No cash distributions were received during the three months ended June 30, 2016. At both June 30, 2016 and December 31, 2015, the unamortized basis differences on our equity investment were $1.8 million . Net amortization of the basis differences reduced the carrying value of our equity investment by less than $0.1 million for both the three and six months ended June 30, 2016 and 2015 . The following table sets forth our share of equity in earnings from our Unconsolidated Hotel, which is based on the hypothetical liquidation at book value model as well as amortization adjustments related to basis differentials from acquisitions of investments (in thousands): Three Months Ended June 30, Six Months Ended June 30, Unconsolidated Hotel 2016 2015 2016 2015 Ritz-Carlton Key Biscayne Venture $ 817 $ 330 $ 1,615 $ 330 No other-than-temporary impairment charges were recognized during either the three or six months ended June 30, 2016 and 2015 .

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments, including interest rate caps and swaps; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions. Derivative Assets and Liabilities — Our derivative assets and liabilities are comprised of interest rate caps and swaps that were measured at fair value using readily observable market inputs, such as quotations on interest rates. These derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market ( Note 7 ). We did not have any transfers into or out of Level 1, Level 2 and Level 3 category of measurements during the three and six months ended June 30, 2016 or 2015 . Gains and losses (realized and unrealized) included in earnings are reported in Other income and (expenses) in the consolidated financial statements. Our non-recourse and limited-recourse debt, which we have classified as Level 3, had a carrying value of $352.8 million and $207.9 million at June 30, 2016 and December 31, 2015 , respectively, and an estimated fair value of $356.1 million and $209.4 million at June 30, 2016 and December 31, 2015 , respectively. We determined the estimated fair value using a discounted cash flow model with rates that take into account the interest rate risk. We also considered the value of the underlying collateral, taking into account the quality of the collateral and the then-current interest rate. We estimated that our other financial assets and liabilities had fair values that approximated their carrying values at both June 30, 2016 and December 31, 2015 .

Risk Management and Use of Deri

Risk Management and Use of Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Risk Management and Use of Derivative Financial Instruments	Risk Management and Use of Derivative Financial Instruments Risk Management In the normal course of our ongoing business operations, we encounter economic risk. There are two main components of economic risk that impact us: interest rate risk and market risk. We are primarily subject to interest rate risk on our interest-bearing assets and liabilities. Market risk includes changes in the value of our properties and related loans. Derivative Financial Instruments When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates. We have not entered into, and do not plan to enter into, financial instruments for trading or speculative purposes. In addition to entering into derivative instruments on our own behalf, we may also be a party to derivative instruments that are embedded in other contracts, which are considered to be derivative instruments. The primary risks related to our use of derivative instruments include a counterparty to a hedging arrangement defaulting on its obligation and a downgrade in the credit quality of a counterparty to such an extent that our ability to sell or assign our side of the hedging transaction is impaired. While we seek to mitigate these risks by entering into hedging arrangements with large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive loss until the hedged item is recognized in earnings. The ineffective portion of the change in fair value of any derivative is immediately recognized in earnings. The following table sets forth certain information regarding our derivative instruments on our Consolidated Hotels (in thousands): Derivatives Designated Asset Derivatives Fair Value at Liability Derivatives Fair Value at as Hedging Instruments Balance Sheet Location June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Interest rate caps Other assets $ 39 $ 24 $ — $ — Interest rate swap Accounts payable, accrued expenses and other liabilities — — (1,766 ) — $ 39 $ 24 $ (1,766 ) $ — All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis in our consolidated financial statements. At both June 30, 2016 and December 31, 2015 , no cash collateral had been posted nor received for any of our derivative positions. We recognized unrealized losses of $0.8 million and less than $0.1 million in Other comprehensive loss on derivatives in connection with our interest rate swap and caps during the three months ended June 30, 2016 and 2015 , respectively, and losses of $2.1 million and less than $0.1 million during the six months ended June 30, 2016 and 2015 , respectively. We reclassified $0.2 million and $0.4 million of losses from Other comprehensive loss on derivatives into Interest expense during the three and six months ended June 30, 2016 , respectively. No such losses were reclassified during the three or six months ended June 30, 2015 . Amounts reported in Other comprehensive loss related to our interest rate swap and caps will be reclassified to Interest expense as interest payments are made on our variable-rate debt. At June 30, 2016 , we estimated that $0.8 million will be reclassified as Interest expense during the next 12 months related to our interest rate swap and caps. Interest Rate Swaps and Caps We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our investment partners may obtain variable-rate non-recourse and limited-recourse mortgage loans and, as a result, may enter into interest rate swap or cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of a loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The face amount on which the swaps are based is not exchanged. An interest rate cap limits the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements. The interest rate swap and caps that we had outstanding on our Consolidated Hotels at June 30, 2016 were designated as cash flow hedges and are summarized as follows (dollars in thousands): Number of Face Fair Value at Interest Rate Derivatives Instruments Amount June 30, 2016 Interest rate caps 3 $ 155,000 $ 39 Interest rate swap 1 100,000 (1,766 ) $ (1,727 ) Credit Risk-Related Contingent Features We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of any collateral received. No collateral was received as of June 30, 2016 . At June 30, 2016 , our total credit exposure and the maximum exposure to any single counterparty were both less than $0.1 million . Some of the agreements we have with our derivative counterparties contain cross-default provisions that could trigger a declaration of default on our derivative obligations if we default, or are capable of being declared in default, on certain of our indebtedness. At June 30, 2016 , we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives in a net liability position was $1.8 million at June 30, 2016 , which included accrued interest and any nonperformance risk adjustments. If we had breached any of these provisions at June 30, 2016 , we could have been required to settle our obligations under these agreements at their aggregate termination value of $2.0 million . We had no derivatives that were in a net liability position at December 31, 2015 .

Debt

Debt	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Debt	Debt The following table presents the non-recourse and limited-recourse debt, net on our Consolidated Hotels (dollars in thousands): Carrying Amount at Consolidated Hotels Interest Rate Rate Type Current Maturity Date June 30, 2016 December 31, 2015 Courtyard Nashville Downtown (a) (b) 3.47% Variable 5/2019 $ 41,583 $ 41,509 Marriott Sawgrass Golf Resort & Spa (a) 4.31% Variable 11/2019 78,000 66,700 Seattle Marriott Bellevue (a) (b) 3.88% Variable 1/2020 99,054 — Le Méridien Arlington (a) (b) 3.19% Variable 6/2020 34,430 — Embassy Suites by Hilton Denver-Downtown/Convention Center 3.90% Fixed 12/2022 99,701 99,679 $ 352,768 $ 207,888 ___________ (a) These mortgage loans have variable interest rates, which have effectively been capped or converted to fixed rates through the use of interest rate caps or swaps ( Note 7 ). The interest rate range presented for these mortgage loans reflect the rates in effect at June 30, 2016 through the use of an interest rate cap or swap, when applicable. (b) These mortgage loans each have a one-year extension option, which are subject to certain conditions. The maturity dates in the table do not reflect the extension options. Most of our mortgage loan agreements contain “lock-box” provisions, which permit the lender to access or sweep a hotel’s excess cash flow and would be triggered under limited circumstances, including the failure to maintain minimum debt service coverage ratios. If a provision were triggered, we would generally be permitted to spend an amount equal to our budgeted hotel operating expenses, taxes, insurance and capital expenditure reserves for the relevant hotel. The lender would then retain all excess cash flow after the payment of debt service in an escrow account until certain performance hurdles are met. Financing Activity During 2016 In connection with our acquisition of the Seattle Marriott Bellevue hotel, we obtained a limited-recourse mortgage loan of $100.0 million , with a floating annual interest rate of LIBOR plus 2.7% , which has effectively been fixed at approximately 3.9% through an interest rate swap agreement. The mortgage loan is limited-recourse up to a maximum of $15.0 million and terminates upon satisfaction of certain conditions as described in the loan agreement. The loan is interest-only for 36 months and has a maturity date of January 22, 2020 . We recognized $1.1 million of deferred financing costs related to this loan. In connection with our acquisition of the Le Méridien Arlington, we obtained a non-recourse mortgage loan of $35.0 million , with a floating annual interest rate of LIBOR plus 2.8% , which is subject to an interest rate cap. The loan is interest-only for 36 months and has a maturity date of June 28, 2020 . We recognized $0.6 million of deferred financing costs related to this loan. We drew down a total of $11.3 million on the Marriott Sawgrass Golf Resort & Spa mortgage loan for renovations at the hotel. Covenants Pursuant to our mortgage loan agreements, our consolidated subsidiaries are subject to various operational and financial covenants, including minimum debt service coverage ratios. At June 30, 2016 , we were in compliance with the applicable covenants for each of our mortgage loans. Scheduled Debt Principal Payments Scheduled debt principal payments during the remainder of 2016, each of the next four calendar years following December 31, 2016 and thereafter are as follows (in thousands): Years Ending December 31, Total 2016 (remainder) $ — 2017 640 2018 960 2019 122,457 2020 134,598 Thereafter through 2022 96,345 355,000 Deferred financing costs (a) (2,232 ) Total $ 352,768 ___________ (a) In accordance with ASU 2015-03, we reclassified deferred financing costs from Other assets to Non-recourse and limited-recourse debt, net, as of December 31, 2015 ( Note 2 ).

