Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 08, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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 | 2020 | |
Document Fiscal Period Focus | Q1 | |
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 (in shares) | 113,456,926 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investment properties: | ||
Land | $ 483,052 | $ 483,052 |
Buildings and other improvements | 3,293,528 | 3,270,056 |
Total | 3,776,580 | 3,753,108 |
Less: accumulated depreciation | (863,109) | (826,738) |
Net investment properties | 2,913,471 | 2,926,370 |
Cash and cash equivalents | 396,816 | 110,841 |
Restricted cash and escrows | 79,529 | 84,105 |
Accounts and rents receivable, net of allowance for doubtful accounts | 23,458 | 36,542 |
Intangible assets, net of accumulated amortization of $1,353 and $744, respectively | 12,020 | 28,997 |
Other assets | 91,251 | 76,151 |
Total assets | 3,516,545 | 3,263,006 |
Liabilities | ||
Debt, net of loan discounts and unamortized deferred financing costs (Note 5) | 1,632,782 | 1,293,054 |
Accounts payable and accrued expenses | 79,230 | 88,197 |
Distributions payable | 31,811 | 31,802 |
Other liabilities | 92,029 | 74,795 |
Total liabilities | 1,835,852 | 1,487,848 |
Commitments and Contingencies (Note 12) | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 500,000,000 shares authorized, 113,424,190 and 112,670,757 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively | 1,135 | 1,127 |
Additional paid in capital | 2,075,039 | 2,060,924 |
Accumulated other comprehensive loss | (20,822) | (4,596) |
Accumulated distributions in excess of net earnings | (385,882) | (318,434) |
Total Company stockholders' equity | 1,669,470 | 1,739,021 |
Non-controlling interests | 11,223 | 36,137 |
Total equity | 1,680,693 | 1,775,158 |
Total liabilities and equity | $ 3,516,545 | $ 3,263,006 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 1,353 | $ 744 |
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) | 113,424,190 | 112,670,757 |
Common stock, shares outstanding (in shares) | 113,424,190 | 112,670,757 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Revenues | $ 215,353 | $ 293,687 |
Expenses: | ||
Total hotel operating expenses | 170,858 | 195,889 |
Depreciation and amortization | 37,091 | 40,000 |
Real estate taxes, personal property taxes and insurance | 13,675 | 13,059 |
Ground lease expense | 754 | 1,090 |
General and administrative expenses | 8,151 | 7,575 |
Impairment and other losses | 16,368 | 0 |
Total expenses | 246,897 | 257,613 |
Operating (loss) income | (31,544) | 36,074 |
Other income | 127 | 95 |
Interest expense | (13,024) | (12,587) |
Loss on extinguishment of debt | 0 | (213) |
Net (loss) income before income taxes | (44,441) | 23,369 |
Income tax benefit (expense) | 7,311 | (6,093) |
Net (loss) income | (37,130) | 17,276 |
Net loss (income) attributable to non-controlling interests (Note 1) | 992 | (573) |
Net (loss) income attributable to common stockholders | $ (36,138) | $ 16,703 |
Basic and diluted earnings per share | ||
Net income per share available to common stockholders - basic and diluted (in dollars per share) | $ (0.32) | $ 0.15 |
Weighted average number of common shares, basic (in shares) | 112,984,868 | 112,619,144 |
Weighted average number of common shares, diluted (in shares) | 112,984,868 | 112,907,539 |
Comprehensive (Loss) Income: | ||
Net (loss) income | $ (37,130) | $ 17,276 |
Other comprehensive (loss) income: | ||
Unrealized loss on interest rate derivative instruments | (17,120) | (5,084) |
Reclassification adjustment for amounts recognized in net (loss) income (interest expense) | 409 | (1,413) |
Comprehensive income including portion attributable to noncontrolling interest | (53,841) | 10,779 |
Comprehensive loss (income) attributable to non-controlling interests (Note 1) | 1,477 | (358) |
Comprehensive (loss) income attributable to the Company | (52,364) | 10,421 |
Rooms | ||
Revenues: | ||
Revenues | 124,515 | 171,141 |
Expenses: | ||
Expenses | 35,076 | 40,656 |
Food and Beverage | ||
Revenues: | ||
Revenues | 73,729 | 103,463 |
Expenses: | ||
Expenses | 52,972 | 63,414 |
Other | ||
Revenues: | ||
Revenues | 17,109 | 19,083 |
Hotel, Other Direct | ||
Expenses: | ||
Other direct expenses | 5,392 | 7,117 |
Hotel, Other Indirect | ||
Expenses: | ||
Other direct expenses | 70,088 | 72,393 |
Management and Franchise | ||
Expenses: | ||
Expenses | $ 7,330 | $ 12,309 |
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 (loss) | Distributions in excess of retained earnings | Non-controlling Interests of Operating Partnership |
Beginning balance, shares outstanding (in shares) at Dec. 31, 2018 | 112,583,990 | |||||
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 17,276 | 16,703 | 573 | |||
Repurchase of common shares, net (in shares) | 0 | |||||
Dividends, common shares / units | $ (31,508) | (31,027) | (481) | |||
Share-based compensation (in shares) | 78,675 | |||||
Share-based compensation | 2,021 | $ 1 | 435 | 1,585 | ||
Shares redeemed to satisfy tax withholding on vested share based compensation (in shares) | (22,807) | |||||
