Watermark Lodging Trust (WRMK) 10-Q 13 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 03, 2017
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	Sep. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		29,543,128
Common Class T
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		57,960,063

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investments in real estate:
Hotels, at cost	$ 1,447,455	$ 1,274,747
Accumulated depreciation	(59,600)	(28,335)
Net investments in hotels	1,387,855	1,246,412
Equity investment in real estate	135,276	35,712
Cash	66,809	63,245
Restricted cash	34,023	36,548
Accounts receivable	22,869	12,627
Other assets	9,822	13,173
Total assets	1,656,654	1,407,717
Liabilities and Equity
Non-recourse and limited-recourse debt, net	830,965	571,935
Due to related parties and affiliates	1,919	231,258
Accounts payable, accrued expenses and other liabilities	72,038	47,223
Distributions payable	10,604	7,192
Total liabilities	915,526	857,608
Commitments and contingencies (Note 9)
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued	0	0
Additional paid-in capital	801,355	573,135
Distributions and accumulated losses	(88,535)	(59,115)
Accumulated other comprehensive income	888	896
Total stockholders’ equity	713,794	514,978
Noncontrolling interests	27,334	35,131
Total equity	741,128	550,109
Total liabilities and equity	1,656,654	1,407,717
Common Class A
Liabilities and Equity
Common stock	29	22
Common Class T
Liabilities and Equity
Common stock	$ 57	$ 40

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Equity:
Preferred stock, par share value (usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (shares)	50,000,000	50,000,000
Preferred stock, share issued (shares)	0	0
Common Class A
Equity:
Common stock, par share value (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	320,000,000	320,000,000
Common shares, outstanding (shares)	29,183,510	22,414,128
Common Class T
Equity:
Common stock, par share value (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	80,000,000	80,000,000
Common shares, outstanding (shares)	57,359,586	40,447,362

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Hotel Revenues
Rooms	$ 61,322	$ 37,844	$ 172,102	$ 79,545
Food and beverage	19,155	13,219	67,797	33,571
Other operating revenue	4,930	3,300	14,373	9,060
Total Hotel Revenues	85,407	54,363	254,272	122,176
Hotel Expenses
Rooms	14,306	7,585	39,706	14,970
Food and beverage	15,671	8,893	48,696	20,877
Other hotel operating expenses	1,308	1,202	4,322	3,925
Sales and marketing	8,099	5,367	22,635	11,368
General and administrative	7,688	4,341	22,091	9,439
Property taxes, insurance, rent and other	5,077	2,464	14,190	5,599
Management fees	2,931	1,749	9,005	4,415
Repairs and maintenance	3,020	1,678	8,288	3,639
Utilities	2,410	1,656	6,326	3,556
Depreciation and amortization	11,647	6,824	32,133	14,781
Total Hotel Expenses	72,157	41,759	207,392	92,569
Other Operating Expenses
Asset management fees to affiliate and other expenses	2,305	1,452	6,426	3,300
Acquisition-related expenses	0	11,399	4,979	18,936
Corporate general and administrative expenses	1,483	1,257	4,778	3,616
Hurricane loss	3,845	0	3,845	0
Total Other Operating Expenses	7,633	14,108	20,028	25,852
Operating Income (Loss)	5,617	(1,504)	26,852	3,755
Other Income and (Expenses)
Interest expense	(9,522)	(5,255)	(25,826)	(11,468)
Equity in (losses) earnings of equity method investments in real estate	(36)	709	1,461	2,324
Loss on extinguishment of debt (Note 8)	(256)	0	(256)	0
Other income	58	6	135	28
Total Other Income and (Expenses)	(9,756)	(4,540)	(24,486)	(9,116)
(Loss) Income from Operations Before Income Taxes	(4,139)	(6,044)	2,366	(5,361)
Provision for income taxes	(1,122)	(1,403)	(3,518)	(2,149)
Net Loss	(5,261)	(7,447)	(1,152)	(7,510)
Loss (income) attributable to noncontrolling interests (inclusive of Available Cash Distributions to a related party of $1,894, $1,100, $3,528 and $1,965, respectively)	3,776	31	983	(3,156)
Net Loss Attributable to CWI 2 Stockholders	(1,485)	(7,416)	(169)	(10,666)
Common Class A
Other Income and (Expenses)
Net Loss Attributable to CWI 2 Stockholders	$ (472)	$ (2,788)	$ 34	$ (4,099)
Basic and diluted weighted-average shares outstanding (shares)	28,889,131	20,126,076	27,131,807	17,810,819
Basic and diluted (loss) income per share (usd per share)	$ (0.02)	$ (0.14)	$ 0	$ (0.23)
Distributions Declared Per Share (usd per share)	$ 0.1749	$ 0.1713	$ 0.5206	$ 0.4857
Common Class T
Other Income and (Expenses)
Net Loss Attributable to CWI 2 Stockholders	$ (1,013)	$ (4,628)	$ (203)	$ (6,567)
Basic and diluted weighted-average shares outstanding (shares)	57,603,278	32,984,735	53,364,957	27,782,685
Basic and diluted (loss) income per share (usd per share)	$ (0.02)	$ (0.14)	$ 0	$ (0.24)
Distributions Declared Per Share (usd per share)	$ 0.1480	$ 0.1450	$ 0.4406	$ 0.4095

Consolidated Statements of Ope5

Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Advisor
Available cash distribution	$ 1,894	$ 1,100	$ 3,528	$ 1,965

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net Loss	$ (5,261)	$ (7,447)	$ (1,152)	$ (7,510)
Other Comprehensive Income (Loss)
Unrealized income (loss) on derivative instruments	60	688	0	(1,107)
Comprehensive Loss	(5,201)	(6,759)	(1,152)	(8,617)
Amounts Attributable to Noncontrolling Interests
Net loss (income)	3,776	31	983	(3,156)
Unrealized (gain) loss on derivative instruments	(3)	(1)	(8)	2
Comprehensive loss (income) attributable to noncontrolling interests	3,773	30	975	(3,154)
Comprehensive Loss Attributable to CWI 2 Stockholders	$ (1,428)	$ (6,729)	$ (177)	$ (11,771)

Consolidated Statements of Equi

Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Class A	Common Class T	Total CWI 2 Stockholders’ Equity	Common StockCommon Class A	Common StockCommon Class T	Additional Paid-In Capital	Distributions and Accumulated Losses	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest
Beginning balance, value at Dec. 31, 2015	$ 246,192			$ 213,224	$ 11	$ 15	$ 228,401	$ (15,109)	$ (94)	$ 32,968
Beginning balance, shares at Dec. 31, 2015					10,792,296	14,983,012
Statement of Equity
Net loss	(7,510)			(10,666)				(10,666)		3,156
Shares issued, net of offering costs, value	265,349			265,349	$ 9	$ 19	265,321
Shares issued, net of offering costs, shares					9,438,322	19,358,017
Shares issued to affiliates, value	2,610			2,610	$ 1		2,609
Shares issued to affiliates, shares					248,682
Contributions from noncontrolling interests	4,000									4,000
Distributions to noncontrolling interests	(3,262)									(3,262)
Shares issued under share incentive plans, value	106			106			106
Shares issued under share incentive plans, shares					6,656
Stock-based compensation to directors, value	105			105			105
Stock-based compensation to directors, share					10,000
Stock dividends issued, shares					96,288	138,922
Distributions declared	(15,788)			(15,788)				(15,788)
Other comprehensive loss:
Net unrealized (loss) income on derivative instruments	(1,107)			(1,105)					(1,105)	(2)
Repurchase of shares, value	(661)			(661)			(661)
Repurchase of shares, shares					(28,744)	(37,328)
Ending balance, value at Sep. 30, 2016	490,034			453,174	$ 21	$ 34	495,881	(41,563)	(1,199)	36,860
Ending balance, shares at Sep. 30, 2016					20,563,500	34,442,623
Beginning balance, value at Jun. 30, 2016									(1,886)
Statement of Equity
Net loss	(7,447)
Other comprehensive loss:
Net unrealized (loss) income on derivative instruments	688
Ending balance, value at Sep. 30, 2016	490,034			453,174	$ 21	$ 34	495,881	(41,563)	(1,199)	36,860
Ending balance, shares at Sep. 30, 2016					20,563,500	34,442,623
Statement of Equity
Distributions declared	(7,200)
Ending balance, value at Dec. 31, 2016	550,109			514,978	$ 22	$ 40	573,135	(59,115)	896	35,131
Ending balance, shares at Dec. 31, 2016		22,414,128	40,447,362		22,414,128	40,447,362
Statement of Equity
Distributions declared	(18,600)
Ending balance, value at Jun. 30, 2017									831
Beginning balance, value at Dec. 31, 2016	550,109			514,978	$ 22	$ 40	573,135	(59,115)	896	35,131
Beginning balance, shares at Dec. 31, 2016		22,414,128	40,447,362		22,414,128	40,447,362
Statement of Equity
Net loss	(1,152)			(169)				(169)		(983)
Shares issued, net of offering costs, value	226,415			226,415	$ 6	$ 17	226,392
Shares issued, net of offering costs, shares					5,826,566	16,709,647
Shares issued to affiliates, value	8,985			8,985	$ 1		8,984
Shares issued to affiliates, shares					839,720
Distributions to noncontrolling interests	(6,822)									(6,822)
Purchase of membership interest from noncontrolling interest	(3,524)			(3,524)			(3,524)
Shares issued under share incentive plans, value	172			172			172
Shares issued under share incentive plans, shares					14,071
Stock-based compensation to directors, value	165			165			165
Stock-based compensation to directors, share					15,384
Stock dividends issued, shares					230,038	434,259
Distributions declared	(29,251)			(29,251)				(29,251)
Other comprehensive loss:
Net unrealized (loss) income on derivative instruments	0			(8)					(8)	8
Repurchase of shares, value	(3,969)			(3,969)			(3,969)
Repurchase of shares, shares					(156,397)	(231,682)
Ending balance, value at Sep. 30, 2017	741,128			713,794	$ 29	$ 57	801,355	(88,535)	888	27,334
Ending balance, shares at Sep. 30, 2017		29,183,510	57,359,586		29,183,510	57,359,586
Beginning balance, value at Jun. 30, 2017									831
Statement of Equity
Net loss	(5,261)
Other comprehensive loss:
Net unrealized (loss) income on derivative instruments	60
Ending balance, value at Sep. 30, 2017	$ 741,128			$ 713,794	$ 29	$ 57	$ 801,355	$ (88,535)	$ 888	$ 27,334
Ending balance, shares at Sep. 30, 2017		29,183,510	57,359,586		29,183,510	57,359,586

Consolidated Statements of Equ8

Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Common Class A
Statement of Equity
Distributions Declared Per Share (usd per share)	$ 0.1749	$ 0.1713	$ 0.5206	$ 0.4857
Common Class T
Statement of Equity
Distributions Declared Per Share (usd per share)	$ 0.1480	$ 0.1450	$ 0.4406	$ 0.4095

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows — Operating Activities
Net loss	$ (1,152)	$ (7,510)
Adjustments to net loss:
Depreciation and amortization	32,133	14,781
Asset management fees to affiliates settled in shares	6,157	2,914
Hurricane loss	3,845	0
Acquisition fees to affiliates settled in shares	3,097	0
Amortization of deferred key money, deferred financing costs and other	582	266
Amortization of stock-based compensation	418	247
Loss on extinguishment of debt (Note 8)	254	0
Equity in (earnings) losses of equity method investment in real estate in excess of distributions received	(152)	36
(Decrease) increase in due to related parties and affiliates	(7,231)	612
Receipt of key money and other deferred incentive payments	2,688	3,063
Net changes in other assets and liabilities	170	3,475
Net Cash Provided by Operating Activities	40,809	17,884
Cash Flows — Investing Activities
Acquisitions of hotels	(168,884)	(604,190)
Purchase of equity interest (Note 5)	(99,386)	0
Funds released from escrow	58,925	39,280
Funds placed in escrow	(57,332)	(57,886)
Capital expenditures	(14,568)	(14,944)
Deposits released for hotel investments	1,521	16,701
Deposits for hotel investments	0	(12,681)
Distributions received from equity investment in excess of equity income	0	1,945
Capital contributions to equity investment in real estate	0	(125)
Net Cash Used in Investing Activities	(279,724)	(631,900)
Cash Flows — Financing Activities
Proceeds from mortgage financing	301,900	366,800
Proceeds from issuance of shares, net of offering costs	233,410	275,500
Repayment of notes payable to affiliate	(210,000)	(20,000)
Scheduled payments and prepayments of mortgage principal	(42,000)	0
Distributions paid	(25,839)	(11,320)
Distributions to noncontrolling interests	(6,822)	(3,262)
Repurchase of shares	(3,969)	(661)
Purchase of membership interest from noncontrolling interest (Note 10)	(3,524)	0
Deposits released for mortgage financing	2,235	1,835
Deferred financing costs	(2,090)	(3,502)
Deposits for mortgage financing	(725)	(1,835)
Withholding on restricted stock units	(81)	(36)
Purchase of interest rate cap	(16)	(92)
Proceeds from notes payable to affiliate	0	20,000
Contributions from noncontrolling interests	0	4,000
Net Cash Provided by Financing Activities	242,479	627,427
Change in Cash During the Period
Net increase in cash	3,564	13,411
Cash, beginning of period	63,245	51,081
Cash, end of period	$ 66,809	$ 64,492