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies At June 30, 2016 , we were not involved in any material 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. Pursuant to our advisory agreement, we are liable for certain expenses related to our initial public offering, including filing, legal, accounting, printing, advertising, transfer agent and escrow fees, which are deducted from the gross proceeds of the offering. We reimburse Carey Financial and selected dealers for reasonable bona fide due diligence expenses incurred that are supported by a detailed and itemized invoice. The total underwriting compensation to Carey Financial and selected dealers in connection with the offering cannot exceed limitations prescribed by the Financial Industry Regulatory Authority, Inc. Our Advisor will be reimbursed for all organization expenses and offering costs incurred in connection with our offering (excluding selling commissions and the dealer manager fees) limited to 4% of the gross proceeds from the offering if the gross proceeds are less than $500.0 million , 2% of the gross proceeds from the offering if the gross proceeds are $500.0 million or more but less than $750.0 million , and 1.5% of the gross proceeds from the offering if the gross proceeds are $750.0 million or more. Through June 30, 2016 , our Advisor incurred organization and offering costs on our behalf of approximately $6.6 million , all of which we were obligated to pay. Unpaid costs of $0.5 million were included in Due to affiliates in the consolidated financial statements at June 30, 2016 . Renovation Commitments Certain of our hotel franchise and loan agreements require us to make planned renovations to our hotels ( Note 4 ). We do not currently expect to, and are not obligated to, fund any planned renovations on our Unconsolidated Hotels beyond our original investment. At June 30, 2016 , three hotels were either undergoing renovation or in the planning stage of renovations, and we currently expect that one will be completed during the second half of 2016 and two will be completed during the first half of 2017. The following table summarizes our capital commitments related to our Consolidated Hotels (in thousands): June 30, 2016 December 31, 2015 Capital commitments $ 33,327 $ 27,100 Less: paid (11,519 ) (4,390 ) Unpaid commitments 21,808 22,710 Less: amounts in cash or restricted cash designated for renovations (18,995 ) (9,607 ) Unfunded commitments $ 2,813 $ 13,103