Shares redeemed to satisfy tax withholding on vested share-based compensation | (440) | (440) | ||||
Unrealized loss on interest rate derivative instruments | (5,084) | (4,916) | (168) | |||
Reclassification adjustment for amounts recognized in net income | (1,413) | (1,366) | (47) | |||
Ending balance, shares outstanding (in shares) at Mar. 31, 2019 | 112,639,858 | |||||
Ending 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 |
Accumulated other comprehensive loss | (4,596) | |||||
Beginning balance, shares outstanding (in shares) at Dec. 31, 2019 | 112,670,757 | |||||
Beginning balance of stockholders' equity, including portion attributable to noncontrolling interest at Dec. 31, 2019 | 1,775,158 | $ 1,127 | 2,060,924 | (4,596) | (318,434) | 36,137 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ (37,130) | (36,138) | (992) | |||
Repurchase of common shares, net (in shares) | (165,516) | (165,516) | ||||
Repurchase of common shares, net | $ (2,264) | $ (2) | (2,262) | |||
Dividends, common shares / units | (31,633) | (31,310) | (323) | |||
Share-based compensation (in shares) | 98,279 | |||||
Share-based compensation | 2,371 | $ 1 | 848 | 1,522 | ||
Shares redeemed to satisfy tax withholding on vested share based compensation (in shares) | (28,072) | |||||
Shares redeemed to satisfy tax withholding on vested share-based compensation | (475) | (475) | ||||
Redemption of Operating Partnership Units (in shares) | 848,742 | |||||
Redemption of Operating Partnership Units | (8,623) | $ 9 | 16,004 | (24,636) | ||
Unrealized loss on interest rate derivative instruments | (17,120) | (16,623) | (497) | |||
Reclassification adjustment for amounts recognized in net income | 409 | $ 397 | 12 | |||
Ending balance, shares outstanding (in shares) at Mar. 31, 2020 | 113,424,190 | |||||
Ending balance of stockholders' equity, including portion attributable to noncontrolling interest at Mar. 31, 2020 | 1,680,693 | $ 1,135 | $ 2,075,039 | $ (385,882) | $ 11,223 | |
Accumulated other comprehensive loss | $ (20,822) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends, common shares / units (in dollars per share) | $ 0.275 | $ 0.275 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (37,130) | $ 17,276 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation | 36,448 | 39,274 |
Non-cash ground rent and amortization of other intangibles | 737 | 801 |
Amortization of debt premiums, discounts, and financing costs | 623 | 625 |
Loss on extinguishment of debt | 0 | 213 |
Impairment and other losses | 16,368 | 0 |
Share-based compensation expense | 2,040 | 1,894 |
Changes in assets and liabilities: | ||
Accounts and rents receivable | 13,084 | (28,501) |
Other assets | (15,646) | (9,548) |
Accounts payable and accrued expenses | (9,526) | 6,401 |
Other liabilities | (1,611) | 5,203 |
Net cash provided by operating activities | 5,387 | 33,638 |
Cash flows from investing activities: | ||
Capital expenditures and tenant improvements | (22,177) | (13,260) |
Deposit received for pending dispositions of hotel properties | 2,000 | 0 |
Net cash used in investing activities | (20,177) | (13,260) |
Cash flows from financing activities: | ||
Payoffs of mortgage debt | 0 | (90,000) |
Principal payments of mortgage debt | (691) | (804) |
Proceeds from unsecured term loan | 0 | 85,000 |
Proceeds from draws on the Senior Unsecured Revolving Credit Facility | 340,000 | 0 |
Redemption of Operating Partnership Units | (8,623) | 0 |
Repurchase of common shares | (2,264) | 0 |
Shares redeemed to satisfy tax withholding on vested share based compensation | (625) | (598) |
Dividends | (31,608) | (31,338) |
Net cash provided by (used in) financing activities | 296,189 | (37,740) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 281,399 | (17,362) |
Cash and cash equivalents and restricted cash, at beginning of period | 194,946 | 161,608 |
Cash and cash equivalents and restricted cash, at end of period | 476,345 | 144,246 |
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the amount shown in the condensed consolidated statements of cash flows: | ||
Total cash and cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | 476,345 | 144,246 |
The following represent cash paid during the periods presented for the following: | ||
Cash paid for taxes | 2,203 | 1,478 |
Cash paid for interest, net of capitalized interest | 11,770 | 11,602 |
Supplemental schedule of non-cash investing activities: | ||
Accrued capital expenditures | 2,655 | 1,574 |
