Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36594 | |
Entity Registrant Name | Xenia Hotels & Resorts, Inc. | |
Entity Central Index Key | 0001616000 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-0141677 | |
Entity Address, Address Line One | 200 S. Orange Avenue | |
Entity Address, Address Line Two | Suite 2700 | |
Entity Address, City or Town | Orlando | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32801 | |
City Area Code | 407 | |
Local Phone Number | 246-8100 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | XHR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 112,641,568 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investment properties: | ||
Land | $ 472,084 | $ 477,350 |
Buildings and other improvements | 3,138,232 | 3,113,745 |
Total | 3,610,316 | 3,591,095 |
Less: accumulated depreciation | (793,541) | (715,949) |
Net investment properties | 2,816,775 | 2,875,146 |
Cash and cash equivalents | 110,366 | 91,413 |
Restricted cash and escrows | 77,147 | 70,195 |
Accounts and rents receivable, net of allowance for doubtful accounts | 49,071 | 34,804 |
Intangible assets, net of accumulated amortization of $2,930 and $3,578, respectively | 36,592 | 61,541 |
Other assets | 77,980 | 36,988 |
Total assets | 3,167,931 | 3,170,087 |
Liabilities | ||
Debt, net of loan discounts and unamortized deferred financing costs | 1,149,418 | 1,155,088 |
Accounts payable and accrued expenses | 98,455 | 84,967 |
Distributions payable | 31,753 | 31,574 |
Other liabilities | 80,694 | 45,753 |
Total liabilities | 1,360,320 | 1,317,382 |
Commitments and Contingencies | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 500,000,000 shares authorized, 112,641,568 and 112,583,990 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 1,127 | 1,126 |
Additional paid in capital | 2,060,190 | 2,059,699 |
Accumulated other comprehensive income | (3,829) | 12,742 |
Accumulated distributions in excess of net earnings | (282,258) | (249,654) |
Total Company stockholders' equity | 1,775,230 | 1,823,913 |
Non-controlling interests | 32,381 | 28,792 |
Total equity | 1,807,611 | 1,852,705 |
Total liabilities and equity | $ 3,167,931 | $ 3,170,087 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 2,930 | $ 3,578 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock shares, issued (in shares) | 112,641,568 | 112,583,990 |
Common stock shares, outstanding (in shares) | 112,641,568 | 112,583,990 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Revenues | $ 304,285 | $ 277,057 | $ 597,972 | $ 541,556 |
Expenses: | ||||
Other direct expenses | 7,900 | 4,715 | 15,018 | 9,189 |
Other indirect expenses | 71,836 | 63,068 | 144,229 | 126,393 |
Total hotel operating expenses | 196,984 | 171,890 | 392,873 | 343,268 |
Depreciation and amortization | 39,689 | 38,602 | 79,689 | 77,403 |
Real estate taxes, personal property taxes and insurance | 12,577 | 11,819 | 25,636 | 23,679 |
Ground lease expense | 1,158 | 1,141 | 2,247 | 2,707 |
General and administrative expenses | 8,046 | 7,873 | 15,621 | 15,932 |
Gain on business interruption insurance | (823) | (2,649) | (823) | (2,649) |
Acquisition and terminated transaction costs | 142 | 222 | 142 | 222 |
Pre-opening and hotel rebranding expenses | 142 | 0 | 142 | 0 |
Impairment and other losses | 14,771 | 0 | 14,771 | 0 |
Total expenses | 272,686 | 228,898 | 530,298 | 460,562 |
Operating income | 31,599 | 48,159 | 67,674 | 80,994 |
Gain on sale of investment properties | 0 | 9 | 0 | 42,294 |
Other income | 188 | 446 | 283 | 832 |
Interest expense | (12,380) | (13,053) | (24,967) | (26,769) |
Loss on extinguishment of debt | 0 | (384) | (214) | (465) |
Net income before income taxes | 19,407 | 35,177 | 42,776 | 96,886 |
Income tax expense | (6,193) | (5,646) | (12,286) | (10,311) |
Net income | 13,214 | 29,531 | 30,490 | 86,575 |
Net income attributable to non-controlling interests (Note 1) | (437) | (737) | (1,011) | (2,124) |
Net income attributable to common stockholders | $ 12,777 | $ 28,794 | $ 29,479 | $ 84,451 |
Basic and diluted earnings per share | ||||
Net income per share available to common stockholders - basic and diluted (in dollars per share) | $ 0.11 | $ 0.26 | $ 0.26 | $ 0.78 |
Weighted average number of common shares, basic (in shares) | 112,641,416 | 108,956,408 | 112,630,395 | 107,874,640 |
Weighted average number of common shares, diluted (in shares) | 112,915,294 | 109,220,220 | 112,911,624 | 108,115,441 |
Comprehensive Income: | ||||
Net income | $ 13,214 | $ 29,531 | $ 30,490 | $ 86,575 |
Other comprehensive income: | ||||
Unrealized (loss) gain on interest rate derivative instruments | (9,451) | 3,643 | (14,533) | 12,459 |
Reclassification adjustment for amounts recognized in net income (interest expense) | (1,188) | (606) | (2,602) | (660) |
Comprehensive income including portion attributable to noncontrolling interest | 2,575 | 32,568 | 13,355 | 98,374 |
Comprehensive loss (income) attributable to non-controlling interests | (87) | (816) | (447) | (2,431) |
Comprehensive income attributable to the Company | 2,488 | 31,752 | 12,908 | 95,943 |
Rooms | ||||
Revenues: | ||||
Revenues | 184,027 | 175,823 | 355,168 | 338,405 |
Expenses: | ||||
Expenses | 41,665 | 38,132 | 82,320 | 77,176 |
Food and Beverage | ||||
Revenues: | ||||
Revenues | 99,397 | 86,419 | 202,860 | 172,835 |
Expenses: | ||||
Expenses | 63,381 | 53,528 | 126,795 | 106,503 |
Other | ||||
Revenues: | ||||
Revenues | 20,861 | 14,815 | 39,944 | 30,316 |
Management and Franchise | ||||
Expenses: | ||||
Expenses | $ 12,202 | $ 12,447 | $ 24,511 | $ 24,007 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional paid in capital | Accumulated other comprehensive income | Distributions in excess of retained earnings | Total Non-controlling Interests | Operating Partnership | Consolidated Real Estate Entities |
Beginning balance of stockholders' equity, including portion attributable to noncontrolling interest at Dec. 31, 2017 | $ 1,645,086 | $ 1,068 | $ 1,924,124 | $ 10,677 | $ (320,964) | $ 30,181 | $ 17,781 | $ 12,400 |
Beginning balance, shares outstanding (in shares) at Dec. 31, 2017 | 106,735,336 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 86,575 | 84,451 | 2,124 | 2,283 | (159) | |||
Proceeds from sale of common stock, net | $ 119,957 | $ 51 | 119,906 | |||||
Proceeds from sale of common stock, net (in shares) | 5,090,656 | 5,090,656 | ||||||
Dividends, common shares / units | $ (60,834) | (60,317) | (517) | (517) | ||||
Share-based compensation | 5,095 | $ 2 | 1,122 | 3,971 | 3,971 | |||
Share-based compensation (in shares) | 153,779 | |||||||
Shares redeemed to satisfy tax withholding on vested share-based compensation | (1,021) | $ (1) | (1,020) | |||||
Shares redeemed to satisfy tax withholding on vested share based compensation (in shares) | (49,826) | |||||||
Contributions from non-controlling interests | 79 | 79 | 79 | |||||
Unrealized (loss) gain on interest rate derivative instruments | 12,459 | 12,135 | 324 | 324 | ||||
Reclassification adjustment for amounts recognized in net income | (660) | (643) | (17) | (17) | ||||
Ending balance of stockholders' equity, including portion attributable to noncontrolling interest at Jun. 30, 2018 | 1,806,736 | $ 1,120 | 2,044,132 | 22,169 | (296,830) | 36,145 | 23,825 | 12,320 |
Ending balance, shares outstanding (in shares) at Jun. 30, 2018 | 111,929,945 | |||||||
Beginning balance of stockholders' equity, including portion attributable to noncontrolling interest at Mar. 31, 2018 | 1,682,437 | $ 1,069 | 1,923,768 | 19,203 | (294,766) | 33,163 | 20,863 | 12,300 |
Beginning balance, shares outstanding (in shares) at Mar. 31, 2018 | 106,839,289 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 29,531 | 28,794 | 737 | 717 | 20 | |||
Proceeds from sale of common stock, net | $ 119,957 | $ 51 | 119,906 | |||||
Proceeds from sale of common stock, net (in shares) | 5,090,656 | 5,090,656 | ||||||
Dividends, common shares / units | $ (31,120) | (30,858) | (262) | (262) | ||||
Share-based compensation | 2,894 | 458 | 2,436 | 2,436 | ||||
Unrealized (loss) gain on interest rate derivative instruments | 3,643 | 3,557 | 86 | 86 | ||||
Reclassification adjustment for amounts recognized in net income | (606) | (591) | (15) | (15) | ||||
Ending balance of stockholders' equity, including portion attributable to noncontrolling interest at Jun. 30, 2018 | 1,806,736 | $ 1,120 | 2,044,132 | 22,169 | (296,830) | 36,145 | 23,825 | 12,320 |
Ending balance, shares outstanding (in shares) at Jun. 30, 2018 | 111,929,945 | |||||||
Beginning balance of stockholders' equity, including portion attributable to noncontrolling interest at Dec. 31, 2018 | 1,852,705 | $ 1,126 | 2,059,699 | 12,742 | (249,654) | 28,792 | 28,792 | 0 |
Beginning balance, shares outstanding (in shares) at Dec. 31, 2018 | 112,583,990 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ 30,490 | 29,479 | 1,011 | 1,011 | ||||
Proceeds from sale of common stock, net (in shares) | 0 | |||||||
Dividends, common shares / units | $ (63,054) | (62,083) | (971) | (971) | ||||
Share-based compensation | 5,060 | $ 1 | 946 | 4,113 | 4,113 | |||
Share-based compensation (in shares) | 81,109 | |||||||
Shares redeemed to satisfy tax withholding on vested share-based compensation | (455) | (455) | ||||||
Shares redeemed to satisfy tax withholding on vested share based compensation (in shares) | (23,531) | |||||||
Unrealized (loss) gain on interest rate derivative instruments | (14,533) | (14,055) | (478) | (478) | ||||
Reclassification adjustment for amounts recognized in net income | (2,602) | (2,516) | (86) | (86) | ||||
Ending balance of stockholders' equity, including portion attributable to noncontrolling interest at Jun. 30, 2019 | 1,807,611 | $ 1,127 | 2,060,190 | (3,829) | (282,258) | 32,381 | 32,381 | 0 |
Ending balance, shares outstanding (in shares) at Jun. 30, 2019 | 112,641,568 | |||||||
Beginning balance of stockholders' equity, including portion attributable to noncontrolling interest at Mar. 31, 2019 | 1,833,557 | $ 1,127 | 2,059,694 | 6,460 | (263,978) | 30,254 | 30,254 | 0 |
Beginning balance, shares outstanding (in shares) at Mar. 31, 2019 | 112,639,858 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ 13,214 | 12,777 | 437 | 437 | ||||
Proceeds from sale of common stock, net (in shares) | 0 | |||||||
Dividends, common shares / units | $ (31,546) | (31,057) | (489) | (489) | ||||
Share-based compensation | 3,041 | 512 | 2,529 | 2,529 | ||||
Share-based compensation (in shares) | 2,431 | |||||||
Shares redeemed to satisfy tax withholding on vested share-based compensation | (16) | (16) | ||||||
Shares redeemed to satisfy tax withholding on vested share based compensation (in shares) | (721) | |||||||
Unrealized (loss) gain on interest rate derivative instruments | (9,451) | (9,140) | (311) | (311) | ||||
Reclassification adjustment for amounts recognized in net income | (1,188) | (1,149) | (39) | (39) | ||||
Ending balance of stockholders' equity, including portion attributable to noncontrolling interest at Jun. 30, 2019 | $ 1,807,611 | $ 1,127 | $ 2,060,190 | $ (3,829) | $ (282,258) | $ 32,381 | $ 32,381 | $ 0 |
Ending balance, shares outstanding (in shares) at Jun. 30, 2019 | 112,641,568 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends, common shares / units (in dollars per share) | $ 0.275 | $ 0.275 | $ 0.275 | $ 0.55 | $ 0.55 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 30,490 | $ 86,575 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 78,253 | 75,735 |
Amortization of above and below market leases and other lease intangibles | 1,533 | 1,782 |
Amortization of debt premiums, discounts, and financing costs | 1,227 | 1,367 |
Loss on extinguishment of debt | 214 | 465 |
Gain on sale of investment properties | 0 | (42,294) |
Impairment and other losses | 14,771 | 0 |
Share-based compensation expense | 4,796 | 4,827 |
Changes in assets and liabilities: | ||
Accounts and rents receivable | (14,268) | (8,440) |
Other assets | (4,787) | 1,531 |
Accounts payable and accrued expenses | 12,941 | 6,848 |
Other liabilities | 7,690 | 2,005 |
Net cash provided by operating activities | 132,860 | 130,401 |
Cash flows from investing activities: | ||
Capital expenditures and tenant improvements | (36,562) | (55,858) |
Proceeds from sale of investment properties | 0 | 196,920 |
Deposits for acquisition of hotel properties | 0 | (5,000) |
Net cash (used in) provided by investing activities | (36,562) | 136,062 |
Cash flows from financing activities: | ||
Proceeds from mortgage debt and notes payable | 0 | 65,000 |
Payoffs of mortgage debt | (90,000) | (228,344) |
Principal payments of mortgage debt | (1,701) | (1,853) |
Proceeds from unsecured term loan | 85,000 | 0 |
Payment of loan fees and deposits | 0 | (3,628) |
Payments on senior unsecured revolving line of credit | 0 | (40,000) |
Contributions from non-controlling interests | 0 | 79 |
Proceeds from issuance of common stock, net of offering costs | 0 | 120,120 |
Repurchase of common shares | 0 | 0 |
Shares redeemed to satisfy tax withholding on vested share based compensation | (596) | (1,021) |
Dividends | (63,096) | (59,411) |
Net cash used in financing activities | (70,393) | (149,058) |
Net increase in cash and cash equivalents and restricted cash | 25,905 | 117,405 |
Cash and cash equivalents and restricted cash, at beginning of period | 161,608 | 130,404 |
Cash and cash equivalents and restricted cash, at end of period | $ 187,513 | $ 247,809 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Supplemental) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents | $ 110,366 | $ 184,809 |
Restricted cash | 77,147 | 63,000 |
Total cash and cash equivalents and restricted cash shown in the statements of cash flows | 187,513 | 247,809 |
Cash paid for taxes | 1,875 | 5,311 |
Cash paid for interest | 23,075 | 27,089 |
Supplemental schedule of non-cash investing activities: | ||
Accrued capital expenditures | 1,106 | $ 2,762 |