Loss Per Share and Equity

Loss Per Share and Equity	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Loss Per Share and Equity	Loss Per Share and Equity Income (Loss) Per Share The following table presents income (loss) per share (in thousands, except share and per share amounts): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Basic and Diluted Weighted-Average Allocation of Income Basic and Diluted Income Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Class A common stock 18,072,222 $ 217 $ 0.01 336,876 $ (3,126 ) $ (9.28 ) Class T common stock 27,739,509 235 0.01 345,911 (3,214 ) (9.29 ) Net income (loss) attributable to CWI 2 stockholders $ 452 $ (6,340 ) Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Class A common stock 16,256,702 $ (1,253 ) $ (0.08 ) 231,455 $ (3,275 ) $ (14.15 ) Class T common stock 24,434,472 (1,996 ) (0.08 ) 246,690 (3,494 ) (14.16 ) Net loss attributable to CWI 2 stockholders $ (3,249 ) $ (6,769 ) The allocation of Net income (loss) attributable to CWI 2 is calculated based on the weighted-average shares outstanding for Class A common stock and Class T common stock for each respective period. For both the three and six months ended June 30, 2016 , the allocation for the Class A common stock excludes the accretion of interest on the annual distribution and shareholder servicing fee of $0.1 million , which is only applicable to holders of Class T common stock. For both the three and six months ended June 30, 2015, the allocation for the Class A common stock excludes a shareholder servicing fee of less than $0.1 million , which is only applicable to holders of Class T common stock ( Note 3 ). Reclassifications Out of Accumulated Other Comprehensive Loss The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended June 30, Gains and Losses on Derivative Instruments 2016 2015 Beginning balance $ (1,281 ) $ — Other comprehensive loss before reclassifications (805 ) (37 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 199 — Total 199 — Net current period other comprehensive loss (606 ) (37 ) Net current period other comprehensive gain attributable to noncontrolling interests 1 — Ending balance $ (1,886 ) $ (37 ) Six Months Ended June 30, Gains and Losses on Derivative Instruments 2016 2015 Beginning balance $ (94 ) $ — Other comprehensive loss before reclassifications (2,149 ) (37 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 354 — Total 354 — Net current period other comprehensive loss (1,795 ) (37 ) Net current period other comprehensive gain attributable to noncontrolling interests 3 — Ending balance $ (1,886 ) $ (37 ) Share-Based Payments 2015 Equity Incentive Plan We maintain the 2015 Equity Incentive Plan, which authorizes the issuance of shares of our common stock to our officers and officers and employees of the Subadvisor, who perform services on our behalf, and to non-director members of the investment committee through stock-based awards. The 2015 Equity Incentive Plan provides for the grant of RSUs and dividend equivalent rights. A maximum of 2,000,000 shares may be granted under this plan, of which 1,904,990 shares remained available for future grants at June 30, 2016. During the six months ended June 30, 2016 and 2015, we granted 42,260 RSUs and 30,250 RSUs, respectively, all of which were awarded in the second quarter of the year to employees of the Subadvisor and are scheduled to vest over approximately three years, subject to continued employment. Shares Granted to Directors During both the three and six months ended June 30, 2016 and 2015, we issued 10,000 shares and 12,500 shares, respectively, of Class A common stock to our independent directors, at $10.53 and $10.00 per share, respectively, as part of their director compensation. We recognized stock-based compensation expense related to the awards of RSUs to employees of the Subadvisor and shares issued to our directors totaling $0.2 million and $0.1 million for the three months ended June 30, 2016 and 2015, respectively, and $0.2 million and $0.1 million for the six months ended June 30, 2016 and 2015, respectively. Stock-based compensation expense is included within Corporate general and administrative expenses in the consolidated financial statements. The awards to employees of the Subadvisor had a weighted-average remaining contractual term of 2.5 years at June 30, 2016. At June 30, 2016, we had 62,427 nonvested RSUs outstanding, and we currently expect to recognize stock-based compensation expense totaling approximately $0.2 million over the remaining vesting period. We have not recognized any income tax benefit in earnings for our share-based compensation arrangements since the inception of this plan. Distributions During the second quarter of 2016, our board of directors declared per share distributions at a rate of $0.0018070 and $0.0015177 per day for our Class A and Class T common stock, respectively. The distributions are comprised of $0.0015178 and $0.0012285 payable in cash, respectively, and $0.0002892 and $0.0002892 payable in shares of our Class A and Class T common stock, respectively, to stockholders of record on each day of the quarter and were paid on July 15, 2016 in the aggregate amount of $5.6 million . For the six months ended June 30, 2016, our board of directors declared distributions of $9.5 million , including distributions of $3.9 million declared during the three months ended March 31, 2016. We paid distributions of $5.8 million during the six months ended June 30, 2016, comprised of distributions declared during the three months ended March 31, 2016 and the three months ended December 31, 2015 of $3.9 million and $1.9 million , respectively.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On July 13, 2016, we acquired a 100% interest in the San Jose Marriott, from an unaffiliated third party for a contractual purchase price of $154.0 million and obtained a non-recourse mortgage loan of $88.0 million . The 510 -room full-service hotel is located in San Jose, California. The hotel will continue to be managed by Marriott International, Inc. On July 21, 2016, we acquired a 100% interest in the San Diego Marriott La Jolla, from an unaffiliated third party for a contractual purchase price of $137.0 million and obtained a non-recourse mortgage loan of $85.0 million . The 372 -room full-service hotel is located in La Jolla, California. The hotel will continue to be managed by HEI Hotels & Resorts. It was not practicable to disclose the preliminary purchase price allocations or consolidated pro forma financial information for these acquisitions given the short period of time between the acquisition dates and the issuance of this Report.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
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 generally accepted accounting principles in the United States, or GAAP.
Basis of Consolidation	Basis of Consolidation Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.
Recently Adopted Accounting Policy	On January 1, 2016, we adopted ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30) as described in the Recent Accounting Pronouncements section below. ASU 2015-03 changes the presentation of debt issuance costs, which were previously recognized as an asset and requires that they be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. As a result of adopting this guidance, we reclassified $0.8 million of deferred financing costs from Other assets to Non-recourse and limited-recourse debt, net as of December 31, 2015. On January 1, 2016, we adopted the Financial Accounting Standards Board’s, or FASB’s, Accounting Standards Update, or ASU, 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , as described in the Recent Accounting Pronouncements section below, which amends the current consolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities. When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a variable interest entity, or VIE, and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Certain decision-making rights within a loan or joint-venture agreement can cause us to consider an entity a VIE. Limited partnerships and other similar entities which operate as a partnership will be considered a VIE unless the limited partners hold substantive kick-out rights or participation rights. Significant judgment is required to determine whether a VIE should be consolidated. We review the contractual arrangements provided for in the partnership agreement or other related contracts to determine whether the entity is considered a VIE, and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those of the other variable interest holders to determine which party is the primary beneficiary of the VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. We performed this analysis on all of our subsidiary entities following the guidance in ASU 2015-02 to determine whether they qualify as VIEs and whether they should be consolidated or accounted for as equity investments in an unconsolidated venture. As a result of this change in guidance, we determined that two entities that were previously classified as voting interest entities should now be classified as VIEs as of January 1, 2016 and therefore included in our VIE disclosure. However, there was no change in determining whether or not we consolidate these entities as a result of the new guidance. We elected to retrospectively adopt ASU 2015-02, which resulted in changes to our VIE disclosures within the consolidated balance sheets. There were no other changes to our consolidated balance sheets or results of operations for the period presented.
New Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued 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 August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all entities by one year, beginning in 2018, with early adoption 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. In February 2015 , the FASB issued ASU 2015-02, Consolidation (Topic 810). ASU 2015-02 amends the current consolidation guidance, including modification of the guidance for evaluating whether limited partnerships and similar legal entities are VIEs or voting interest entities. The guidance does not amend the existing disclosure requirements for VIEs or voting interest model entities. The guidance, however, modified the requirements to qualify under the voting interest model. Under the revised guidance, ASU 2015-02 requires an entity to classify a limited liability company or a limited partnership as a VIE unless the partnership provides partners with either substantive kick-out rights or substantive participating rights over the managing member or general partner. Refer to the discussion in the Basis of Consolidation section above. In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30). ASU 2015-03 changes the presentation of debt issuance costs, which were previously recognized as an asset, and requires that they be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. 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 and retrospective application is required. We adopted ASU 2015-03 on January 1, 2016 and have disclosed the reclassification of our debt issuance costs in the Reclassifications section above. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). ASU 2015-16 eliminates the requirement that an acquirer in a business combination account for measurement period adjustments retrospectively. Instead, an acquirer will recognize a measurement period adjustment during the period in which it determines the amount of the adjustment, including the effect on earnings of any amounts it would have recorded in previous periods if the accounting had been completed at the acquisition date. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, early adoption is permitted and prospective application is required for adjustments that are identified after the effective date of this update. We elected to early adopt ASU 2015-16 and implemented the standard prospectively beginning July 1, 2015. The adoption and implementation of the standard did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 outlines a new model for accounting by lessees, whereby their rights and obligations under substantially all leases, existing and new, would be capitalized and recorded on the balance sheet. For lessors, however, the accounting remains largely unchanged from the current model, with the distinction between operating and financing leases retained, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Additionally, the new standard requires extensive quantitative and qualitative disclosures. ASU 2016-02 is effective for U.S. GAAP public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years; for all other entities, the final lease standard will be effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application will be permitted for all entities. The new standard must be adopted using a modified retrospective transition of the new guidance and provides for certain practical expedients. Transition will require application of the new model at the beginning of the earliest comparative period presented. We are evaluating the impact of the new standard and have not yet determined if it will have a material impact on our business or our consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815) : Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. ASU 2016-05 clarifies that a change in counterparty to a derivative contract in and of itself, does not require the dedesignation of a hedging relationship. ASU 2016-05 is effective for fiscal years beginning after December 15, 2016, including interim periods within those years. Early adoption is permitted and entities have the option of adopting this guidance on a prospective basis to new derivative contracts or on a modified retrospective basis. We elected to early adopt ASU 2016-05 on January 1, 2016 on a prospective basis and there was no impact on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323). ASU 2016-07 simplifies the transition to the equity method of accounting. ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. Instead, the equity method of accounting will be applied prospectively from the date significant influence is obtained. The new standard should be applied prospectively for investments that qualify for the equity method of accounting in interim and annual periods beginning after December 15, 2016. Early adoption is permitted and we elected to early adopt this standard as of January 1, 2016. The adoption of this standard had no impact on our consolidated financial statements.
Equity Method Investments in Real Estate	Under the conventional approach of accounting for equity method investments, an investor applies its percentage ownership interest to the venture’s net income to determine the investor’s share of the earnings or losses of the venture. This approach is inappropriate if the venture’s capital structure gives different rights and priorities to its investors. We have priority returns on our equity method investment. Therefore, we follow the hypothetical liquidation at book value method in determining our share of the venture’s earnings or losses for the reporting period as this method better reflects our claim on the venture’s book value at the end of each reporting period. Earnings for our equity method investment are recognized in accordance with the related investment agreement and, where applicable, based upon the allocation of the investment’s net assets at book value as if the investment was hypothetically liquidated at the end of each reporting period.
Fair Value of Financial Instruments	The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments, including interest rate caps and swaps; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions. Derivative Assets and Liabilities — Our derivative assets and liabilities are comprised of interest rate caps and swaps that were measured at fair value using readily observable market inputs, such as quotations on interest rates. These derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market ( Note 7 ).
Derivatives	We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive loss until the hedged item is recognized in earnings. The ineffective portion of the change in fair value of any derivative is immediately recognized in earnings.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Schedule of Variable Interest Entities	The following table presents a summary of selected financial data of consolidated VIEs included in the consolidated balance sheets (in thousands): June 30, 2016 December 31, 2015 Net investments in real estate $ 314,918 $ 129,778 Total assets 345,184 143,131 Non-recourse and limited-recourse debt, net $ 177,054 $ 66,700 Total liabilities 196,046 77,860