Adjustment to record right of use asset and lease liability, net | $ 0 | $ 28,072 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , the Company collectively owned 97.1% of the common limited partnership units issued by the Operating Partnership ("Operating Partnership Units"). The remaining 2.9% 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 March 31, 2020 , the Company owned 39 lodging properties. As of March 31, 2019 , the Company owned 40 lodging properties. Impact of COVID-19 In January 2020, cases of novel coronavirus and related respiratory disease (“COVID-19”) started appearing in the United States. By March 11, 2020, COVID-19 was deemed a global pandemic by the World Health Organization. This led federal, state and local governments in the United States to impose measures intended to control its spread, including restrictions on freedom of movement and business operations such as travel bans, border closings, business closures, quarantines and shelter-in-place orders. The effects of the COVID-19 pandemic on the hotel industry are unprecedented with global demand for lodging drastically reduced and occupancy levels reaching historic lows. As of March 31, 2020, 24 of the Company’s 39 hotels and resorts had temporarily suspended operations with seven additional hotels temporarily suspending operations in April. The Company’s remaining eight properties are operating at levels which reflect the reduced demand levels. As individual governmental authorities relax social distancing standards and begin to lift "stay at home" orders, the Company will work with its operating partners to evaluate the best strategy and approach for reopening each of its properties based on the hotel or resort's ability to implement necessary safety precautions, anticipated demand and other considerations. At this time, the Company anticipates five smaller properties with a leisure demand focus will recommence operations during the month of May. Prior to the impact of COVID-19, the results for the first quarter of 2020 exceeded expectations with RevPAR decreasing slightly in the low single digits compared to the first quarter 2019. Occupancy rates for our total portfolio for January and February 2020 were 65.0% and 74.6% , respectively. Due to certain of our hotels and resorts temporarily suspending operations and low levels of demand, RevPAR and occupancy declined significantly in March, which led to a total portfolio occupancy rate for the month of 27.2% . Occupancy has continued to decline in the second quarter and, as a result, we expect operating results to be further negatively impacted in the second quarter. Both business transient and leisure demand has declined significantly, consistent with trends throughout the U.S. lodging industry. The vast majority of our hotel portfolio's group business for the second quarter has been canceled, and the Company is uncertain if, or when, this business will rebook in the future. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 (loss) 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, 2019 , included in the Company's Annual Report on Form 10-K filed with the SEC on February 25, 2020. Operating results for the three months ended March 31, 2020 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. Going Concern Considerations Under the accounting guidance related to the presentation of financial statements, when preparing financial statements for each annual and interim reporting period, management has the responsibility to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. In applying the accounting guidance, the Company considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our unconditional obligations due over the next 12 months. Specifically, we considered that as of March 31, 2020, 24 of the Company’s 39 hotels and resorts had temporarily suspended operations with seven additional hotels temporarily suspending operations in April due to the impact of the COVID-19 pandemic. The Company’s remaining eight properties are operating at levels which reflect the reduced demand levels. Due to the significant impact of COVID-19 on the lodging and hospitality industries, the COVID-19 pandemic has had, and is expected to continue to have, a material adverse impact on the Company's results of operations. In addition to temporarily suspending operations at certain of our hotels due to low levels of demand, t he Company has taken preemptive actions to preserve liquidity and manage cash flow, such as fully drawing down the remaining $340 million on our Senior Unsecured Revolving Credit Facility, reducing all non-essential spending, revisiting our investment strategies, reducing payroll costs, and canceling or deferring approximately $50 million of capital expenditures projects . In addition , for certain hotels we have the ability to utilize a portion of the furniture, fixtures and equipment replacement reserves for hotel operating expenses. Usage of such replacement reserves may be subject to lender approval for hotels encumbered by mortgage loans or may be required to be replenished by the end of 2021. We also expect to suspend our quarterly dividend through the balance of 2020 unless we determine an additional dividend is required to maintain our REIT status. A s of March 31, 2020, the Company was not in compliance with one of its debt financial maintenance covenants, which was a common financial covenant that has resulted in an event of default under both its Senior Unsecured Revolving Credit Facility and its unsecured term loans. In addition, management anticipates being unable to meet most, if not all, of its debt financial maintenance covenant requirements during the next twelve months due to the ongoing