Watermark Lodging Trust (WRMK) 10-Q 14 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 04, 2018
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	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
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		30,185,002
Common Class T
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		58,849,783

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investments in real estate:
Hotels, at cost	$ 1,452,215	$ 1,448,030
Accumulated depreciation	(78,844)	(68,088)
Net investments in hotels	1,373,371	1,379,942
Equity investments in real estate	133,572	134,738
Cash	69,321	68,527
Restricted cash	31,168	29,582
Accounts receivable	25,799	17,592
Other assets	10,794	11,467
Total assets	1,644,025	1,641,848
Liabilities and Equity
Non-recourse debt, net	831,686	831,329
Due to related parties and affiliates	1,845	1,726
Accounts payable, accrued expenses and other liabilities	68,663	66,053
Distributions payable	10,978	10,955
Total liabilities	913,172	910,063
Commitments and contingencies (Note 9)
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued	0	0
Additional paid-in capital	817,240	807,377
Distributions and accumulated losses	(117,281)	(104,809)
Accumulated other comprehensive income	2,155	1,373
Total stockholders’ equity	702,201	704,028
Noncontrolling interests	28,652	27,757
Total equity	730,853	731,785
Total liabilities and equity	1,644,025	1,641,848
Common Class A
Liabilities and Equity
Common stock	29	29
Common Class T
Liabilities and Equity
Common stock	$ 58	$ 58

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
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)	30,035,758	29,510,914
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)	58,483,227	57,871,712

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Hotel Revenues
Rooms	$ 60,589	$ 51,906
Food and beverage	25,215	24,752
Other operating revenue	5,375	4,167
Total Hotel Revenues	91,179	80,825
Hotel Expenses
Rooms	14,043	12,115
Food and beverage	17,552	16,336
Other hotel operating expenses	1,337	1,508
Sales and marketing	7,796	6,873
General and administrative	7,839	7,122
Property taxes, insurance, rent and other	5,372	4,753
Management fees	3,102	2,872
Repairs and maintenance	2,980	2,595
Utilities	2,184	1,847
Depreciation and amortization	11,336	9,780
Total Hotel Expenses	73,541	65,801
Other Operating Expenses
Asset management fees to affiliate and other expenses	2,581	2,044
Corporate general and administrative expenses	1,812	1,432
Gain on hurricane-related property damage	(312)	0
Total Other Operating Expenses	4,081	3,476
Operating Income	13,557	11,548
Other Income and (Expenses)
Interest expense	(9,935)	(7,809)
Equity in (losses) earnings of equity method investments in real estate	(1,857)	744
Other income	94	19
Total Other Income and (Expenses)	(11,698)	(7,046)
Income from Operations Before Income Taxes	1,859	4,502
Provision for income taxes	(275)	(703)
Net Income	1,584	3,799
Income attributable to noncontrolling interests (inclusive of Available Cash Distributions to a related party of $1,455 and $1,607, respectively)	(3,078)	(2,761)
Net (Loss) Income Attributable to CWI 2 Stockholders	(1,494)	1,038
Common Class A
Other Income and (Expenses)
Net (Loss) Income Attributable to CWI 2 Stockholders	$ (453)	$ 395
Basic and diluted weighted-average shares outstanding (shares)	29,821,184	24,284,965
Basic and diluted (loss) income per share (usd per share)	$ (0.02)	$ 0.02
Distributions Declared Per Share (usd per share)	$ 0.1749	$ 0.1713
Common Class T
Other Income and (Expenses)
Net (Loss) Income Attributable to CWI 2 Stockholders	$ (1,041)	$ 643
Basic and diluted weighted-average shares outstanding (shares)	58,381,308	46,283,107
Basic and diluted (loss) income per share (usd per share)	$ (0.02)	$ 0.01
Distributions Declared Per Share (usd per share)	$ 0.1492	$ 0.1450

Consolidated Statements of Ope5

Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Advisor
Available cash distribution	$ 1,455	$ 1,607

Consolidated Statements of Comp

Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net Income	$ 1,584	$ 3,799
Other Comprehensive Income
Unrealized gain on derivative instruments	794	173
Comprehensive Income	2,378	3,972
Amounts Attributable to Noncontrolling Interests
Net income	(3,078)	(2,761)
Unrealized gain on derivative instruments	(12)	(2)
Comprehensive income attributable to noncontrolling interests	(3,090)	(2,763)
Comprehensive (Loss) Income Attributable to CWI 2 Stockholders	$ (712)	$ 1,209

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	Noncontrolling Interest
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
Statement of Equity
Net (loss) income	3,799			1,038				1,038		2,761
Shares issued, net of offering costs, value	189,340			189,340	$ 5	$ 15	189,320
Shares issued, net of offering costs, shares					4,793,933	14,091,842
Shares issued to affiliates, value	1,717			1,717	$ 0		1,717
Shares issued to affiliates, shares					163,111
Distributions to noncontrolling interests	(3,359)									(3,359)
Shares issued under share incentive plans, value	57			57			57
Purchase of membership interest from noncontrolling interest	(3,524)			(3,524)			(3,524)
Stock dividends issued, shares					67,947	118,821
Distributions declared	(8,446)			(8,446)				(8,446)
Other comprehensive income	173			171					171	2
Repurchase of shares, value	(1)			(1)			(1)
Repurchase of shares, shares					(52)	(41)
Ending balance, value at Mar. 31, 2017	729,865			695,330	$ 27	$ 55	760,704	(66,523)	1,067	34,535
Ending balance, shares at Mar. 31, 2017					27,439,067	54,657,984
Beginning balance, value at Dec. 31, 2017	731,785			704,028	$ 29	$ 58	807,377	(104,809)	1,373	27,757
Beginning balance, shares at Dec. 31, 2017		29,510,914	57,871,712		29,510,914	57,871,712
Statement of Equity
Net (loss) income	1,584			(1,494)				(1,494)		3,078
Shares issued, net of offering costs, value	7,309			7,309	$ 0	$ 0	7,309
Shares issued, net of offering costs, shares					200,547	428,847
Shares issued to affiliates, value	2,513			2,513	$ 0		2,513
Shares issued to affiliates, shares					233,969
Distributions to noncontrolling interests	(2,195)									(2,195)
Shares issued under share incentive plans, value	70			70			70
Stock dividends issued, shares					93,149	182,668
Distributions declared	(10,978)			(10,978)				(10,978)
Other comprehensive income	794			782					782	12
Repurchase of shares, value	(29)			(29)			(29)
Repurchase of shares, shares					(2,821)	0
Ending balance, value at Mar. 31, 2018	$ 730,853			$ 702,201	$ 29	$ 58	$ 817,240	$ (117,281)	$ 2,155	$ 28,652
Ending balance, shares at Mar. 31, 2018		30,035,758	58,483,227		30,035,758	58,483,227

Consolidated Statements of Equ8

Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Common Class A
Statement of Equity
Distributions declared (usd per share)	$ 0.1749	$ 0.1713
Common Class T
Statement of Equity
Distributions declared (usd per share)	$ 0.1492	$ 0.1450