Business

Business	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business	Business Organization Carey Watermark Investors 2 Incorporated, or CWI 2, together with its consolidated subsidiaries, is a publicly owned, non-listed real estate investment trust, or REIT, that invests in, and through our advisor, manages and seeks 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 of, 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 Mr. Michael G. Medzigian, our Chief Executive Officer, subject to the approval of our independent directors. We held ownership interests in 12 hotels at September 30, 2017 . 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 hotels that we record as equity investments, or our Unconsolidated Hotels, at September 30, 2017 . Public Offering We raised offering proceeds in our initial public offering of $280.3 million from our Class A common stock and $571.0 million from our Class T common stock. The offering commenced on May 22, 2014 and closed on July 31, 2017. In addition, from inception through September 30, 2017 , $10.0 million and $17.7 million of distributions were reinvested in our Class A and Class T common stock, respectively, as a result of our distribution reinvestment plan, or DRIP. We have fully invested the proceeds from our offering.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [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, 2016 , which are included in our 2016 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 nine months ended September 30, 2017 and 2016 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, 2016. 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. 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. The liabilities of these VIEs are non-recourse to us and can only be satisfied from each VIE’s respective assets. At September 30, 2017 and December 31, 2016, we considered four and five entities, respectively, to be VIEs, of which we consolidated three and four , respectively, 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): September 30, 2017 December 31, 2016 Net investments in hotels $ 581,348 $ 657,517 Total assets 624,520 706,115 Non-recourse and limited-recourse debt, net $ 320,228 $ 218,843 Total liabilities 352,022 249,637 Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09 , Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes or replaces nearly all GAAP revenue recognition guidance. The new guidance establishes a new control-based revenue recognition model that changes the basis for deciding when revenue is recognized over time or at a point in time and expands the disclosures about revenue. The new guidance also applies to sales of real estate and the new principles-based approach is largely based on the transfer of control of the real estate to the buyer. The guidance is effective for annual reporting periods beginning after December 15, 2017, and the interim periods within those annual periods. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. We expect to adopt this new standard on January 1, 2018 using the modified retrospective transition method, which requires a cumulative effect adjustment upon the date of adoption. We are currently evaluating the impact of the new standard and do not believe the adoption of this standard will have a material impact on our recognition of revenue, however, we expect that additional disclosures will be required as a result of implementation. 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. 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 will adopt this guidance for our interim and annual periods beginning January 1, 2019. We are in the process of 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 August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 intends to reduce diversity in practice for certain cash flow classifications, including, but not limited to (i) debt prepayment or debt extinguishment costs, (ii) contingent consideration payments made after a business combination, (iii) proceeds from the settlement of insurance claims, (iv) distributions received from equity method investees and (v) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-15 on our consolidated financial statements and will retrospectively adopt the standard for the fiscal year beginning January 1, 2018. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. ASU 2016-17 changes how a reporting entity that is a decision maker should consider indirect interests in a VIE held through an entity under common control. If a decision maker must evaluate whether it is the primary beneficiary of a VIE, it will only need to consider its proportionate indirect interest in the VIE held through a common control party. ASU 2016-17 amends ASU 2015-02, which we adopted on January 1, 2016, and which currently directs the decision maker to treat the common control party’s interest in the VIE as if the decision maker held the interest itself. ASU 2016-17 is effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted ASU 2016-17 as of January 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2016-18 on our consolidated financial statements and will retrospectively adopt the standard for the fiscal year beginning January 1, 2018, reflecting the change in presentation, as discussed above. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist companies and other reporting organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The changes to the definition of a business will likely result in more acquisitions being accounted for as asset acquisitions across all industries. The guidance is effective for annual reporting periods beginning after December 15, 2017, and the interim periods within those annual periods. We will be adopting this new guidance on January 1, 2018. While we are evaluating the potential impact of the standard, we currently expect that certain future hotel acquisitions may be considered asset acquisitions rather than business combinations, which would affect the capitalization of acquisition costs (such costs are expensed for business combinations and capitalized for asset acquisitions). In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) . ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term “in substance nonfinancial asset,” in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. This amendment also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent company may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. ASU 2017-05 is effective for periods beginning after December 15, 2017, with early application permitted for fiscal years beginning after December 15, 2016. We are in the process of evaluating the impact of ASU 2017-05 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess hedge effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU 2017-12 will be effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2017-12 on our consolidated financial statements.

Agreements and Transactions wit

Agreements and Transactions with Related Parties	9 Months Ended
	Sep. 30, 2017
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; 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 personnel 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Amounts Included in the Consolidated Statements of Operations Asset management fees $ 2,188 $ 1,302 $ 6,157 $ 2,914 Acquisition fees — 9,995 4,415 16,156 Available Cash Distributions 1,894 1,100 3,528 1,965 Personnel and overhead reimbursements 872 574 2,628 1,763 Interest expense — — 332 18 Accretion of interest on annual distribution and shareholder servicing fee — 60 198 172 $ 4,954 $ 13,031 $ 17,258 $ 22,988 Other Transaction Fees Incurred Selling commissions and dealer manager fees $ 367 $ 3,886 $ 13,199 $ 17,747 Annual distribution and shareholder servicing fee (a) — 2,013 8,439 8,799 Capitalized acquisition fees for equity method investment (b) ( Note 5 ) 6,195 — 6,195 — Organization and offering costs 224 554 1,422 2,461 Capitalized loan refinancing fees 280 — 280 — Capitalized refinancing fees for equity method investment — 125 — 125 $ 7,066 $ 6,578 $ 29,535 $ 29,132 ___________ (a) Beginning with the payment by us for the third quarter of 2017, which was paid in October 2017, the distribution and shareholder servicing fee will be paid directly to selected dealers rather than through Carey Financial, LLC, or Carey Financial, a subsidiary of WPC and the former dealer manager of our offering. There is no change in the amount of distribution and shareholder servicing fees that we incur. (b) Our Advisor elected to receive 50% of the acquisition fee related to our investment in the Ritz-Carlton Bacara, Santa Barbara Venture in shares of our Class A common stock and 50% in cash. The following table presents a summary of amounts included in Due to related parties and affiliates in the consolidated financial statements (in thousands): September 30, 2017 December 31, 2016 Amounts Due to Related Parties and Affiliates To our Advisor: Reimbursable costs $ 869 $ 676 Asset management fees 759 489 Organization and offering costs 51 463 Note payable to WPC — 210,033 Acquisition fee payable — 7,243 To Others: Due to CWI 1 240 389 Due to Carey Financial (Annual distribution and shareholder servicing fee) (a) — 11,919 Due to Carey Financial (Selling commissions and dealer manager fees) — 46 $ 1,919 $ 231,258 ___________ (a) Beginning with the payment for the third quarter of 2017, which was paid in October 2017, the distribution and shareholder servicing fee is paid directly to selected dealers rather than through Carey Financial. Accordingly, at September 30, 2017, the accrual for the distribution and shareholder servicing fee is included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements. 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, both as defined in the advisory agreement with our Advisor. 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 conditions described in the advisory agreement are met. If our Advisor elects to receive all or a portion of its fees in shares of our Class A 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 per share, or NAV, 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 nine months ended September 30, 2017 and 2016 , our Advisor elected to receive its asset management fees in shares of our Class A common stock rather than in cash. For the nine months ended September 30, 2017 and 2016 , $5.9 million and $2.6 million , respectively, in asset management fees were settled in shares of our Class A common stock. At September 30, 2017 , our Advisor owned 1,333,318 shares ( 1.5% ) of our outstanding common stock. Asset management fees are included in Asset management fees to affiliate and other in the consolidated financial statements. During the three and nine months ended September 30, 2017 and 2016 , we did not pay any disposition fees. Acquisition Fees to our Advisor We pay our Advisor acquisition fees of 2.5% of the total investment cost of the properties acquired, as defined in our advisory agreement, described above, including on our proportionate share of equity method investments and loans originated by us. 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. Available Cash Distributions Carey Watermark Holdings 2’s special general partner interest entitles it to receive distributions of 10% of Available Cash, as defined in the agreement of limited partnership of the Operating Partnership, or Available Cash Distributions, generated by the Operating Partnership, subject to certain limitations. In addition, in the event of the dissolution of the Operating Partnership, Carey Watermark Holdings 2 will be entitled to receive distributions of up to 15% of any net proceeds, provided certain return thresholds are met for the initial investors in the Operating Partnership. Available Cash Distributions are included in Income attributable to noncontrolling interests in the consolidated financial statements. Personnel and Overhead Reimbursements Under the terms of the advisory agreement, our Advisor generally allocates expenses of dedicated and shared resources, including the cost of personnel, rent and related office expenses, between us and our affiliate, Carey Watermark Investors Incorporated, or CWI 1, based on total pro rata hotel revenues on a quarterly basis. Pursuant to the subadvisory agreement, after we reimburse our Advisor, it will subsequently reimburse the Subadvisor for personnel costs and other charges, including the services of our Chief Executive Officer, subject to the approval of our board of directors. 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 2015 Equity Incentive Plan. Selling Commissions and Dealer Manager Fees Pursuant to our former dealer manager agreement with Carey Financial, Carey Financial received a selling commission for sales of our Class A and Class T common stock. Until we made the first adjustment to our offering prices in March 2016 in connection with the publication of our initial NAVs as of December 31, 2015, 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 that adjustment, Carey Financial received a selling commission of $0.82 and $0.22 per share sold and a dealer manager fee of $0.35 and $0.30 per share sold for the Class A and Class T common stock, respectively. In connection with the extension of our initial public offering in 2017, we adjusted our offering prices again in April 2017 to reflect our NAVs as of December 31, 2016, with a selling commission of $0.84 and $0.23 per share sold and a dealer manager fee of $0.36 and $0.31 per share sold for the Class A and Class T common stock, respectively, which were paid through the termination of our offering on July 31, 2017. The selling commissions were re-allowed and a portion of the dealer manager fees could have been re-allowed to selected dealers. These amounts are recorded in Additional paid-in capital in the consolidated financial statements. During the nine months ended September 30, 2017 and 2016 , we paid selling commissions and dealer manager fees totaling $13.2 million and $17.9 million , respectively. We also pay an annual distribution and shareholder servicing fee in connection with our Class T common stock. The amount of the distribution and shareholder servicing fee is 1.0% of the amount of our NAV per Class T common stock (while before our initial NAV was published in March 2016, the fee was 1.0% of the selling price per share for the Class T common stock in our initial public offering). The distribution and shareholder servicing fee accrues daily and is payable quarterly in arrears. We will no longer incur the distribution and shareholder servicing fee after the sixth anniversary of the end of the quarter in which the initial public offering terminates, which occurred on July 31, 2017, 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 both the nine months ended September 30, 2017 and 2016 , $8.8 million of distribution and shareholder servicing fees were charged to stockholders’ equity; and during the nine months ended September 30, 2017 and 2016 , $3.6 million and $1.4 million , respectively, of such fees were paid to Carey Financial, which it may have re-allowed to selected dealers. Beginning with the payment for the third quarter of 2017, which was paid in October 2017, the distribution and shareholder servicing fee will be paid by us directly to selected dealers rather than through Carey Financial. 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 reimbursed Carey Financial and selected dealers for reasonable bona fide due diligence expenses incurred that were 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., or FINRA. 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) which terminated on July 31, 2017. Through September 30, 2017 , our Advisor incurred organization and offering costs on our behalf of approximately $9.1 million , all of which we were obligated to pay. Unpaid costs of $0.1 million were included in Due to affiliates in the consolidated financial statements at September 30, 2017 . During the offering period, costs incurred in connection with raising of capital were recorded as deferred offering costs. Upon receipt of offering proceeds, we charged the deferred offering costs to stockholders’ equity. During the nine months ended September 30, 2017 and 2016 , $2.7 million and $3.9 million , respectively, of deferred offering costs were charged to stockholders’ equity. Note Payable to WPC and Other Transactions with Affiliates Our board of directors and the board of directors of WPC have, from time to time, pre-approved loans from WPC to us. Any such loans were made solely at the discretion of WPC’s management and were at an interest rate equal to the rate at which WPC was able to borrow funds under its senior unsecured credit facility. On January 20, 2016 and December 29, 2016, we borrowed $20.0 million and $210.0 million , respectively, from WPC; these loans were repaid in full during the first quarters of 2016 and 2017, respectively. As of September 30, 2017 , there were no borrowings from WPC outstanding ( Note 12 ). Acquisition Fee Payable At December 31, 2016, this balance represents the acquisition fee payable to our Advisor related to the acquisition of the Ritz-Carlton San Francisco on December 30, 2016, which was paid in the first quarter of 2017. Jointly-Owned Investments At September 30, 2017 , we owned interests in three jointly-owned investments with our affiliate Carey Watermark Investors Incorporated, or CWI 1: the Marriott Sawgrass Golf Resort & Spa, a Consolidated Hotel, and the Ritz-Carlton Key Biscayne and the Ritz-Carlton Bacara, Santa Barbara, both Unconsolidated Hotels. A third-party also owns an interest in the Ritz-Carlton Key Biscayne. CWI 1 is a publicly owned, non-listed REIT that is also advised by our Advisor and invests in lodging and lodging-related properties. See Note 5 for further discussion.