Agreements and Transactions w23

Agreements and Transactions with Related Parties (Tables)	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following tables present a summary of fees we paid; expenses we reimbursed and distributions we made to our Advisor, the Subadvisor and other affiliates, as described below, in accordance with the terms of those agreements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Amounts Included in the Consolidated Statements of Operations To our Advisor: Acquisition fees $ 1,488 $ 1,742 $ 6,161 $ 1,742 Asset management fees 840 204 1,612 204 Personnel and overhead reimbursements 743 187 1,188 216 Available Cash Distribution 336 — 865 — Accretion of interest on annual distribution and shareholder servicing fee 98 — 111 — Interest expense — 259 18 259 To CWI 1: Acquisition fee to CWI 1 — 3,411 — 3,411 $ 3,505 $ 5,803 $ 9,955 $ 5,832 Other Transaction Fees Incurred to Our Advisor and Affiliates Selling commissions and dealer manager fees $ 3,965 $ 1,186 $ 13,861 $ 1,186 Annual distribution and shareholder servicing fee 1,754 — 6,786 — Organization and offering costs 870 502 1,907 571 Capitalized acquisition fees for equity method investment — 1,862 — 1,862 $ 6,589 $ 3,550 $ 22,554 $ 3,619 The following table presents a summary of amounts included in Due to related parties and affiliates in the consolidated financial statements (in thousands): June 30, 2016 December 31, 2015 Amounts Due to Related Parties and Affiliates To our Advisor: Other $ 1,768 $ 186 Reimbursable costs 772 215 Organization and offering costs 497 454 To Others: Due to Carey Financial (Annual distribution and shareholder servicing fee) 8,582 2,407 Due to Carey Financial (Other) 74 191 Due to CWI 1 20 1,521 Other 4 11 $ 11,717 $ 4,985

Net Investments in Hotels (Tabl

Net Investments in Hotels (Tables)	6 Months Ended
	Jun. 30, 2016
Real Estate [Abstract]
Schedule of Hotel Properties	Net investments in hotels are summarized as follows (in thousands): June 30, 2016 December 31, 2015 Buildings $ 486,306 $ 294,352 Land 76,567 47,900 Furniture, fixtures and equipment 32,904 16,496 Building and site improvements 1,002 815 Construction in progress 14,988 5,061 Hotels, at cost 611,767 364,624 Less: Accumulated depreciation (13,316 ) (5,359 ) Net investments in hotels $ 598,451 $ 359,265
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following tables present a summary of assets acquired and liabilities assumed in these business combinations, at the dates of acquisition, and revenues and earnings thereon, since the respective date of acquisition through June 30, 2016 (in thousands): Seattle Marriott Bellevue (a) Le Méridien Arlington (a) Acquisition Date January 22, 2016 June 28, 2016 Cash consideration $ 175,921 $ 54,891 Assets acquired at fair value: Building $ 149,111 $ 42,791 Land 19,500 9,167 Furniture, fixtures and equipment 11,600 4,567 Accounts receivable 176 41 Other assets 388 290 Liabilities assumed at fair value: Accounts payable, accrued expenses and other liabilities (854 ) (1,965 ) Contribution from noncontrolling interest at fair value (4,000 ) — Net assets acquired at fair value $ 175,921 $ 54,891 From Acquisition Dates Through June 30, 2016 Revenues $ 13,963 $ 110 Income from operations before income taxes $ 3,280 $ 23 ___________ (a) The purchase price was allocated to the assets acquired and liabilities assumed based upon their preliminary fair values. The information in this table is based on the current best estimates of management. We are in the process of finalizing our assessment of the fair value of the assets acquired and liabilities assumed. Accordingly, the fair value of these assets acquired and liabilities assumed is subject to change.
Schedule Of Revenues and Net Income	From Acquisition Dates Through June 30, 2016 Revenues $ 13,963 $ 110 Income from operations before income taxes $ 3,280 $ 23
Pro Forma Information	The following unaudited consolidated pro forma financial information presents our financial results as if our acquisition of the Seattle Marriott Bellevue, and the new financing related to this acquisition, had occurred on July 14, 2015, the opening date of the acquired hotel and as if our acquisition of the Le Méridien Arlington, and the new financing related to this acquisition, had occurred on January 1, 2015. These transactions were accounted for as business combinations. The pro forma financial information is not necessarily indicative of what the actual results would have been had the acquisitions actually occurred on the dates listed above, nor does it purport to represent the results of operations for future periods. (Dollars in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Pro forma total revenues $ 40,607 $ 23,681 $ 75,060 $ 42,420 Pro forma net income $ 4,614 $ 3,573 $ 7,072 $ 2,327 Pro forma income attributable to noncontrolling interests (1,532 ) (1,197 ) (3,187 ) (1,900 ) Pro forma net income attributable to CWI 2 stockholders $ 3,082 $ 2,376 $ 3,885 $ 427 Pro forma income per Class A share: Net income attributable to CWI 2 stockholders $ 1,347 $ 2,117 $ 1,782 $ 395 Basic and diluted pro forma weighted-average shares outstanding 20,391,733 2,786,748 19,658,405 2,681,327 Basic and diluted pro forma income per share $ 0.07 $ 0.76 $ 0.09 $ 0.15 Pro forma income per Class T share: Net income attributable to CWI 2 stockholders $ 1,735 $ 259 $ 2,103 $ 32 Basic and diluted pro forma weighted-average shares outstanding 27,739,509 345,911 24,434,472 246,690 Basic and diluted pro forma income per share $ 0.06 $ 0.75 $ 0.09 $ 0.13

Equity Investments in Real Es25

Equity Investments in Real Estate (Tables)	6 Months Ended
	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	The following table sets forth our ownership interest in our equity investment in real estate and its carrying value. The carrying value of this venture is affected by the timing and nature of distributions (dollars in thousands): Unconsolidated Hotel State Number of Rooms % Owned Our Initial Investment (a) Acquisition Date Hotel Type Renovation Status at June 30, 2016 Carrying Value at June 30, 2016 December 31, 2015 Ritz-Carlton Key Biscayne Venture (b) (c) FL 458 19.3 % $ 37,559 5/29/2015 Resort Planned Future $ 38,817 $ 37,599 ___________ (a) This amount represents purchase price plus capitalized costs, inclusive of fees paid to our Advisor, at the time of acquisition. (b) CWI 1 acquired a 47.4% interest in the venture on the same date. The remaining 33.3% interest is retained by the original owner. The number of rooms presented includes 156 condo-hotel units that participate in the resort rental program. This investment is considered a VIE ( Note 2 ). We do not consolidate this entity because we are not the primary beneficiary and the nature of our involvement in the activities of the entity allows us to exercise significant influence but does not give us power over decisions that significantly affect the economic performance of the entity. (c) We received cash distributions of $0.4 million from this investment during the six months ended June 30, 2016 . No cash distributions were received during the three months ended June 30, 2016. At both June 30, 2016 and December 31, 2015, the unamortized basis differences on our equity investment were $1.8 million . Net amortization of the basis differences reduced the carrying value of our equity investment by less than $0.1 million for both the three and six months ended June 30, 2016 and 2015 . The following table sets forth our share of equity in earnings from our Unconsolidated Hotel, which is based on the hypothetical liquidation at book value model as well as amortization adjustments related to basis differentials from acquisitions of investments (in thousands): Three Months Ended June 30, Six Months Ended June 30, Unconsolidated Hotel 2016 2015 2016 2015 Ritz-Carlton Key Biscayne Venture $ 817 $ 330 $ 1,615 $ 330