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows — Operating Activities
Net Income	$ 1,584	$ 3,799
Adjustments to net income:
Depreciation and amortization	11,336	9,780
Asset management fees to affiliates settled in shares	2,579	1,945
Equity in losses (earnings) of equity method investment in real estate in excess of distributions received	1,857	(19)
Amortization of deferred key money, deferred financing costs and other	308	276
Gain on hurricane-related property damage	(312)	0
Amortization of stock-based compensation	70	57
Net changes in other assets and liabilities	(3,880)	(6,714)
Increase (decrease) in due to related parties and affiliates	339	(7,478)
Funding of hurricane-related remediation work	(87)	0
Receipt of key money and other deferred incentive payments	0	2,688
Net Cash Provided by Operating Activities	13,794	4,334
Cash Flows — Investing Activities
Capital expenditures	(2,950)	(5,695)
Capital contributions to equity investment in real estate	(486)	0
Net Cash Used in Investing Activities	(3,436)	(5,695)
Cash Flows — Financing Activities
Distributions paid	(10,955)	(7,192)
Proceeds from issuance of shares, net of offering costs	5,207	197,032
Distributions to noncontrolling interests	(2,195)	(3,359)
Repurchase of shares	(29)	(1)
Deferred financing costs	(6)	(183)
Repayment of notes payable to affiliate	0	(210,000)
Proceeds from mortgage financing	0	143,000
Purchase of membership interest from noncontrolling interest	0	(3,524)
Deposits released for mortgage financing	0	1,510
Net Cash (Used in) Provided by Financing Activities	(7,978)	117,283
Change in Cash and Restricted Cash During the Period
Net increase in cash and restricted cash	2,380	115,922
Cash and restricted cash, beginning of period	98,109	99,793
Cash and restricted cash, end of period	$ 100,489	$ 215,715

Business

Business	3 Months Ended
	Mar. 31, 2018
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, manages and seeks to enhance the value of, interests in lodging and lodging-related properties 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 March 31, 2018 , including ten hotels that we consolidate, or our Consolidated Hotels, and two hotels that we record as equity investments, or our Unconsolidated Hotels. 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 March 31, 2018 , $14.3 million and $26.8 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	3 Months Ended
	Mar. 31, 2018
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, 2017 , which are included in our 2017 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. 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 both March 31, 2018 and December 31, 2017, we considered four entities to be VIEs, of which we consolidated three , 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): March 31, 2018 December 31, 2017 Net investments in hotels $ 575,948 $ 579,206 Total assets 618,366 617,207 Non-recourse debt, net $ 320,374 $ 320,304 Total liabilities 351,206 350,249 Accounting Policy Update Distributions from Equity Method Investments — We classify distributions received from equity method investments using the cumulative earnings approach. Distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceeds cumulative equity in earnings recognized, the excess is considered a return of investment and is classified as cash inflows from investing activities. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Restricted Cash — In connection with our adoption of Accounting Standards Update, or ASU, 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , as described below, we revised our consolidated statements of cash flows to include restricted cash when reconciling the beginning-of-period and end-of-period cash amounts shown on the statement of cash flows. As a result, we retrospectively revised prior periods presented to conform to the current period presentation. Restricted cash consists primarily of amounts escrowed pursuant to the terms of our mortgage debt to fund planned renovations and improvements (including at hotels damaged by Hurricane Irma), property taxes, insurance, and normal replacement of furniture, fixtures and equipment at our hotels. The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands): March 31, 2018 December 31, 2017 Cash $ 69,321 $ 68,527 Restricted cash 31,168 29,582 Total cash and restricted cash $ 100,489 $ 98,109 Recent Accounting Pronouncements Pronouncements Adopted as of March 31, 2018 In May 2014, the Financial Accounting Standards Board, or FASB, issued 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. We adopted this guidance for our interim and annual periods beginning January 1, 2018 using the modified retrospective method. We performed a comprehensive evaluation of the impact of the new standard across our revenue streams, and determined that the timing of revenue recognition and its classification in our consolidated financial statements will remain substantially unchanged. 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. We retrospectively adopted this guidance for our interim and annual periods beginning January 1, 2018. The adoption of ASU 2016-15 did not have an 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. We retrospectively adopted this guidance for our interim and annual periods beginning January 1, 2018. See Restricted Cash above for additional information. 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 adopted this guidance for our interim and annual periods beginning January 1, 2018. We have had no acquisitions since the adoption of this guidance, however, we 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. We adopted this guidance for our interim and annual periods beginning January 1, 2018. We will appropriately apply the guidance to prospective disposals of nonfinancial assets within the scope of Subtopic 610- 20. Pronouncements to be Adopted after March 31, 2018 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 have not yet completed our analysis on this new standard, but we believe the application of the new standard will result in the recording of a right-of-use asset and a lease liability on the consolidated balance sheet for each of our ground leases at fair value upon adoption. 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 and expect to adopt the standard for the fiscal year beginning January 1, 2019.