Net Investments in Hotels

Net Investments in Hotels	9 Months Ended
	Sep. 30, 2017
Real Estate [Abstract]
Net Investments in Hotels	Net Investments in Hotels Net investments in hotels are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Buildings $ 1,091,522 $ 969,661 Land 236,078 211,278 Furniture, fixtures and equipment 89,431 67,541 Building and site improvements 27,213 10,279 Construction in progress 3,211 15,988 Hotels, at cost 1,447,455 1,274,747 Less: Accumulated depreciation (59,600 ) (28,335 ) Net investments in hotels $ 1,387,855 $ 1,246,412 During the nine months ended September 30, 2017 , we retired fully depreciated furniture, fixtures and equipment aggregating $0.9 million . Hurricane-Related Disruption Hurricane Irma made landfall in September 2017, impacting one of our Consolidated Hotels, the Marriott Sawgrass Golf Resort & Spa, which sustained damage and was forced to close for a period of time. As of September 30, 2017, the estimated net book value of the property damage written off was $6.2 million for this Consolidated Hotel. In addition, there was $1.0 million of remediation work that had been performed as of September 30, 2017. We recorded a corresponding receivable of $3.3 million for estimated insurance recoveries related to the net book value of the property damage written off and the remediation work performed. The receivable is recorded within Accounts receivable in our consolidated financial statements as of September 30, 2017. The net impact of $3.8 million , representing the property damage insurance deductible, is reflected as a hurricane loss in our consolidated financial statements for the three and nine months ended September 30, 2017. We are still assessing the impact of the hurricane on the Marriott Sawgrass Golf Resort & Spa, and the final net book value write-offs could vary significantly from this estimate. Any changes to the estimates for property damage will be recorded in the periods in which they are determined. 2017 Acquisition During the nine months ended September 30, 2017 , we acquired one Consolidated Hotel, which was considered to be a business combination. We refer to this investment as our 2017 Acquisition. Charlotte Marriott City Center On June 1, 2017, we acquired a 100.0% interest in the Charlotte Marriott City Center hotel from Marriott Hotel Services, Inc., an unaffiliated third party, which includes real estate and other hotel assets, net of assumed liabilities, with a fair value totaling $168.9 million , as detailed in the table that follows. The 446 -room full-service hotel is located in Charlotte, North Carolina. The hotel is managed by Marriott International. At closing, Marriott provided us a cumulative $4.0 million net operating income, or NOI, guarantee, which guarantees minimum predetermined NOI amounts to us over a period of approximately three years, not to exceed $1.5 million annually. In connection with this acquisition, we expensed acquisition costs of $5.0 million , including acquisition fees of $4.4 million paid to our Advisor. We obtained a non-recourse mortgage loan on the property of $103.0 million upon acquisition ( Note 8 ). The following tables present a summary of assets acquired and liabilities assumed in this business combination, at the date of acquisition, and revenues and earnings thereon, since the date of acquisition through September 30, 2017 (in thousands): Charlotte Marriott City Center (a) Acquisition Date June 1, 2017 Cash consideration $ 168,884 Assets acquired at fair value: Building $ 127,286 Land 24,800 Furniture, fixtures and equipment 17,380 Accounts receivable 541 Other assets 368 Liabilities assumed at fair value: Accounts payable, accrued expenses and other liabilities (1,491 ) Net assets acquired at fair value $ 168,884 From Acquisition Date Through September 30, 2017 Revenues $ 12,445 Income from operations before income taxes $ 2,803 ___________ (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 Charlotte Marriott City Center on June 1, 2017, and the new financing related to this acquisition, had occurred on January 1, 2016 and as if the acquisitions we completed during the nine months ended September 30, 2016, and the new financings related to these acquisitions, had occurred on January 1, 2015, with the exception of the acquisition of and new financing related to the Seattle Marriott Bellevue, which we present as if they had occurred on July 14, 2015, the opening date of the hotel. 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Pro forma total revenues $ 85,407 $ 66,685 $ 270,096 $ 205,377 Pro forma net (loss) income $ (5,261 ) $ 908 $ 4,733 $ 6,401 Pro forma loss (income) attributable to noncontrolling interests 3,776 31 983 (3,156 ) Pro forma net (loss) income attributable to CWI 2 stockholders $ (1,485 ) $ 939 $ 5,716 $ 3,245 Pro forma (loss) income per Class A share: Net (loss) income attributable to CWI 2 stockholders $ (472 ) $ 490 $ 2,189 $ 2,017 Basic and diluted pro forma weighted-average shares outstanding 28,889,131 31,802,914 30,761,196 40,003,488 Basic and diluted pro forma (loss) income per share $ (0.02 ) $ 0.02 $ 0.07 $ 0.05 Pro forma (loss) income per Class T share: Net (loss) income attributable to CWI 2 stockholders $ (1,013 ) $ 449 $ 3,527 $ 1,228 Basic and diluted pro forma weighted-average shares outstanding 57,603,278 32,984,735 53,364,957 27,782,685 Basic and diluted pro forma (loss) income per share $ (0.02 ) $ 0.01 $ 0.07 $ 0.04 The pro forma weighted-average shares outstanding were determined as if the number of shares required to raise any funds needed for the acquisition of the Charlotte Marriott City Center and for the acquisitions we completed during the nine months ended September 30, 2016 were issued on January 1, 2016 and 2015, respectively, with the exception of the Seattle Marriott Bellevue, which were determined as if the number of shares required were issued on July 14, 2015. We assumed that we would have issued Class A shares to raise such funds. All acquisition costs for the acquisition of the Charlotte Marriott City Center and for the acquisitions we completed during the nine months ended September 30, 2016 are presented as if they were incurred on January 1, 2016 and 2015, respectively, with the exception of the acquisition costs for the Seattle Marriott Bellevue, which are presented as if they were incurred on July 14, 2015. Construction in Progress At September 30, 2017 and December 31, 2016 , construction in progress, recorded at cost, was $3.2 million and $16.0 million , respectively, and related primarily to planned renovations at the San Diego Marriott La Jolla, the Marriott Sawgrass Golf Resort & Spa and the Renaissance Atlanta Midtown Hotel at September 30, 2017 and renovations at the Marriott Sawgrass Golf Resort & Spa at December 31, 2016 ( 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 less than $0.1 million and $0.4 million of such costs during the three months ended September 30, 2017 and 2016 , respectively, and $0.4 million and $0.6 million during the nine months ended September 30, 2017 and 2016 , respectively. At September 30, 2017 and December 31, 2016 , accrued capital expenditures were $0.5 million and $4.4 million , respectively, representing non-cash investing activity.

Equity Investments in Real Esta

Equity Investments in Real Estate	9 Months Ended
	Sep. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity Investments in Real Estate	Equity Investments in Real Estate At September 30, 2017 , we owned equity interests in two Unconsolidated Hotels, one with CWI 1 and one together with CWI 1 and an unrelated third party. We do not control the ventures that own these hotels, but we exercise significant influence over them. We account for these investments 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. Therefore, we follow the hypothetical liquidation at book value method in determining our share of these ventures’ earnings or losses for the reporting period as this method better reflects our claim on the ventures’ book value at the end of each reporting period. Earnings for our equity method investments are recognized in accordance with each respective 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. Ritz-Carlton Bacara, Santa Barbara Venture On September 28, 2017, we formed a tenancy-in-common venture with CWI 1 to acquire the Bacara Resort & Spa for $380.0 million . We own a 60% interest in the venture and CWI 1 owns a 40% interest. Upon acquisition, the hotel was rebranded as the Ritz-Carlton Bacara, Santa Barbara and will be managed by Marriott International. The venture meets the definition of joint control as all decisions with respect to the ownership, management and operation of the hotel must be made on a unanimous basis between the two parties; therefore, we have accounted for our interest in this investment under the equity method of accounting. The venture obtained debt comprised of a $175.0 million senior mortgage loan with a floating annual interest rate of London Interbank Offered Rate, or LIBOR, plus 2.8% and a $55.0 million mezzanine loan with a floating annual interest rate of LIBOR plus 5.8% , both subject to interest rate caps. Both loans have maturity dates of September 28, 2021, with one-year extension options. We capitalized our share of acquisition costs totaling $6.9 million , including acquisition fees of $6.2 million paid to our Advisor. Our Advisor has elected to receive 50% of its acquisition fees in shares of our Class A common stock and 50% in cash, which was approved by our board of directors. For the nine months ended September 30, 2017 , $3.1 million in acquisitions fees were settled in shares of our Class A common stock. Hurricane-Related Disruption The Ritz-Carlton Key Biscayne was impacted by Hurricane Irma when it made landfall in September 2017. The hotel sustained damage and was forced to close for a period of time. As of September 30, 2017, the estimated net book value of the property damage written off by the Ritz-Carlton Key Biscayne Venture was $3.6 million . In addition, there was $0.4 million of remediation work that had been performed as of September 30, 2017. The venture recorded a corresponding receivable of $0.7 million for estimated insurance revenues related to the net book value of the property damage written off. For the three and nine months ended September 30, 2017, there was no net impact to our investment in the Ritz-Carlton Key Biscayne Venture under the hypothetical liquidation at book value method of accounting as a result of our priority return on the investment. If the estimated property damage increases or there is additional remediation work incurred at the hotel, our share of equity in earnings of the venture could be impacted. The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values. The carrying values of these ventures are affected by the timing and nature of distributions (dollars in thousands): Unconsolidated Hotels State Number of Rooms % Owned Our Initial Investment (a) Acquisition Date Hotel Type Carrying Value at September 30, 2017 December 31, 2016 Ritz-Carlton Key Biscayne Venture (b) (c) FL 458 19.3 % $ 37,559 5/29/2015 Resort $ 36,662 $ 35,712 Ritz-Carlton Bacara, Santa Barbara Venture (d) (e) CA 358 60.0 % 99,386 9/28/2017 Resort 98,614 — 816 $ 136,945 $ 135,276 $ 35,712 ___________ (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 $1.3 million from this investment during the nine months ended September 30, 2017 . No cash distributions were received from this investment during the three months ended September 30, 2017. (d) This investment represents a tenancy-in-common interest; the remaining 40% interest is owned by CWI 1. (e) No cash distributions were received from this investment during the three or nine months ended September 30, 2017 . The following table sets forth our share of equity in earnings from our Unconsolidated Hotels, 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 September 30, Nine Months Ended September 30, Unconsolidated Hotels 2017 2016 2017 2016 Ritz-Carlton Key Biscayne Venture $ 763 $ 709 $ 2,260 $ 2,324 Ritz-Carlton Bacara, Santa Barbara Venture (799 ) — (799 ) — Total equity in (losses) earnings of equity method investments in real estate $ (36 ) $ 709 $ 1,461 $ 2,324 No other-than-temporary impairment charges were recognized during either the three or nine months ended September 30, 2017 and 2016 . At September 30, 2017 and December 31, 2016 , the unamortized basis differences on our equity investments were $8.0 million and $1.9 million , respectively. Net amortization of the basis differences reduced the carrying values of our equity investments by less than $0.1 million during both the three and nine months ended September 30, 2017 and 2016 . The following tables present combined summarized financial information of our equity investments in real estate. Amounts provided are the total amounts attributable to the venture and does not represent our proportionate share (in thousands): September 30, 2017 December 31, 2016 Real estate, net $ 654,025 $ 291,015 Other assets 61,893 47,642 Total assets 715,918 338,657 Debt 416,646 190,039 Other liabilities 24,622 20,004 Total liabilities 441,268 210,043 Members’ equity $ 274,650 $ 128,614 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues $ 13,612 $ 12,559 $ 62,014 $ 63,834 Expenses (18,326 ) (16,578 ) (63,037 ) (63,462 ) Hurricane loss (3,333 ) — (3,333 ) — Net (loss) income attributable to equity method investments $ (8,047 ) $ (4,019 ) $ (4,356 ) $ 372

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
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. Items Measured at Fair Value on a Recurring Basis 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 nine months ended September 30, 2017 or 2016 . 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 $831.0 million and $571.9 million at September 30, 2017 and December 31, 2016 , respectively, and an estimated fair value of $833.7 million and $570.8 million at September 30, 2017 and December 31, 2016 , 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 September 30, 2017 and December 31, 2016 .

Risk Management and Use of Deri

Risk Management and Use of Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2017
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 income (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 as Hedging Instruments Asset Derivatives Fair Value at Balance Sheet Location September 30, 2017 December 31, 2016 Interest rate swap Other assets $ 983 $ 816 Interest rate caps Other assets 46 279 $ 1,029 $ 1,095 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 September 30, 2017 and December 31, 2016 , no cash collateral had been posted nor received for any of our derivative positions. We recognized an unrealized gain of less than $0.1 million and $0.5 million in Other comprehensive income (loss) on derivatives in connection with our interest rate swap and caps during the three months ended September 30, 2017 and 2016 , respectively, and unrealized losses of $0.2 million and $1.7 million during the nine months ended September 30, 2017 and 2016 , respectively. We reclassified less than $0.1 million and $0.2 million from Other comprehensive income (loss) on derivatives into Interest expense during the three months ended September 30, 2017 and 2016 , respectively, and $0.2 million and $0.5 million during the nine months ended September 30, 2017 and 2016 , respectively. Amounts reported in Other comprehensive income (loss) related to our interest rate swap and caps will be reclassified to Interest expense as interest expense or income is incurred on our variable-rate debt. At September 30, 2017 , we estimated that $0.2 million , inclusive of amounts attributable to noncontrolling interests of less than $0.1 million , will be reclassified as Interest income during the next 12 months related to our interest rate swap and caps. Interest Rate Swap 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 September 30, 2017 were designated as cash flow hedges and are summarized as follows (dollars in thousands): Number of Notional Fair Value at Interest Rate Derivatives Instruments Amount September 30, 2017 Interest rate swap 1 $ 100,000 $ 983 Interest rate caps 7 290,100 46 $ 1,029 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 September 30, 2017 . At September 30, 2017 , our total credit exposure and the maximum exposure to any single counterparty were both $1.0 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 September 30, 2017 , we had not been declared in default on any of our derivative obligations. At both September 30, 2017 and December 31, 2016 , we had no derivatives that were in a net liability position.