Adjustment to record right of use asset and lease liability, net | $ 28,072 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Xenia Hotels & Resorts, Inc. (the "Company" or "Xenia") is a Maryland corporation that invests primarily in uniquely positioned luxury and upper upscale hotels and resorts in the Top 25 lodging markets as well as key leisure destinations in the United States ("U.S."). Substantially all of the Company's assets are held by, and all the operations are conducted through, XHR LP (the "Operating Partnership"). XHR GP, Inc. is the sole general partner of XHR LP and is wholly owned by the Company. As of June 30, 2019 , the Company collectively owned 96.7% of the common limited partnership units issued by the Operating Partnership ("Operating Partnership Units"). The remaining 3.3% of the Operating Partnership Units are owned by the other limited partners comprised of certain of our current executive officers and members of our Board of Directors and includes vested and unvested long-term incentive plan ("LTIP") partnership units. LTIP partnership units may or may not vest based on the passage of time and meeting certain market-based performance objectives. Xenia operates as a real estate investment trust ("REIT"). To qualify as a REIT the Company cannot operate or manage its hotels. Therefore, the Operating Partnership and its subsidiaries lease the hotel properties to XHR Holding, Inc. and its subsidiaries (collectively with its subsidiaries, "XHR Holding"), the Company's taxable REIT subsidiary ("TRS"), which engages third-party eligible independent contractors to manage the hotels. As of June 30, 2019 , the Company owned 40 lodging properties. As of June 30, 2018 , the Company owned 38 lodging properties, 36 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The unaudited interim condensed consolidated financial statements and related notes have been prepared on an accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP" or "GAAP") and in conformity with the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. The unaudited financial statements include normal recurring adjustments, which management considers necessary for the fair presentation of the condensed consolidated balance sheets, condensed consolidated statements of operations and comprehensive income , condensed consolidated statements of changes in equity and condensed consolidated statements of cash flows for the periods presented. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2018 , included in the Company's Annual Report on Form 10-K filed with the SEC on February 26, 2019. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of actual operating results for the entire year. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and XHR Holding. The Company's subsidiaries generally consist of limited liability companies, limited partnerships and the TRS. The effects of all inter-company transactions have been eliminated. Reclassifications Certain prior year amounts in these financial statements have been reclassified to conform to the presentation as of and for the three and six months ended June 30, 2019 . Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management's best judgment, after considering past, current and expected economic conditions. Actual results could differ from these estimates. Risks and Uncertainties For the three months ended June 30, 2019 and 2018 , the Company had a geographical concentration of revenues generated from hotels in the Orlando, Florida and for the six months ended June 30, 2019 and 2018, the Company had a geographical concentration of revenues generated from hotels in the Orlando, Florida and Phoenix, Arizona markets that exceeded 10% of total revenues for each of the respective periods then ended. To the extent that there are adverse changes in these markets, or the industry sectors that operate in these markets, our business and operating results could be negatively impacted. The state of the overall economy can significantly impact hotel operational performance and thus, impact the Company's financial condition. Should any of our hotels experience a significant decline in operational performance, it may affect the Company's results of operations, ability to make distributions to our stockholders, service debt, or meet other financial obligations. Consolidation The Company evaluates its investments in partially owned entities to determine whether any such entities may be a variable interest entity ("VIE"). If the entity is a VIE, the determination of whether the Company is the primary beneficiary must be made. The primary beneficiary determination is based on a qualitative assessment as to whether the entity has (i) power to direct significant activities of the VIE and (ii) an obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. The Company will consolidate a VIE if it is deemed to be the primary beneficiary. The equity method of accounting is applied to entities in which the Company is not the primary beneficiary, or the entity is not a VIE and over which the Company does not have effective control, but can exercise influence over the entity with respect to its operations and major decisions. The Operating Partnership is a VIE. The Company's significant asset is its investment in the Operating Partnership, as described in Note 1, and consequently, substantially all of the Company's assets and liabilities represent those assets and liabilities of the Operating Partnership. Cash and Cash Equivalents The Company considers all demand deposits, money market accounts and investments in certificates of deposit and repurchase agreements purchased with a maturity of three months or less, at the date of purchase, to be cash equivalents. The Company maintains its cash and cash equivalents at financial institutions. The combined account balances at one or more institutions generally exceed the Federal Depository Insurance Corporation ("FDIC") insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes that the risk is not significant as the Company does not anticipate the financial institutions’ non-performance. Restricted Cash and Escrows Restricted cash primarily relates to lodging furniture, fixtures and equipment reserves as required per the terms of our management and franchise agreements, cash held in restricted escrows for real estate taxes and insurance, capital spending reserves and, at times, disposition related hold back escrows . Impairment The Company assesses the carrying values of the respective long-lived assets, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable, such as a reduction in the expected holding period of the asset or a change in demand for lodging at the Company's hotels. If it is determined that the carrying value is not recoverable because the undiscounted cash flows do not exceed carrying value, the Company records an impairment loss to the extent that the carrying value exceeds fair value. The valuation and possible subsequent impairment of investment properties is a significant estimate that can and does change based on the Company's continuous process of analyzing each property and reviewing assumptions about uncertain inherent factors, as well as the economic condition of the property at a particular point in time. The use of projected future cash flows, both undiscounted and discounted, and estimated hold periods are based on assumptions that are consistent with the estimates of future expectations and the strategic plan the Company uses to manage its underlying business. These assumptions and estimates about future cash flows along with the capitalization and discount rates used to determine fair values are complex and subjective. Changes in economic and operating conditions and the Company’s ultimate investment intent that occur subsequent to the impairment analyses could impact these assumptions and result in future impairment charges of the real estate properties. Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-02 ("Topic 842"), Leases, which replaced Topic 840, Leases, and requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements ("ASU 2016-02"). Topic 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ("ASU 2018-01"); ASU 2018-10, Codification Improvements to Topic 842, Leases ("ASU 2018-10"); and ASU 2018-11, Targeted Improvements ("ASU 2018-11"). The new standard establishes a right-of-use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as either a finance or operating lease, with classification affecting the pattern and classification of expense recognition in the income statement. The Company adopted Topic 842, and subsequent amendments, on January 1, 2019 by applying a modified retrospective transition approach on and as of the effective date. Consequently, financial information will not be provided for dates and periods prior to January 1, 2019. The Company elected a policy to exclude l eases with terms of less than 12 months. The Company also adopted the package of practical expedients and therefore (1) did not reassess whether expired or existing leases contained a lease under the new definition of a lease in Topic 842, (2) did not reassess the lease classifications of expired or existing leases and therefore continued to treat such leases based on its historical accounting treatment as either operating or finance and (3) did not reassess whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. In addition, the Company adopted the practical expedient in ASU 2018-01 and therefore did not evaluate land easements that existed prior to January 1, 2019 to determine if they contained a lease. Following the adoption of Topic 842, land easements will be evaluated at commencement to determine if it contains an embedded lease. The Company did not adopt the practical expedient to use hindsight in determining the lease term . For leases greater than 12 months, the Company evaluates the lease at commencement to determine if the lease is an operating or finance lease. If a lease includes lease payments that are based on variable indices, such as the Customer Price Index, these increases are included in the lease liability. For leases that have extension options, which can be exercised at the Company's discretion, management uses judgment to determine if it is reasonably certain that such extension option will be elected. If the extension option is reasonably certain to occur, the Company includes the extended term's lease payments in the calculation of the respective lease liability. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The discount rate is determined at commencement of the lease, or upon modification of the lease, as the interest rate a lessee would have to pay to borrow on a fully collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Management uses a portfolio approach to develop a base discount rate for our various lease types. This approach includes consideration of the Company's incremental borrowing rate at both the corporate and property level and analysis of current market conditions for obtaining new financings. Management adjusts the base discount rate to take into consideration an individual leases' credit risk, total lease payments, and remaining lease term. Rental income is recognized on a straight-line basis over the term of the underlying lease. Percentage rent is recognized at the point in time in which the underlying thresholds are achieved and percentage rent is earned. Revenues Revenue consists of amounts derived from hotel operations, including the sale of rooms for lodging accommodations, food and beverage, and other ancillary revenue generated by hotel amenities including parking, spa, resort fees and other services. Revenues are generated from various distribution channels including but not limited to direct bookings, global distribution systems and the Internet travel sites. Room transaction prices are based on an individual hotel's location, room type and the bundle of services included in the reservation and are set by the hotel daily. Any discounts, including advanced purchase, loyalty point redemptions or promotions are recognized at the discounted rate whereas rebates and incentives are recorded as a reduction in rooms revenue when earned. Revenues from online channels are generally recognized net of commission fees, unless the end price paid by the guest is known. Rooms revenue is recognized over the length of stay that the hotel room is occupied by the guest. Cash received from a guest prior to check-in is recorded as an advanced deposit and is generally recognized as rooms revenue at the time the room reservation has become non-cancellable, upon occupancy or upon expiration of the re-booking date. Advance deposits are included in other liabilities on the consolidated balance sheet. Payment of any remaining balance is typically due from the guest upon check-out. Sales, use, occupancy, and similar taxes are collected and presented on a net basis (excluded from revenues). Food and beverage transaction prices are based on the stated price for the specific food or beverage and varies depending on type, venue and hotel location. Service charges are typically a percentage of food and beverage charges and meeting space rental. Food and beverage revenue is recognized at the point in time in which the goods and/or services are rendered to the guest. Cash received in advance of an event is recorded as either a security or advance deposit. Security and advance deposits are recognized as revenue when it becomes non-cancellable or at the time the food and beverage goods and services are rendered to the guest. Payment for the remaining balance of food and beverage goods and services is due upon delivery and completion of such goods and services. Parking and audio visual fees are recognized at the time services are provided to the guest. In parking and audio visual contracts in which we have control over the services provided, we are considered the principal in the agreement and recognize the related revenues gross of associated costs. If we do not have control over the services in the contract, we are considered the agent and record the related revenues net of associated costs. Resort and amenity fees, spa and other ancillary amenity revenues are recognized at the point in time the goods or services have been rendered to the guest at the stated price for the service or amenity. Insurance Recoveries At times, the Company may be entitled to business interruption proceeds for certain properties; however, it will not record an insurance recovery receivable for these types of losses until a final settlement has been reached with the insurance company. Any insurance proceeds received in excess of insurance deductibles will be accounted for as a gain. Hurricane Irma made landfall in September 2017, the aftermath of which continued to impact demand in the Key West market into 2018, including at the Hyatt Centric Key West Resort & Spa. During the three and six months ended June 30, 2019 and 2018 , the Company recognized $0.8 million and $2.6 million , respectively, of business interruption insurance proceeds. Of the $0.8 million recognized in 2019, $0.7 million of the proceeds related to lost income in the 2018, with the remaining $0.1 million attributable to lost income from the first quarter of 2019. Of the $2.6 million recognized in 2018, $1.4 million of the proceeds related to lost income in the third and fourth quarters of 2017, with the remaining $1.2 million attributable to lost income from the first quarter of 2018. These amounts are included in gain on business interruption insurance on the condensed consolidated statement of operations and comprehensive income for the periods then ended. Disposition of Real Estate The disposition of real estate by the Company to an unrelated third party is not a transaction in the ordinary course of business. The real estate assets to be disposed of do not represent the transfer of a business or contain a material amount of financial assets, if any. The real estate assets promised in a sales contract are typically nonfinancial assets (i.e. land or a leasehold interest in land, building, furniture, fixtures and equipment) or in substance nonfinancial assets. The Company recognizes a gain in full when the real estate is sold, provided (a) there is a valid contract and (b) transfer of control has occurred. Share-Based Compensation The Company has adopted a share-based incentive plan that provides for the grant of stock options, stock awards, restricted stock units, Operating Partnership Units and other equity-based awards. Share-based compensation is measured at the estimated fair value of the award on the date of grant, adjusted for forfeitures, and recognized as an expense on a straight-line basis over the longest vesting period for each grant for the entire award. The determination of fair value of these awards is subjective and involves significant estimates and assumptions including expected volatility of the Company's shares, expected dividend yield, expected term and assumptions of whether certain of these awards will achieve performance thresholds. Share-based compensation is included in general and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income and capitalized in building and other improvements in the condensed consolidated balance sheets for certain employees that manage property developments, renovations and capital improvements. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment ("ASU 2017-04"). The guidance is intended to simplify the accounting for goodwill impairment and removes Step 2 of the goodwill impairment test under the current guidance, which requires a hypothetical purchase price allocation. A goodwill impairment under ASU 2017-04 will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. The new standard is effective for the Company on January 1, 2020; however, early adoption is permitted. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements and related disclosures. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The following represents total revenue disaggregated by primary geographical markets (as defined by STR, Inc. ("STR")) for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended Primary Markets June 30, 2019 June 30, 2019 Orlando, FL $ 30,180 $ 66,335 Phoenix, AZ 24,943 57,788 Houston, TX 26,915 53,656 Dallas, TX 20,398 41,789 San Diego, CA 20,741 40,541 San Francisco/San Mateo, CA 18,374 37,780 San Jose-Santa Cruz, CA 15,208 30,967 Atlanta, GA 14,184 30,966 Denver, CO 14,373 26,124 Washington, DC-MD-VA 14,096 25,696 Other 104,873 186,330 Total $ 304,285 $ 597,972 Three Months Ended Six Months Ended Primary Markets June 30, 2018 June 30, 2018 Orlando, FL $ 29,909 $ 66,293 Phoenix, AZ 25,056 56,196 Houston, TX 24,280 50,068 Washington, DC-MD-VA 22,699 38,412 Dallas, TX 19,933 38,159 San Francisco/San Mateo, CA 18,462 36,339 San Jose-Santa Cruz, CA 14,216 29,582 Boston, MA 14,052 21,649 Atlanta, GA 9,889 21,562 California North 12,170 20,558 Other 86,391 162,738 Total $ 277,057 $ 541,556 |