impact of the COVID-19 pandemic, which is expected to significantly reduce our operating income. The Company is currently in discussions with its lender group to obtain temporary covenant relief and an extension of its term loan maturing in February 2021. Any covenant waiver or debt extension will likely lead to operating restrictions, increased costs and fees, increased interest rates, additional restrictive covenants and other lender protections that may be applicable. There can be no assurance that we will be able to obtain temporary covenant relief, payment deferrals or an extension in a timely manner, on acceptable terms, or at all and, therefore, it cannot be considered probable of occurring. If we are not able to obtain waivers of the existing events of default, our lenders could potentially accelerate amounts due under our outstanding debt agreements and related derivative contract payables for which the Company may not have sufficient liquidity to pay. Therefore, the failure to obtain waivers would have a material adverse effect on our business and financial condition. As a result, the Company has substantial doubt about its ability to continue as a going concern for the next 12 months. 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 future economic conditions. Actual results could differ from these estimates. Risks and Uncertainties As of March 31, 2020, 24 of the Company’s 39 hotels and resorts had temporarily suspended operations with seven additional hotels temporarily suspending operations in April. It is not currently known when the operations at our hotel properties will resume, or if we will need to suspend operations at additional hotel properties. We will continue to monitor the rapidly evolving situation and guidance from federal, state and local governmental and public health authorities, and we may be required or elect to take additional actions based on their recommendations. Under these circumstances, there may be developments that require us to further adjust our operations. Furthermore, we cannot predict when business levels will return to normalized levels after the effects of the pandemic subside and travel bans and shelter-in-place orders are lifted or upon a resurgence. There also can be no guarantee that the demand for lodging, and consumer confidence in travel generally, will recover as quickly as other industries. As a result, our revenues have declined significantly and we expect this trend to continue. Additionally, we expect the effects of the pandemic to materially and adversely affect our ability to consummate acquisitions and dispositions of hotel properties as well as to cause us to scale back or delay planned renovations and other projects. Due to the speed with which the situation is developing we cannot predict the full extent and duration of the effects of the COVID-19 pandemic on our operations, although the longer and more severe the pandemic or resurgence, the greater the material adverse impact on our business, results of operations, cash flows, financial condition, the market price of our common stock, our ability to make distributions to our shareholders, our access to credit markets and our ability to service our indebtedness. For the three months ended March 31, 2020 and 2019 , 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 the period then ended. To the extent that adverse changes continue in these markets, or the industry sectors that operate in these markets, our business and operating results could continue to be negatively impacted. 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 furniture, fixtures and equipment replacement 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 . As a result of the material adverse impact on the results of operations attributed to the COVID-19 pandemic, certain of the Company's third-party managers have suspended required contributions to the furniture, fixture and equipment replacement reserve for a period of time. Additionally, for certain hotels we have the ability to utilize a portion of these cash balances for hotel operating expenses. Usage of such replacement reserves may be subject to lender approval for hotels encumbered by mortgage loans or may be required to be replenished. Impairment Goodwill The excess of the cost of an acquired entity (i.e. those that met the definition of an acquired business), over the net of the fair values assigned to assets acquired (including identified intangible assets) and liabilities assumed is recorded as goodwill. Goodwill has been recognized and allocated to specific properties. The Company tests goodwill for impairment annually or more frequently if events or changes in circumstances indicate impairment. The Company has the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The optional q ualitative assessment determines whether it is more likely than not that the specific goodwill's fair value is less than its carrying amount. If it is determined that it is more likely than not that the goodwill is impaired, the Company performs a single-step analysis to identify and measure impairment. The fair