Agreements and Transactions wit

Agreements and Transactions with Related Parties	3 Months Ended
	Mar. 31, 2018
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, which we refer to herein as the Advisory Agreement, to perform certain services for us under a fee arrangement, including managing our overall business, our investments and 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, which we refer to herein as the Subadvisory Agreement, 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 in return for certain personnel services. 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 March 31, 2018 2017 Amounts Included in the Consolidated Statements of Operations Asset management fees $ 2,579 $ 1,945 Available Cash Distributions 1,455 1,607 Personnel and overhead reimbursements 996 875 Interest expense — 332 Accretion of interest on annual distribution and shareholder servicing fee (a) — 109 Acquisition fees — 22 $ 5,030 $ 4,890 Other Transaction Fees Incurred Organization and offering costs $ — $ 589 Selling commissions and dealer manager fees — 11,428 Annual distribution and shareholder servicing fee (a) — 8,347 $ — $ 20,364 ___________ (a) Starting with the third quarter 2017 distribution and shareholder servicing fee (which was paid in October 2017), we began making payments 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, therefore this activity is no longer considered a related party transaction. The following table presents a summary of amounts included in Due to related parties and affiliates in the consolidated financial statements (in thousands): March 31, 2018 December 31, 2017 Amounts Due to Related Parties and Affiliates Asset management fees and other to our Advisor $ 944 $ 877 Reimbursable costs to our Advisor 896 768 Other amounts due to related parties and affiliates 5 — Organization and offering costs to our Advisor — 81 $ 1,845 $ 1,726 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. 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. For the three months ended March 31, 2018 and 2017 , $2.5 million and $1.7 million , respectively, in asset management fees were settled in shares of our Class A common stock. At March 31, 2018 , our Advisor owned 1,799,545 shares ( 2.0% ) of our outstanding common stock. Asset management fees are included in Asset management fees to affiliate and other in the consolidated financial statements. 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, 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. During the three months ended March 31, 2017, 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 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 three months ended March 31, 2017 , we paid selling commissions and dealer manager fees totaling $11.5 million . No such fees were paid during the three months ended March 31, 2018. 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. 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 July 31, 2023; the fees may end sooner if the total underwriting compensation 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 date. During the three months ended March 31, 2017 , $8.3 million of distribution and shareholder servicing fees were charged to stockholders’ equity and $1.0 million 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 was paid by us directly to selected dealers rather than through Carey Financial, therefore this activity is no longer considered a related party transaction. There is no change in the amount of distribution and shareholder servicing fees that we incur. Organization and Offering Costs Pursuant to the Advisory Agreement, we were liable for certain expenses related to our public offering, which were 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. Our Advisor was 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 March 31, 2018 , our Advisor incurred organization and offering costs on our behalf of approximately $9.1 million , all of which we were obligated to pay and had paid as of March 31, 2018 . 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 three months ended March 31, 2017 , $1.0 million of deferred offering costs were charged to stockholders’ equity. No such costs were charged to stockholders’ equity during the three months ended March 31, 2018. Other Transactions with Affiliates On October 19, 2017, we entered into a $25.0 million secured credit facility with WPC to fund our working capital needs, which we refer to as the Working Capital Facility, and all previous authorizations regarding loans from WPC were terminated. The loan bears interest at the London Interbank Offered Rate, or 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. As of the date of this Report, no amounts are outstanding under the Working Capital Facility. Jointly Owned Investments At March 31, 2018 , we owned interests in three jointly owned investments with our affiliate 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	3 Months Ended
	Mar. 31, 2018
Real Estate [Abstract]
Net Investments in Hotels	Net Investments in Hotels Net investments in hotels are summarized as follows (in thousands): March 31, 2018 December 31, 2017 Buildings $ 1,092,824 $ 1,092,315 Land 236,078 236,078 Furniture, fixtures and equipment 87,747 87,664 Building and site improvements 29,126 28,865 Construction in progress 6,440 3,108 Hotels, at cost 1,452,215 1,448,030 Less: Accumulated depreciation (78,844 ) (68,088 ) Net investments in hotels $ 1,373,371 $ 1,379,942 During the three months ended March 31, 2018 , we retired fully depreciated furniture, fixtures and equipment aggregating $0.6 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 short period of time. During the three months ended March 31, 2018 , we recognized a $0.3 million hurricane gain from the Marriott Sawgrass Golf Resort & Spa, comprised of: a $0.9 million gain resulting from a change in our estimate of the total damage incurred at the property, partially offset by a $0.6 million loss resulting from pre-existing damage (which was discovered as a result of the hurricane and is not covered by insurance). During the first quarter of 2018, the venture recorded a $0.6 million net increase to our fixed assets, reduced the total remediation work costs incurred by $0.3 million and reduced our insurance receivable by $0.6 million . We are still assessing the impact of the hurricane on the Marriott Sawgrass Golf Resort & Spa; the final net book value write-offs could vary significantly from our estimates. Any changes to property damage estimates will be recorded in the periods in which they are determined, and any additional remediation work will be recorded in the periods in which it is performed. Construction in Progress At March 31, 2018 and December 31, 2017 , construction in progress, recorded at cost, was $6.4 million and $3.1 million , respectively, and in each case related primarily to planned renovations at the San Diego Marriott La Jolla and the Renaissance Atlanta Midtown Hotel ( 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 $0.3 million of such costs during the three months ended March 31, 2018 and 2017 , respectively. At March 31, 2018 and December 31, 2017 , accrued capital expenditures were $1.8 million and $0.5 million , respectively, representing non-cash investing activity.

Equity Investments in Real Esta

Equity Investments in Real Estate	3 Months Ended
	Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Equity Investments in Real Estate	Equity Investments in Real Estate At March 31, 2018 , 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. 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 short period of time. During the first quarter of 2018 the venture recorded a $2.9 million net increase to fixed assets, incurred additional costs as a result of remediation work performed totaling $0.1 million and reduced its insurance receivable by $2.8 million , representing a change in estimate of the total damage incurred at the hotel. 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 March 31, 2018 December 31, 2017 Ritz-Carlton Key Biscayne Venture (b) (c) FL 451 19.3 % $ 37,559 5/29/2015 Resort $ 38,221 $ 37,154 Ritz-Carlton Bacara, Santa Barbara Venture (d) (e) CA 358 60.0 % 99,386 9/28/2017 Resort 95,351 97,584 809 $ 136,945 $ 133,572 $ 134,738 ___________ (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 149 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) No cash distributions were received from this investment during the three months ended March 31, 2018 . (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 months ended March 31, 2018 . The following table sets forth our share of equity in (losses) 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 March 31, Unconsolidated Hotels 2018 2017 Ritz-Carlton Bacara, Santa Barbara Venture $ (2,923 ) $ — Ritz-Carlton Key Biscayne Venture 1,066 744 Total equity in (losses) earnings of equity method investments in real estate $ (1,857 ) $ 744 No other-than-temporary impairment charges were recognized during the three months ended March 31, 2018 and 2017 . At March 31, 2018 and December 31, 2017 , the unamortized basis differences on our equity investments were $7.9 million and $8.0 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 months ended March 31, 2018 and 2017 . 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): March 31, 2018 December 31, 2017 Real estate, net $ 646,636 $ 646,943 Other assets 96,792 82,461 Total assets 743,428 729,404 Debt 416,395 416,335 Other liabilities 50,272 38,969 Total liabilities 466,667 455,304 Members’ equity $ 276,761 $ 274,100 Three Months Ended March 31, 2018 2017 Revenues $ 51,147 $ 27,875 Expenses (49,656 ) (24,010 ) Net income attributable to equity method investments $ 1,491 $ 3,865

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
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 months ended March 31, 2018 or 2017 . Gains and losses (realized and unrealized) recognized on items measured at fair value on a recurring basis included in earnings are reported in Other income and (expenses) in the consolidated financial statements. Our non-recourse debt, which we have classified as Level 3, had a carrying value of $831.7 million and $831.3 million at March 31, 2018 and December 31, 2017 , respectively, and an estimated fair value of $827.2 million and $831.7 million at March 31, 2018 and December 31, 2017 , 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 March 31, 2018 and December 31, 2017 .

Risk Management and Use of Deri

Risk Management and Use of Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2018
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: (i) a counterparty to a hedging arrangement defaulting on its obligation and (ii) 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, as well as 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 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 March 31, 2018 December 31, 2017 Interest rate swap Other assets $ 1,941 $ 1,480 Interest rate caps Other assets 133 36 $ 2,074 $ 1,516 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 March 31, 2018 and December 31, 2017 , no cash collateral had been posted nor received for any of our derivative positions. We recognized unrealized gains of $0.9 million and $0.1 million in Other comprehensive income on derivatives in connection with our interest rate swap and caps during the three months ended March 31, 2018 and 2017 , respectively. We reclassified less than $0.1 million and $0.1 million from Other comprehensive income on derivatives into Interest expense during the three months ended March 31, 2018 and 2017 , respectively. Amounts reported in Other comprehensive income 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 March 31, 2018 , we estimated that $0.9 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 March 31, 2018 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 March 31, 2018 Interest rate swap 1 $ 100,000 $ 1,941 Interest rate caps 6 289,620 133 $ 2,074 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 March 31, 2018 . At March 31, 2018 , our total credit exposure was $2.1 million and the maximum exposure to any single counterparty was $2.0 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 March 31, 2018 , we had not been declared in default on any of our derivative obligations. At both March 31, 2018 and December 31, 2017 , we had no derivatives that were in a net liability position.