Debt

Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Debt	Debt Our debt consists of mortgage notes payable, which are collateralized by the assignment of hotel properties. The following table presents the non-recourse and, where indicated, limited-recourse debt, net on our Consolidated Hotels (dollars in thousands): Carrying Amount at Consolidated Hotels Interest Rate Rate Type Current Maturity Date September 30, 2017 December 31, 2016 San Jose Marriott (a) (b) 3.98% Variable 7/2019 $ 87,598 $ 87,429 Renaissance Atlanta Midtown Hotel (a) (b) (c) 4.24%, 11.24% Variable 8/2019 46,862 46,611 Marriott Sawgrass Golf Resort & Spa (a) 5.09% Variable 11/2019 78,000 78,000 Seattle Marriott Bellevue (a) (d) (e) 3.88% Variable 1/2020 99,386 99,188 Le Méridien Arlington (a) (d) 3.98% Variable 6/2020 34,609 34,502 Ritz-Carlton San Francisco 4.59% Fixed 2/2022 142,842 — Charlotte Marriott City Center (f) 4.53% Fixed 6/2022 102,301 — Courtyard Nashville Downtown 4.15% Fixed 9/2022 54,763 41,656 Embassy Suites by Hilton Denver-Downtown/Convention Center 3.90% Fixed 12/2022 99,760 99,725 San Diego Marriott La Jolla 4.13% Fixed 8/2023 84,844 84,824 $ 830,965 $ 571,935 ___________ (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 rates presented for these mortgage loans reflect the rates in effect at September 30, 2017 through the use of an interest rate cap or swap, as applicable. (b) These mortgage loans have two one-year extension options, which are subject to certain conditions. The maturity dates in the table do not reflect the extension options. (c) The debt is comprised of a $34.0 million senior mortgage loan with a floating annual interest rate of LIBOR plus 3.0% and a $13.5 million mezzanine loan with a floating annual interest rate of LIBOR plus 10.0% , both subject to interest rate caps. Both loans have a maturity date of August 30, 2019. (d) 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 option. (e) At December 31, 2016, this loan was limited-recourse up to a maximum of $15.0 million , which would terminate upon satisfaction of certain conditions as described in the loan agreement. During the first quarter of 2017, these conditions were met so that the limited-recourse provisions no longer apply, and as a result, this loan was considered to be a non-recourse loan at September 30, 2017 . (f) At closing, we deposited $10.0 million of the $103.0 million mortgage loan proceeds with the lender to be held as additional collateral for the loan, which was classified as Restricted cash on our consolidated balance sheet. During the third quarter of 2017, upon reaching a certain NOI, as further described in the loan agreement, the $10.0 million was released back to us and reclassified out of Restricted cash on our consolidated balance sheet. 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 hold all excess cash flow after the payment of debt service in an escrow account until certain performance hurdles are met. At September 30, 2017, the minimum debt service coverage ratio on both the senior mortgage loan and mezzanine loan for the Renaissance Atlanta Midtown Hotel was not met; therefore, we entered into a cash management agreement that permits the lender to sweep the hotel’s excess cash flow. Covenants Pursuant to our mortgage loan agreements, our consolidated subsidiaries are subject to various operational and financial covenants, including minimum debt service coverage ratios. Except as discussed above, at September 30, 2017 , we were in compliance with the applicable covenants for each of our mortgage loans. Financing Activity During 2017 During the first quarter of 2017, in connection with our acquisition of the Ritz-Carlton San Francisco in December 2016, which was financed, in part, by a loan of $210.0 million from WPC ( Note 3 ), we obtained a non-recourse mortgage loan of $143.0 million , with a fixed interest rate of 4.6% . The loan has a maturity date of February 1, 2022 and is interest-only for the full term. We recognized $0.2 million of deferred financing costs related to this loan. We used the proceeds of this loan to repay, in part, the loan from WPC. During the second quarter of 2017, in connection with our acquisition of the Charlotte Marriott City Center, we obtained a non-recourse mortgage loan of $103.0 million , with a fixed interest rate of 4.5% . The loan has a maturity date of June 1, 2022 and is interest-only for the full term. We recognized $0.7 million of deferred financing costs related to this loan. During the third quarter of 2017, we refinanced our $42.0 million non-recourse mortgage loan on the Courtyard Nashville Downtown with a new non-recourse mortgage loan of $55.9 million , with a fixed interest rate of 4.2% and term of five years . We recognized a loss on extinguishment of debt of $0.3 million related to this refinancing. Scheduled Debt Principal Payments Scheduled debt principal payments during the remainder of 2017 , each of the next four calendar years following December 31, 2017 and thereafter are as follows (in thousands): Years Ending December 31, Total 2017 (remainder) $ — 2018 — 2019 218,395 2020 137,056 2021 4,498 Thereafter through 2023 475,451 835,400 Unamortized deferred financing costs (4,435 ) Total $ 830,965

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies At September 30, 2017 , 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 reimbursed Carey Financial and selected dealers for reasonable bona fide due diligence expenses incurred that were 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 FINRA. 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). Active fundraising by Carey Financial ceased as of June 30, 2017, with the facilitation of the orderly processing of sales continuing through the termination of our offering on July 31, 2017. Through September 30, 2017 , our Advisor incurred organization and offering costs on our behalf of approximately $9.1 million , all of which we were obligated to pay. Unpaid costs of $0.1 million were included in Due to affiliates in the consolidated financial statements at September 30, 2017 . Hotel Management Agreements As of September 30, 2017 , our Consolidated Hotel properties are operated pursuant to long-term management agreements with four different management companies, with initial terms ranging from five to 40 years . For hotels operated with separate franchise agreements, each management company receives a base management fee, generally ranging from 2.5% to 3.0% of hotel revenues. Five of our management agreements contain the right and license to operate the hotels under specified brands; no separate franchise agreements exist and no separate franchise fee is required for these hotels. The management agreements that include the benefit of a franchise agreement incur a base management fee generally ranging from 3.0% to 7.0% of hotel revenues. The management companies are generally also eligible to receive an incentive management fee, which is typically calculated as a percentage of operating profit, either (i) in excess of projections with a cap or (ii) after we have received a priority return on our investment in the hotel. For the three months ended September 30, 2017 and 2016 , we incurred management fee expense, including amortization of deferred management fees, of $2.9 million and $1.7 million , respectively, and $9.0 million and $4.4 million for the nine months ended September 30, 2017 and 2016 , respectively. Franchise Agreements As of September 30, 2017 , we have four franchise agreements with Marriott owned brands and one with a Hilton owned brand related to our Consolidated Hotels. The franchise agreements have initial terms ranging from 20 to 25 years . This number excludes five hotels that receive the benefits of a franchise agreement pursuant to management agreements, as discussed above. Our franchise agreements grant us the right to the use of the brand name, systems and marks with respect to specified hotels and establish various management, operational, record-keeping, accounting, reporting and marketing standards and procedures that the licensed hotel must comply with. In addition, the franchisor establishes requirements for the quality and condition of the hotel and its furniture, fixtures and equipment, and we are obligated to expend such funds as may be required to maintain the hotel in compliance with those requirements. Typically, our franchise agreements provide for a license fee, or royalty, of 3.0% to 6.0% of room revenues and, if applicable, 3.0% of food and beverage revenue. In addition, we generally pay 1.0% to 4.0% of room revenues as marketing and reservation system contributions for the system-wide benefit of brand hotels. Franchise fees are included in sales and marketing expense in our consolidated financial statements. For the three months ended September 30, 2017 and 2016 , we incurred franchise fee expense, including amortization of deferred franchise fees, of $1.7 million and $1.6 million , respectively, and $4.8 million and $3.1 million for the nine months ended September 30, 2017 and 2016 , respectively. Renovation Commitments Certain of our hotel franchise and loan agreements require us to make planned renovations to our Consolidated Hotels ( Note 4 ). We do not currently expect, and are not obligated, to fund any planned renovations on our Unconsolidated Hotels beyond our original investment. The table below does not reflect any renovation work to be undertaken as a result of Hurricane Irma, as discussed in Note 4 . At September 30, 2017 , three hotels were either undergoing renovation or in the planning stage of renovations, and we currently expect that all three will be completed during the second half of 2018. The following table summarizes our capital commitments related to our Consolidated Hotels (in thousands): September 30, 2017 December 31, 2016 Capital commitments $ 42,776 $ 48,327 Less: amounts paid (29,959 ) (22,981 ) Unpaid commitments 12,817 25,346 Less: amounts in restricted cash designated for renovations (10,247 ) (17,582 ) Unfunded commitments (a) $ 2,570 $ 7,764 ___________ (a) Of our unfunded commitments at September 30, 2017 and December 31, 2016 , approximately $2.4 million and $6.2 million , respectively, of unrestricted cash on our balance sheet was designated for renovations. Capital Expenditures and Reserve Funds With respect to our hotels that are operated under management or franchise agreements with major international hotel brands and for most of our hotels subject to mortgage loans, we are obligated to maintain furniture, fixtures and equipment reserve accounts for future capital expenditures at these hotels, sufficient to cover the cost of routine improvements and alterations at the hotels. The amount funded into each of these reserve accounts is generally determined pursuant to the management agreements, franchise agreements and/or mortgage loan documents for each of the respective hotels and typically ranges between 3% and 5% of the respective hotel’s total gross revenue. At September 30, 2017 and December 31, 2016 , $14.1 million and $14.3 million , respectively, was held in furniture, fixtures and equipment reserve accounts for future capital expenditures and is included in Restricted cash in the consolidated financial statements.

Loss Per Share and Equity

Loss Per Share and Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Loss Per Share and Equity	Loss Per Share and Equity Loss Per Share The following table presents loss per share (in thousands, except share and per share amounts): Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Per Share Class A common stock 28,889,131 $ (472 ) $ (0.02 ) 20,126,076 $ (2,788 ) $ (0.14 ) Class T common stock 57,603,278 (1,013 ) (0.02 ) 32,984,735 (4,628 ) (0.14 ) Net loss attributable to CWI 2 stockholders $ (1,485 ) $ (7,416 ) Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Basic and Diluted Weighted-Average Allocation of Income (Loss) Basic and Diluted Income (Loss) Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Per Share Class A common stock 27,131,807 $ 34 $ — 17,810,819 $ (4,099 ) $ (0.23 ) Class T common stock 53,364,957 (203 ) — 27,782,685 (6,567 ) (0.24 ) Net loss attributable to CWI 2 stockholders $ (169 ) $ (10,666 ) The allocation of Net loss attributable to CWI 2 stockholders is calculated based on the weighted-average shares outstanding for Class A common stock and Class T common stock for each respective period. 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 for both the three months ended September 30, 2017 and 2016 , respectively, and $0.3 million and $0.2 million for the nine months ended September 30, 2017 and 2016 , respectively, which is only applicable to holders of Class T common stock ( Note 3 ). Transfer to Noncontrolling Interest On March 30, 2017, we purchased the incentive membership interest in the Courtyard Nashville Downtown venture from an unaffiliated third party for $3.5 million . Our acquisition of the membership interest is accounted for as an equity transaction, and we recorded an adjustment of approximately $3.5 million to Additional paid-in capital in our consolidated statement of equity for the nine months ended September 30, 2017 related to the difference between the carrying value and the purchase price. No gain or loss was recognized in the consolidated statement of operations. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) The following tables present a reconciliation of changes in Accumulated other comprehensive income (loss) by component for the periods presented (in thousands): Three Months Ended September 30, Gains and Losses on Derivative Instruments 2017 2016 Beginning balance $ 831 $ (1,886 ) Other comprehensive income before reclassifications 38 498 Amounts reclassified from accumulated other comprehensive income to: Interest expense 22 190 Total 22 190 Net current period other comprehensive income 60 688 Net current period other comprehensive gain attributable to noncontrolling interests (3 ) (1 ) Ending balance $ 888 $ (1,199 ) Nine Months Ended September 30, Gains and Losses on Derivative Instruments 2017 2016 Beginning balance $ 896 $ (94 ) Other comprehensive loss before reclassifications (210 ) (1,651 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 210 544 Total 210 544 Net current period other comprehensive loss — (1,107 ) Net current period other comprehensive (gain) loss attributable to noncontrolling interests (8 ) 2 Ending balance $ 888 $ (1,199 ) 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 1,884,420 shares remained available for future grants at September 30, 2017 . During the nine months ended September 30, 2017 and 2016 , we granted 49,344 RSUs and 42,260 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. The awards to employees of the Subadvisor had a weighted-average remaining contractual term of 2.0 years at September 30, 2017 . At September 30, 2017 , we had 83,751 nonvested RSUs outstanding, and we currently expect to recognize stock-based compensation expense totaling approximately $0.7 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. Shares Granted to Directors During the nine months ended September 30, 2017 and 2016 , we issued 15,384 shares and 10,000 shares, respectively, of Class A common stock to our independent directors, at $10.74 and $10.53 per share, respectively, as part of their director compensation. Stock-Based Compensation Expense We recognized stock-based compensation expense related to the awards of RSUs to employees of the Subadvisor and shares issued to our directors totaling $0.1 million for both the three months ended September 30, 2017 and 2016 , and $0.4 million and $0.2 million for the nine months ended September 30, 2017 and 2016 , respectively. Stock-based compensation expense is included within Corporate general and administrative expenses in the consolidated financial statements. Distributions The following table presents the daily per share distributions declared by our board of directors during the third quarter of 2017, payable in cash and in shares of our Class A and Class T common stock to stockholders of record on each day of the quarter: Class A common stock Class T common stock Record dates Cash Shares Total Cash Shares Total July 1, 2017 to September 30, 2017 $ 0.0015323 $ 0.0003687 $ 0.0019010 $ 0.0012405 $ 0.0003687 $ 0.0016092 These distributions were paid on October 16, 2017 in the aggregate amount of $10.6 million . Our distributions that are payable in shares of our Class A and Class T common stock are recorded at par value in our consolidated financial statements. For the nine months ended September 30, 2017 , our board of directors declared distributions of $29.3 million , including distributions of $18.6 million declared during the six months ended June 30, 2017. We paid distributions totaling $25.8 million during the nine months ended September 30, 2017 , comprised of distributions declared during the six months ended June 30, 2017 and the three months ended December 31, 2016 of $18.6 million and $7.2 million , respectively. On July 31, 2017, we closed our initial public offering. As a result of the completion of our initial public offering, beginning with the fourth quarter of 2017, we will no longer calculate our distributions based upon daily record and distribution declaration dates, but upon quarterly record and distribution declaration dates.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We elected to be treated as a REIT and believe that we have been organized and have operated in such a manner to maintain our qualification as a REIT for federal and state income tax purposes. As a REIT, we are generally not subject to corporate level federal income taxes on earnings distributed to our stockholders. Since inception, we have distributed at least 100% of our taxable income annually and intend to do so for the tax year ending December 31, 2017 . Accordingly, we have not included any provisions for federal income taxes related to the REIT in the accompanying consolidated financial statements for the three and nine months ended September 30, 2017 and 2016 . We conduct business in various states and municipalities within the United States, and, as a result, we or one or more of our subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. As a result, we are subject to certain state and local taxes and a provision for such taxes is included in the consolidated financial statements. Certain of our subsidiaries have elected taxable REIT subsidiary, or TRS, status. A TRS may provide certain services considered impermissible for REITs and may hold assets that REITs may not hold directly. The accompanying consolidated financial statements include an interim tax provision for our TRSs for the three and nine months ended September 30, 2017 and 2016 . Current income tax expense was $1.0 million and $1.4 million for the three months ended September 30, 2017 and 2016 , respectively, and $3.5 million and $2.3 million for the nine months ended September 30, 2017 and 2016 , respectively. Our TRSs are subject to U.S. federal and state income taxes. As such, deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance for deferred tax assets is provided if we believe that it is more likely than not that we will not realize the tax benefit of deferred tax assets based on available evidence at the time the determination is made. A change in circumstances may cause us to change our judgment about whether a deferred tax asset will more likely than not be realized. We generally report any change in the valuation allowance through our income statement in the period in which such changes in circumstances occur. Deferred tax assets (net of valuation allowance) and liabilities for our TRSs were recorded, as necessary, as of September 30, 2017 and December 31, 2016 . Deferred tax assets (net of valuation allowance) totaled $1.4 million at both September 30, 2017 and December 31, 2016 and are included in Other assets in the consolidated financial statements. The majority of our deferred tax assets relate to net operating losses, accrued expenses and deferred key money liabilities. Provision for income taxes included net deferred income tax expense of $0.1 million for the three months ended September 30, 2017 and net deferred income tax benefit of less than $0.1 million for the three months ended September 30, 2016 . Net deferred income tax expense was less than $0.1 million for the nine months ended September 30, 2017 and net deferred income tax benefit was $0.1 million for the nine months ended September 30, 2016 .