Investment Properties
Investment Properties | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Investment Properties | Investment Properties From time to time, we evaluate acquisition opportunities based on our investment criteria and/or the opportunistic disposition of our hotels in order to take advantage of market conditions or in situations where the hotels no longer fit within our strategic objectives. We did not acquire any hotels during the six months ended June 30, 2019 or 2018 . No hotels were sold during the six months ended June 30, 2019 . The following represents the disposition details for the hotel sold during the six months ended June 30, 2018 (in thousands): Property Date Rooms Gross Sale Price Net Proceeds Gain on Sale Aston Waikiki Beach Hotel 03/2018 645 $ 200,000 $ 196,920 $ 42,430 (1) Total for the six months ended June 30, 2018 $ 200,000 $ 196,920 $ 42,430 (1) In addition to the gain on sale recognized during the six months ended June 30, 2018 , the Company also recognized adjustments related to 2017 dispositions amounting to $0.1 million . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt as of June 30, 2019 and December 31, 2018 consisted of the following (dollar amounts in thousands): Balance Outstanding as of Rate Type Rate (1) Maturity Date June 30, 2019 December 31, 2018 Mortgage Loans Marriott Charleston Town Center Fixed 3.85 % 7/1/2020 $ 15,126 $ 15,392 Marriott Dallas Downtown Fixed (2) 4.05 % 1/3/2022 51,000 51,000 Hyatt Regency Santa Clara (3) Fixed — 1/3/2022 — 90,000 Kimpton Hotel Palomar Philadelphia Fixed (2) 4.14 % 1/13/2023 58,500 59,000 Renaissance Atlanta Waverly Hotel & Convention Center (3) Fixed (2) 3.97 % 8/14/2024 100,000 100,000 Andaz Napa (4) Variable 4.30 % 9/13/2024 56,000 56,000 The Ritz-Carlton, Pentagon City Fixed (5) 4.95 % 1/31/2025 65,000 65,000 Residence Inn Boston Cambridge Fixed 4.48 % 11/1/2025 61,364 61,806 Grand Bohemian Hotel Orlando, Autograph Collection Fixed 4.53 % 3/1/2026 58,790 59,281 Marriott San Francisco Airport Waterfront Fixed 4.63 % 5/1/2027 115,000 115,000 Total Mortgage Loans 4.37 % (6) $ 580,780 $ 672,479 Unsecured Term Loan $175M Fixed (7) 2.79 % 2/15/2021 175,000 175,000 Unsecured Term Loan $125M Fixed (7) 3.28 % 10/22/2022 125,000 125,000 Unsecured Term Loan $150M (8) Variable 3.85 % 8/21/2023 150,000 65,000 Unsecured Term Loan $125M Fixed (7) 3.72 % 9/13/2024 125,000 125,000 Senior Unsecured Credit Facility Variable 3.94 % 2/28/2022 (9) — — Mortgage Loan Discounts, net (10) — — — (59 ) (191 ) Unamortized Deferred Financing Costs, net — — — (6,303 ) (7,200 ) Total Debt, net of loan discounts and unamortized deferred financing costs 3.88 % (6) $ 1,149,418 $ 1,155,088 (1) Variable index is one-month LIBOR as of June 30, 2019 . (2) The Company entered into interest rate swap agreements to fix the interest rate of the variable rate mortgage loans for a portion of or the entire term of the loan. (3) During the six months ended June 30, 2019 , the Company elected its prepayment option per the terms of the respective mortgage loan agreement and repaid the outstanding balance of $90 million , plus accrued interest. The interest rate swap was transferred to the interest payments for $90.0 million of the $100.0 million variable rate mortgage loan collateralized by the Renaissance Atlanta Waverly Hotel & Convention Center, which matures in 2024. See Note 6 for further details related to our derivative instruments. (4) In September 2018, the Company amended its mortgage loan agreement to extend the maturity date from March 2019 through September 2024 and received additional loan proceeds of $18 million . The interest rate was fixed for the original principal of $38 million through March 2019, after which the rate reverted back to variable for the entire mortgage loan balance of $56 million through maturity in 2024. (5) The Company entered into interest rate swap agreements to fix the interest rate of the variable rate mortgage loan from June 1, 2018 through January 2023. The effective interest rate on the loan was 3.69% through January 2019 after which the rate increased to 4.95% through January 2023. (6) Represents the weighted average interest rate as of June 30, 2019 . (7) LIBOR has been fixed for certain interest periods throughout the term of the loan. The spread may vary, as it is determined by the Company's leverage ratio. (8) In August 2018, the Company entered into an unsecured term loan for $150 million that matures in August 2023. The term loan includes an accordion option that allows the Company to request additional lender commitments of up to $100 million . In October 2018, the Company funded $65 million of the term loan. In February 2019, the remaining $85 million was funded. (9) The maturity of the senior unsecured credit facility can be extended through February 2023 at the Company's discretion and requires the payment of an extension fee. (10) Loan discounts recognized upon loan modifications, net of accumulated amortization. In connection with repaying mortgage loans during the three and six months ended June 30, 2019 and 2018 , the Company wrote off the related unamortized deferred financing costs of $0 and $214 thousand and $384 thousand and $465 thousand , respectively, which is included in loss on extinguishment of debt on the condensed consolidated statements of operations and comprehensive income for the periods then ended. Total debt outstanding as of June 30, 2019 and December 31, 2018 was $1,156 million and $1,162 million , respectively, and had a weighted average interest rate of 3.88% and 3.82% per annum, respectively. The remaining unamortized mortgage discounts as of June 30, 2019 and December 31, 2018 were $0.1 million and $0.2 million , respectively. The following table shows scheduled principal payments and debt maturities for the next five years and thereafter (in thousands): As of Weighted average 2019 $ 1,815 4.31% 2020 19,218 3.99% 2021 180,401 2.84% 2022 182,915 3.54% 2023 211,863 3.94% Thereafter 559,568 4.29% Total Debt $ 1,155,780 3.88% Total Loan Discounts, net (59 ) — Unamortized Deferred Financing Costs, net (6,303 ) — Debt, net of loan discounts and unamortized deferred financing costs $ 1,149,418 3.88% Of the total outstanding debt at June 30, 2019 , none of the mortgage loans were recourse to the Company. Some of the mortgage loans require compliance with certain covenants, such as debt service coverage ratios, loan-to-value tests, investment restrictions and distribution limitations. As of June 30, 2019 , the Company was in compliance with all such covenants. Senior Unsecured Credit Facility As of June 30, 2019 , there was no outstanding balance on the senior unsecured facility. During the three and six months ended June 30, 2019 , the Company incurred unused commitment fees of approximately $0.4 million and $0.8 million and no interest expense. During the three and six months ended June 30, 2018 , the Company incurred unused commitment fees of approximately $0.4 million and $0.7 million , respectively, and interest expense of $0 and $34 thousand , respectively. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company primarily uses interest rate swaps as part of its interest rate risk management strategy for variable-rate debt. As of June 30, 2019 , all interest rate swaps were designated as cash flow hedges and involve the receipt of variable-rate payments from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Unrealized gains and losses of hedging instruments are reported in other comprehensive income. Amounts reported in accumulated other comprehensive income (loss) related to currently outstanding derivatives are recognized as an adjustment to income (loss) through interest expense as interest payments are made on the Company’s variable rate debt. Derivative instruments with the right of offset that are in the liability position are included in other liabilities and derivatives instruments with the right of offset that are in the asset position are included in other assets on the condensed consolidated balance sheet. The following table summarizes the terms of the derivative financial instruments held by the Company as of June 30, 2019 and December 31, 2018 , respectively (in thousands): June 30, 2019 December 31, 2018 Hedged Debt Type Fixed Rate Index + Spread Effective Date Maturity Notional Amounts Estimated Fair Value Notional Amounts Estimated Fair Value $175M Term Loan Swap 1.30% 1-Month LIBOR + 1.50% 10/22/2015 2/15/2021 $ 50,000 $ 332 $ 50,000 $ 1,218 $175M Term Loan Swap 1.29% 1-Month LIBOR + 1.50% 10/22/2015 2/15/2021 65,000 441 65,000 1,597 $175M Term Loan Swap 1.29% 1-Month LIBOR + 1.50% 10/22/2015 2/15/2021 60,000 407 60,000 1,472 $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.45% 1/15/2016 10/22/2022 50,000 (357 ) 50,000 1,093 $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.45% 1/15/2016 10/22/2022 25,000 (180 ) 25,000 544 $125M Term Loan Swap 1.84% 1-Month LIBOR + 1.45% 1/15/2016 10/22/2022 25,000 (185 ) 25,000 537 $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.45% 1/15/2016 10/22/2022 25,000 (182 ) 25,000 537 Mortgage Debt Swap 1.54% 1-Month LIBOR + 2.60% 1/13/2016 1/13/2023 58,500 151 59,000 1,956 Mortgage Debt Swap 0.88% 1-Month LIBOR + 2.10% 9/1/2016 1/17/2019 — — 41,000 30 Mortgage Debt Swap 0.89% 1-Month LIBOR + 1.90% 9/1/2016 3/21/2019 — — 38,000 135 Mortgage Debt Swap 1.80% 1-Month LIBOR + 2.25% 3/1/2017 1/3/2022 51,000 (237 ) 51,000 938 Mortgage Debt Swap 1.80% 1-Month LIBOR + 2.00% 3/1/2017 1/3/2022 45,000 (227 ) 45,000 806 Mortgage Debt Swap 1.81% 1-Month LIBOR + 2.00% 3/1/2017 1/3/2022 45,000 (209 ) 45,000 829 $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.80% 10/13/2017 10/12/2022 40,000 (383 ) 40,000 725 $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.80% 10/13/2017 10/12/2022 40,000 (386 ) 40,000 718 $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.80% 10/13/2017 10/12/2022 25,000 (244 ) 25,000 447 $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.80% 10/13/2017 10/12/2022 20,000 (192 ) 20,000 362 Mortgage Debt Swap 2.80% 1-Month LIBOR + 2.10% 6/1/2018 2/1/2023 24,000 (960 ) 24,000 (314 ) Mortgage Debt Swap 2.89% 1-Month LIBOR + 2.10% 1/17/2019 2/1/2023 41,000 (1,769 ) — (673 ) $ 689,500 $ (4,180 ) $ 728,000 $ 12,957 The table below details the location in the condensed consolidated financial statements of the gain (loss) recognized on derivative financial instruments designated as cash flow hedges for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Effect of derivative instruments: Location in Statement of Operations and Comprehensive Income: (Loss) gain recognized in other comprehensive income Unrealized (loss) gain on interest rate derivative instruments $ (9,451 ) $ 3,643 $ (14,533 ) $ 12,459 (Loss) gain reclassified from accumulated other comprehensive income to net income Reclassification adjustment for amounts recognized in net income $ (1,188 ) $ (606 ) $ (2,602 ) $ (660 ) Total interest expense in which effects of cash flow hedges are recorded Interest expense $ 12,380 $ 13,053 $ 24,967 $ 26,769 The Company expects approximately $0.5 million will be reclassified from accumulated other comprehensive income as a reduction to interest expense in the next 12 months. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company defines fair value based on the price that would be received upon sale of an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: • Level 1 - Quoted prices for identical assets or liabilities in active markets that the entity has the ability to access. • Level 2 - Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company has estimated the fair value of its financial and nonfinancial instruments using widely accepted valuation techniques and available market information. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of amounts that would be realized upon disposition. For assets and liabilities measured at fair value on a recurring and nonrecurring basis, quantitative disclosure of their fair values are included in the condensed consolidated balance sheets as of as of June 30, 2019 and December 31, 2018 (in thousands): Fair Value Measurement Date June 30, 2019 December 31, 2018 Location / Description Significant Unobservable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Significant Unobservable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring measurements Other assets Interest rate swap assets (1) $ 151 $ — $ 12,957 — Liabilities Interest rate swap liabilities (1) (4,331 ) — — — Nonrecurring measurements Net investment properties Marriott Chicago at Medical District/UIC — $ 10,000 — — (1) Interest rate swap fair values are netted as applicable per the terms of the respective master netting agreements. Recurring Measurements The fair value of each derivative instrument is based on a discounted cash flow analysis of the expected cash flows under each arrangement. This analysis reflects the contractual terms of the derivative instrument, including the period to maturity, and utilizes observable market-based inputs, including interest rate curves and implied volatilities, which are classified within Level 2 of the fair value hierarchy. The Company also incorporates credit value adjustments to appropriately reflect each parties’ nonperformance risk in the fair value measurement, which utilizes Level 3 inputs such as estimates of current credit spreads. However, the Company has assessed that the credit valuation adjustments are not significant to the overall valuation of the derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified within Level 2 of the fair value hierarchy. Non-Recurring Measurements Investment Properties During the three months ended June 30, 2019, the Company identified indicators of impairment for Marriott Chicago at Medical District/UIC. The impairment was primarily the result of a projected future decline in operating profits attributable to demand trends, anticipated adverse changes in the hotel’s expense profile and the estimated hold period. In accordance with the Company's impairment policy, management estimated the future undiscounted cash flows over the estimated hold period, which included assumptions for projected revenues and operating expenses. Based on the results of the undiscounted cash flow analysis, management determined the hotel was impaired as the projected future cash flows were less than the carrying value of the hotel. Management determined the impairment as the difference between the carrying value and the estimated fair value. The fair value was estimated using Level 3 assumptions and consideration of various valuation techniques, including discounted cash flows over the estimated hold period and values from market participants. Management will continue to monitor and evaluate expectations for future performance and other valuation assumptions. Based on the fair value determined by management, the Company recorded an impairment charge of $14.8 million , which is included in impairment and other losses on the Company’s condensed consolidated statements of operations for the three and six months ended June 30, 2019. Financial Instruments Not Measured at Fair Value The table below represents the fair value of financial instruments presented at carrying values in the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Total Debt, net of discounts $ 1,155,721 $ 1,173,320 $ 1,162,288 $ 1,171,552 Total $ 1,155,721 $ 1,173,320 $ 1,162,288 $ 1,171,552 The Company estimated the fair value of its total debt, net of discounts, using a weighted average effective interest rate of 3.43% and 4.22% per annum as of June 30, 2019 and December 31, 2018 , respectively. The Company has determined that its debt instrument valuations are classified in Level 2 of the fair value hierarchy. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company estimated the TRS income tax expense for the three and six months ended June 30, 2019 using an estimated federal and state statutory combined rate of 32.03% and recognized income tax expense of $6.2 million and $12.3 million , respectively. The Company estimated the TRS income tax expense for the three and six months ended June 30, 2018 using an estimated federal and state statutory combined rate of 29.81% and recognized income tax expense of $5.6 million and $10.3 million , respectively. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock In March 2018, the Company entered into an "At-the-Market" ("ATM") program pursuant to an Equity Distribution Agreement ("ATM Agreement") with Wells Fargo Securities, LLC, Robert W. Baird & Co. Incorporated, Jefferies LLC, KeyBanc Capital Markets Inc., and Raymond James & Associates, Inc. In accordance with the terms of the ATM Agreement, the Company may from time to time offer, and sell shares of its common stock having an aggregate offering price of up to $200 million . No shares were sold under the ATM Agreement during the three and six months ended June 30, 2019 . During the three and six months ended June 30, 2018 , the Company received gross proceeds of $122.2 million , and paid $1.5 million in transaction fees, from the issuance of 5,090,656 shares of its common stock in accordance with the ATM Agreement. In addition, the Company amortized capitalized transaction costs of $0.7 million during the three and six months ended June 30, 2018 that were previously included in other assets. As of June 30, 2019 , the Company had $62.6 million available for sale under the ATM Agreement. In December 2015, the Company’s Board of Directors authorized a stock repurchase program pursuant to which the Company is authorized to purchase up to $100 million of the Company’s outstanding Common Stock in the open market, in privately negotiated transactions or otherwise, including pursuant to Rule 10b5-1 plans. In November 2016, the Company's Board of Directors authorized the repurchase of up to an additional $75 million of the Company's outstanding Common Stock (such repurchase authorizations collectively referred to as the "Repurchase Program"). The Repurchase Program does not have an expiration date. This Repurchase Program may be suspended or discontinued at any time and does not obligate the Company to acquire any particular amount of shares. No shares were purchased as part of the Repurchase Program during the three and six months ended June 30, 2019 and 2018. As of June 30, 2019 , the Company had approximately $96.9 million remaining under its share repurchase authorization. Distributions The Company declared the following dividends during the six months ended June 30, 2019 : Dividend per Share/Unit For the Quarter Ended Record Date Payable Date $0.275 March 31, 2019 March 29, 2019 April 12, 2019 $0.275 June 30, 2019 June 28, 2019 July 12, 2019 Non-Controlling Interest of Common Units in Operating Partnership As of June 30, 2019 , the Operating Partnership had 3,818,925 LTIP partnership units (“LTIP Units”) outstanding, representing a 3.3% partnership interest held by the limited partners . Of the 3,818,925 LTIP Units outstanding at June 30, 2019 , 1,419,959 units had vested and had yet to be redeemed. Only vested LTIP Units may be converted to common units of the Operating Partnership, which in turn can be tendered for redemption per the terms of the LTIP Unit award agreements. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per common share is calculated by dividing income or loss available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing income or loss available to common stockholders by the weighted-average number of common shares outstanding during the period, plus any shares that could potentially be outstanding during the period. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation. Unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Accordingly, distributed and undistributed earnings attributable to unvested share-based compensation (participating securities) have been excluded, as applicable, from net income or loss available to common stockholders used in the basic and diluted earnings per share calculations. Income allocated to non-controlling interest in the Operating Partnership has been excluded from the numerator and Operating Partnership Units and LTIP Units in the Operating Partnership have been omitted from the denominator for the purpose of computing diluted earnings per share since including these amounts in the numerator and denominator would have no impact. The following table reconciles net income attributable to common stockholders to basic and diluted earnings per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net income attributable to common stockholders $ 12,777 $ 28,794 $ 29,479 $ 84,451 Dividends paid on unvested share-based compensation (141 ) (152 ) (284 ) (304 ) Undistributed earnings attributable to unvested share based compensation — — — (34 ) Net income available to common stockholders $ 12,636 $ 28,642 $ 29,195 $ 84,113 Denominator: Weighted average shares outstanding - Basic 112,641,416 108,956,408 112,630,395 107,874,640 Effect of dilutive share-based compensation 273,878 263,812 281,229 240,801 Weighted average shares outstanding - Diluted 112,915,294 109,220,220 112,911,624 108,115,441 Basic and diluted earnings per share: Net income per share available to common stockholders - basic and diluted $ 0.11 $ 0.26 $ 0.26 $ 0.78 |
Share Based Compensation
Share Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Compensation | Share Based Compensation 2015 Incentive Award Plan Restricted Stock Unit Grants The Compensation Committee of the Board of Directors of the Company approved the following grants of restricted stock units to certain Company employees: Grant Date Grant Description Time-Based Grants Performance-Based Grants Weighted Average Grant Date Fair Value February 2019 2019 Restricted Stock Units 84,944 50,846 $15.75 All time-based Restricted Stock Units will vest as follows, subject to the employee’s continued service with the Company or any of its affiliates through each applicable vesting date: 33% on the first anniversary of the vesting commencement date of the award, 33% on the second anniversary of the vesting commencement date, and 34% on the third anniversary of the vesting commencement date. Of the performance-based Restricted Stock Units, twenty-five percent ( 25% ) are designated as absolute total stockholder return ("TSR") units (the "Absolute TSR Share Units"), and vest based on achievement of varying levels of the Company’s TSR over the three -year performance period. The other seventy-five percent ( 75% ) of the performance-based Restricted Stock Units are designated as relative TSR share units (the "Relative TSR Share Units") and vest based on the ranking of the Company’s TSR as compared to a defined peer group over the three -year performance period. Vesting of performance-based Restricted Stock Units is subject to the employee's continued service through the applicable vesting date. LTIP Unit Grants The Compensation Committee approved the issuance of the following awards under the 2015 Incentive Award Plan: Grant Date Grant Description Time-Based LTIP Units Performance-Based Class A LTIP Units Weighted Average Grant Date Fair Value February 2019 2019 LTIP Units 90,273 781,898 $9.24 Each award of Time-Based LTIP Units will vest as follows, subject to the executive’s continued service through each applicable vesting date: 33% on the first anniversary of the vesting commencement date of the award, 33% on the second anniversary of the vesting commencement date, and 34% on the third anniversary of the vesting commencement date. A portion of each award of Class A LTIP Units is designated as a number of “base units.” Twenty-five percent ( 25% ) of the base units are designated as absolute TSR base units, and vest based on achievement of varying levels of the Company’s TSR over the three -year performance period. The other seventy-five percent ( 75% ) of the base units are designated as relative TSR base units and vest based on the ranking of the Company’s TSR as compared to a defined peer group over the three -year performance period. In May 2019, pursuant to the Company's Director Compensation Program, as amended and restated as of February 21, 2018, the Company approved the issuance of 26,768 fully vested LTIP Units to the Company's seven non-employee directors with a weighted average grant date fair value of $22.23 per unit. LTIP Units (other than Class A LTIP Units that have not vested), whether vested or not, receive the same quarterly per-unit distributions as common units in the Operating Partnership, which equal the per-share distributions on the Common Stock of the Company. Class A LTIP Units that have not vested receive a quarterly per-unit distribution equal to 10% of the distribution paid on common units in the Operating Partnership. The following is a summary of the unvested incentive awards under the Company's 2015 Incentive Award Plan as of June 30, 2019 : 2015 Incentive Award Plan Restricted Stock Units (1) 2015 Incentive Award Plan LTIP Units (1) Total Unvested as of December 31, 2018 245,693 1,614,081 1,859,774 Granted 135,790 898,939 1,034,729 Vested (2) (81,106 ) (114,054 ) (195,160 ) Expired — — — Forfeited (7,097 ) — (7,097 ) Unvested as of June 30, 2019 293,280 2,398,966 2,692,246 Weighted average fair value of unvested shares/units $ 14.60 $ 8.67 $ 9.31 (1) Includes time-based and performance-based units. (2) During the six months ended June 30, 2019 , 23,531 shares of common stock were withheld by the Company upon the settlement of the applicable award in order to satisfy minimum federal and state tax withholding requirements with respect to Restricted Stock Units granted under the 2015 Incentive Award Plan. The fair value of the time-based Restricted Stock Units and Time-Based LTIP Units are determined based on the closing price of the Company’s Common Stock on the grant date and compensation expense is recognized on a straight-line basis over the vesting period. The grant date fair values of performance-based awards for the 2019 Restricted Stock Units and the 2019 Class A LTIP Units were determined based on a Monte Carlo simulation method with the following assumptions, and compensation expense is recognized on a straight-line basis over the performance period: Performance Award Grant Date Percentage of Total Award Grant Date Fair Value by Component (in dollars) Volatility Interest Rate Dividend Yield February 19, 2019 Absolute TSR Restricted Stock Units 25% $9.98 23.24% 2.44% - 2.55% 5.78% Relative TSR Restricted Stock Units 75% $10.36 23.24% 2.44% - 2.55% 5.78% Absolute TSR Class A LTIPs 25% $9.95 23.24% 2.44% - 2.55% 5.78% Relative TSR Class A LTIPs 75% $10.07 23.24% 2.44% - 2.55% 5.78% The absolute and relative stockholder returns are market conditions as defined by Accounting Standard Codification ("ASC") 718, Compensation - Stock Compensation. Market conditions include provisions wherein the vesting condition is met through the achievement of a specific value of the Company’s Common Stock, which is total stockholder return in this case. Market conditions differ from other performance awards under ASC 718 in that the probability of attaining the condition (and thus vesting of the units or shares) is reflected in the initial grant date fair value of the award. Accordingly, it is not appropriate to reconsider the probability of vesting in the award subsequent to the initial measurement of the award, nor is it appropriate to reverse any of the expense if the condition is not met. Therefore, once the expense for these awards is measured, the expense must be recognized over the service period regardless of whether the target is met, or at what level the target is met. Expense may only be reversed if the holder of the instrument forfeits the award as a result of the holder's termination of service of the Company prior to vesting. For the three and six months ended June 30, 2019 the Company recognized approximately $2.3 million and $4.2 million , respectively, of share-based compensation expense (net of forfeitures) related to Restricted Stock Units and LTIP Units provided to certain of its executive officers and other members of management. In addition, during the three and six months ended June 30, 2019 we recognized $595 thousand of share-based compensation expense, related to LTIP units that were provided to the Company's Board of Directors and we capitalized approximately $139 thousand and $264 thousand , respectively, related to Restricted Stock Units provided to certain members of management who oversee development and capital projects on behalf of the Company. As of June 30, 2019 , there was $15.2 million of total unrecognized compensation costs related to unvested Restricted Stock Units, Class A LTIP Units and Time-Based LTIP Units issued under the 2015 Incentive Award Plan, which are expected to be recognized over a remaining weighted-average period of 2.0 additional years. For the three and six months ended June 30, 2018 , the Company recognized approximately $2.2 million and $4.2 million , respectively, of share-based compensation expense (net of forfeitures) related to Share Units, Restricted Stock Units, and LTIP Units provided to certain of its executive officers and other members of management. In addition, during the three and six months ended June 30, 2018 we recognized $595 thousand of share-based compensation expense, related to LTIP units that were provided to the Company's Board of Directors and we capitalized approximately $138 thousand and $268 thousand , respectively, related to Restricted Stock Units provided to certain members of management who oversee development and capital projects on behalf of the Company. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual obligations As of December 31, 2018 , future minimum lease payments for the remaining term, prior to the adoption of Topic 842, were as follows (in thousands): Ground Leases Parking Corporate Office 2019 $ 1,576 $ 320 $ 412 2020 1,576 281 423 2021 1,576 226 435 2022 1,576 228 447 2023 1,576 230 459 Thereafter 31,618 14,150 2,358 Total $ 39,498 $ 15,435 $ 4,534 The Company is a lessee to long-term ground, parking, and its corporate office leases, which are accounted for as operating leases. Some ground leases require variable lease payments, which includes percentage rent based on revenues of the respective underlying hotel. Percentage rent is not included in the determination of the lease liability. On the adoption date of Topic 842, a total of $20.3 million of net intangibles for existing above and below market ground leases was derecognized and subsequently recorded as an adjustment to the beginning ROU asset. In addition, the balance of straight-line rent accruals were reclassified to the beginning ROU asset. The ROU asset is included in other assets and the lease liability is included in other liabilities on the accompanying condensed consolidated balance sheet as of June 30, 2019 . The following is a summary of the Company's leases as of and for the six months ended June 30, 2019 (dollar amounts in thousands): June 30, 2019 Weighted average remaining lease term, including reasonably certain extension options (1) 30 years Weighted average discount rate 5.71% ROU asset (2) $ 46,760 Lease liability (3) $ 27,675 Operating lease rent expense $ 1,339 Variable lease costs 1,196 Total rent and variable lease costs $ 2,535 (1) The weighted average remaining lease term including all available extension options is approximately 62 years . (2) The ROU asset is included in other assets on the accompanying condensed consolidated balance sheet as of June 30, 2019 . (3) The lease liability is included in other liabilities on the accompanying condensed consolidated balance sheet as of June 30, 2019 . The following table shows the remaining lease payments, which includes reasonably certain extension options, for the next five years and thereafter reconciled to the lease liability as of June 30, 2019 (in thousands): Year Ending December 31, 2019 2019 (excluding the six months ended June 30, 2019) $ 1,197 2020 2,403 2021 2,417 2022 2,431 2023 2,445 Thereafter 52,323 Total undiscounted lease payments $ 63,216 Less imputed interest (35,541 ) Lease liability (1) $ 27,675 (1) The lease liability is included in other liabilities on the accompanying condensed consolidated balance sheet as of June 30, 2019 . Reserve Requirements Certain franchise and management agreements require the Company to reserve funds relating to replacements and renewals of the hotels' furniture, fixtures and equipment. As of June 30, 2019 and December 31, 2018 , the Company had a balance of $67.8 million and $60.6 million , respectively, in reserves for such future improvements. This amount is included in restricted cash and escrows on the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 , respectively. Legal The Company is subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. While the resolution of these matters cannot be predicted with certainty, management believes, based on currently available information, that the final outcome of such matters will not have a material adverse effect on the financial condition of the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The unaudited interim condensed consolidated financial statements and related notes have been prepared on an accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP" or "GAAP") and in conformity with the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. The unaudited financial statements include normal recurring adjustments, which management considers necessary for the fair presentation of the condensed consolidated balance sheets, condensed consolidated statements of operations and comprehensive income , condensed consolidated statements of changes in equity and condensed consolidated statements of cash flows for the periods presented. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2018 , included in the Company's Annual Report on Form 10-K filed with the SEC on February 26, 2019. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of actual operating results for the entire year. |
Basis of Presentation | Basis of Presentation |
Reclassifications | Reclassifications Certain prior year amounts in these financial statements have been reclassified to conform to the presentation as of and for the three and six months ended June 30, 2019 . |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management's best judgment, after considering past, current and expected economic conditions. Actual results could differ from these estimates. |
Risks and Uncertainties | Risks and Uncertainties For the three months ended June 30, 2019 and 2018 , the Company had a geographical concentration of revenues generated from hotels in the Orlando, Florida and for the six months ended June 30, 2019 and 2018, the Company had a geographical concentration of revenues generated from hotels in the Orlando, Florida and Phoenix, Arizona markets that exceeded 10% of total revenues for each of the respective periods then ended. |
Consolidation | Consolidation The Company evaluates its investments in partially owned entities to determine whether any such entities may be a variable interest entity ("VIE"). If the entity is a VIE, the determination of whether the Company is the primary beneficiary must be made. The primary beneficiary determination is based on a qualitative assessment as to whether the entity has (i) power to direct significant activities of the VIE and (ii) an obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. The Company will consolidate a VIE if it is deemed to be the primary beneficiary. The equity method of accounting is applied to entities in which the Company is not the primary beneficiary, or the entity is not a VIE and over which the Company does not have effective control, but can exercise influence over the entity with respect to its operations and major decisions. The Operating Partnership is a VIE. The Company's significant asset is its investment in the Operating Partnership, as described in Note 1, and consequently, substantially all of the Company's assets and liabilities represent those assets and liabilities of the Operating Partnership. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all demand deposits, money market accounts and investments in certificates of deposit and repurchase agreements purchased with a maturity of three months or less, at the date of purchase, to be cash equivalents. The Company maintains its cash and cash equivalents at financial institutions. The combined account balances at one or more institutions generally exceed the Federal Depository Insurance Corporation ("FDIC") insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes that the risk is not significant as the Company does not anticipate the financial institutions’ non-performance. |
Restricted Cash and Escrows | Restricted Cash and Escrows Restricted cash primarily relates to lodging furniture, fixtures and equipment reserves as required per the terms of our management and franchise agreements, cash held in restricted escrows for real estate taxes and insurance, capital spending reserves and, at times, disposition related hold back escrows . |
Leases | Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-02 ("Topic 842"), Leases, which replaced Topic 840, Leases, and requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements ("ASU 2016-02"). Topic 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ("ASU 2018-01"); ASU 2018-10, Codification Improvements to Topic 842, Leases ("ASU 2018-10"); and ASU 2018-11, Targeted Improvements ("ASU 2018-11"). The new standard establishes a right-of-use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as either a finance or operating lease, with classification affecting the pattern and classification of expense recognition in the income statement. The Company adopted Topic 842, and subsequent amendments, on January 1, 2019 by applying a modified retrospective transition approach on and as of the effective date. Consequently, financial information will not be provided for dates and periods prior to January 1, 2019. The Company elected a policy to exclude l eases with terms of less than 12 months. The Company also adopted the package of practical expedients and therefore (1) did not reassess whether expired or existing leases contained a lease under the new definition of a lease in Topic 842, (2) did not reassess the lease classifications of expired or existing leases and therefore continued to treat such leases based on its historical accounting treatment as either operating or finance and (3) did not reassess whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. In addition, the Company adopted the practical expedient in ASU 2018-01 and therefore did not evaluate land easements that existed prior to January 1, 2019 to determine if they contained a lease. Following the adoption of Topic 842, land easements will be evaluated at commencement to determine if it contains an embedded lease. The Company did not adopt the practical expedient to use hindsight in determining the lease term . For leases greater than 12 months, the Company evaluates the lease at commencement to determine if the lease is an operating or finance lease. If a lease includes lease payments that are based on variable indices, such as the Customer Price Index, these increases are included in the lease liability. For leases that have extension options, which can be exercised at the Company's discretion, management uses judgment to determine if it is reasonably certain that such extension option will be elected. If the extension option is reasonably certain to occur, the Company includes the extended term's lease payments in the calculation of the respective lease liability. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The discount rate is determined at commencement of the lease, or upon modification of the lease, as the interest rate a lessee would have to pay to borrow on a fully collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Management uses a portfolio approach to develop a base discount rate for our various lease types. This approach includes consideration of the Company's incremental borrowing rate at both the corporate and property level and analysis of current market conditions for obtaining new financings. Management adjusts the base discount rate to take into consideration an individual leases' credit risk, total lease payments, and remaining lease term. Rental income is recognized on a straight-line basis over the term of the underlying lease. Percentage rent is recognized at the point in time in which the underlying thresholds are achieved and percentage rent is earned. |
Revenues | Revenues Revenue consists of amounts derived from hotel operations, including the sale of rooms for lodging accommodations, food and beverage, and other ancillary revenue generated by hotel amenities including parking, spa, resort fees and other services. Revenues are generated from various distribution channels including but not limited to direct bookings, global distribution systems and the Internet travel sites. Room transaction prices are based on an individual hotel's location, room type and the bundle of services included in the reservation and are set by the hotel daily. Any discounts, including advanced purchase, loyalty point redemptions or promotions are recognized at the discounted rate whereas rebates and incentives are recorded as a reduction in rooms revenue when earned. Revenues from online channels are generally recognized net of commission fees, unless the end price paid by the guest is known. Rooms revenue is recognized over the length of stay that the hotel room is occupied by the guest. Cash received from a guest prior to check-in is recorded as an advanced deposit and is generally recognized as rooms revenue at the time the room reservation has become non-cancellable, upon occupancy or upon expiration of the re-booking date. Advance deposits are included in other liabilities on the consolidated balance sheet. Payment of any remaining balance is typically due from the guest upon check-out. Sales, use, occupancy, and similar taxes are collected and presented on a net basis (excluded from revenues). Food and beverage transaction prices are based on the stated price for the specific food or beverage and varies depending on type, venue and hotel location. Service charges are typically a percentage of food and beverage charges and meeting space rental. Food and beverage revenue is recognized at the point in time in which the goods and/or services are rendered to the guest. Cash received in advance of an event is recorded as either a security or advance deposit. Security and advance deposits are recognized as revenue when it becomes non-cancellable or at the time the food and beverage goods and services are rendered to the guest. Payment for the remaining balance of food and beverage goods and services is due upon delivery and completion of such goods and services. Parking and audio visual fees are recognized at the time services are provided to the guest. In parking and audio visual contracts in which we have control over the services provided, we are considered the principal in the agreement and recognize the related revenues gross of associated costs. If we do not have control over the services in the contract, we are considered the agent and record the related revenues net of associated costs. Resort and amenity fees, spa and other ancillary amenity revenues are recognized at the point in time the goods or services have been rendered to the guest at the stated price for the service or amenity. |
Insurance Recoveries | Insurance Recoveries |
Disposition of Real Estate | Disposition of Real Estate The disposition of real estate by the Company to an unrelated third party is not a transaction in the ordinary course of business. The real estate assets to be disposed of do not represent the transfer of a business or contain a material amount of financial assets, if any. The real estate assets promised in a sales contract are typically nonfinancial assets (i.e. land or a leasehold interest in land, building, furniture, fixtures and equipment) or in substance nonfinancial assets. The Company recognizes a gain in full when the real estate is sold, provided (a) there is a valid contract and (b) transfer of control has occurred. |