Debt

Debt	3 Months Ended
	Mar. 31, 2018
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 debt, net on our Consolidated Hotels (dollars in thousands): Carrying Amount at Consolidated Hotels Interest Rate Rate Type Current Maturity Date March 31, 2018 December 31, 2017 San Jose Marriott (a) (b) 4.46% Variable 7/2019 $ 87,711 $ 87,655 Renaissance Atlanta Midtown Hotel (a) (b) (c) 4.69%, 11.69% Variable 8/2019 47,028 46,945 Marriott Sawgrass Golf Resort & Spa (a) 5.51% Variable 11/2019 77,994 78,000 Seattle Marriott Bellevue (a) (d) 3.88% Variable 1/2020 99,519 99,453 Le Méridien Arlington (a) (d) 4.46% Variable 6/2020 34,680 34,645 Ritz-Carlton San Francisco 4.59% Fixed 2/2022 142,861 142,851 Charlotte Marriott City Center 4.53% Fixed 6/2022 102,376 102,338 Courtyard Nashville Downtown 4.15% Fixed 9/2022 54,877 54,820 Embassy Suites by Hilton Denver-Downtown/Convention Center 3.90% Fixed 12/2022 99,783 99,772 San Diego Marriott La Jolla 4.13% Fixed 8/2023 84,857 84,850 $ 831,686 $ 831,329 ___________ (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 March 31, 2018 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) This 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. 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. As of March 31, 2018 , this ratio was still not met and the cash management agreement remained in effect. 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 March 31, 2018 , we were in compliance with the applicable covenants for each of our mortgage loans. Scheduled Debt Principal Payments Scheduled debt principal payments during the remainder of 2018 , each of the next four calendar years following December 31, 2018 and thereafter are as follows (in thousands): Years Ending December 31, Total 2018 (remainder) $ — 2019 218,395 2020 137,056 2021 4,498 2022 395,710 Thereafter through 2023 79,741 835,400 Unamortized deferred financing costs (3,714 ) Total $ 831,686

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies At March 31, 2018 , 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. Hotel Management Agreements As of March 31, 2018 , 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 March 31, 2018 and 2017 , we incurred management fee expense, including amortization of deferred management fees, of $3.1 million and $2.9 million , respectively. Franchise Agreements As of March 31, 2018 , 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 (excluding 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 March 31, 2018 and 2017 , we incurred franchise fee expense, including amortization of deferred franchise fees, of $1.5 million and $1.4 million , 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 March 31, 2018 , five hotels were either undergoing renovation or in the planning stage of renovations, and we currently expect that two will be completed during the second half of 2018, two will be completed during 2019 and one will be completed during 2020. The following table summarizes our capital commitments related to our Consolidated Hotels (in thousands): March 31, 2018 December 31, 2017 Capital commitments $ 20,035 $ 20,135 Less: amounts paid (3,601 ) (6,840 ) Unpaid commitments 16,434 13,295 Less: amounts in restricted cash designated for renovations (13,176 ) (11,282 ) Unfunded commitments (a) $ 3,258 $ 2,013 ___________ (a) Of our unfunded commitments at March 31, 2018 and December 31, 2017 , approximately $1.6 million and $2.0 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 March 31, 2018 and December 31, 2017 , $18.4 million and $16.5 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) Income Per Share and Equ

(Loss) Income Per Share and Equity	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
(Loss) Income Per Share and Equity	(Loss) Income Per Share and Equity (Loss) Income Per Share The following table presents loss per share (in thousands, except share and per share amounts): Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Basic and Diluted Weighted-Average Allocation of (Loss) Basic and Diluted (Loss) Basic and Diluted Weighted-Average Allocation of Income Basic and Diluted Income Per Share Class A common stock 29,821,184 $ (453 ) $ (0.02 ) 24,284,965 $ 395 $ 0.02 Class T common stock 58,381,308 (1,041 ) (0.02 ) 46,283,107 643 0.01 Net (loss) income attributable to CWI 2 stockholders $ (1,494 ) $ 1,038 The allocation of Net (loss) income 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 $0.2 million and $0.1 million for the three months ended March 31, 2018 and 2017 , respectively ( Note 3 ). Transfer from 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 three months ended March 31, 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 The following table presents a reconciliation of changes in Accumulated other comprehensive income by component for the periods presented (in thousands): Three Months Ended March 31, Gains and Losses on Derivative Instruments 2018 2017 Beginning balance $ 1,373 $ 896 Other comprehensive income before reclassifications 858 53 Amounts reclassified from accumulated other comprehensive income to: Interest expense (64 ) 120 Total (64 ) 120 Net current period other comprehensive income 794 173 Net current period other comprehensive income attributable to noncontrolling interests (12 ) (2 ) Ending balance $ 2,155 $ 1,067 Distributions The following table presents the quarterly per share distributions declared by our board of directors for the first quarter of 2018, payable in cash and in shares of our Class A and Class T common stock to stockholders of record on March 29, 2018: Class A common stock Class T common stock Cash Shares Total Cash Shares Total $ 0.1410 $ 0.0339 $ 0.1749 $ 0.1153 $ 0.0339 $ 0.1492 These distributions were paid on April 16, 2018 in the aggregate amount of $11.0 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.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
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, 2018 . Accordingly, we have not included any provisions for federal income taxes related to the REIT in the accompanying consolidated financial statements for the three months ended March 31, 2018 and 2017 . 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 months ended March 31, 2018 and 2017 . Current income tax expense was $0.5 million and $0.9 million for the three months ended March 31, 2018 and 2017 , 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. In December 2017, the Tax Cuts and Jobs Act was enacted, which reduced the federal corporate income tax rate from 35% to 21%, effective January 1, 2018. Tax reform also contained other provisions that may have an impact on the future realizability of our deferred tax assets. 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 benefits of $0.3 million and $0.2 million for the three months ended March 31, 2018 and 2017, respectively.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2018
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. The liabilities of these VIEs are non-recourse to us and can only be satisfied from each VIE’s respective assets. At both March 31, 2018 and December 31, 2017, we considered four entities to be VIEs, of which we consolidated three , 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): March 31, 2018 December 31, 2017 Net investments in hotels $ 575,948 $ 579,206 Total assets 618,366 617,207 Non-recourse debt, net $ 320,374 $ 320,304 Total liabilities 351,206 350,249
Equity Method Investments in Real Estate	Distributions from Equity Method Investments — We classify distributions received from equity method investments using the cumulative earnings approach. Distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceeds cumulative equity in earnings recognized, the excess is considered a return of investment and is classified as cash inflows from investing activities. 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Pronouncements Adopted as of March 31, 2018 In May 2014, the Financial Accounting Standards Board, or FASB, issued 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. We adopted this guidance for our interim and annual periods beginning January 1, 2018 using the modified retrospective method. We performed a comprehensive evaluation of the impact of the new standard across our revenue streams, and determined that the timing of revenue recognition and its classification in our consolidated financial statements will remain substantially unchanged. 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. We retrospectively adopted this guidance for our interim and annual periods beginning January 1, 2018. The adoption of ASU 2016-15 did not have an 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. We retrospectively adopted this guidance for our interim and annual periods beginning January 1, 2018. See Restricted Cash above for additional information. 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 adopted this guidance for our interim and annual periods beginning January 1, 2018. We have had no acquisitions since the adoption of this guidance, however, we 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. We adopted this guidance for our interim and annual periods beginning January 1, 2018. We will appropriately apply the guidance to prospective disposals of nonfinancial assets within the scope of Subtopic 610- 20. Pronouncements to be Adopted after March 31, 2018 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 have not yet completed our analysis on this new standard, but we believe the application of the new standard will result in the recording of a right-of-use asset and a lease liability on the consolidated balance sheet for each of our ground leases at fair value upon adoption. 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 and expect to adopt the standard for the fiscal year beginning January 1, 2019.
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 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)	3 Months Ended
	Mar. 31, 2018
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): March 31, 2018 December 31, 2017 Net investments in hotels $ 575,948 $ 579,206 Total assets 618,366 617,207 Non-recourse debt, net $ 320,374 $ 320,304 Total liabilities 351,206 350,249
Schedule of Cash and Cash Equivalents	The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands): March 31, 2018 December 31, 2017 Cash $ 69,321 $ 68,527 Restricted cash 31,168 29,582 Total cash and restricted cash $ 100,489 $ 98,109
Restrictions on Cash	The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands): March 31, 2018 December 31, 2017 Cash $ 69,321 $ 68,527 Restricted cash 31,168 29,582 Total cash and restricted cash $ 100,489 $ 98,109