Risk Management and Use of De26

Risk Management and Use of Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments on our Consolidated Hotels	The following table sets forth certain information regarding our derivative instruments on our Consolidated Hotels (in thousands): Derivatives Designated Asset Derivatives Fair Value at Liability Derivatives Fair Value at as Hedging Instruments Balance Sheet Location June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Interest rate caps Other assets $ 39 $ 24 $ — $ — Interest rate swap Accounts payable, accrued expenses and other liabilities — — (1,766 ) — $ 39 $ 24 $ (1,766 ) $ —
Schedule of Derivative Instruments	The interest rate swap and caps that we had outstanding on our Consolidated Hotels at June 30, 2016 were designated as cash flow hedges and are summarized as follows (dollars in thousands): Number of Face Fair Value at Interest Rate Derivatives Instruments Amount June 30, 2016 Interest rate caps 3 $ 155,000 $ 39 Interest rate swap 1 100,000 (1,766 ) $ (1,727 )

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of Debt	The following table presents the non-recourse and limited-recourse debt, net on our Consolidated Hotels (dollars in thousands): Carrying Amount at Consolidated Hotels Interest Rate Rate Type Current Maturity Date June 30, 2016 December 31, 2015 Courtyard Nashville Downtown (a) (b) 3.47% Variable 5/2019 $ 41,583 $ 41,509 Marriott Sawgrass Golf Resort & Spa (a) 4.31% Variable 11/2019 78,000 66,700 Seattle Marriott Bellevue (a) (b) 3.88% Variable 1/2020 99,054 — Le Méridien Arlington (a) (b) 3.19% Variable 6/2020 34,430 — Embassy Suites by Hilton Denver-Downtown/Convention Center 3.90% Fixed 12/2022 99,701 99,679 $ 352,768 $ 207,888 ___________ (a) These mortgage loans have variable interest rates, which have effectively been capped or converted to fixed rates through the use of interest rate caps or swaps ( Note 7 ). The interest rate range presented for these mortgage loans reflect the rates in effect at June 30, 2016 through the use of an interest rate cap or swap, when applicable. (b) These mortgage loans each have a one-year extension option, which are subject to certain conditions. The maturity dates in the table do not reflect the extension options.
Debt Maturity Schedule	Scheduled debt principal payments during the remainder of 2016, each of the next four calendar years following December 31, 2016 and thereafter are as follows (in thousands): Years Ending December 31, Total 2016 (remainder) $ — 2017 640 2018 960 2019 122,457 2020 134,598 Thereafter through 2022 96,345 355,000 Deferred financing costs (a) (2,232 ) Total $ 352,768 ___________ (a) In accordance with ASU 2015-03, we reclassified deferred financing costs from Other assets to Non-recourse and limited-recourse debt, net, as of December 31, 2015 ( Note 2 ).

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule Of Funding Commitments	The following table summarizes our capital commitments related to our Consolidated Hotels (in thousands): June 30, 2016 December 31, 2015 Capital commitments $ 33,327 $ 27,100 Less: paid (11,519 ) (4,390 ) Unpaid commitments 21,808 22,710 Less: amounts in cash or restricted cash designated for renovations (18,995 ) (9,607 ) Unfunded commitments $ 2,813 $ 13,103

Loss Per Share and Equity (Tabl

Loss Per Share and Equity (Tables)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Schedule of Earnings Per Share	The following table presents income (loss) per share (in thousands, except share and per share amounts): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Basic and Diluted Weighted-Average Allocation of Income Basic and Diluted Income Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Class A common stock 18,072,222 $ 217 $ 0.01 336,876 $ (3,126 ) $ (9.28 ) Class T common stock 27,739,509 235 0.01 345,911 (3,214 ) (9.29 ) Net income (loss) attributable to CWI 2 stockholders $ 452 $ (6,340 ) Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Class A common stock 16,256,702 $ (1,253 ) $ (0.08 ) 231,455 $ (3,275 ) $ (14.15 ) Class T common stock 24,434,472 (1,996 ) (0.08 ) 246,690 (3,494 ) (14.16 ) Net loss attributable to CWI 2 stockholders $ (3,249 ) $ (6,769 )
Reclassification out of Accumulated Other Comprehensive Income	The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended June 30, Gains and Losses on Derivative Instruments 2016 2015 Beginning balance $ (1,281 ) $ — Other comprehensive loss before reclassifications (805 ) (37 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 199 — Total 199 — Net current period other comprehensive loss (606 ) (37 ) Net current period other comprehensive gain attributable to noncontrolling interests 1 — Ending balance $ (1,886 ) $ (37 ) Six Months Ended June 30, Gains and Losses on Derivative Instruments 2016 2015 Beginning balance $ (94 ) $ — Other comprehensive loss before reclassifications (2,149 ) (37 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 354 — Total 354 — Net current period other comprehensive loss (1,795 ) (37 ) Net current period other comprehensive gain attributable to noncontrolling interests 3 — Ending balance $ (1,886 ) $ (37 )

Business (Narratives) (Details)

Business (Narratives) (Details)	25 Months Ended
	Jun. 30, 2016USD ($)property	May 15, 2015USD ($)	Apr. 13, 2015USD ($)	Feb. 09, 2015USD ($)
Business
Capital interest ownership in operating partnership	99.985%
Number of real estate properties | property	6
Common stock maximum offering amount			$ 1,400,000,000
Common stock, maximum authorized under dividend reinvestment plan			$ 600,000,000
Initial minimum offering amount		$ 2,000,000
Common Class A
Business
Common stock maximum offering amount				$ 1,400,000,000
Common stock, maximum authorized under dividend reinvestment plan				$ 600,000,000
Proceeds from issuance initial public offering	$ 183,800,000
Proceeds from follow on offering	1,700,000
Common Class T
Business
Proceeds from issuance initial public offering	286,500,000
Proceeds from follow on offering	$ 2,300,000

Basis of Presentation (Narrativ

Basis of Presentation (Narratives) (Details) $ in Thousands	Jun. 30, 2016USD ($)vie	Dec. 31, 2015USD ($)
Basis of Presentation
Variable interest entities, count | vie	3
Variable interest entities consolidated, count | vie	2
Deferred financing costs | $	$ 2,232
Accounting Standards Update 2015-02
Basis of Presentation
Variable interest entities, count | vie	2
Other assets | Accounting Standards Update 2015-03
Basis of Presentation
Deferred financing costs | $		$ (800)
Non Recourse Debt | Accounting Standards Update 2015-03
Basis of Presentation
Deferred financing costs | $		$ 800

Basis of Presentation Basis of

Basis of Presentation Basis of Presentation (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Net investments in hotels	$ 598,451	$ 359,265
Total assets	840,380	478,979
Liabilities
Non-recourse and limited-recourse debt, net	352,768	207,888
Total liabilities	398,902	232,787
Variable Interest Entity
Assets
Net investments in hotels	314,918	129,778
Total assets	345,184	143,131
Liabilities
Non-recourse and limited-recourse debt, net	177,054	66,700
Total liabilities	$ 196,046	$ 77,860