Share-Based Compensation | Share-Based Compensation The Company has adopted a share-based incentive plan that provides for the grant of stock options, stock awards, restricted stock units, Operating Partnership Units and other equity-based awards. Share-based compensation is measured at the estimated fair value of the award on the date of grant, adjusted for forfeitures, and recognized as an expense on a straight-line basis over the longest vesting period for each grant for the entire award. The determination of fair value of these awards is subjective and involves significant estimates and assumptions including expected volatility of the Company's shares, expected dividend yield, expected term and assumptions of whether certain of these awards will achieve performance thresholds. Share-based compensation is included in general and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income and capitalized in building and other improvements in the condensed consolidated balance sheets for certain employees that manage property developments, renovations and capital improvements. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment ("ASU 2017-04"). The guidance is intended to simplify the accounting for goodwill impairment and removes Step 2 of the goodwill impairment test under the current guidance, which requires a hypothetical purchase price allocation. A goodwill impairment under ASU 2017-04 will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. The new standard is effective for the Company on January 1, 2020; however, early adoption is permitted. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements and related disclosures. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Primary Geographical Markets | The following represents total revenue disaggregated by primary geographical markets (as defined by STR, Inc. ("STR")) for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended Primary Markets June 30, 2019 June 30, 2019 Orlando, FL $ 30,180 $ 66,335 Phoenix, AZ 24,943 57,788 Houston, TX 26,915 53,656 Dallas, TX 20,398 41,789 San Diego, CA 20,741 40,541 San Francisco/San Mateo, CA 18,374 37,780 San Jose-Santa Cruz, CA 15,208 30,967 Atlanta, GA 14,184 30,966 Denver, CO 14,373 26,124 Washington, DC-MD-VA 14,096 25,696 Other 104,873 186,330 Total $ 304,285 $ 597,972 Three Months Ended Six Months Ended Primary Markets June 30, 2018 June 30, 2018 Orlando, FL $ 29,909 $ 66,293 Phoenix, AZ 25,056 56,196 Houston, TX 24,280 50,068 Washington, DC-MD-VA 22,699 38,412 Dallas, TX 19,933 38,159 San Francisco/San Mateo, CA 18,462 36,339 San Jose-Santa Cruz, CA 14,216 29,582 Boston, MA 14,052 21,649 Atlanta, GA 9,889 21,562 California North 12,170 20,558 Other 86,391 162,738 Total $ 277,057 $ 541,556 |
Investment Properties (Tables)
Investment Properties (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposition Details for Properties Sold | The following represents the disposition details for the hotel sold during the six months ended June 30, 2018 (in thousands): Property Date Rooms Gross Sale Price Net Proceeds Gain on Sale Aston Waikiki Beach Hotel 03/2018 645 $ 200,000 $ 196,920 $ 42,430 (1) Total for the six months ended June 30, 2018 $ 200,000 $ 196,920 $ 42,430 (1) In addition to the gain on sale recognized during the six months ended June 30, 2018 , the Company also recognized adjustments related to 2017 dispositions amounting to $0.1 million . |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | Debt as of June 30, 2019 and December 31, 2018 consisted of the following (dollar amounts in thousands): Balance Outstanding as of Rate Type Rate (1) Maturity Date June 30, 2019 December 31, 2018 Mortgage Loans Marriott Charleston Town Center Fixed 3.85 % 7/1/2020 $ 15,126 $ 15,392 Marriott Dallas Downtown Fixed (2) 4.05 % 1/3/2022 51,000 51,000 Hyatt Regency Santa Clara (3) Fixed — 1/3/2022 — 90,000 Kimpton Hotel Palomar Philadelphia Fixed (2) 4.14 % 1/13/2023 58,500 59,000 Renaissance Atlanta Waverly Hotel & Convention Center (3) Fixed (2) 3.97 % 8/14/2024 100,000 100,000 Andaz Napa (4) Variable 4.30 % 9/13/2024 56,000 56,000 The Ritz-Carlton, Pentagon City Fixed (5) 4.95 % 1/31/2025 65,000 65,000 Residence Inn Boston Cambridge Fixed 4.48 % 11/1/2025 61,364 61,806 Grand Bohemian Hotel Orlando, Autograph Collection Fixed 4.53 % 3/1/2026 58,790 59,281 Marriott San Francisco Airport Waterfront Fixed 4.63 % 5/1/2027 115,000 115,000 Total Mortgage Loans 4.37 % (6) $ 580,780 $ 672,479 Unsecured Term Loan $175M Fixed (7) 2.79 % 2/15/2021 175,000 175,000 Unsecured Term Loan $125M Fixed (7) 3.28 % 10/22/2022 125,000 125,000 Unsecured Term Loan $150M (8) Variable 3.85 % 8/21/2023 150,000 65,000 Unsecured Term Loan $125M Fixed (7) 3.72 % 9/13/2024 125,000 125,000 Senior Unsecured Credit Facility Variable 3.94 % 2/28/2022 (9) — — Mortgage Loan Discounts, net (10) — — — (59 ) (191 ) Unamortized Deferred Financing Costs, net — — — (6,303 ) (7,200 ) Total Debt, net of loan discounts and unamortized deferred financing costs 3.88 % (6) $ 1,149,418 $ 1,155,088 (1) Variable index is one-month LIBOR as of June 30, 2019 . (2) The Company entered into interest rate swap agreements to fix the interest rate of the variable rate mortgage loans for a portion of or the entire term of the loan. (3) During the six months ended June 30, 2019 , the Company elected its prepayment option per the terms of the respective mortgage loan agreement and repaid the outstanding balance of $90 million , plus accrued interest. The interest rate swap was transferred to the interest payments for $90.0 million of the $100.0 million variable rate mortgage loan collateralized by the Renaissance Atlanta Waverly Hotel & Convention Center, which matures in 2024. See Note 6 for further details related to our derivative instruments. (4) In September 2018, the Company amended its mortgage loan agreement to extend the maturity date from March 2019 through September 2024 and received additional loan proceeds of $18 million . The interest rate was fixed for the original principal of $38 million through March 2019, after which the rate reverted back to variable for the entire mortgage loan balance of $56 million through maturity in 2024. (5) The Company entered into interest rate swap agreements to fix the interest rate of the variable rate mortgage loan from June 1, 2018 through January 2023. The effective interest rate on the loan was 3.69% through January 2019 after which the rate increased to 4.95% through January 2023. (6) Represents the weighted average interest rate as of June 30, 2019 . (7) LIBOR has been fixed for certain interest periods throughout the term of the loan. The spread may vary, as it is determined by the Company's leverage ratio. (8) In August 2018, the Company entered into an unsecured term loan for $150 million that matures in August 2023. The term loan includes an accordion option that allows the Company to request additional lender commitments of up to $100 million . In October 2018, the Company funded $65 million of the term loan. In February 2019, the remaining $85 million was funded. (9) The maturity of the senior unsecured credit facility can be extended through February 2023 at the Company's discretion and requires the payment of an extension fee. (10) Loan discounts recognized upon loan modifications, net of accumulated amortization. |
Schedule of Principal Payments and Debt Maturities | The following table shows scheduled principal payments and debt maturities for the next five years and thereafter (in thousands): As of Weighted average 2019 $ 1,815 4.31% 2020 19,218 3.99% 2021 180,401 2.84% 2022 182,915 3.54% 2023 211,863 3.94% Thereafter 559,568 4.29% Total Debt $ 1,155,780 3.88% Total Loan Discounts, net (59 ) — Unamortized Deferred Financing Costs, net (6,303 ) — Debt, net of loan discounts and unamortized deferred financing costs $ 1,149,418 3.88% |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of the Terms of the Derivative Financial Instruments Held by the Company | The following table summarizes the terms of the derivative financial instruments held by the Company as of June 30, 2019 and December 31, 2018 , respectively (in thousands): June 30, 2019 December 31, 2018 Hedged Debt Type Fixed Rate Index + Spread Effective Date Maturity Notional Amounts Estimated Fair Value Notional Amounts Estimated Fair Value $175M Term Loan Swap 1.30% 1-Month LIBOR + 1.50% 10/22/2015 2/15/2021 $ 50,000 $ 332 $ 50,000 $ 1,218 $175M Term Loan Swap 1.29% 1-Month LIBOR + 1.50% 10/22/2015 2/15/2021 65,000 441 65,000 1,597 $175M Term Loan Swap 1.29% 1-Month LIBOR + 1.50% 10/22/2015 2/15/2021 60,000 407 60,000 1,472 $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.45% 1/15/2016 10/22/2022 50,000 (357 ) 50,000 1,093 $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.45% 1/15/2016 10/22/2022 25,000 (180 ) 25,000 544 $125M Term Loan Swap 1.84% 1-Month LIBOR + 1.45% 1/15/2016 10/22/2022 25,000 (185 ) 25,000 537 $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.45% 1/15/2016 10/22/2022 25,000 (182 ) 25,000 537 Mortgage Debt Swap 1.54% 1-Month LIBOR + 2.60% 1/13/2016 1/13/2023 58,500 151 59,000 1,956 Mortgage Debt Swap 0.88% 1-Month LIBOR + 2.10% 9/1/2016 1/17/2019 — — 41,000 30 Mortgage Debt Swap 0.89% 1-Month LIBOR + 1.90% 9/1/2016 3/21/2019 — — 38,000 135 Mortgage Debt Swap 1.80% 1-Month LIBOR + 2.25% 3/1/2017 1/3/2022 51,000 (237 ) 51,000 938 Mortgage Debt Swap 1.80% 1-Month LIBOR + 2.00% 3/1/2017 1/3/2022 45,000 (227 ) 45,000 806 Mortgage Debt Swap 1.81% 1-Month LIBOR + 2.00% 3/1/2017 1/3/2022 45,000 (209 ) 45,000 829 $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.80% 10/13/2017 10/12/2022 40,000 (383 ) 40,000 725 $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.80% 10/13/2017 10/12/2022 40,000 (386 ) 40,000 718 $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.80% 10/13/2017 10/12/2022 25,000 (244 ) 25,000 447 $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.80% 10/13/2017 10/12/2022 20,000 (192 ) 20,000 362 Mortgage Debt Swap 2.80% 1-Month LIBOR + 2.10% 6/1/2018 2/1/2023 24,000 (960 ) 24,000 (314 ) Mortgage Debt Swap 2.89% 1-Month LIBOR + 2.10% 1/17/2019 2/1/2023 41,000 (1,769 ) — (673 ) $ 689,500 $ (4,180 ) $ 728,000 $ 12,957 |
Schedule of Gain (Loss) Recognized on Derivative Financial Instruments | The table below details the location in the condensed consolidated financial statements of the gain (loss) recognized on derivative financial instruments designated as cash flow hedges for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Effect of derivative instruments: Location in Statement of Operations and Comprehensive Income: (Loss) gain recognized in other comprehensive income Unrealized (loss) gain on interest rate derivative instruments $ (9,451 ) $ 3,643 $ (14,533 ) $ 12,459 (Loss) gain reclassified from accumulated other comprehensive income to net income Reclassification adjustment for amounts recognized in net income $ (1,188 ) $ (606 ) $ (2,602 ) $ (660 ) Total interest expense in which effects of cash flow hedges are recorded Interest expense $ 12,380 $ 13,053 $ 24,967 $ 26,769 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring and Nonrecurring Basis | For assets and liabilities measured at fair value on a recurring and nonrecurring basis, quantitative disclosure of their fair values are included in the condensed consolidated balance sheets as of as of June 30, 2019 and December 31, 2018 (in thousands): Fair Value Measurement Date June 30, 2019 December 31, 2018 Location / Description Significant Unobservable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Significant Unobservable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring measurements Other assets Interest rate swap assets (1) $ 151 $ — $ 12,957 — Liabilities Interest rate swap liabilities (1) (4,331 ) — — — Nonrecurring measurements Net investment properties Marriott Chicago at Medical District/UIC — $ 10,000 — — (1) Interest rate swap fair values are netted as applicable per the terms of the respective master netting agreements. |
Schedule of Fair Value of Financial Instruments | The table below represents the fair value of financial instruments presented at carrying values in the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Total Debt, net of discounts $ 1,155,721 $ 1,173,320 $ 1,162,288 $ 1,171,552 Total $ 1,155,721 $ 1,173,320 $ 1,162,288 $ 1,171,552 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Dividends Declared | The Company declared the following dividends during the six months ended June 30, 2019 : Dividend per Share/Unit For the Quarter Ended Record Date Payable Date $0.275 March 31, 2019 March 29, 2019 April 12, 2019 $0.275 June 30, 2019 June 28, 2019 July 12, 2019 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Common Stockholders to Basic and Diluted | The following table reconciles net income attributable to common stockholders to basic and diluted earnings per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net income attributable to common stockholders $ 12,777 $ 28,794 $ 29,479 $ 84,451 Dividends paid on unvested share-based compensation (141 ) (152 ) (284 ) (304 ) Undistributed earnings attributable to unvested share based compensation — — — (34 ) Net income available to common stockholders $ 12,636 $ 28,642 $ 29,195 $ 84,113 Denominator: Weighted average shares outstanding - Basic 112,641,416 108,956,408 112,630,395 107,874,640 Effect of dilutive share-based compensation 273,878 263,812 281,229 240,801 Weighted average shares outstanding - Diluted 112,915,294 109,220,220 112,911,624 108,115,441 Basic and diluted earnings per share: Net income per share available to common stockholders - basic and diluted $ 0.11 $ 0.26 $ 0.26 $ 0.78 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Units | The Compensation Committee of the Board of Directors of the Company approved the following grants of restricted stock units to certain Company employees: Grant Date Grant Description Time-Based Grants Performance-Based Grants Weighted Average Grant Date Fair Value February 2019 2019 Restricted Stock Units 84,944 50,846 $15.75 |
Schedule of Incentive Plan Awards | The Compensation Committee approved the issuance of the following awards under the 2015 Incentive Award Plan: Grant Date Grant Description Time-Based LTIP Units Performance-Based Class A LTIP Units Weighted Average Grant Date Fair Value February 2019 2019 LTIP Units 90,273 781,898 $9.24 |
Schedule of Nonvested Incentive Awards | The following is a summary of the unvested incentive awards under the Company's 2015 Incentive Award Plan as of June 30, 2019 : 2015 Incentive Award Plan Restricted Stock Units (1) 2015 Incentive Award Plan LTIP Units (1) Total Unvested as of December 31, 2018 245,693 1,614,081 1,859,774 Granted 135,790 898,939 1,034,729 Vested (2) (81,106 ) (114,054 ) (195,160 ) Expired — — — Forfeited (7,097 ) — (7,097 ) Unvested as of June 30, 2019 293,280 2,398,966 2,692,246 Weighted average fair value of unvested shares/units $ 14.60 $ 8.67 $ 9.31 (1) Includes time-based and performance-based units. (2) During the six months ended June 30, 2019 , 23,531 shares of common stock were withheld by the Company upon the settlement of the applicable award in order to satisfy minimum federal and state tax withholding requirements with respect to Restricted Stock Units granted under the 2015 Incentive Award Plan. |