Agreements and Transactions w23

Agreements and Transactions with Related Parties (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 2017 Amounts Included in the Consolidated Statements of Operations Asset management fees $ 2,579 $ 1,945 Available Cash Distributions 1,455 1,607 Personnel and overhead reimbursements 996 875 Interest expense — 332 Accretion of interest on annual distribution and shareholder servicing fee (a) — 109 Acquisition fees — 22 $ 5,030 $ 4,890 Other Transaction Fees Incurred Organization and offering costs $ — $ 589 Selling commissions and dealer manager fees — 11,428 Annual distribution and shareholder servicing fee (a) — 8,347 $ — $ 20,364 ___________ (a) Starting with the third quarter 2017 distribution and shareholder servicing fee (which was paid in October 2017), we began making payments 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, therefore this activity is no longer considered a related party transaction. The following table presents a summary of amounts included in Due to related parties and affiliates in the consolidated financial statements (in thousands): March 31, 2018 December 31, 2017 Amounts Due to Related Parties and Affiliates Asset management fees and other to our Advisor $ 944 $ 877 Reimbursable costs to our Advisor 896 768 Other amounts due to related parties and affiliates 5 — Organization and offering costs to our Advisor — 81 $ 1,845 $ 1,726

Net Investments in Hotels (Tabl

Net Investments in Hotels (Tables)	3 Months Ended
	Mar. 31, 2018
Real Estate [Abstract]
Schedule of Hotel Properties	Net investments in hotels are summarized as follows (in thousands): March 31, 2018 December 31, 2017 Buildings $ 1,092,824 $ 1,092,315 Land 236,078 236,078 Furniture, fixtures and equipment 87,747 87,664 Building and site improvements 29,126 28,865 Construction in progress 6,440 3,108 Hotels, at cost 1,452,215 1,448,030 Less: Accumulated depreciation (78,844 ) (68,088 ) Net investments in hotels $ 1,373,371 $ 1,379,942

Equity Investments in Real Es25

Equity Investments in Real Estate (Tables)	3 Months Ended
	Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	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): March 31, 2018 December 31, 2017 Real estate, net $ 646,636 $ 646,943 Other assets 96,792 82,461 Total assets 743,428 729,404 Debt 416,395 416,335 Other liabilities 50,272 38,969 Total liabilities 466,667 455,304 Members’ equity $ 276,761 $ 274,100 Three Months Ended March 31, 2018 2017 Revenues $ 51,147 $ 27,875 Expenses (49,656 ) (24,010 ) Net income attributable to equity method investments $ 1,491 $ 3,865 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 March 31, 2018 December 31, 2017 Ritz-Carlton Key Biscayne Venture (b) (c) FL 451 19.3 % $ 37,559 5/29/2015 Resort $ 38,221 $ 37,154 Ritz-Carlton Bacara, Santa Barbara Venture (d) (e) CA 358 60.0 % 99,386 9/28/2017 Resort 95,351 97,584 809 $ 136,945 $ 133,572 $ 134,738 ___________ (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 149 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) No cash distributions were received from this investment during the three months ended March 31, 2018 . (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 months ended March 31, 2018 . The following table sets forth our share of equity in (losses) 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 March 31, Unconsolidated Hotels 2018 2017 Ritz-Carlton Bacara, Santa Barbara Venture $ (2,923 ) $ — Ritz-Carlton Key Biscayne Venture 1,066 744 Total equity in (losses) earnings of equity method investments in real estate $ (1,857 ) $ 744

Risk Management and Use of De26

Risk Management and Use of Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 December 31, 2017 Interest rate swap Other assets $ 1,941 $ 1,480 Interest rate caps Other assets 133 36 $ 2,074 $ 1,516
Schedule of Derivative Instruments	The interest rate swap and caps that we had outstanding on our Consolidated Hotels at March 31, 2018 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 March 31, 2018 Interest rate swap 1 $ 100,000 $ 1,941 Interest rate caps 6 289,620 133 $ 2,074

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Debt	The following table presents the non-recourse debt, net on our Consolidated Hotels (dollars in thousands): Carrying Amount at Consolidated Hotels Interest Rate Rate Type Current Maturity Date March 31, 2018 December 31, 2017 San Jose Marriott (a) (b) 4.46% Variable 7/2019 $ 87,711 $ 87,655 Renaissance Atlanta Midtown Hotel (a) (b) (c) 4.69%, 11.69% Variable 8/2019 47,028 46,945 Marriott Sawgrass Golf Resort & Spa (a) 5.51% Variable 11/2019 77,994 78,000 Seattle Marriott Bellevue (a) (d) 3.88% Variable 1/2020 99,519 99,453 Le Méridien Arlington (a) (d) 4.46% Variable 6/2020 34,680 34,645 Ritz-Carlton San Francisco 4.59% Fixed 2/2022 142,861 142,851 Charlotte Marriott City Center 4.53% Fixed 6/2022 102,376 102,338 Courtyard Nashville Downtown 4.15% Fixed 9/2022 54,877 54,820 Embassy Suites by Hilton Denver-Downtown/Convention Center 3.90% Fixed 12/2022 99,783 99,772 San Diego Marriott La Jolla 4.13% Fixed 8/2023 84,857 84,850 $ 831,686 $ 831,329 ___________ (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 March 31, 2018 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) This 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.
Debt Maturity Schedule	Scheduled debt principal payments during the remainder of 2018 , each of the next four calendar years following December 31, 2018 and thereafter are as follows (in thousands): Years Ending December 31, Total 2018 (remainder) $ — 2019 218,395 2020 137,056 2021 4,498 2022 395,710 Thereafter through 2023 79,741 835,400 Unamortized deferred financing costs (3,714 ) Total $ 831,686

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule Of Funding Commitments	The following table summarizes our capital commitments related to our Consolidated Hotels (in thousands): March 31, 2018 December 31, 2017 Capital commitments $ 20,035 $ 20,135 Less: amounts paid (3,601 ) (6,840 ) Unpaid commitments 16,434 13,295 Less: amounts in restricted cash designated for renovations (13,176 ) (11,282 ) Unfunded commitments (a) $ 3,258 $ 2,013 ___________ (a) Of our unfunded commitments at March 31, 2018 and December 31, 2017 , approximately $1.6 million and $2.0 million , respectively, of unrestricted cash on our balance sheet was designated for renovations.