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On October 19, 2017, we entered into a $25.0 million secured credit facility to fund our working capital needs, with our Operating Partnership as borrower and WPC as lender, which we refer to as the Working Capital Facility, and all previous authorizations regarding loans from WPC were terminated. The loan bears interest at LIBOR plus 1.0% and matures on the earlier of December 31, 2018 and the expiration or termination of the advisory agreement. We serve as guarantor of the Working Capital Facility and have pledged our unencumbered equity interest in certain properties as collateral, as further described in the related pledge and security agreement that is filed as an exhibit to this Report. As of the date of this Report, no amounts are outstanding under the Working Capital Facility.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [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.
Variable Interest Entity	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.
New Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09 , Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes or replaces nearly all GAAP revenue recognition guidance. The new guidance establishes a new control-based revenue recognition model that changes the basis for deciding when revenue is recognized over time or at a point in time and expands the disclosures about revenue. The new guidance also applies to sales of real estate and the new principles-based approach is largely based on the transfer of control of the real estate to the buyer. The guidance is effective for annual reporting periods beginning after December 15, 2017, and the interim periods within those annual periods. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. We expect to adopt this new standard on January 1, 2018 using the modified retrospective transition method, which requires a cumulative effect adjustment upon the date of adoption. We are currently evaluating the impact of the new standard and do not believe the adoption of this standard will have a material impact on our recognition of revenue, however, we expect that additional disclosures will be required as a result of implementation. 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. 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 will adopt this guidance for our interim and annual periods beginning January 1, 2019. We are in the process of 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 August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 intends to reduce diversity in practice for certain cash flow classifications, including, but not limited to (i) debt prepayment or debt extinguishment costs, (ii) contingent consideration payments made after a business combination, (iii) proceeds from the settlement of insurance claims, (iv) distributions received from equity method investees and (v) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-15 on our consolidated financial statements and will retrospectively adopt the standard for the fiscal year beginning January 1, 2018. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. ASU 2016-17 changes how a reporting entity that is a decision maker should consider indirect interests in a VIE held through an entity under common control. If a decision maker must evaluate whether it is the primary beneficiary of a VIE, it will only need to consider its proportionate indirect interest in the VIE held through a common control party. ASU 2016-17 amends ASU 2015-02, which we adopted on January 1, 2016, and which currently directs the decision maker to treat the common control party’s interest in the VIE as if the decision maker held the interest itself. ASU 2016-17 is effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted ASU 2016-17 as of January 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2016-18 on our consolidated financial statements and will retrospectively adopt the standard for the fiscal year beginning January 1, 2018, reflecting the change in presentation, as discussed above. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist companies and other reporting organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The changes to the definition of a business will likely result in more acquisitions being accounted for as asset acquisitions across all industries. The guidance is effective for annual reporting periods beginning after December 15, 2017, and the interim periods within those annual periods. We will be adopting this new guidance on January 1, 2018. While we are evaluating the potential impact of the standard, we currently expect that certain future hotel acquisitions may be considered asset acquisitions rather than business combinations, which would affect the capitalization of acquisition costs (such costs are expensed for business combinations and capitalized for asset acquisitions). In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) . ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term “in substance nonfinancial asset,” in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. This amendment also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent company may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. ASU 2017-05 is effective for periods beginning after December 15, 2017, with early application permitted for fiscal years beginning after December 15, 2016. We are in the process of evaluating the impact of ASU 2017-05 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess hedge effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU 2017-12 will be effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2017-12 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. Therefore, we follow the hypothetical liquidation at book value method in determining our share of these ventures’ earnings or losses for the reporting period as this method better reflects our claim on the ventures’ book value at the end of each reporting period. Earnings for our equity method investments are recognized in accordance with each respective 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. Items Measured at Fair Value on a Recurring Basis 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 income (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)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [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): September 30, 2017 December 31, 2016 Net investments in hotels $ 581,348 $ 657,517 Total assets 624,520 706,115 Non-recourse and limited-recourse debt, net $ 320,228 $ 218,843 Total liabilities 352,022 249,637

Agreements and Transactions w24

Agreements and Transactions with Related Parties (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Amounts Included in the Consolidated Statements of Operations Asset management fees $ 2,188 $ 1,302 $ 6,157 $ 2,914 Acquisition fees — 9,995 4,415 16,156 Available Cash Distributions 1,894 1,100 3,528 1,965 Personnel and overhead reimbursements 872 574 2,628 1,763 Interest expense — — 332 18 Accretion of interest on annual distribution and shareholder servicing fee — 60 198 172 $ 4,954 $ 13,031 $ 17,258 $ 22,988 Other Transaction Fees Incurred Selling commissions and dealer manager fees $ 367 $ 3,886 $ 13,199 $ 17,747 Annual distribution and shareholder servicing fee (a) — 2,013 8,439 8,799 Capitalized acquisition fees for equity method investment (b) ( Note 5 ) 6,195 — 6,195 — Organization and offering costs 224 554 1,422 2,461 Capitalized loan refinancing fees 280 — 280 — Capitalized refinancing fees for equity method investment — 125 — 125 $ 7,066 $ 6,578 $ 29,535 $ 29,132 ___________ (a) Beginning with the payment by us for the third quarter of 2017, which was paid in October 2017, the distribution and shareholder servicing fee will be paid directly to selected dealers rather than through Carey Financial, LLC, or Carey Financial, a subsidiary of WPC and the former dealer manager of our offering. There is no change in the amount of distribution and shareholder servicing fees that we incur. (b) Our Advisor elected to receive 50% of the acquisition fee related to our investment in the Ritz-Carlton Bacara, Santa Barbara Venture in shares of our Class A common stock and 50% in cash. The following table presents a summary of amounts included in Due to related parties and affiliates in the consolidated financial statements (in thousands): September 30, 2017 December 31, 2016 Amounts Due to Related Parties and Affiliates To our Advisor: Reimbursable costs $ 869 $ 676 Asset management fees 759 489 Organization and offering costs 51 463 Note payable to WPC — 210,033 Acquisition fee payable — 7,243 To Others: Due to CWI 1 240 389 Due to Carey Financial (Annual distribution and shareholder servicing fee) (a) — 11,919 Due to Carey Financial (Selling commissions and dealer manager fees) — 46 $ 1,919 $ 231,258 ___________ (a) Beginning with the payment for the third quarter of 2017, which was paid in October 2017, the distribution and shareholder servicing fee is paid directly to selected dealers rather than through Carey Financial. Accordingly, at September 30, 2017, the accrual for the distribution and shareholder servicing fee is included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements.

Net Investments in Hotels (Tabl

Net Investments in Hotels (Tables)	9 Months Ended
	Sep. 30, 2017
Real Estate [Abstract]
Schedule of Hotel Properties	Net investments in hotels are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Buildings $ 1,091,522 $ 969,661 Land 236,078 211,278 Furniture, fixtures and equipment 89,431 67,541 Building and site improvements 27,213 10,279 Construction in progress 3,211 15,988 Hotels, at cost 1,447,455 1,274,747 Less: Accumulated depreciation (59,600 ) (28,335 ) Net investments in hotels $ 1,387,855 $ 1,246,412
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following tables present a summary of assets acquired and liabilities assumed in this business combination, at the date of acquisition, and revenues and earnings thereon, since the date of acquisition through September 30, 2017 (in thousands): Charlotte Marriott City Center (a) Acquisition Date June 1, 2017 Cash consideration $ 168,884 Assets acquired at fair value: Building $ 127,286 Land 24,800 Furniture, fixtures and equipment 17,380 Accounts receivable 541 Other assets 368 Liabilities assumed at fair value: Accounts payable, accrued expenses and other liabilities (1,491 ) Net assets acquired at fair value $ 168,884 From Acquisition Date Through September 30, 2017 Revenues $ 12,445 Income from operations before income taxes $ 2,803 ___________ (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 Information	(Dollars in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Pro forma total revenues $ 85,407 $ 66,685 $ 270,096 $ 205,377 Pro forma net (loss) income $ (5,261 ) $ 908 $ 4,733 $ 6,401 Pro forma loss (income) attributable to noncontrolling interests 3,776 31 983 (3,156 ) Pro forma net (loss) income attributable to CWI 2 stockholders $ (1,485 ) $ 939 $ 5,716 $ 3,245 Pro forma (loss) income per Class A share: Net (loss) income attributable to CWI 2 stockholders $ (472 ) $ 490 $ 2,189 $ 2,017 Basic and diluted pro forma weighted-average shares outstanding 28,889,131 31,802,914 30,761,196 40,003,488 Basic and diluted pro forma (loss) income per share $ (0.02 ) $ 0.02 $ 0.07 $ 0.05 Pro forma (loss) income per Class T share: Net (loss) income attributable to CWI 2 stockholders $ (1,013 ) $ 449 $ 3,527 $ 1,228 Basic and diluted pro forma weighted-average shares outstanding 57,603,278 32,984,735 53,364,957 27,782,685 Basic and diluted pro forma (loss) income per share $ (0.02 ) $ 0.01 $ 0.07 $ 0.04