Agreements and Transactions w33

Agreements and Transactions with Related Parties (Narratives) (Details) - USD ($)	Jun. 28, 2016	Jan. 20, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Apr. 30, 2015	Dec. 31, 2014
Related Party Transaction
Percentage of fees earned by advisor paid to subadvisor			25.00%
Subordinated incentive distribution			30.00%
Percentage of asset management fees			0.55%
Percentage of subordinated disposition fees			1.50%
Loan refinancing fee, percentage			1.00%
Asset management fees settled in shares, value			$ 1,500,000	$ 100,000
Percentage of available cash distribution to advisor			10.00%
Underwriting compensation limit			10.00%
Shareholder servicing fee charged to equity			$ 6,800,000
Line of credit facility, maximum borrowing capacity						$ 110,000,000
Notes payable, related party		$ 20,000,000
Line of credit facility, remaining borrowing capacity			110,000,000		$ 110,000,000
Cumulative offering costs incurred though inception			6,600,000
Unpaid organization and offering costs			497,000		454,000
Deferred offering costs			3,000,000
Due to advisor			$ 1,768,000		$ 186,000
Common Class A
Related Party Transaction
NAV (per share)			$ 10
Common shares, outstanding			18,775,547	840,209	10,792,296		22,222
Common Class T
Related Party Transaction
Common shares, outstanding			29,888,623	951,436	14,983,012
LIBOR
Related Party Transaction
Stated interest rate		1.10%
Advisor | Common Class A
Related Party Transaction
Common shares, outstanding			244,564
Percentage of common stock held by related party			1.30%
Carey Financial | Common Class A
Related Party Transaction
Selling commission fee (per share)			$ 0.82
Dealer manager fee (per share)			0.35
Carey Financial | Common Class A | Previously Reported
Related Party Transaction
Selling commission fee (per share)			0.70
Dealer manager fee (per share)			0.30
Carey Financial | Common Class T
Related Party Transaction
Selling commission fee (per share)			0.22
Dealer manager fee (per share)			$ 0.30
Shareholder servicing fee, percentage			1.00%
Carey Financial | Common Class T | Previously Reported
Related Party Transaction
Selling commission fee (per share)			$ 0.19
Dealer manager fee (per share)			$ 0.26
Invested asset
Related Party Transaction
Percentage of acquisition fees			2.50%
Maximum | Contract purchase price
Related Party Transaction
Percentage of acquisition fees			6.00%
Scenario One
Related Party Transaction
Aggregate gross proceeds threshold			4.00%
Scenario One | Maximum
Related Party Transaction
Potential gross proceeds from offering			$ 500,000,000
Scenario Two
Related Party Transaction
Aggregate gross proceeds threshold			2.00%
Scenario Two | Minimum
Related Party Transaction
Potential gross proceeds from offering			$ 500,000,000
Scenario Two | Maximum
Related Party Transaction
Potential gross proceeds from offering			$ 750,000,000
Scenario Three
Related Party Transaction
Aggregate gross proceeds threshold			1.50%
Scenario Three | Minimum
Related Party Transaction
Potential gross proceeds from offering			$ 750,000,000
Le Méridien Arlington
Related Party Transaction
Due to advisor			$ 1,500,000
Le Méridien Arlington | LIBOR
Related Party Transaction
Stated interest rate	2.80%

Agreements and Transactions w34

Agreements and Transactions with Related Parties (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Amounts Included in the Consolidated Statements of Operations
Related party expenses included operating expenses	$ 3,505	$ 5,803	$ 9,955	$ 5,832
Other Transaction Fees Incurred to Our Advisor and Affiliates
Selling commissions and dealer manager fees	3,965	1,186	13,861	1,186
Annual distribution and shareholder servicing fee	1,754	0	6,786	0
Organization and offering costs	870	502	1,907	571
Capitalized acquisition fees for equity method investment	0	1,862	0	1,862
Transaction Fees Incurred	6,589	3,550	22,554	3,619
Advisor
Amounts Included in the Consolidated Statements of Operations
Acquisition fees	1,488	1,742	6,161	1,742
Asset management fees	840	204	1,612	204
Personnel and overhead reimbursements	743	187	1,188	216
Available Cash Distribution	336	0	865	0
Accretion of interest on annual distribution and shareholder servicing fee	98	0	111	0
Interest expense	0	259	18	259
CWI
Amounts Included in the Consolidated Statements of Operations
Acquisition fees	$ 0	$ 3,411	$ 0	$ 3,411

Agreements and Transactions w35

Agreements and Transactions with Related Parties (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Amounts Due to Related Parties and Affiliates
Other	$ 1,768	$ 186
Reimbursable costs	772	215
Organization and offering costs	497	454
Due to related parties and affiliates	11,717	4,985
Carey Financial
Amounts Due to Related Parties and Affiliates
Due to related parties and affiliates	74	191
Carey Financial | Distribution and Shareholder Servicing Fee
Amounts Due to Related Parties and Affiliates
Due to related parties and affiliates	8,582	2,407
CWI
Amounts Due to Related Parties and Affiliates
Due to related parties and affiliates	20	1,521
Other
Amounts Due to Related Parties and Affiliates
Due to related parties and affiliates	$ 4	$ 11

Net Investments in Hotels (Narr

Net Investments in Hotels (Narratives) (Details)	Jun. 28, 2016USD ($)room	Jan. 22, 2016USD ($)room	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)property	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Jan. 20, 2016USD ($)
Business Acquisition
Number Of properties acquired | property					2
Acquisition-related expenses			$ 2,672,000	$ 7,693,000	$ 7,538,000	$ 7,861,000
Non-recourse and limited-recourse debt, net			352,768,000		352,768,000		$ 207,888,000
Notes payable, related party								$ 20,000,000
Construction in progress			14,988,000		14,988,000		5,061,000
Interest costs capitalized			$ 100,000	$ 0	200,000	0
Change in capital expenditures					1,900,000	$ 300,000
Seattle Marriott Bellevue
Business Acquisition
Ownership interest acquired		95.40%
Net assets acquired at fair value		$ 175,921,000
Net operating interest guarantee reserve		$ 4,000,000
Number of Rooms | room		384
Acquisition-related expenses		$ 5,300,000			$ 4,900,000		$ 400,000
Non-recourse and limited-recourse debt, net		100,000,000
Acquisition fees paid to advisor		4,700,000
Notes payable, related party		$ 20,000,000
Seattle Marriott Bellevue | Noncontrolling Interest
Business Acquisition
Ownership interest acquired		4.60%
Le Méridien Arlington
Business Acquisition
Ownership interest acquired	100.00%
Net assets acquired at fair value	$ 54,891,000
Number of Rooms | room	154
Acquisition-related expenses	$ 2,000,000
Non-recourse and limited-recourse debt, net	35,000,000
Acquisition fees paid to advisor	$ 1,500,000

Net Investments in Hotels (Deta

Net Investments in Hotels (Details 1) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Real Estate [Abstract]
Buildings	$ 486,306	$ 294,352
Land	76,567	47,900
Furniture, fixtures and equipment	32,904	16,496
Building and site improvements	1,002	815
Construction in progress	14,988	5,061
Hotels, at cost	611,767	364,624
Less: Accumulated depreciation	(13,316)	(5,359)
Net investments in hotels	$ 598,451	$ 359,265

Net Investments in Hotels (De38

Net Investments in Hotels (Details 2) - USD ($) $ in Thousands	Jun. 28, 2016	Jan. 22, 2016	Jun. 30, 2016	Jun. 30, 2015
Business Acquisition
Cash consideration			$ 234,812	$ 117,020
Seattle Marriott Bellevue
Business Acquisition
Cash consideration		$ 175,921
Assets acquired at fair value:
Building		149,111
Land		19,500
Furniture, fixtures and equipment		11,600
Accounts receivable		176
Other assets		388
Liabilities assumed at fair value:
Accounts payable, accrued expenses and other liabilities		(854)
Contribution from noncontrolling interest at fair value		(4,000)
Net assets acquired at fair value		$ 175,921
Le Méridien Arlington
Business Acquisition
Cash consideration	$ 54,891
Assets acquired at fair value:
Building	42,791
Land	9,167
Furniture, fixtures and equipment	4,567
Accounts receivable	41
Other assets	290
Liabilities assumed at fair value:
Accounts payable, accrued expenses and other liabilities	(1,965)
Contribution from noncontrolling interest at fair value	0
Net assets acquired at fair value	$ 54,891