(Loss) Income Per Share and E29

(Loss) Income Per Share and Equity (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 Three Months Ended March 31, 2017 Basic and Diluted Weighted-Average Allocation of (Loss) Basic and Diluted (Loss) Basic and Diluted Weighted-Average Allocation of Income Basic and Diluted Income Per Share Class A common stock 29,821,184 $ (453 ) $ (0.02 ) 24,284,965 $ 395 $ 0.02 Class T common stock 58,381,308 (1,041 ) (0.02 ) 46,283,107 643 0.01 Net (loss) income attributable to CWI 2 stockholders $ (1,494 ) $ 1,038
Reclassification out of Accumulated Other Comprehensive Income	The following table presents a reconciliation of changes in Accumulated other comprehensive income by component for the periods presented (in thousands): Three Months Ended March 31, Gains and Losses on Derivative Instruments 2018 2017 Beginning balance $ 1,373 $ 896 Other comprehensive income before reclassifications 858 53 Amounts reclassified from accumulated other comprehensive income to: Interest expense (64 ) 120 Total (64 ) 120 Net current period other comprehensive income 794 173 Net current period other comprehensive income attributable to noncontrolling interests (12 ) (2 ) Ending balance $ 2,155 $ 1,067
Schedule of Dividends Payable	The following table presents the quarterly per share distributions declared by our board of directors for the first quarter of 2018, payable in cash and in shares of our Class A and Class T common stock to stockholders of record on March 29, 2018: Class A common stock Class T common stock Cash Shares Total Cash Shares Total $ 0.1410 $ 0.0339 $ 0.1749 $ 0.1153 $ 0.0339 $ 0.1492

Business - Narratives (Details)

Business - Narratives (Details) $ in Millions	38 Months Ended	46 Months Ended
	Jul. 31, 2017USD ($)	Mar. 31, 2018USD ($)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		$ 14.3
Common Class T
Business
Proceeds from issuance initial public offering	$ 571
Proceeds from follow on offering		$ 26.8
Consolidated Properties | Hotel
Business
Number of real estate properties | property		10
Unconsolidated Properties | Hotel
Business
Number of real estate properties | property		2

Basis of Presentation - Narrati

Basis of Presentation - Narratives (Details) - vie	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable interest entities, count	4	4
Variable interest entities consolidated, count	3	3

Basis of Presentation Basis of

Basis of Presentation Basis of Presentation - Variable Interest Entity Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Net investments in hotels	$ 1,373,371	$ 1,379,942
Total assets	1,644,025	1,641,848
Liabilities
Non-recourse debt, net	831,686	831,329
Total liabilities	913,172	910,063
Variable Interest Entity
Assets
Net investments in hotels	575,948	579,206
Total assets	618,366	617,207
Liabilities
Non-recourse debt, net	320,374	320,304
Total liabilities	$ 351,206	$ 350,249

Basis of Presentation - Cash Re

Basis of Presentation - Cash Reconciliation (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash	$ 69,321	$ 68,527
Restricted cash	31,168	29,582
Total cash and restricted cash	$ 100,489	$ 98,109	$ 215,715	$ 99,793

Agreements and Transactions w34

Agreements and Transactions with Related Parties - Narratives (Details)	Oct. 19, 2017USD ($)	Mar. 31, 2018USD ($)investmentshares	Mar. 31, 2017USD ($)$ / shares	Dec. 31, 2017shares	Apr. 30, 2017$ / shares
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%
Acquisition fees to affiliates settled in shares		$ 2,500,000	$ 1,700,000
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			11,500,000
Underwriting compensation limit		10.00%
Shareholder servicing fee charged to equity			8,300,000
Distribution and servicing fees			1,000,000
Cumulative offering costs incurred though inception		$ 9,100,000
Deferred offering costs		$ 0	$ 1,000,000
Working Capital Facility | Revolver
Related Party Transaction
Maximum borrowing capacity	$ 25,000,000
Working Capital Facility | Revolver | LIBOR
Related Party Transaction
Variable interest rate	1.00%
Common Class A
Related Party Transaction
Common shares, outstanding (shares) | shares		30,035,758		29,510,914
Common Class T
Related Party Transaction
Common shares, outstanding (shares) | shares		58,483,227		57,871,712
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) | shares		1,799,545
Percentage of common stock held by related party		2.00%
Carey Financial | Common Class A
Related Party Transaction
Selling commission fee (usd per share) | $ / shares			$ 0.82		$ 0.84
Dealer manager fee (usd per share) | $ / shares			0.35		0.36
Carey Financial | Common Class T
Related Party Transaction
Selling commission fee (usd per share) | $ / shares			0.22		0.23
Dealer manager fee (usd per share) | $ / shares			$ 0.30		$ 0.31
Shareholder servicing fee, percentage			1.00%
CWI
Related Party Transaction
Number of jointly owned investments | investment		3

Agreements and Transactions w35

Agreements and Transactions with Related Parties - Related Party Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Amounts Included in the Consolidated Statements of Operations
Related party expenses included operating expenses	$ 5,030	$ 4,890
Other Transaction Fees Incurred
Organization and offering costs	0	589
Selling commissions and dealer manager fees	0	11,428
Annual distribution and shareholder servicing fee	0	8,347
Other transaction fees incurred	0	20,364
Advisor
Amounts Included in the Consolidated Statements of Operations
Asset management fees	2,579	1,945
Available Cash Distributions	1,455	1,607
Personnel and overhead reimbursements	996	875
Interest expense	0	332
Accretion of interest on annual distribution and shareholder servicing fee	0	109
Acquisition fees	$ 0	$ 22

Agreements and Transactions w36

Agreements and Transactions with Related Parties - Due to Affiliates (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Amounts Due to Related Parties and Affiliates
Asset management fees and other to our Advisor	$ 944	$ 877
Reimbursable costs to our Advisor	896	768
Other amounts due to related parties and affiliates	5	0
Organization and offering costs to our Advisor	0	81
Due to related parties and affiliates	$ 1,845	$ 1,726

Net Investments in Hotels - Nar

Net Investments in Hotels - Narratives (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Business Acquisition
Assets retired	$ 600
Gain on hurricane	312	$ 0
Construction in progress	6,440		$ 3,108
Interest costs capitalized	100	$ 300
accrued capital expenditures	1,800		$ 500
Marriott Sawgrass Golf Resort and Spa
Business Acquisition
Adjustments to Loss from Catastrophe	900
Loss from pre-existing damage	600
Increase in fixed assets	600
Remediation expense	300
Decrease in insurance receivable	$ 600

Net Investments in Hotels - Pro

Net Investments in Hotels - Property Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Real Estate [Abstract]
Buildings	$ 1,092,824	$ 1,092,315
Land	236,078	236,078
Furniture, fixtures and equipment	87,747	87,664
Building and site improvements	29,126	28,865
Construction in progress	6,440	3,108
Hotels, at cost	1,452,215	1,448,030
Less: Accumulated depreciation	(78,844)	(68,088)
Net investments in hotels	$ 1,373,371	$ 1,379,942