Equity Investments in Real Es26

Equity Investments in Real Estate (Tables)	9 Months Ended
	Sep. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values. The carrying values of these ventures are affected by the timing and nature of distributions (dollars in thousands): Unconsolidated Hotels State Number of Rooms % Owned Our Initial Investment (a) Acquisition Date Hotel Type Carrying Value at September 30, 2017 December 31, 2016 Ritz-Carlton Key Biscayne Venture (b) (c) FL 458 19.3 % $ 37,559 5/29/2015 Resort $ 36,662 $ 35,712 Ritz-Carlton Bacara, Santa Barbara Venture (d) (e) CA 358 60.0 % 99,386 9/28/2017 Resort 98,614 — 816 $ 136,945 $ 135,276 $ 35,712 ___________ (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 $1.3 million from this investment during the nine months ended September 30, 2017 . No cash distributions were received from this investment during the three months ended September 30, 2017. (d) This investment represents a tenancy-in-common interest; the remaining 40% interest is owned by CWI 1. (e) No cash distributions were received from this investment during the three or nine months ended September 30, 2017 . The following table sets forth our share of equity in earnings from our Unconsolidated Hotels, 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 September 30, Nine Months Ended September 30, Unconsolidated Hotels 2017 2016 2017 2016 Ritz-Carlton Key Biscayne Venture $ 763 $ 709 $ 2,260 $ 2,324 Ritz-Carlton Bacara, Santa Barbara Venture (799 ) — (799 ) — Total equity in (losses) earnings of equity method investments in real estate $ (36 ) $ 709 $ 1,461 $ 2,324 The following tables present combined summarized financial information of our equity investments in real estate. Amounts provided are the total amounts attributable to the venture and does not represent our proportionate share (in thousands): September 30, 2017 December 31, 2016 Real estate, net $ 654,025 $ 291,015 Other assets 61,893 47,642 Total assets 715,918 338,657 Debt 416,646 190,039 Other liabilities 24,622 20,004 Total liabilities 441,268 210,043 Members’ equity $ 274,650 $ 128,614 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues $ 13,612 $ 12,559 $ 62,014 $ 63,834 Expenses (18,326 ) (16,578 ) (63,037 ) (63,462 ) Hurricane loss (3,333 ) — (3,333 ) — Net (loss) income attributable to equity method investments $ (8,047 ) $ (4,019 ) $ (4,356 ) $ 372

Risk Management and Use of De27

Risk Management and Use of Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
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 as Hedging Instruments Asset Derivatives Fair Value at Balance Sheet Location September 30, 2017 December 31, 2016 Interest rate swap Other assets $ 983 $ 816 Interest rate caps Other assets 46 279 $ 1,029 $ 1,095
Schedule of Derivative Instruments	The interest rate swap and caps that we had outstanding on our Consolidated Hotels at September 30, 2017 were designated as cash flow hedges and are summarized as follows (dollars in thousands): Number of Notional Fair Value at Interest Rate Derivatives Instruments Amount September 30, 2017 Interest rate swap 1 $ 100,000 $ 983 Interest rate caps 7 290,100 46 $ 1,029

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Debt	The following table presents the non-recourse and, where indicated, limited-recourse debt, net on our Consolidated Hotels (dollars in thousands): Carrying Amount at Consolidated Hotels Interest Rate Rate Type Current Maturity Date September 30, 2017 December 31, 2016 San Jose Marriott (a) (b) 3.98% Variable 7/2019 $ 87,598 $ 87,429 Renaissance Atlanta Midtown Hotel (a) (b) (c) 4.24%, 11.24% Variable 8/2019 46,862 46,611 Marriott Sawgrass Golf Resort & Spa (a) 5.09% Variable 11/2019 78,000 78,000 Seattle Marriott Bellevue (a) (d) (e) 3.88% Variable 1/2020 99,386 99,188 Le Méridien Arlington (a) (d) 3.98% Variable 6/2020 34,609 34,502 Ritz-Carlton San Francisco 4.59% Fixed 2/2022 142,842 — Charlotte Marriott City Center (f) 4.53% Fixed 6/2022 102,301 — Courtyard Nashville Downtown 4.15% Fixed 9/2022 54,763 41,656 Embassy Suites by Hilton Denver-Downtown/Convention Center 3.90% Fixed 12/2022 99,760 99,725 San Diego Marriott La Jolla 4.13% Fixed 8/2023 84,844 84,824 $ 830,965 $ 571,935 ___________ (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 rates presented for these mortgage loans reflect the rates in effect at September 30, 2017 through the use of an interest rate cap or swap, as applicable. (b) These mortgage loans have two one-year extension options, which are subject to certain conditions. The maturity dates in the table do not reflect the extension options. (c) The debt is comprised of a $34.0 million senior mortgage loan with a floating annual interest rate of LIBOR plus 3.0% and a $13.5 million mezzanine loan with a floating annual interest rate of LIBOR plus 10.0% , both subject to interest rate caps. Both loans have a maturity date of August 30, 2019. (d) 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 option. (e) At December 31, 2016, this loan was limited-recourse up to a maximum of $15.0 million , which would terminate upon satisfaction of certain conditions as described in the loan agreement. During the first quarter of 2017, these conditions were met so that the limited-recourse provisions no longer apply, and as a result, this loan was considered to be a non-recourse loan at September 30, 2017 . (f) At closing, we deposited $10.0 million of the $103.0 million mortgage loan proceeds with the lender to be held as additional collateral for the loan, which was classified as Restricted cash on our consolidated balance sheet. During the third quarter of 2017, upon reaching a certain NOI, as further described in the loan agreement, the $10.0 million was released back to us and reclassified out of Restricted cash on our consolidated balance sheet.
Debt Maturity Schedule	Scheduled debt principal payments during the remainder of 2017 , each of the next four calendar years following December 31, 2017 and thereafter are as follows (in thousands): Years Ending December 31, Total 2017 (remainder) $ — 2018 — 2019 218,395 2020 137,056 2021 4,498 Thereafter through 2023 475,451 835,400 Unamortized deferred financing costs (4,435 ) Total $ 830,965

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule Of Funding Commitments	The following table summarizes our capital commitments related to our Consolidated Hotels (in thousands): September 30, 2017 December 31, 2016 Capital commitments $ 42,776 $ 48,327 Less: amounts paid (29,959 ) (22,981 ) Unpaid commitments 12,817 25,346 Less: amounts in restricted cash designated for renovations (10,247 ) (17,582 ) Unfunded commitments (a) $ 2,570 $ 7,764 ___________ (a) Of our unfunded commitments at September 30, 2017 and December 31, 2016 , approximately $2.4 million and $6.2 million , respectively, of unrestricted cash on our balance sheet was designated for renovations.

Loss Per Share and Equity (Tabl

Loss Per Share and Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Schedule of Earnings Per Share	The following table presents loss per share (in thousands, except share and per share amounts): Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Per Share Class A common stock 28,889,131 $ (472 ) $ (0.02 ) 20,126,076 $ (2,788 ) $ (0.14 ) Class T common stock 57,603,278 (1,013 ) (0.02 ) 32,984,735 (4,628 ) (0.14 ) Net loss attributable to CWI 2 stockholders $ (1,485 ) $ (7,416 ) Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Basic and Diluted Weighted-Average Allocation of Income (Loss) Basic and Diluted Income (Loss) Basic and Diluted Weighted-Average Allocation of Loss Basic and Diluted Loss Per Share Class A common stock 27,131,807 $ 34 $ — 17,810,819 $ (4,099 ) $ (0.23 ) Class T common stock 53,364,957 (203 ) — 27,782,685 (6,567 ) (0.24 ) Net loss attributable to CWI 2 stockholders $ (169 ) $ (10,666 )
Reclassification out of Accumulated Other Comprehensive Income	The following tables present a reconciliation of changes in Accumulated other comprehensive income (loss) by component for the periods presented (in thousands): Three Months Ended September 30, Gains and Losses on Derivative Instruments 2017 2016 Beginning balance $ 831 $ (1,886 ) Other comprehensive income before reclassifications 38 498 Amounts reclassified from accumulated other comprehensive income to: Interest expense 22 190 Total 22 190 Net current period other comprehensive income 60 688 Net current period other comprehensive gain attributable to noncontrolling interests (3 ) (1 ) Ending balance $ 888 $ (1,199 ) Nine Months Ended September 30, Gains and Losses on Derivative Instruments 2017 2016 Beginning balance $ 896 $ (94 ) Other comprehensive loss before reclassifications (210 ) (1,651 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 210 544 Total 210 544 Net current period other comprehensive loss — (1,107 ) Net current period other comprehensive (gain) loss attributable to noncontrolling interests (8 ) 2 Ending balance $ 888 $ (1,199 )
Schedule of Dividends Payable	The following table presents the daily per share distributions declared by our board of directors during the third quarter of 2017, payable in cash and in shares of our Class A and Class T common stock to stockholders of record on each day of the quarter: Class A common stock Class T common stock Record dates Cash Shares Total Cash Shares Total July 1, 2017 to September 30, 2017 $ 0.0015323 $ 0.0003687 $ 0.0019010 $ 0.0012405 $ 0.0003687 $ 0.0016092

Business - Narratives (Details)

Business - Narratives (Details) $ in Millions	38 Months Ended	40 Months Ended
	Jul. 31, 2017USD ($)	Sep. 30, 2017USD ($)property
Business
Capital interest ownership in operating partnership		99.985%
Number of real estate properties | property		12
Common Class A
Business
Proceeds from issuance initial public offering	$ 280.3
Proceeds from follow on offering		$ 10
Common Class T
Business
Proceeds from issuance initial public offering	$ 571
Proceeds from follow on offering		$ 17.7

Basis of Presentation - Narrati

Basis of Presentation - Narratives (Details) - vie	Sep. 30, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable interest entities, count	4	5
Variable interest entities consolidated, count	3	4

Basis of Presentation Basis of

Basis of Presentation Basis of Presentation - Variable Interest Entity Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Net investments in hotels	$ 1,387,855	$ 1,246,412
Total assets	1,656,654	1,407,717
Liabilities
Non-recourse and limited-recourse debt, net	830,965	571,935
Total liabilities	915,526	857,608
Variable Interest Entity
Assets
Net investments in hotels	581,348	657,517
Total assets	624,520	706,115
Liabilities
Non-recourse and limited-recourse debt, net	320,228	218,843
Total liabilities	$ 352,022	$ 249,637

Agreements and Transactions w34

Agreements and Transactions with Related Parties - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2015	Apr. 30, 2017	Dec. 31, 2016	Dec. 29, 2016	Mar. 31, 2016	Jan. 20, 2016
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%
Acquisition fees to affiliates settled in shares	$ 5,900	$ 2,600
Percentage of available cash distribution to advisor	10.00%
Percentage of available cash distribution to advisor at dissolution	15.00%
Selling commission and dealer manager fees paid	$ 13,200	17,900
Underwriting compensation limit	10.00%
Shareholder servicing fee charged to equity	$ 8,800	8,800
Distribution and servicing fees	3,600	1,400
Cumulative offering costs incurred though inception	9,100
Unpaid organization and offering costs	51				$ 463
Deferred offering costs	2,700	$ 3,900
Notes payable, related party	$ 0				$ 210,033	$ 210,000		$ 20,000
Invested asset
Related Party Transaction
Percentage of acquisition fees	2.50%
Contract purchase price | Maximum
Related Party Transaction
Percentage of acquisition fees	6.00%
Advisor
Related Party Transaction
Common shares, outstanding (shares)	1,333,318
Percentage of common stock held by related party	1.50%
Common Class A
Related Party Transaction
Percentage of acquisition fees settled in shares	50.00%
Percentage of acquisitions fees settled in cash	50.00%
Offering price (usd per share)			$ 10
Common shares, outstanding (shares)	29,183,510				22,414,128
Common Class A | Carey Financial
Related Party Transaction
Selling commission fee (usd per share)				$ 0.84			$ 0.82
Dealer manager fee (usd per share)				0.36			0.35
Common Class A | Carey Financial | Previously Reported
Related Party Transaction
Selling commission fee (usd per share)			0.70
Dealer manager fee (usd per share)			0.30
Common Class T
Related Party Transaction
Common shares, outstanding (shares)	57,359,586				40,447,362
Common Class T | Carey Financial
Related Party Transaction
Selling commission fee (usd per share)				0.23			0.22
Dealer manager fee (usd per share)				$ 0.31			$ 0.30
Shareholder servicing fee, percentage							1.00%
Common Class T | Carey Financial | Previously Reported
Related Party Transaction
Selling commission fee (usd per share)			0.19
Dealer manager fee (usd per share)			$ 0.26

Agreements and Transactions w35

Agreements and Transactions with Related Parties - Related Party Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Amounts Included in the Consolidated Statements of Operations
Related party expenses included operating expenses	$ 4,954	$ 13,031	$ 17,258	$ 22,988
Other Transaction Fees Incurred
Selling commissions and dealer manager fees	367	3,886	13,199	17,747
Annual distribution and shareholder servicing fee	0	2,013	8,439	8,799
Capitalized acquisition fees for equity method investment (b) (Note 5)	6,195	0	6,195	0
Organization and offering costs	224	554	1,422	2,461
Capitalized loan refinancing fees	280	0	280	0
Capitalized refinancing fees for equity method investment	0	125	0	125
Transaction Fees Incurred	7,066	6,578	29,535	29,132
Advisor
Amounts Included in the Consolidated Statements of Operations
Asset management fees	2,188	1,302	6,157	2,914
Acquisition fees	0	9,995	4,415	16,156
Available Cash Distributions	1,894	1,100	3,528	1,965
Personnel and overhead reimbursements	872	574	2,628	1,763
Interest expense	0	0	332	18
Accretion of interest on annual distribution and shareholder servicing fee	$ 0	$ 60	$ 198	$ 172

Agreements and Transactions w36

Agreements and Transactions with Related Parties - Due to Affiliates (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Dec. 29, 2016	Jan. 20, 2016
Amounts Due to Related Parties and Affiliates
Reimbursable costs	$ 869	$ 676
Asset management fees	759	489
Organization and offering costs	51	463
Note payable to WPC	0	210,033	$ 210,000	$ 20,000
Acquisition fee payable	0	7,243
Due to related parties and affiliates	1,919	231,258
CWI
Amounts Due to Related Parties and Affiliates
Due to related parties and affiliates	240	389
Carey Financial
Amounts Due to Related Parties and Affiliates
Due to related parties and affiliates	0	46
Carey Financial | Distribution and Shareholder Servicing Fee
Amounts Due to Related Parties and Affiliates
Due to related parties and affiliates	$ 0	$ 11,919