Net Investments in Hotels (De39

Net Investments in Hotels (Details 3) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015
Revenue and Earnings from Acquisitions
Revenues		$ 36,961	$ 18,533		$ 67,814	$ 18,533
Net income		$ 2,701	$ (5,044)		$ 685	$ (5,473)
Seattle Marriott Bellevue
Revenue and Earnings from Acquisitions
Revenues				$ 13,963
Net income				$ 3,280
Le Méridien Arlington
Revenue and Earnings from Acquisitions
Revenues	$ 110
Net income	$ 23

Net Investments in Hotels (De40

Net Investments in Hotels (Details 4) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Pro Forma Financial Information
Pro forma total revenues	$ 40,607	$ 23,681	$ 75,060	$ 42,420
Pro forma net income	4,614	3,573	7,072	2,327
Pro forma income attributable to noncontrolling interests	(1,532)	(1,197)	(3,187)	(1,900)
Pro forma net income attributable to CWI 2 stockholders	3,082	2,376	3,885	427
Common Class A
Pro Forma Financial Information
Pro forma net income attributable to CWI 2 stockholders	$ 1,347	$ 2,117	$ 1,782	$ 395
Pro forma income (loss) per share:
Basic and diluted pro forma weighted-average shares outstanding	20,391,733	2,786,748	19,658,405	2,681,327
Basic and diluted pro forma income per share	$ 0.07	$ 0.76	$ 0.09	$ 0.15
Common Class T
Pro Forma Financial Information
Pro forma net income attributable to CWI 2 stockholders	$ 1,735	$ 259	$ 2,103	$ 32
Pro forma income (loss) per share:
Basic and diluted pro forma weighted-average shares outstanding	27,739,509	345,911	24,434,472	246,690
Basic and diluted pro forma income per share	$ 0.06	$ 0.75	$ 0.09	$ 0.13

Equity Investments in Real Es41

Equity Investments in Real Estate (Narratives) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)room	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)room	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	May 29, 2015room
Schedule of Equity Method Investments
Proceeds from equity method investments	$ 0		$ 400,000
Other than temporary impairments	$ 0	$ 0	$ 0	$ 0
Unconsolidated Properties | Key Biscayne Venture
Schedule of Equity Method Investments
Ownership percentage	19.30%		19.30%
Number of Rooms | room	458		458
Aggregate unamortized basis difference on equity investments	$ 1,800,000		$ 1,800,000		$ 1,800,000
Amortization of basis differences	$ 100,000	$ 100,000	$ 100,000	$ 100,000
Unconsolidated Properties | Key Biscayne Venture | Original Owner
Schedule of Equity Method Investments
Ownership percentage						33.30%
Unconsolidated Properties | Key Biscayne Venture | Condo
Schedule of Equity Method Investments
Number of Rooms | room						156
Unconsolidated Properties | Key Biscayne Venture | CWI
Schedule of Equity Method Investments
Ownership percentage						47.40%

Equity Investments in Real Es42

Equity Investments in Real Estate (Details 1) $ in Thousands	May 29, 2015USD ($)	Jun. 30, 2016USD ($)room	Dec. 31, 2015USD ($)
Schedule of Equity Method Investments
Carrying Value		$ 38,817	$ 37,599
Unconsolidated Properties | Key Biscayne Venture
Schedule of Equity Method Investments
Hotel State		FL
Number of Rooms | room		458
Owned		19.30%
Our Initial Investment	$ 37,559
Acquisition Date		May 29, 2015
Hotel Type		Resort
Carrying Value		$ 38,817	$ 37,599

Equity Investments in Real Es43

Equity Investments in Real Estate (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Schedule of Equity Method Investments
Equity in earnings of equity method investment in real estate	$ 817	$ 330	$ 1,615	$ 330
Unconsolidated Properties | Key Biscayne Venture
Schedule of Equity Method Investments
Equity in earnings of equity method investment in real estate	$ 817	$ 330	$ 1,615	$ 330

Fair Value Measurements (Narrat

Fair Value Measurements (Narratives) (Details) - Non Recourse Debt - Level 3 - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Reported Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument, fair value	$ 352.8	$ 207.9
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument, fair value	$ 356.1	$ 209.4

Risk Management and Use of De45

Risk Management and Use of Derivative Financial Instruments (Narratives) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Derivative
Maximum credit exposure	$ 100,000		$ 100,000
Interest expense	3,297,000	$ 1,165,000	6,214,000	$ 1,165,000
Amounts reclassified from accumulated other comprehensive loss to Interest expense — derivative instruments		0		0
Estimated amount of derivative income to be reclassified from OCI to income			800,000
Derivatives in net liability position	1,800,000		1,800,000		$ 0
Termination value	2,000,000		2,000,000
Single counterparty
Derivative
Maximum credit exposure	100,000		100,000
Gains and Losses on Derivative Instruments
Derivative
Unrealized loss in other comprehensive income	805,000	37,000	2,149,000	37,000
Amounts reclassified from accumulated other comprehensive loss to Interest expense — derivative instruments	(199,000)	0	(354,000)	0
Gains and Losses on Derivative Instruments | Minimum
Derivative
Unrealized loss in other comprehensive income		(100,000)		(100,000)
Amounts reclassified from accumulated other comprehensive loss | Gains and Losses on Derivative Instruments
Derivative
Interest expense	$ 199,000	$ 0	$ 354,000	$ 0

Risk Management and Use of De46

Risk Management and Use of Derivative Financial Instruments (Details 1) - Designated as hedging instrument - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value
Derivative Asset, Fair Value	$ 39	$ 24
Derivative Liability, Fair Value	(1,766)
Interest rate cap | Other assets
Derivatives, Fair Value
Derivative Asset, Fair Value	39	$ 24
Interest rate swap | Accounts payable, accrued expenses and other liabilities
Derivatives, Fair Value
Derivative Liability, Fair Value	$ (1,766)

Risk Management and Use of De47

Risk Management and Use of Derivative Financial Instruments (Details 2) - Designated as hedging instrument - Cash Flow Hedging	Jun. 30, 2016USD ($)instrument
Derivative
Fair Value	$ (1,727,000)
Interest rate cap
Derivative
Number of Instruments | instrument	3
Face Amount	$ 155,000,000
Fair Value	$ 39,000
Interest rate swap
Derivative
Number of Instruments | instrument	1
Face Amount	$ 100,000,000
Fair Value	$ (1,766,000)

Debt (Narratives) (Details)

Debt (Narratives) (Details) - USD ($)	Jun. 28, 2016	Jan. 22, 2016	Jan. 20, 2016	Jun. 30, 2016	Dec. 31, 2015	Apr. 30, 2015
Debt Instrument
Non-recourse and limited-recourse debt, net				$ 352,768,000	$ 207,888,000
Line of credit facility, maximum borrowing capacity						$ 110,000,000
Deferred financing costs				$ 2,232,000
Debt instrument, covenant compliance				At June 30, 2016 , we were in compliance with the applicable covenants for each of our mortgage loans.
Le Méridien Arlington
Debt Instrument
Non-recourse and limited-recourse debt, net				$ 34,430,000	0
Interest Rate				3.19%
Maturity Date				Jun. 28, 2020
Seattle Marriott Bellevue [Member]
Debt Instrument
Non-recourse and limited-recourse debt, net				$ 99,054,000	0
Interest Rate				3.88%
Maturity Date				Jan. 22, 2020
Marriott Sawgrass Golf Resort and Spa
Debt Instrument
Non-recourse and limited-recourse debt, net				$ 78,000,000	$ 66,700,000
Interest Rate				4.31%
Maturity Date				Nov. 30, 2019
Proceed from line of credit				$ 11,300,000
LIBOR
Debt Instrument
Variable interest rate			1.10%
Seattle Marriott Bellevue [Member]
Debt Instrument
Non-recourse and limited-recourse debt, net		$ 100,000,000
Interest Rate		3.90%
Line of credit facility, maximum borrowing capacity		$ 15,000,000
Deferred financing costs		$ 1,100,000
Seattle Marriott Bellevue [Member] | LIBOR
Debt Instrument
Variable interest rate		2.70%
Le Méridien Arlington
Debt Instrument
Non-recourse and limited-recourse debt, net	$ 35,000,000
Deferred financing costs	$ 600,000
Le Méridien Arlington | LIBOR
Debt Instrument
Variable interest rate	2.80%