Equity Investments in Real Es39

Equity Investments in Real Estate - Narratives (Details)	3 Months Ended
	Mar. 31, 2018USD ($)roomproperty	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)	Sep. 28, 2017	May 29, 2015room
Schedule of Equity Method Investments
Number of real estate properties | property	12
Number of Rooms | room	809
Other than temporary impairments	$ 0	$ 0
Aggregate unamortized basis difference on equity investments	7,900,000		$ 8,000,000
Unconsolidated Properties | Key Biscayne Venture
Schedule of Equity Method Investments
Increase in fixed assets	2,900,000
Remediation expense	100,000
Decrease in insurance receivable	$ 2,800,000
Ownership percentage	19.30%
Number of Rooms | room	451
Amortization of basis differences (less than)	$ 100,000	$ 100,000
Unconsolidated Properties | Key Biscayne Venture | Condo
Schedule of Equity Method Investments
Number of Rooms | room					149
Unconsolidated Properties | Key Biscayne Venture | Original Owner
Schedule of Equity Method Investments
Ownership percentage					33.30%
Unconsolidated Properties | Ritz-Carlton Bacara Venture
Schedule of Equity Method Investments
Ownership percentage	60.00%
Number of Rooms | room	358
Distributions from equity method investment	$ 0
Unconsolidated Properties | CWI | Key Biscayne Venture
Schedule of Equity Method Investments
Ownership percentage					47.40%
Unconsolidated Properties | CWI | Ritz-Carlton Bacara Venture
Schedule of Equity Method Investments
Ownership percentage				40.00%
Unconsolidated Properties | Hotel
Schedule of Equity Method Investments
Number of real estate properties | property	2
Unconsolidated Properties | Hotel | CWI
Schedule of Equity Method Investments
Number of real estate properties | property	1
Unconsolidated Properties | Hotel | CWI | Third Party
Schedule of Equity Method Investments
Number of real estate properties | property	1

Equity Investments in Real Es40

Equity Investments in Real Estate - Ownership Interest in Equity Investments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)room	Dec. 31, 2017USD ($)	Sep. 28, 2017USD ($)	May 29, 2015USD ($)
Schedule of Equity Method Investments
Number of Rooms | room	809
Carrying Value | $	$ 133,572	$ 134,738	$ 136,945
Unconsolidated Properties | Key Biscayne Venture
Schedule of Equity Method Investments
Hotel State	FL
Number of Rooms | room	451
Owned	19.30%
Acquisition Date	May 29, 2015
Hotel Type	Resort
Carrying Value | $	$ 38,221	37,154		$ 37,559
Unconsolidated Properties | Ritz-Carlton Bacara Venture
Schedule of Equity Method Investments
Hotel State	CA
Number of Rooms | room	358
Owned	60.00%
Acquisition Date	Sep. 28, 2017
Hotel Type	Resort
Carrying Value | $	$ 95,351	$ 97,584	$ 99,386

Equity Investments in Real Es41

Equity Investments in Real Estate - Earnings From Unconsolidated Hotels (Details ) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of Equity Method Investments
Equity in (losses) earnings of equity method investments in real estate	$ (1,857)	$ 744
Unconsolidated Properties | Ritz-Carlton Bacara Venture
Schedule of Equity Method Investments
Equity in (losses) earnings of equity method investments in real estate	(2,923)	0
Unconsolidated Properties | Key Biscayne Venture
Schedule of Equity Method Investments
Equity in (losses) earnings of equity method investments in real estate	$ 1,066	$ 744

Equity Investments in Real Es42

Equity Investments in Real Estate - Summarized Balance Sheet of Equity Investments (Details) - Unconsolidated Properties - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Equity Method Investment, Summarized Financial Information, Assets [Abstract]
Real estate, net	$ 646,636	$ 646,943
Other assets	96,792	82,461
Total assets	743,428	729,404
Debt	416,395	416,335
Other liabilities	50,272	38,969
Total liabilities	466,667	455,304
Members’ equity	$ 276,761	$ 274,100

Equity Investments in Real Es43

Equity Investments in Real Estate - Summarized Income Statement of Equity Investments (Details) - Unconsolidated Properties - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Revenues	$ 51,147	$ 27,875
Expenses	(49,656)	(24,010)
Net income attributable to equity method investments	$ 1,491	$ 3,865

Fair Value Measurements - Narra

Fair Value Measurements - Narratives (Details) - Non Recourse Debt - Level 3 - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Reported Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument, fair value	$ 831.7	$ 831.3
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument, fair value	$ 827.2	$ 831.7

Risk Management and Use of De45

Risk Management and Use of Derivative Financial Instruments - Narratives (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Derivative
Collateral posted	$ 0		$ 0
Interest expense	9,935,000	$ 7,809,000
Estimated amount of derivative gain to be reclassified from OCI to income	900,000
Maximum credit exposure	2,100,000
Derivatives in net liability position	0		$ 0
Single counterparty
Derivative
Maximum credit exposure	2,000,000
AOCI Including Portion Attributable to Noncontrolling Interest
Derivative
Unrealized gain (loss) in other comprehensive income	858,000	53,000
AOCI Including Portion Attributable to Noncontrolling Interest | Amounts reclassified from accumulated other comprehensive loss
Derivative
Interest expense	(64,000)	$ 120,000
Noncontrolling Interest
Derivative
Estimated amount of derivative gain to be reclassified from OCI to income	$ 100,000

Risk Management and Use of De46

Risk Management and Use of Derivative Financial Instruments - Information Regarding Derivative Instruments (Details) - Designated as hedging instrument - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Derivatives, Fair Value
Derivative asset at fair value	$ 2,074	$ 1,516
Interest rate swap | Other assets
Derivatives, Fair Value
Derivative asset at fair value	1,941	1,480
Interest rate cap | Other assets
Derivatives, Fair Value
Derivative asset at fair value	$ 133	$ 36

Risk Management and Use of De47

Risk Management and Use of Derivative Financial Instruments - Interest Rate Swap and Caps Summary (Details) - Designated as hedging instrument - Cash Flow Hedging $ in Thousands	Mar. 31, 2018USD ($)instrument
Derivative
Fair Value	$ 2,074
Interest rate swap
Derivative
Number of Instruments | instrument	1
Face Amount	$ 100,000
Fair Value	$ 1,941
Interest rate cap
Derivative
Number of Instruments | instrument	6
Face Amount	$ 289,620
Fair Value	$ 133

Debt - Narratives (Details)

Debt - Narratives (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)extension	Dec. 31, 2017USD ($)
Debt Instrument
Non-recourse debt, net	$ 831,686	$ 831,329
Renaissance Atlanta Midtown Hotel
Debt Instrument
Number of extension options | extension	2
Option extension period	1 year
Non-recourse debt, net	$ 47,028	46,945
Renaissance Atlanta Midtown Hotel | Non Recourse Loan I
Debt Instrument
Non-recourse debt, net	$ 34,000
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 debt, net	$ 13,500
Renaissance Atlanta Midtown Hotel | Non Recourse Loan II | LIBOR
Debt Instrument
Variable interest rate	10.00%
Seattle Marriott Bellevue
Debt Instrument
Option extension period	1 year
Non-recourse debt, net	$ 99,519	$ 99,453