Schedule of Assumptions for Performance Awards | The grant date fair values of performance-based awards for the 2019 Restricted Stock Units and the 2019 Class A LTIP Units were determined based on a Monte Carlo simulation method with the following assumptions, and compensation expense is recognized on a straight-line basis over the performance period: Performance Award Grant Date Percentage of Total Award Grant Date Fair Value by Component (in dollars) Volatility Interest Rate Dividend Yield February 19, 2019 Absolute TSR Restricted Stock Units 25% $9.98 23.24% 2.44% - 2.55% 5.78% Relative TSR Restricted Stock Units 75% $10.36 23.24% 2.44% - 2.55% 5.78% Absolute TSR Class A LTIPs 25% $9.95 23.24% 2.44% - 2.55% 5.78% Relative TSR Class A LTIPs 75% $10.07 23.24% 2.44% - 2.55% 5.78% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments Prior to Adoption of Topic 842 | As of December 31, 2018 , future minimum lease payments for the remaining term, prior to the adoption of Topic 842, were as follows (in thousands): Ground Leases Parking Corporate Office 2019 $ 1,576 $ 320 $ 412 2020 1,576 281 423 2021 1,576 226 435 2022 1,576 228 447 2023 1,576 230 459 Thereafter 31,618 14,150 2,358 Total $ 39,498 $ 15,435 $ 4,534 |
Summary of Leases | The following is a summary of the Company's leases as of and for the six months ended June 30, 2019 (dollar amounts in thousands): June 30, 2019 Weighted average remaining lease term, including reasonably certain extension options (1) 30 years Weighted average discount rate 5.71% ROU asset (2) $ 46,760 Lease liability (3) $ 27,675 Operating lease rent expense $ 1,339 Variable lease costs 1,196 Total rent and variable lease costs $ 2,535 (1) The weighted average remaining lease term including all available extension options is approximately 62 years . (2) The ROU asset is included in other assets on the accompanying condensed consolidated balance sheet as of June 30, 2019 . (3) The lease liability is included in other liabilities on the accompanying condensed consolidated balance sheet as of June 30, 2019 . |
Schedule of Remaining Lease Payments | The following table shows the remaining lease payments, which includes reasonably certain extension options, for the next five years and thereafter reconciled to the lease liability as of June 30, 2019 (in thousands): Year Ending December 31, 2019 2019 (excluding the six months ended June 30, 2019) $ 1,197 2020 2,403 2021 2,417 2022 2,431 2023 2,445 Thereafter 52,323 Total undiscounted lease payments $ 63,216 Less imputed interest (35,541 ) Lease liability (1) $ 27,675 (1) The lease liability is included in other liabilities on the accompanying condensed consolidated balance sheet as of June 30, 2019 . |
Organization - Narrative (Detai
Organization - Narrative (Details) | Jun. 30, 2019marketproperty | Jun. 30, 2018property |
Organization [Line Items] | ||
Number of top lodging markets for investing activity | market | 25 | |
Number of hotels (property) | 40 | 38 |
Wholly Owned Properties | ||
Organization [Line Items] | ||
Number of hotels (property) | 36 | |
XHR LP (Operating Partnership) | ||
Organization [Line Items] | ||
Ownership by Company (percent) | 96.70% | |
Ownership by noncontrolling owners (percent) | 3.30% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Risks and Uncertainties (Details) - Revenue - Geographic Concentration Risk - Minimum | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Orlando, FL | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (percent) | 10.00% | 10.00% | 10.00% | 10.00% |
Phoenix, AZ | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (percent) | 10.00% | 10.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Insurance Recoveries (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Business Interruption Loss [Line Items] | ||||
Additional business interruption insurance proceeds | $ 823 | $ 2,649 | $ 823 | $ 2,649 |
Hurricane | ||||
Business Interruption Loss [Line Items] | ||||
Additional business interruption insurance proceeds | $ 800 | $ 2,600 | 800 | 2,600 |
Recovery of prior year income | 700 | 1,400 | ||
Recovery of current year income | $ 100 | $ 1,200 |
Revenues - Disaggregation by Pr
Revenues - Disaggregation by Primary Geographical Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 304,285 | $ 277,057 | $ 597,972 | $ 541,556 |
Orlando, FL | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30,180 | 29,909 | 66,335 | 66,293 |
Phoenix, AZ | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,943 | 25,056 | 57,788 | 56,196 |
Houston, TX | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 26,915 | 24,280 | 53,656 | 50,068 |
Dallas, TX | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,398 | 19,933 | 41,789 | 38,159 |
San Diego, CA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,741 | 40,541 | ||
San Francisco/San Mateo, CA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,374 | 18,462 | 37,780 | 36,339 |
San Jose-Santa Cruz, CA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15,208 | 14,216 | 30,967 | 29,582 |
Boston, MA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,052 | 21,649 | ||
Atlanta, GA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,184 | 9,889 | 30,966 | 21,562 |
Denver, CO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,373 | 26,124 | ||
Washington, DC-MD-VA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,096 | 22,699 | 25,696 | 38,412 |
California North | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,170 | 20,558 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 104,873 | $ 86,391 | $ 186,330 | $ 162,738 |
Investment Properties - Details
Investment Properties - Details of Disposition (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations $ in Thousands | 1 Months Ended | 6 Months Ended |
Mar. 31, 2018USD ($)guest_room | Jun. 30, 2018USD ($) | |
Disposition of Properties | ||
Adjustment to gain related to prior period dispositions | $ 100 | |
2018 Group | ||
Disposition of Properties | ||
Gross Sale Price | 200,000 | |
Net Proceeds | 196,920 | |
Gain on Sale | $ 42,430 | |
Aston Waikiki Beach Hotel | ||
Disposition of Properties | ||
Rooms | guest_room | 645 | |
Gross Sale Price | $ 200,000 | |
Net Proceeds | 196,920 | |
Gain on Sale | $ 42,430 |
Debt - Summary of Debt Instrume
Debt - Summary of Debt Instruments (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 48 Months Ended | ||||||
Feb. 28, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 31, 2023 | Dec. 31, 2018 | Aug. 31, 2018 | |
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | $ 1,155,780 | $ 1,162,000 | |||||||
Debt, net | 1,149,418 | 1,155,088 | |||||||
Mortgage Loan Discounts, net | (59) | ||||||||
Unamortized Deferred Financing Costs, net | $ (6,303) | $ (7,200) | |||||||
Weighted average interest rate (percent) | 3.88% | 3.82% | |||||||
Payoffs of mortgage debt | $ 90,000 | $ 228,344 | |||||||
Proceeds from loan | 0 | $ 65,000 | |||||||
Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | 580,780 | $ 672,479 | |||||||
Mortgage Loan Discounts, net | $ (59) | (191) | |||||||
Weighted average interest rate (percent) | 4.37% | ||||||||
Senior Unsecured Credit Facility | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, net | $ 0 | 0 | |||||||
Weighted average interest rate (percent) | 3.94% | ||||||||
Marriott Charleston Town Center | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | $ 15,126 | 15,392 | |||||||
Weighted average interest rate (percent) | 3.85% | ||||||||
Marriott Dallas Downtown | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | $ 51,000 | 51,000 | |||||||
Weighted average interest rate (percent) | 4.05% | ||||||||
Hyatt Regency Santa Clara | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | $ 0 | 90,000 | |||||||
Weighted average interest rate (percent) | 0.00% | ||||||||
Payoffs of mortgage debt | $ 90,000 | ||||||||
Kimpton Hotel Palomar Philadelphia | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | $ 58,500 | 59,000 | |||||||
Weighted average interest rate (percent) | 4.14% | ||||||||
Renaissance Atlanta Waverly Hotel & Convention Center | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | $ 100,000 | 100,000 | |||||||
Weighted average interest rate (percent) | 3.97% | ||||||||
Component mortgage loan for reapplication of interest rate swap | $ 90,000 | ||||||||
Andaz Napa | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | $ 56,000 | 56,000 | |||||||
Weighted average interest rate (percent) | 4.30% | ||||||||
Proceeds from loan | $ 18,000 | ||||||||
Original principal | $ 38,000 | ||||||||
The Ritz-Carlton, Pentagon City | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | $ 65,000 | 65,000 | |||||||
Weighted average interest rate (percent) | 4.95% | ||||||||
Effective interest rate | 3.69% | ||||||||
The Ritz-Carlton, Pentagon City | Mortgages | Forecast | |||||||||
Debt Instrument [Line Items] | |||||||||
Effective interest rate | 4.95% | ||||||||
Residence Inn Boston Cambridge | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | $ 61,364 | 61,806 | |||||||
Weighted average interest rate (percent) | 4.48% | ||||||||
Grand Bohemian Hotel Orlando, Autograph Collection | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | $ 58,790 | 59,281 | |||||||
Weighted average interest rate (percent) | 4.53% | ||||||||
Marriott San Francisco Airport Waterfront | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Total Mortgage Loans | $ 115,000 | 115,000 | |||||||
Weighted average interest rate (percent) | 4.63% | ||||||||
Term Loan $175M Feb 2021 | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, net | $ 175,000 | 175,000 | |||||||
Weighted average interest rate (percent) | 2.79% | ||||||||
Term Loan $125M Oct 2022 | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, net | $ 125,000 | 125,000 | |||||||
Weighted average interest rate (percent) | 3.28% | ||||||||
Term Loan $150M Aug 2023 | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, net | $ 150,000 | 65,000 | |||||||
Weighted average interest rate (percent) | 3.85% | ||||||||
Original principal | $ 150,000 | ||||||||
Accordion option on term loan | $ 100,000 | ||||||||
Funding of term loan | $ 85,000 | $ 65,000 | |||||||
Term Loan $125M Sep 2024 | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, net | $ 125,000 | $ 125,000 | |||||||
Weighted average interest rate (percent) | 3.72% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 0 | $ 384,000 | $ 214,000 | $ 465,000 | |
Debt outstanding | $ 1,155,780,000 | $ 1,155,780,000 | $ 1,162,000,000 | ||
Weighted average interest rate (percent) | 3.88% | 3.88% | 3.82% | ||
Unamortized mortgage discounts | $ 59,000 | $ 59,000 | |||
Recourse debt | 0 | 0 | |||
Mortgages | |||||
Debt Instrument [Line Items] | |||||
Debt outstanding | $ 580,780,000 | $ 580,780,000 | $ 672,479,000 | ||
Weighted average interest rate (percent) | 4.37% | 4.37% | |||
Unamortized mortgage discounts | $ 59,000 | $ 59,000 | $ 191,000 | ||
Unsecured Debt | Senior Unsecured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate (percent) | 3.94% | 3.94% | |||
Credit facility outstanding balance | $ 0 | $ 0 | |||
Credit facility unused borrowing capacity fee | 400,000 | 400,000 | 800,000 | 700,000 | |
Interest expense | $ 0 | $ 0 | $ 0 | $ 34,000 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Principal payments and debt maturities | ||
2019 | $ 1,815 | |
2020 | 19,218 | |
2021 | 180,401 | |
2022 | 182,915 | |
2023 | 211,863 | |
Thereafter | 559,568 | |
Total | 1,155,780 | $ 1,162,000 |
Total Loan Discounts, net | (59) | |
Unamortized Deferred Financing Costs, net | (6,303) | (7,200) |
Debt, net of loan discounts and unamortized deferred financing costs | $ 1,149,418 | $ 1,155,088 |
Weighted average interest rate | ||
2019 | 4.31% | |
2020 | 3.99% | |
2021 | 2.84% | |
2022 | 3.54% | |
2023 | 3.94% | |
Thereafter | 4.29% | |
Weighted average interest rate (percent) | 3.88% | 3.82% |
Derivatives - Derivative Financ
Derivatives - Derivative Financial Instruments (Details) - Cash Flow Hedge - Interest Rate Swap - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional amounts | $ 689,500,000 | $ 728,000,000 |
Estimated fair value | (4,180,000) | 12,957,000 |
$175 Term Loan 1 Month LIBOR 1.50 Percent Variable Rate | ||
Derivative [Line Items] | ||
Hedged debt | $ 175,000,000 | |
Fixed rate | 1.30% | |
Notional amounts | $ 50,000,000 | 50,000,000 |
Estimated fair value | $ 332,000 | 1,218,000 |
$175 Term Loan 1 Month LIBOR 1.50 Percent Variable Rate | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.50% | |
$175 Term Loan 1 Month LIBOR 1.50 Percent Variable Rate 2 | ||
Derivative [Line Items] | ||
Hedged debt | $ 175,000,000 | |
Fixed rate | 1.29% | |
Notional amounts | $ 65,000,000 | 65,000,000 |
Estimated fair value | $ 441,000 | 1,597,000 |
$175 Term Loan 1 Month LIBOR 1.50 Percent Variable Rate 2 | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.50% | |
$175 Term Loan 1 Month LIBOR 1.50 Percent Variable Rate 3 | ||
Derivative [Line Items] | ||
Hedged debt | $ 175,000,000 | |
Fixed rate | 1.29% | |
Notional amounts | $ 60,000,000 | 60,000,000 |
Estimated fair value | $ 407,000 | 1,472,000 |
$175 Term Loan 1 Month LIBOR 1.50 Percent Variable Rate 3 | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.50% | |
$125 Term Loan 1 Month LIBOR 1.45 Percent Variable Rate | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.83% | |
Notional amounts | $ 50,000,000 | 50,000,000 |
Estimated fair value | $ (357,000) | 1,093,000 |
$125 Term Loan 1 Month LIBOR 1.45 Percent Variable Rate | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.45% | |
$125 Term Loan 1 Month LIBOR 1.45 Percent Variable Rate 2 | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.83% | |
Notional amounts | $ 25,000,000 | 25,000,000 |
Estimated fair value | $ (180,000) | 544,000 |
$125 Term Loan 1 Month LIBOR 1.45 Percent Variable Rate 2 | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.45% | |
$125 Term Loan 1 Month LIBOR 1.45 Percent Variable Rate 3 | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.84% | |
Notional amounts | $ 25,000,000 | 25,000,000 |
Estimated fair value | $ (185,000) | 537,000 |
$125 Term Loan 1 Month LIBOR 1.45 Percent Variable Rate 3 | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.45% | |
$125 Term Loan 1 Month LIBOR 1.45 Percent Variable Rate 4 | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.83% | |
Notional amounts | $ 25,000,000 | 25,000,000 |
Estimated fair value | $ (182,000) | 537,000 |
$125 Term Loan 1 Month LIBOR 1.45 Percent Variable Rate 4 | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.45% | |
Mortgage Debt 1 Month LIBOR 2.60 Percent Variable Rate | ||
Derivative [Line Items] | ||
Fixed rate | 1.54% | |
Notional amounts | $ 58,500,000 | 59,000,000 |
Estimated fair value | $ 151,000 | 1,956,000 |
Mortgage Debt 1 Month LIBOR 2.60 Percent Variable Rate | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.60% | |
Mortgage Debt 1 Month LIBOR 2.10 Percent Variable Rate | ||
Derivative [Line Items] | ||
Fixed rate | 0.88% | |
Notional amounts | $ 0 | 41,000,000 |
Estimated fair value | $ 0 | 30,000 |
Mortgage Debt 1 Month LIBOR 2.10 Percent Variable Rate | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.10% | |
Mortgage Debt 1 Month LIBOR 1.90 Percent Variable Rate | ||
Derivative [Line Items] | ||
Fixed rate | 0.89% | |
Notional amounts | $ 0 | 38,000,000 |
Estimated fair value | $ 0 | 135,000 |
Mortgage Debt 1 Month LIBOR 1.90 Percent Variable Rate | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.90% | |
Mortgage Debt 1 Month LIBOR 2.25 Percent Variable Rate | ||
Derivative [Line Items] | ||
Fixed rate | 1.80% | |
Notional amounts | $ 51,000,000 | 51,000,000 |
Estimated fair value | $ (237,000) | 938,000 |
Mortgage Debt 1 Month LIBOR 2.25 Percent Variable Rate | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Mortgage Debt 1 Month LIBOR 2.00 Percent Variable Rate | ||
Derivative [Line Items] | ||
Fixed rate | 1.80% | |
Notional amounts | $ 45,000,000 | 45,000,000 |
Estimated fair value | $ (227,000) | 806,000 |
Mortgage Debt 1 Month LIBOR 2.00 Percent Variable Rate | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.00% | |