Debt (Details 1)

Debt (Details 1) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Hotel Details
Carrying value of debt	$ 352,768	$ 207,888
Courtyard Nashville
Hotel Details
Interest Rate	3.47%
Rate Type	Variable
Maturity Date	May 31, 2019
Carrying value of debt	$ 41,583	41,509
Marriott Sawgrass Golf Resort and Spa
Hotel Details
Interest Rate	4.31%
Rate Type	Variable
Maturity Date	Nov. 30, 2019
Carrying value of debt	$ 78,000	66,700
Seattle Marriott Bellevue
Hotel Details
Interest Rate	3.88%
Rate Type	Variable
Maturity Date	Jan. 22, 2020
Carrying value of debt	$ 99,054	0
Le Méridien Arlington
Hotel Details
Interest Rate	3.19%
Rate Type	Variable
Maturity Date	Jun. 28, 2020
Carrying value of debt	$ 34,430	0
Embassy Suites Denver Downtown Convention Center
Hotel Details
Interest Rate	3.90%
Rate Type	Fixed
Maturity Date	Dec. 31, 2022
Carrying value of debt	$ 99,701	$ 99,679

Debt (Details 2)

Debt (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Long-term Debt
2016 (remainder)	$ 0
2,017	640
2,018	960
2,019	122,457
2,020	134,598
Thereafter through 2022	96,345
Total long term debt	355,000
Deferred finance costs	(2,232)
Total	$ 352,768	$ 207,888

Commitments and Contingencies (

Commitments and Contingencies (Narratives) (Details)	6 Months Ended
	Jun. 30, 2017property	Dec. 31, 2016property	Jun. 30, 2016USD ($)property	Dec. 31, 2015USD ($)
Loss Contingencies
Cumulative offering costs incurred though inception			$ 6,600,000
Unpaid organization and offering costs			$ 497,000	$ 454,000
Properties under renovation | property			3
Forecast
Loss Contingencies
Properties expected to be completed | property	2	1
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 | 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

Commitments and Contingencies52

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Funding Commitment
Capital commitments	$ 33,327	$ 27,100
Less: paid	(11,519)	(4,390)
Unpaid commitments	21,808	22,710
Less: amounts in cash or restricted cash designated for renovations	(18,995)	(9,607)
Unfunded commitments	$ 2,813	$ 13,103

Loss Per Share and Equity (Narr

Loss Per Share and Equity (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Class of Stock
Share-based compensation	$ 200			$ 100	$ 200	$ 100
Unrecognized compensation expense	200				$ 200
Distribution date					Jul. 15, 2016
Distributions payable	$ 5,565		$ 1,846		$ 5,565
Dividends declared		$ 3,900	$ 1,900		9,473	46
Distributions paid					$ 5,754	$ 0
RSUs
Class of Stock
Nonvested shares outstanding	62,427				62,427
2015 Equity Incentive Plan
Class of Stock
Maximum shares authorized	2,000,000				2,000,000
Shares available for future grant	1,904,990				1,904,990
2015 Equity Incentive Plan | Subadvisor
Class of Stock
Remaining weighted average contractual term					2 years 6 months
2015 Equity Incentive Plan | RSUs | Subadvisor
Class of Stock
Number of shares issued					42,260	30,250
Share based arrangements vesting period					3 years
Common Class A
Class of Stock
Accretion of interest on annual distribution and shareholder servicing fee	$ 100				$ 100
Dividend daily distribution rate	$ 0.0018070				$ 0.0018070
Common Class A | Cash
Class of Stock
Dividend daily distribution rate	0.0015178				0.0015178
Common Class A | Shares
Class of Stock
Dividend daily distribution rate	0.0002892				$ 0.0002892
Common Class A | Director
Class of Stock
Shares issued					10,000	12,500
Shares issued (usd per share)					$ 10.53	$ 10
Common Class T
Class of Stock
Accretion of interest on annual distribution and shareholder servicing fee				$ 100		$ 100
Dividend daily distribution rate	0.0015177				0.0015177
Common Class T | Cash
Class of Stock
Dividend daily distribution rate	0.0012285				0.0012285
Common Class T | Shares
Class of Stock
Dividend daily distribution rate	$ 0.0002892				$ 0.0002892

Loss Per Share and Equity (Deta

Loss Per Share and Equity (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income (Loss) Per Share
Allocation of Loss	$ 452	$ (6,340)	$ (3,249)	$ (6,769)
Common Class A
Income (Loss) Per Share
Basic and diluted weighted-average shares outstanding (shares)	18,072,222	336,876	16,256,702	231,455
Allocation of Loss	$ 217	$ (3,126)	$ (1,253)	$ (3,275)
Basic and Diluted Income (loss) Per Share (usd per share)	$ 0.01	$ (9.28)	$ (0.08)	$ (14.15)
Common Class T
Income (Loss) Per Share
Basic and diluted weighted-average shares outstanding (shares)	27,739,509	345,911	24,434,472	246,690
Allocation of Loss	$ 235	$ (3,214)	$ (1,996)	$ (3,494)
Basic and Diluted Income (loss) Per Share (usd per share)	$ 0.01	$ (9.29)	$ (0.08)	$ (14.16)

Loss Per Share and Equity (De55

Loss Per Share and Equity (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reconciliation Of Accumulated Comprehensive Income
Beginning balance, value			$ 246,192,000	$ 92,000
Interest expense	$ 3,297,000	$ 1,165,000	6,214,000	1,165,000
Total		0		0
Ending balance, value	441,478,000	44,388,000	441,478,000	44,388,000
Gains and Losses on Derivative Instruments
Reconciliation Of Accumulated Comprehensive Income
Beginning balance, value	(1,281,000)	0	(94,000)	0
Other comprehensive loss before reclassifications	(805,000)	(37,000)	(2,149,000)	(37,000)
Total	199,000	0	354,000	0
Net current period other comprehensive loss	(606,000)	(37,000)	(1,795,000)	(37,000)
Net current period other comprehensive gain attributable to noncontrolling interests	1,000	0	3,000	0
Ending balance, value	(1,886,000)	(37,000)	(1,886,000)	(37,000)
Amounts reclassified from accumulated other comprehensive loss to: | Gains and Losses on Derivative Instruments
Reconciliation Of Accumulated Comprehensive Income
Interest expense	$ 199,000	$ 0	$ 354,000	$ 0

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event $ in Millions	Jul. 21, 2016USD ($)room	Jul. 13, 2016USD ($)room
San Jose Marriott
Subsequent Events
Ownership interest acquired		100.00%
Investment purchase price		$ 154
Non-recourse mortgage loan		$ 88
Number of Rooms | room		510
San Diego Marriott La Jolla
Subsequent Events
Ownership interest acquired	100.00%
Investment purchase price	$ 137
Non-recourse mortgage loan	$ 85
Number of Rooms | room	372