Debt - Summary of Non-recourse

Debt - Summary of Non-recourse and Limited-recourse Debt on Consolidated Hotels (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Hotel Details
Non-recourse debt, net	$ 831,686	$ 831,329
San Jose Marriott
Hotel Details
Interest Rate	4.46%
Rate Type	Variable
Maturity Date	Jul. 12, 2019
Non-recourse debt, net	$ 87,711	87,655
Renaissance Atlanta Midtown Hotel
Hotel Details
Rate Type	Variable
Maturity Date	Aug. 19, 2019
Non-recourse debt, net	$ 47,028	46,945
Renaissance Atlanta Midtown Hotel | Minimum
Hotel Details
Interest Rate	4.69%
Renaissance Atlanta Midtown Hotel | Maximum
Hotel Details
Interest Rate	11.69%
Marriott Sawgrass Golf Resort and Spa
Hotel Details
Interest Rate	5.51%
Rate Type	Variable
Maturity Date	Nov. 30, 2019
Non-recourse debt, net	$ 77,994	78,000
Seattle Marriott Bellevue
Hotel Details
Interest Rate	3.88%
Rate Type	Variable
Maturity Date	Jan. 22, 2020
Non-recourse debt, net	$ 99,519	99,453
Le Méridien Arlington
Hotel Details
Interest Rate	4.46%
Rate Type	Variable
Maturity Date	Jun. 28, 2020
Non-recourse debt, net	$ 34,680	34,645
Ritz-Carlton San Francisco
Hotel Details
Interest Rate	4.59%
Rate Type	Fixed
Maturity Date	Feb. 1, 2022
Non-recourse debt, net	$ 142,861	142,851
Charlotte Marriott City Center
Hotel Details
Interest Rate	4.53%
Rate Type	Fixed
Maturity Date	Jun. 1, 2022
Non-recourse debt, net	$ 102,376	102,338
Courtyard Nashville Downtown
Hotel Details
Interest Rate	4.15%
Rate Type	Fixed
Maturity Date	Sep. 30, 2022
Non-recourse debt, net	$ 54,877	54,820
Embassy Suites Denver Downtown Convention Center
Hotel Details
Interest Rate	3.90%
Rate Type	Fixed
Maturity Date	Dec. 31, 2022
Non-recourse debt, net	$ 99,783	99,772
San Diego Marriott La Jolla
Hotel Details
Interest Rate	4.13%
Rate Type	Fixed
Maturity Date	Aug. 1, 2023
Non-recourse debt, net	$ 84,857	$ 84,850

Debt - Scheduled Debt Principal

Debt - Scheduled Debt Principal Payments (Details) $ in Thousands	Mar. 31, 2018USD ($)
Long-term Debt
2018 (remainder)	$ 0
2,019	218,395
2,020	137,056
2,021	4,498
2,022	395,710
Thereafter through 2023	79,741
Total long term debt	835,400
Unamortized deferred financing costs	(3,714)
Total	$ 831,686

Commitments and Contingencies -

Commitments and Contingencies - Narratives (Details) $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)agreementproperty	Mar. 31, 2017USD ($)	Dec. 31, 2018property	Dec. 31, 2020property	Dec. 31, 2019property	Dec. 31, 2017USD ($)
Loss Contingencies
Management fees	$ 3,102	$ 2,872
Franchise fees	$ 1,500	$ 1,400
Number of properties under renovation | property	5
Cash	$ 69,321					$ 68,527
Building and Building Improvements
Loss Contingencies
Cash	1,600					2,000
Furniture and Fixtures
Loss Contingencies
Restricted cash	$ 18,400					$ 16,500
Forecasted
Loss Contingencies
Number of completed construction projects | property			2	1	2
Food and Beverage Revenue
Loss Contingencies
License and royalty fees (percentage)	3.00%
Marriott Brand
Loss Contingencies
Franchise agreements, count | agreement	4
Hilton Brand
Loss Contingencies
Franchise agreements, count | agreement	1
Minimum
Loss Contingencies
Hotel management contract term	5 years
Base hotel management fee (percentage)	2.50%
Base hotel management fee including benefit of franchise agreement (percentage)	3.00%
Franchise agreement initial term	20 years
Marketing and reservation contribution rate (percentage)	1.00%
Required FF&E percentages for future capital expenditures	3.00%
Minimum | Room Revenue
Loss Contingencies
License and royalty fees (percentage)	3.00%
Maximum
Loss Contingencies
Hotel management contract term	40 years
Base hotel management fee (percentage)	3.00%
Base hotel management fee including benefit of franchise agreement (percentage)	7.00%
Franchise agreement initial term	25 years
Marketing and reservation contribution rate (percentage)	4.00%
Required FF&E percentages for future capital expenditures	5.00%
Maximum | Room Revenue
Loss Contingencies
License and royalty fees (percentage)	6.00%

Commitments and Contingencies52

Commitments and Contingencies - Renovation Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Funding Commitment
Capital commitments	$ 20,035	$ 20,135
Less: amounts paid	(3,601)	(6,840)
Unpaid commitments	16,434	13,295
Less: amounts in restricted cash designated for renovations	(13,176)	(11,282)
Unfunded Commitment	$ 3,258	$ 2,013

(Loss) Income Per Share and E53

(Loss) Income Per Share and Equity - Narratives (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Class of Stock
Distributions payable	$ 10,978		$ 10,955
Common Class A
Class of Stock
Accretion of interest on annual distribution and shareholder servicing fee	$ 200	$ 100

(Loss) Income Per Share and E54

(Loss) Income Per Share and Equity - Summary of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income (Loss) Per Share
Allocation of Income (Loss)	$ (1,494)	$ 1,038
Common Class A
Income (Loss) Per Share
Basic and diluted weighted-average shares outstanding (shares)	29,821,184	24,284,965
Allocation of Income (Loss)	$ (453)	$ 395
Basic and diluted (loss) income per share (usd per share)	$ (0.02)	$ 0.02
Common Class T
Income (Loss) Per Share
Basic and diluted weighted-average shares outstanding (shares)	58,381,308	46,283,107
Allocation of Income (Loss)	$ (1,041)	$ 643
Basic and diluted (loss) income per share (usd per share)	$ (0.02)	$ 0.01

Loss Per Share and Equity - Tra

Loss Per Share and Equity - Transfers to Noncontrolling Interests (Details) - USD ($) $ in Thousands	Mar. 30, 2017	Mar. 31, 2017
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) Income Per Share and E56

(Loss) Income Per Share and Equity - Reclassifications of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reconciliation Of Accumulated Comprehensive Income
Beginning balance, value	$ 731,785	$ 550,109
Interest expense	9,935	7,809
Ending balance, value	730,853	729,865
Accumulated Other Comprehensive Income
Reconciliation Of Accumulated Comprehensive Income
Beginning balance, value	1,373	896
Ending balance, value	2,155	1,067
AOCI Including Portion Attributable to Noncontrolling Interest
Reconciliation Of Accumulated Comprehensive Income
Other comprehensive loss before reclassifications	858	53
Total	(64)	120
Net current period other comprehensive loss	794	173
AOCI Including Portion Attributable to Noncontrolling Interest | Amounts reclassified from accumulated other comprehensive loss to:
Reconciliation Of Accumulated Comprehensive Income
Interest expense	(64)	120
AOCI Attributable to Noncontrolling Interest
Reconciliation Of Accumulated Comprehensive Income
Net current period other comprehensive loss attributable to noncontrolling interests	$ (12)	$ (2)

(Loss) Income Per Share and E57

(Loss) Income Per Share and Equity - Dividends (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Common Class A
Class of Stock
Distributions declared (usd per share)	$ 0.1749	$ 0.1713
Common Class T
Class of Stock
Distributions declared (usd per share)	0.1492	$ 0.1450
Cash | Common Class A
Class of Stock
Distributions declared (usd per share)	0.1410
Cash | Common Class T
Class of Stock
Distributions declared (usd per share)	0.1153
Shares | Common Class A
Class of Stock
Distributions declared (usd per share)	0.0339
Shares | Common Class T
Class of Stock
Distributions declared (usd per share)	$ 0.0339

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Current income tax expense	$ 0.5	$ 0.9
Deferred income tax benefit	$ (0.3)	$ (0.2)