Net Investments in Hotels - Nar

Net Investments in Hotels - Narratives (Details)	Jun. 01, 2017USD ($)room	Sep. 30, 2017USD ($)room	Sep. 30, 2017USD ($)room	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)roombusiness	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Jun. 30, 2017USD ($)
Business Acquisition
Assets retired		$ 900,000	$ 900,000		$ 900,000
Hurricane loss			$ 3,845,000	$ 0	$ 3,845,000	$ 0
Number of businesses acquired | business					1
Number of rooms | room		816	816		816
Acquisition-related expenses			$ 0	11,399,000	$ 4,979,000	18,936,000
Construction in progress		$ 3,211,000	3,211,000		3,211,000		$ 15,988,000
Interest costs capitalized			100,000	$ 400,000	400,000	$ 600,000
Accrued capital expenditures					500,000		$ 4,400,000
Charlotte Marriott City Center
Business Acquisition
Ownership interest acquired	100.00%
Net assets acquired at fair value	$ 168,884,000
Number of rooms | room	446
NOI guarantee	$ 4,000,000
NOI guarantee annual threshold	1,500,000
Acquisition-related expenses	5,000,000
Acquisition fees paid to advisor	$ 4,400,000
Debt instrument face amount								$ 103,000,000
Marriott Sawgrass Golf Resort and Spa
Business Acquisition
Remediation expense		1,000,000
Insurance receivables		3,300,000	3,300,000		3,300,000
Hurricane loss			3,800,000		3,800,000
Impairment of real estate		$ 6,200,000	$ 6,200,000		$ 6,200,000

Net Investments in Hotels - Pro

Net Investments in Hotels - Property Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Real Estate [Abstract]
Buildings	$ 1,091,522	$ 969,661
Land	236,078	211,278
Furniture, fixtures and equipment	89,431	67,541
Building and site improvements	27,213	10,279
Construction in progress	3,211	15,988
Hotels, at cost	1,447,455	1,274,747
Less: Accumulated depreciation	(59,600)	(28,335)
Net investments in hotels	$ 1,387,855	$ 1,246,412

Net Investments in Hotels - Sum

Net Investments in Hotels - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 01, 2017	Sep. 30, 2017	Sep. 30, 2016
Business Acquisition
Cash consideration		$ 168,884	$ 604,190
Charlotte Marriott City Center
Business Acquisition
Cash consideration	$ 168,884
Assets acquired at fair value:
Building	127,286
Land	24,800
Furniture, fixtures and equipment	17,380
Accounts receivable	541
Other assets	368
Liabilities assumed at fair value:
Accounts payable, accrued expenses and other liabilities	(1,491)
Net assets acquired at fair value	$ 168,884

Net Investments in Hotels - Inc

Net Investments in Hotels - Income From Acquisitions (Details) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Business Acquisition
Revenues	$ 85,407	$ 54,363		$ 254,272	$ 122,176
Charlotte Marriott City Center
Business Acquisition
Revenues			$ 12,445
Income from operations before income taxes			$ 2,803

Net Investments in Hotels - P41

Net Investments in Hotels - Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Pro Forma Financial Information
Pro forma total revenues	$ 85,407	$ 66,685	$ 270,096	$ 205,377
Pro forma net (loss) income	(5,261)	908	4,733	6,401
Pro forma loss (income) attributable to noncontrolling interests	3,776	31	983	(3,156)
Pro forma net (loss) income attributable to CWI 2 stockholders	(1,485)	939	5,716	3,245
Common Class A
Pro Forma Financial Information
Pro forma net (loss) income attributable to CWI 2 stockholders	$ (472)	$ 490	$ 2,189	$ 2,017
Pro forma income (loss) per share:
Basic and diluted pro forma weighted-average shares outstanding (shares)	28,889,131	31,802,914	30,761,196	40,003,488
Basic and diluted pro forma (loss) income per share (usd per share)	$ (0.02)	$ 0.02	$ 0.07	$ 0.05
Common Class T
Pro Forma Financial Information
Pro forma net (loss) income attributable to CWI 2 stockholders	$ (1,013)	$ 449	$ 3,527	$ 1,228
Pro forma income (loss) per share:
Basic and diluted pro forma weighted-average shares outstanding (shares)	57,603,278	32,984,735	53,364,957	27,782,685
Basic and diluted pro forma (loss) income per share (usd per share)	$ (0.02)	$ 0.01	$ 0.07	$ 0.04

Equity Investments in Real Es42

Equity Investments in Real Estate - Narratives (Details)	Sep. 28, 2017USD ($)	Sep. 30, 2017USD ($)room	Sep. 30, 2017USD ($)room	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)room	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)	May 29, 2015room
Schedule of Equity Method Investments
Non-Recourse Debt		$ 830,965,000	$ 830,965,000		$ 830,965,000		$ 571,935,000
Acquisition fees settled in shares					3,097,000	$ 0
Hurricane loss			$ 3,845,000	$ 0	$ 3,845,000	0
Number of Rooms | room		816	816		816
Other than temporary impairments			$ 0	0	$ 0	0
Aggregate unamortized basis difference on equity investments		$ 8,000,000	$ 8,000,000		$ 8,000,000		$ 1,900,000
Common Class A
Schedule of Equity Method Investments
Percentage of acquisition fees settled in shares		50.00%	50.00%		50.00%
Percentage of acquisitions fees settled in cash		50.00%	50.00%		50.00%
Unconsolidated Properties | Ritz-Carlton Bacara Venture
Schedule of Equity Method Investments
Equity investment in real estate	$ 380,000,000
Ownership percentage	60.00%	60.00%	60.00%		60.00%
Acquisition cost	$ 6,900,000
Acquisition fees paid to advisor	$ 6,200,000
Number of Rooms | room		358	358		358
Distributions from equity method investment			$ 0		$ 0
Unconsolidated Properties | Ritz-Carlton Bacara Venture | Common Class A
Schedule of Equity Method Investments
Percentage of acquisition fees settled in shares	50.00%
Percentage of acquisitions fees settled in cash	50.00%
Acquisition fees settled in shares					$ 3,100,000
Unconsolidated Properties | Ritz-Carlton Bacara Venture | Secured Debt
Schedule of Equity Method Investments
Non-Recourse Debt	$ 175,000,000
Unconsolidated Properties | Ritz-Carlton Bacara Venture | Secured Debt | LIBOR
Schedule of Equity Method Investments
Variable interest rate	2.80%
Unconsolidated Properties | Ritz-Carlton Bacara Venture | Mezzanine Loan
Schedule of Equity Method Investments
Non-Recourse Debt	$ 55,000,000
Unconsolidated Properties | Ritz-Carlton Bacara Venture | Mezzanine Loan | LIBOR
Schedule of Equity Method Investments
Variable interest rate	5.80%
Unconsolidated Properties | Ritz-Carlton Bacara Venture | CWI
Schedule of Equity Method Investments
Ownership percentage	40.00%
Unconsolidated Properties | Key Biscayne Venture
Schedule of Equity Method Investments
Ownership percentage		19.30%	19.30%		19.30%
Impairment of real estate		$ 3,600,000	$ 3,600,000		$ 3,600,000
Remediation expense		400,000
Insurance receivables		$ 700,000	700,000		700,000
Hurricane loss			$ 0		$ 0
Number of Rooms | room		458	458		458
Distributions from equity method investment			$ 0		$ 1,300,000
Amortization of basis differences			$ 100,000	$ 100,000	$ 100,000	$ 100,000
Unconsolidated Properties | Key Biscayne Venture | Condo
Schedule of Equity Method Investments
Number of Rooms | room								156
Unconsolidated Properties | Key Biscayne Venture | Original Owner
Schedule of Equity Method Investments
Ownership percentage								33.30%
Unconsolidated Properties | Key Biscayne Venture | CWI
Schedule of Equity Method Investments
Ownership percentage								47.40%

Equity Investments in Real Es43

Equity Investments in Real Estate - Ownership Interest in Equity Investments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)room	Sep. 28, 2017USD ($)	Dec. 31, 2016USD ($)	May 29, 2015USD ($)
Schedule of Equity Method Investments
Number of Rooms | room	816
Carrying Value | $	$ 135,276	$ 136,945	$ 35,712
Unconsolidated Properties | Key Biscayne Venture
Schedule of Equity Method Investments
Hotel State	FL
Number of Rooms | room	458
Owned	19.30%
Acquisition Date	May 29, 2015
Hotel Type	Resort
Carrying Value | $	$ 36,662		35,712	$ 37,559
Unconsolidated Properties | Ritz-Carlton Bacara Venture
Schedule of Equity Method Investments
Hotel State	CA
Number of Rooms | room	358
Owned	60.00%	60.00%
Acquisition Date	Sep. 28, 2017
Hotel Type	Resort
Carrying Value | $	$ 98,614	$ 99,386	$ 0

Equity Investments in Real Es44

Equity Investments in Real Estate - Earnings From Unconsolidated Hotels (Details ) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of Equity Method Investments
Equity in (losses) earnings of equity method investments in real estate	$ (36)	$ 709	$ 1,461	$ 2,324
Unconsolidated Properties | Key Biscayne Venture
Schedule of Equity Method Investments
Equity in (losses) earnings of equity method investments in real estate	763	709	2,260	2,324
Unconsolidated Properties | Ritz-Carlton Bacara Venture
Schedule of Equity Method Investments
Equity in (losses) earnings of equity method investments in real estate	$ (799)	$ 0	$ (799)	$ 0

Equity Investments in Real Es45

Equity Investments in Real Estate - Summarized Balance Sheet of Equity Investments (Details) - Unconsolidated Properties - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Equity Method Investment, Summarized Financial Information, Assets [Abstract]
Real estate, net	$ 654,025	$ 291,015
Other assets	61,893	47,642
Total assets	715,918	338,657
Debt	416,646	190,039
Other liabilities	24,622	20,004
Total liabilities	441,268	210,043
Members’ equity	$ 274,650	$ 128,614

Equity Investments in Real Es46

Equity Investments in Real Estate - Summarized Income Statement of Equity Investments (Details) - Unconsolidated Properties - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Revenues	$ 13,612	$ 12,559	$ 62,014	$ 63,834
Expenses	(18,326)	(16,578)	(63,037)	(63,462)
Hurricane loss	(3,333)	0	(3,333)	0
Net (loss) income attributable to equity method investments	$ (8,047)	$ (4,019)	$ (4,356)	$ 372

Fair Value Measurements - Narra

Fair Value Measurements - Narratives (Details) - Non Recourse Debt - Level 3 - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Reported Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument, fair value	$ 831	$ 571.9
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument, fair value	$ 833.7	$ 570.8

Risk Management and Use of De48

Risk Management and Use of Derivative Financial Instruments - Narratives (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Derivative
Collateral posted	$ 0		$ 0		$ 0
Interest expense	9,522,000	$ 5,255,000	25,826,000	$ 11,468,000
Estimated amount of derivative loss to be reclassified from OCI to income			(200,000)
Maximum credit exposure	1,000,000		1,000,000
Derivatives in net liability position	0		0		$ 0
Single counterparty
Derivative
Maximum credit exposure	1,000,000		1,000,000
Gains and Losses on Derivative Instruments | Amounts reclassified from accumulated other comprehensive loss
Derivative
Interest expense	22,000
AOCI Including Portion Attributable to Noncontrolling Interest
Derivative
Unrealized gain (loss) in other comprehensive income	38,000	498,000	(210,000)	(1,651,000)
AOCI Including Portion Attributable to Noncontrolling Interest | Amounts reclassified from accumulated other comprehensive loss
Derivative
Interest expense	$ 22,000	$ 190,000	210,000	$ 544,000
Noncontrolling Interest
Derivative
Estimated amount of derivative loss to be reclassified from OCI to income			$ 100,000

Risk Management and Use of De49

Risk Management and Use of Derivative Financial Instruments - Information Regarding Derivative Instruments (Details) - Designated as hedging instrument - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value
Derivative asset at fair value	$ 1,029	$ 1,095
Interest rate swap | Other assets
Derivatives, Fair Value
Derivative asset at fair value	983	816
Interest rate cap | Other assets
Derivatives, Fair Value
Derivative asset at fair value	$ 46	$ 279

Risk Management and Use of De50

Risk Management and Use of Derivative Financial Instruments - Interest Rate Swap and Caps Summary (Details) - Designated as hedging instrument - Cash Flow Hedging $ in Thousands	Sep. 30, 2017USD ($)instrument
Derivative
Fair Value	$ 1,029
Interest rate swap
Derivative
Number of Instruments | instrument	1
Face Amount	$ 100,000
Fair Value	$ 983
Interest rate cap
Derivative
Number of Instruments | instrument	7
Face Amount	$ 290,100
Fair Value	$ 46

Debt - Narratives (Details)