Mortgage Debt 1 Month LIBOR 2.00 Percent Variable Rate 2 | ||
Derivative [Line Items] | ||
Fixed rate | 1.81% | |
Notional amounts | $ 45,000,000 | 45,000,000 |
Estimated fair value | $ (209,000) | 829,000 |
Mortgage Debt 1 Month LIBOR 2.00 Percent Variable Rate 2 | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.00% | |
$125 Term Loan 1 Month LIBOR 1.80 Percent Variable Rate | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.92% | |
Notional amounts | $ 40,000,000 | 40,000,000 |
Estimated fair value | $ (383,000) | 725,000 |
$125 Term Loan 1 Month LIBOR 1.80 Percent Variable Rate | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.80% | |
$125 Term Loan 1 Month LIBOR 1.80 Percent Variable Rate 2 | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.92% | |
Notional amounts | $ 40,000,000 | 40,000,000 |
Estimated fair value | $ (386,000) | 718,000 |
$125 Term Loan 1 Month LIBOR 1.80 Percent Variable Rate 2 | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.80% | |
$125 Term Loan 1 Month LIBOR 1.80 Percent Variable Rate 3 | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.92% | |
Notional amounts | $ 25,000,000 | 25,000,000 |
Estimated fair value | $ (244,000) | 447,000 |
$125 Term Loan 1 Month LIBOR 1.80 Percent Variable Rate 3 | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.80% | |
$125 Term Loan 1 Month LIBOR 1.80 Percent Variable Rate 4 | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.92% | |
Notional amounts | $ 20,000,000 | 20,000,000 |
Estimated fair value | $ (192,000) | 362,000 |
$125 Term Loan 1 Month LIBOR 1.80 Percent Variable Rate 4 | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.80% | |
Mortgage Debt 1 Month LIBOR 2.10 Percent Variable Rate 3 | ||
Derivative [Line Items] | ||
Fixed rate | 2.80% | |
Notional amounts | $ 24,000,000 | 24,000,000 |
Estimated fair value | $ (960,000) | (314,000) |
Mortgage Debt 1 Month LIBOR 2.10 Percent Variable Rate 3 | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.10% | |
Mortgage Debt 1 Month LIBOR 2.10 Percent Variable Rate 4 | ||
Derivative [Line Items] | ||
Fixed rate | 2.89% | |
Notional amounts | $ 41,000,000 | 0 |
Estimated fair value | $ (1,769,000) | $ (673,000) |
Mortgage Debt 1 Month LIBOR 2.10 Percent Variable Rate 4 | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.10% |
Derivatives - Recognized Gain (
Derivatives - Recognized Gain (Loss) on Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Unrealized (loss) gain on interest rate derivative instruments | $ (9,451) | $ 3,643 | $ (14,533) | $ 12,459 |
Reclassification adjustment for amounts recognized in net income | (1,188) | (606) | (2,602) | (660) |
Interest expense | $ 12,380 | $ 13,053 | $ 24,967 | $ 26,769 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Expected reclassification from accumulated OCI to interest expense in next twelve months | $ 0.5 |
Estimate of time for reclassification | 12 months |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Recurring | Significant Unobservable Inputs (Level 2) | Interest Rate Swap | ||
Other assets | ||
Interest rate swap assets | $ 151 | $ 12,957 |
Liabilities | ||
Interest rate swap liabilities | (4,331) | 0 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | Marriott Chicago at Medical District/UIC | ||
Net investment properties | ||
Marriott Chicago at Medical District/UIC | $ 10,000 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair and Carrying Value of Financial Instruments (Details) - Significant Unobservable Inputs (Level 2) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt, net of discounts | $ 1,155,721 | $ 1,162,288 |
Total | 1,155,721 | 1,162,288 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt, net of discounts | 1,173,320 | 1,171,552 |
Total | $ 1,173,320 | $ 1,171,552 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Impairment and other losses | $ 14,771 | $ 0 | $ 14,771 | $ 0 | |
Level 2 | Measurement Input, Discount Rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Weighted average effective interest rate (percent) | 0.0343 | 0.0343 | 0.0422 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Estimated federal and state statutory combined rate (percent) | 32.03% | 29.81% | 32.03% | 29.81% |
Income tax expense | $ 6,193 | $ 5,646 | $ 12,286 | $ 10,311 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 30, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||||||
Aggregate offering price of common stock authorized under at the market agreements | $ 200,000,000 | ||||||
Number of shares issued (in shares) | 0 | 5,090,656 | 0 | 5,090,656 | |||
Gross proceeds from sale of common stock | $ 122,200,000 | $ 122,200,000 | |||||
Payment of transaction fees | 1,500,000 | 1,500,000 | |||||
Amortization of capitalized transaction costs | $ 700,000 | $ 700,000 | |||||
Aggregate offering price of common stock currently available for sale under at the market agreements | $ 62,600,000 | $ 62,600,000 | |||||
Shares repurchased (in shares) | 0 | 0 | 0 | 0 | |||
Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ 75,000,000 | $ 100,000,000 | |||||
Remaining share repurchase authorization | $ 96,900,000 | $ 96,900,000 |
Stockholders' Equity - Distribu
Stockholders' Equity - Distributions (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | |||||
Dividends per Share/Unit (in dollars per share) | $ 0.275 | $ 0.275 | $ 0.275 | $ 0.55 | $ 0.55 |
Record Date | Jul. 12, 2019 | Apr. 12, 2019 | |||
Payable Date | Jun. 28, 2019 | Mar. 29, 2019 |
Stockholders' Equity - Non-cont
Stockholders' Equity - Non-controlling Interest of Common Units in Operating Partnership (Details) | Jun. 30, 2019shares |
Time-Based LTIP Units and Class A LTIP Units | |
Class of Stock [Line Items] | |
Number of units outstanding, vested and nonvested (in shares) | 3,818,925 |
Number of units vested (in shares) | 1,419,959 |
XHR LP (Operating Partnership) | |
Class of Stock [Line Items] | |
Ownership by noncontrolling owners (percent) | 3.30% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income attributable to common stockholders | $ 12,777 | $ 28,794 | $ 29,479 | $ 84,451 |
Dividends paid on unvested share-based compensation | (141) | (152) | (284) | (304) |
Undistributed earnings attributable to unvested share based compensation | 0 | 0 | 0 | (34) |
Net income available to common stockholders | $ 12,636 | $ 28,642 | $ 29,195 | $ 84,113 |
Denominator: | ||||
Weighted average shares outstanding - Basic (in shares) | 112,641,416 | 108,956,408 | 112,630,395 | 107,874,640 |
Effect of dilutive share-based compensation (in shares) | 273,878 | 263,812 | 281,229 | 240,801 |
Weighted average shares outstanding - Diluted (in shares) | 112,915,294 | 109,220,220 | 112,911,624 | 108,115,441 |
Basic and diluted earnings per share: | ||||
Net income per share available to common stockholders - basic and diluted (in dollars per share) | $ 0.11 | $ 0.26 | $ 0.26 | $ 0.78 |
Share Based Compensation - Rest
Share Based Compensation - Restricted Stock Unit Grants (Details) - $ / shares | Feb. 19, 2019 | Feb. 28, 2019 | Jun. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 1,034,729 | ||
Restricted Stock Units, Time-Based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 84,944 | ||
Restricted Stock Units, Time-Based | Vesting Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights (percent) | 33.00% | ||
Restricted Stock Units, Time-Based | Vesting Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights (percent) | 33.00% | ||
Restricted Stock Units, Time-Based | Vesting Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights (percent) | 34.00% | ||
Restricted Stock Units, Performance-Based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 50,846 | ||
Absolute TSR Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Component of total award (percent) | 25.00% | 25.00% | |
Award vesting period (in years) | 3 years | ||
Relative TSR Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Component of total award (percent) | 75.00% | 75.00% | |
Award vesting period (in years) | 3 years | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 15.75 |
Share Based Compensation - LTIP
Share Based Compensation - LTIP Unit Grants (Details) | Feb. 19, 2019 | May 31, 2019director$ / sharesshares | Feb. 28, 2019$ / sharesshares | Jun. 30, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 1,034,729 | |||
Time-Based LTIP Units | Vesting Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights (percent) | 33.00% | |||
Time-Based LTIP Units | Vesting Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights (percent) | 33.00% | |||
Time-Based LTIP Units | Vesting Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights (percent) | 34.00% | |||
Class A LTIP Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Quarterly distribution percentage | 10.00% | |||
Absolute TSR Class A LTIPs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Component of total award (percent) | 25.00% | 25.00% | ||
Award vesting period (in years) | 3 years | |||
Relative TSR Class A LTIPs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Component of total award (percent) | 75.00% | 75.00% | ||
Award vesting period (in years) | 3 years | |||
2019 LTIP Units | Time-Based LTIP Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 90,273 | |||
2019 LTIP Units | Class A LTIP Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 781,898 | |||
2019 LTIP Units | Time-Based LTIP Units and Class A LTIP Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 9.24 | |||
Director | 2019 LTIP Units | Fully vested LTIP Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 26,768 | |||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 22.23 | |||
Equity grants in period, number of recipients | director | 7 |
Share Based Compensation - Unve
Share Based Compensation - Unvested Incentive Awards (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Unvested Incentive Awards [Roll Forward] | |||
Unvested as of beginning of period (in shares) | 1,859,774 | ||
Granted (in shares) | 1,034,729 | ||
Vested (in shares) | (195,160) | ||
Expired (in shares) | 0 | ||
Forfeited (in shares) | (7,097) | ||
Unvested as of end of period (in shares) | 2,692,246 | 2,692,246 | |
Weighted average fair value of unvested shares/units (in dollars per share) | $ 9.31 | $ 9.31 | |
Common stock | |||
Unvested Incentive Awards [Roll Forward] | |||
Shares redeemed to satisfy tax withholding on vested share based compensation (in shares) | 721 | 23,531 | 49,826 |
2015 Incentive Award Plan | Restricted Stock Units | |||
Unvested Incentive Awards [Roll Forward] | |||
Unvested as of beginning of period (in shares) | 245,693 | ||
Granted (in shares) | 135,790 | ||
Vested (in shares) | (81,106) | ||
Expired (in shares) | 0 | ||
Forfeited (in shares) | (7,097) | ||
Unvested as of end of period (in shares) | 293,280 | 293,280 | |
Weighted average fair value of unvested shares/units (in dollars per share) | $ 14.60 | $ 14.60 | |
2015 Incentive Award Plan | Time-Based LTIP Units and Class A LTIP Units | |||
Unvested Incentive Awards [Roll Forward] | |||
Unvested as of beginning of period (in shares) | 1,614,081 | ||
Granted (in shares) | 898,939 | ||
Vested (in shares) | (114,054) | ||
Expired (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Unvested as of end of period (in shares) | 2,398,966 | 2,398,966 | |
Weighted average fair value of unvested shares/units (in dollars per share) | $ 8.67 | $ 8.67 |
Share Based Compensation - Assu
Share Based Compensation - Assumptions Used in Fair Value of Performance Awards (Details) - $ / shares | Feb. 19, 2019 | Jun. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Date Fair Value by Component (in dollars per share) | $ 9.31 | |
Absolute TSR Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 25.00% | 25.00% |
Grant Date Fair Value by Component (in dollars per share) | $ 9.98 | |
Volatility | 23.24% | |
Interest Rate, minimum | 2.44% | |
Interest Rate, maximum | 2.55% | |
Dividend Yield | 5.78% | |
Relative TSR Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 75.00% | 75.00% |
Grant Date Fair Value by Component (in dollars per share) | $ 10.36 | |
Volatility | 23.24% | |
Interest Rate, minimum | 2.44% | |
Interest Rate, maximum | 2.55% | |
Dividend Yield | 5.78% | |
Absolute TSR Class A LTIPs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 25.00% | 25.00% |
Grant Date Fair Value by Component (in dollars per share) | $ 9.95 | |
Volatility | 23.24% | |
Interest Rate, minimum | 2.44% | |
Interest Rate, maximum | 2.55% | |
Dividend Yield | 5.78% | |
Relative TSR Class A LTIPs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 75.00% | 75.00% |
Grant Date Fair Value by Component (in dollars per share) | $ 10.07 | |
Volatility | 23.24% | |
Interest Rate, minimum | 2.44% | |
Interest Rate, maximum | 2.55% | |
Dividend Yield | 5.78% |
Share Based Compensation - Shar
Share Based Compensation - Share Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation costs | $ 15,200 | $ 15,200 | ||
Unrecognized compensation costs period for recognition | 2 years | |||
Executive Officers and Management | Restricted Stock Units and LTIP Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 2,300 | $ 2,200 | $ 4,200 | $ 4,200 |
Director | Class A LTIP Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 595 | 595 | 595 | 595 |
Management | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation capitalized amount | $ 139 | $ 138 | $ 264 | $ 268 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Other Commitments [Line Items] | ||||
Restricted cash and escrows | $ 77,147 | $ 70,195 | $ 63,000 | |
ASU No. 2016-02 | ||||
Other Commitments [Line Items] | ||||
Net intangibles for existing above and below market ground leases derecognized | $ 20,300 | |||
Hotel Furniture, Fixtures, and Equipment Reserves | ||||
Other Commitments [Line Items] | ||||
Restricted cash and escrows | $ 67,800 | $ 60,600 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments at Prior to Adoption of Topic 842 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Ground Leases | |
Future Minimum Lease Payments Prior to Adoption of ASC 842 | |
2019 | $ 1,576 |
2020 | 1,576 |
2021 | 1,576 |
2022 | 1,576 |
2023 | 1,576 |
Thereafter | 31,618 |
Total | 39,498 |
Parking | |
Future Minimum Lease Payments Prior to Adoption of ASC 842 | |
2019 | 320 |
2020 | 281 |
2021 | 226 |
2022 | 228 |
2023 | 230 |
Thereafter | 14,150 |
Total | 15,435 |
Corporate Office | |
Future Minimum Lease Payments Prior to Adoption of ASC 842 | |
2019 | 412 |
2020 | 423 |
2021 | 435 |
2022 | 447 |
2023 | 459 |
Thereafter | 2,358 |
Total | $ 4,534 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Leases (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases | |
Weighted average remaining lease term, including reasonably certain extension options | 30 years |
Weighted average discount rate (percent) | 5.71% |
ROU asset | $ 46,760 |
Lease liability | 27,675 |
Operating lease rent expense | 1,339 |
Variable lease costs | 1,196 |
Total rent and variable lease costs | $ 2,535 |
Weighted average remaining lease term including available extension options | 62 years |
Commitments and Contingencies_4
Commitments and Contingencies - Remaining Lease Payments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Remaining Lease Payments | |
2019 (excluding the six months ended June 30, 2019) | $ 1,197 |
2020 | 2,403 |
2021 | 2,417 |
2022 | 2,431 |
2023 | 2,445 |
Thereafter | 52,323 |
Total undiscounted lease payments | 63,216 |
Less imputed interest | (35,541) |
Lease liability | $ 27,675 |