Debt - Narratives (Details)	3 Months Ended				9 Months Ended
	Sep. 30, 2017USD ($)extension	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)extension	Sep. 30, 2016USD ($)	Jun. 01, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 29, 2016USD ($)	Jan. 20, 2016USD ($)
Debt Instrument
Non-recourse and limited-recourse debt, net	$ 830,965,000				$ 830,965,000			$ 571,935,000
Notes payable, related party	0				0			210,033,000	$ 210,000,000	$ 20,000,000
Deferred financing costs	4,435,000				4,435,000
Repayments of debt					42,000,000	$ 0
Loss on extinguishment of debt (Note 8)	$ (256,000)			$ 0	$ (256,000)	$ 0
Charlotte Marriott City Center
Debt Instrument
Debt instrument face amount		$ 103,000,000
Interest Rate		4.53%
Maturity Date		Jun. 1, 2022
Deferred financing costs		$ 700,000
San Jose Marriott
Debt Instrument
Number of extension options | extension	2				2
Non-recourse and limited-recourse debt, net	$ 87,598,000				$ 87,598,000			87,429,000
Maturity Date					Jul. 12, 2019
Renaissance Atlanta Midtown Hotel
Debt Instrument
Non-recourse and limited-recourse debt, net	46,862,000				$ 46,862,000			46,611,000
Maturity Date					Aug. 19, 2019
Renaissance Atlanta Midtown Hotel | Non Recourse Loan I
Debt Instrument
Non-recourse and limited-recourse debt, net	34,000,000				$ 34,000,000
Renaissance Atlanta Midtown Hotel | Non Recourse Loan I | LIBOR
Debt Instrument
Variable interest rate					3.00%
Renaissance Atlanta Midtown Hotel | Non Recourse Loan II
Debt Instrument
Non-recourse and limited-recourse debt, net	13,500,000				$ 13,500,000
Renaissance Atlanta Midtown Hotel | Non Recourse Loan II | LIBOR
Debt Instrument
Variable interest rate					10.00%
Seattle Marriott Bellevue
Debt Instrument
Non-recourse and limited-recourse debt, net	99,386,000				$ 99,386,000			99,188,000
Maturity Date					Jan. 22, 2020
Seattle Marriott Bellevue | Maximum
Debt Instrument
Limited recourse debt								15,000,000
Charlotte Marriott City Center
Debt Instrument
Non-recourse and limited-recourse debt, net	102,301,000				$ 102,301,000		$ 103,000,000	0
Deposits for hotel investments	10,000,000				$ 10,000,000
Maturity Date					Sep. 30, 2022
Ritz-Carlton San Francisco
Debt Instrument
Non-recourse and limited-recourse debt, net	142,842,000				$ 142,842,000			0
Debt instrument face amount			$ 143,000,000
Interest Rate			4.60%
Maturity Date			Feb. 1, 2022		Feb. 1, 2022
Deferred financing costs			$ 200,000
Courtyard Nashville Downtown
Debt Instrument
Non-recourse and limited-recourse debt, net	$ 54,763,000				$ 54,763,000			$ 41,656,000
Maturity Date					Sep. 30, 2022
Courtyard Nashville Downtown | Debt Refinanced
Debt Instrument
Interest Rate	4.15%				4.15%
Repayments of debt	$ 42,000,000
Secured debt	55,900,000				$ 55,900,000
Debt instrument term					5 years
Loss on extinguishment of debt (Note 8)	$ (300,000)

Debt - Summary of Non-recourse

Debt - Summary of Non-recourse and Limited-recourse Debt on Consolidated Hotels (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Sep. 30, 2017	Jun. 01, 2017	Dec. 31, 2016
Hotel Details
Non-recourse and limited-recourse debt, net		$ 830,965		$ 571,935
San Jose Marriott
Hotel Details
Interest Rate		3.98%
Rate Type		Variable
Maturity Date		Jul. 12, 2019
Non-recourse and limited-recourse debt, net		$ 87,598		87,429
Renaissance Atlanta Midtown Hotel
Hotel Details
Rate Type		Variable
Maturity Date		Aug. 19, 2019
Non-recourse and limited-recourse debt, net		$ 46,862		46,611
Renaissance Atlanta Midtown Hotel | Minimum
Hotel Details
Interest Rate		4.24%
Renaissance Atlanta Midtown Hotel | Maximum
Hotel Details
Interest Rate		11.24%
Marriott Sawgrass Golf Resort and Spa
Hotel Details
Interest Rate		5.09%
Rate Type		Variable
Maturity Date		Nov. 30, 2019
Non-recourse and limited-recourse debt, net		$ 78,000		78,000
Seattle Marriott Bellevue
Hotel Details
Interest Rate		3.88%
Rate Type		Variable
Maturity Date		Jan. 22, 2020
Non-recourse and limited-recourse debt, net		$ 99,386		99,188
Le Méridien Arlington
Hotel Details
Interest Rate		3.98%
Rate Type		Variable
Maturity Date		Jun. 28, 2022
Non-recourse and limited-recourse debt, net		$ 34,609		34,502
Ritz-Carlton San Francisco
Hotel Details
Interest Rate		4.59%
Rate Type		Fixed
Maturity Date	Feb. 1, 2022	Feb. 1, 2022
Non-recourse and limited-recourse debt, net		$ 142,842		0
Charlotte Marriott City Center
Hotel Details
Interest Rate		4.53%
Rate Type		Fixed
Maturity Date		Sep. 30, 2022
Non-recourse and limited-recourse debt, net		$ 102,301	$ 103,000	0
Courtyard Nashville Downtown
Hotel Details
Interest Rate		4.15%
Rate Type		Fixed
Maturity Date		Sep. 30, 2022
Non-recourse and limited-recourse debt, net		$ 54,763		41,656
Embassy Suites Denver Downtown Convention Center
Hotel Details
Interest Rate		3.90%
Rate Type		Fixed
Maturity Date		Dec. 31, 2022
Non-recourse and limited-recourse debt, net		$ 99,760		99,725
San Diego Marriott La Jolla
Hotel Details
Interest Rate		4.13%
Rate Type		Fixed
Maturity Date		Aug. 1, 2023
Non-recourse and limited-recourse debt, net		$ 84,844		$ 84,824

Debt - Scheduled Debt Principal

Debt - Scheduled Debt Principal Payments (Details) $ in Thousands	Sep. 30, 2017USD ($)
Long-term Debt
2017 (remainder)	$ 0
2,018	0
2,019	218,395
2,020	137,056
2,021	4,498
Thereafter through 2023	475,451
Total long term debt	835,400
Unamortized deferred financing costs	(4,435)
Total	$ 830,965

Commitments and Contingencies -

Commitments and Contingencies - Narratives (Details) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2017USD ($)propertyagreement	Sep. 30, 2016USD ($)	Dec. 31, 2018property	Sep. 30, 2017USD ($)propertyagreement	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Loss Contingencies
Cumulative offering costs incurred though inception	$ 9,100			$ 9,100
Unpaid organization and offering costs	51			51		$ 463
Management fees	2,931	$ 1,749		9,005	$ 4,415
Franchise fees	$ 1,700	1,600		$ 4,800	3,100
Properties under renovation | property	3			3
Cash	$ 66,809	$ 64,492		$ 66,809	$ 64,492	63,245	$ 51,081
Restricted cash	34,023			34,023		36,548
Building and Building Improvements
Loss Contingencies
Cash	2,400			2,400		6,200
Furniture and Fixtures
Loss Contingencies
Restricted cash	$ 14,100			$ 14,100		$ 14,300
Forecast
Loss Contingencies
Properties expected to be completed | property			3
Marriott Brand
Loss Contingencies
Franchise agreements, count | agreement	4			4
Hilton Brand
Loss Contingencies
Franchise agreements, count | agreement	1			1
Food and Beverage Revenue
Loss Contingencies
License and royalty fees (percentage)	3.00%			3.00%
Minimum
Loss Contingencies
Hotel management contract term				5 years
Base hotel management fee (percentage)	2.50%			2.50%
Base hotel management fee including benefit of franchise agreement (percentage)	3.00%			3.00%
Franchise agreement initial term				20 years
Marketing and reservation contribution rate (percentage)	1.00%			1.00%
Required FF&E percentages for future capital expenditures	3.00%			3.00%
Minimum | Room Revenue
Loss Contingencies
License and royalty fees (percentage)	3.00%			3.00%
Maximum
Loss Contingencies
Hotel management contract term				40 years
Base hotel management fee (percentage)	3.00%			3.00%
Base hotel management fee including benefit of franchise agreement (percentage)	7.00%			7.00%
Franchise agreement initial term				25 years
Marketing and reservation contribution rate (percentage)	4.00%			4.00%
Required FF&E percentages for future capital expenditures	5.00%			5.00%
Maximum | Room Revenue
Loss Contingencies
License and royalty fees (percentage)	6.00%			6.00%

Commitments and Contingencies55

Commitments and Contingencies - Renovation Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Funding Commitment
Capital commitments	$ 42,776	$ 48,327
Less: amounts paid	(29,959)	(22,981)
Unpaid commitments	12,817	25,346
Less: amounts in restricted cash designated for renovations	(10,247)	(17,582)
Unfunded Commitment	$ 2,570	$ 7,764

Loss Per Share and Equity - Nar

Loss Per Share and Equity - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended	9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Class of Stock
Share-based compensation expense	$ 100			$ 100		$ 400	$ 200
Distribution date						Oct. 16, 2017
Distributions payable	$ 10,604		$ 7,192			$ 10,604
Dividends		$ 18,600	$ 7,200		$ 18,600	29,251	15,788
Distributions paid						$ 25,839	$ 11,320
RSUs | Subadvisor
Class of Stock
Weighted average remaining contract term						2 years
Nonvested shares outstanding (shares)	83,751					83,751
Stock based compensation not yet recognized	$ 700					$ 700
2015 Equity Incentive Plan | RSUs
Class of Stock
Maximum shares authorized for share based compensation (shares)	2,000,000					2,000,000
Shares available for grant (shares)	1,884,420					1,884,420
Shares granted in period (shares)						49,344	42,260
Vesting period						3 years
Common Class A
Class of Stock
Accretion of interest on annual distribution and shareholder servicing fee	$ 100			$ 100		$ 300	$ 200
Common Class A | Independent Director
Class of Stock
Shares granted in period (shares)				10,000		15,384	10,000
Shares issued (usd per share)				$ 10.53		$ 10.74	$ 10.53

Loss Per Share and Equity - Sum

Loss Per Share and Equity - Summary of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income (Loss) Per Share
Allocation of Income (Loss)	$ (1,485)	$ (7,416)	$ (169)	$ (10,666)
Common Class A
Income (Loss) Per Share
Basic and diluted weighted-average shares outstanding (shares)	28,889,131	20,126,076	27,131,807	17,810,819
Allocation of Income (Loss)	$ (472)	$ (2,788)	$ 34	$ (4,099)
Basic and diluted (loss) income per share (usd per share)	$ (0.02)	$ (0.14)	$ 0	$ (0.23)
Common Class T
Income (Loss) Per Share
Basic and diluted weighted-average shares outstanding (shares)	57,603,278	32,984,735	53,364,957	27,782,685
Allocation of Income (Loss)	$ (1,013)	$ (4,628)	$ (203)	$ (6,567)
Basic and diluted (loss) income per share (usd per share)	$ (0.02)	$ (0.14)	$ 0	$ (0.24)

Loss Per Share and Equity - Tra

Loss Per Share and Equity - Transfers to Noncontrolling Interests (Details) - USD ($) $ in Thousands	Mar. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Capital contributions to equity investment in real estate		$ 0	$ 125
Purchase of membership interest from noncontrolling interest		3,524
Additional Paid-In Capital
Purchase of membership interest from noncontrolling interest		$ 3,524
Courtyard Nashville Downtown
Capital contributions to equity investment in real estate	$ 3,500

Loss Per Share and Equity - Rec

Loss Per Share and Equity - Reclassifications of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reconciliation Of Accumulated Comprehensive Income
Beginning balance, value			$ 550,109	$ 246,192
Interest expense	$ 9,522	$ 5,255	25,826	11,468
Ending balance, value	741,128	490,034	741,128	490,034
Accumulated Other Comprehensive Income (Loss)
Reconciliation Of Accumulated Comprehensive Income
Beginning balance, value	831	(1,886)	896	(94)
Ending balance, value	888	(1,199)	888	(1,199)
AOCI Including Portion Attributable to Noncontrolling Interest
Reconciliation Of Accumulated Comprehensive Income
Other comprehensive loss before reclassifications	38	498	(210)	(1,651)
Total	22	190	210	544
Net current period other comprehensive loss	60	688	0	(1,107)
AOCI Including Portion Attributable to Noncontrolling Interest | Amounts reclassified from accumulated other comprehensive loss to:
Reconciliation Of Accumulated Comprehensive Income
Interest expense	22	190	210	544
AOCI Attributable to Noncontrolling Interest
Reconciliation Of Accumulated Comprehensive Income
Net current period other comprehensive loss attributable to noncontrolling interests	$ (3)	$ (1)	$ (8)	$ 2

Loss Per Share and Equity - Div

Loss Per Share and Equity - Dividends (Details)	Sep. 30, 2017$ / shares
Common Class A
Class of Stock
Daily Distribution Declared Per Share	$ 0.0019010
Common Class T
Class of Stock
Daily Distribution Declared Per Share	0.0016092
Cash | Common Class A
Class of Stock
Daily Distribution Declared Per Share	0.0015323
Cash | Common Class T
Class of Stock
Daily Distribution Declared Per Share	0.0012405
Shares | Common Class A
Class of Stock
Daily Distribution Declared Per Share	0.0003687
Shares | Common Class T
Class of Stock
Daily Distribution Declared Per Share	$ 0.0003687

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Current income tax expense	$ 1	$ 1.4	$ 3.5	$ 2.3
Deferred tax asset, net of valuation	1.4		1.4		$ 1.4
Deferred income tax expense (benefit)	$ 0.1	$ (0.1)	$ 0.1	$ (0.1)

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event - Working Capital Facility - Revolver $ in Millions	Oct. 19, 2017USD ($)
Subsequent Event [Line Items]
Line of credit	$ 25
LIBOR
Subsequent Event [Line Items]
Variable interest rate	1.00%