value of goodwill is based on either the direct capitalization or the discounted cash flow valuation method. The direct capitalization method is based on a capitalization rate, which is generally observable (a Level 2 input, but at times could be unobservable, which is a Level 3 input), applied to the underlying hotel's most recent stabilized trailing twelve month net operating income at the time of the fair value analysis. The discounted cash flow method is based on estimated future cash flow projections that utilize discount rates, terminal capitalization rates, and planned capital expenditures, which are generally unobservable in the market place (Level 3 inputs), but these estimates approximate the inputs the Company believes would be utilized by market participants in assessing fair value. The estimates of future cash flows are based on a number of factors, including the historical operating results, estimated growth rates, known trends, and market/economic conditions. If the carrying amount of the property’s assets, including goodwill, exceeds its estimated fair value an impairment charge is recorded in an amount equal to that excess but only to the extent the value of goodwill is reduced to zero. As of March 31, 2020 and December 31, 2019 , the Company had goodwill of $8.6 million and $25.0 million , respectively, which is included in intangible assets, net of accumulated amortization on the condensed consolidated balance sheets for the period then ended. During the three months ended March 31, 2020 , the Company determined the carrying value of goodwill related to Andaz Savannah and Bohemian Hotel Savannah Riverfront, Autograph Collection, was in excess of its fair value and therefore recorded an impairment charge of $16.4 million . Refer to Note 7 for further information. During the three months ended March 31, 2019 , no impairment of goodwill was recorded. Long-lived assets and intangibles 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. Events or circumstances that may cause a review include, but are not limited to, when a hotel property (1) experiences a significant decrease in the market price of the long-lived asset, (2) experiences a current or projected loss from operations combined with a history of operating or cash flow losses, (3) when it becomes more likely than not that a hotel property will be sold before the end of its useful life, (4) an accumulation of costs significantly in excess of the amount originally expected for the acquisition, construction or renovation of a long-lived asset, (5) adverse changes in the demand for lodging at a specific property due to declining national or local economic conditions and/or new hotel construction in markets where the hotel is located, (6) a significant adverse change in legal factors or in the business climate that could affect the value of the long-lived asset and/or (7) a significant adverse change in the extent or manner in which a long-lived asset is being used in its physical condition. 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 charge to the extent that the carrying value exceeds fair value. The COVID-19 pandemic has had, and is expected to continue to have, a material adverse impact on the lodging and hospitality industries, which management considered to be a triggering event during its impairment testing for the three months ended March 31, 2020 . The Company assessed the recoverability of each of its long-lived assets and intangibles and determined that there were no impairments as of March 31, 2020 . Impairment estimates The valuation and possible subsequent impairment of long-lived investment properties and/or goodwill 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. The determination of fair value 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. 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 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 variable lease payments that are based on an index or rate, 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 options will be elected. If the extension options are 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 incremental borrowing rate used to discount the lease liability 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 incremental borrowing 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 then adjusts the base incremental borrowing rate to take into consideration an individual leases' credit risk, total lease payments, and remaining lease term. Certain of our hotels have retail space that is leased to third parties for restaurants, retail and other space leases. Rental income from retail leases is recognized on a straight-line basis over the term of the underlying lease and is included in other income on the consolidated statement of operations and comprehensive (loss) income. Percentage rent is recognized at the point in time in which the underlying thresholds are achieved and percentage rent is earned. In March 2020, we began to receive notices and requests for rent deferrals and other concessions from certain of our space lease tenants as a result of the impact of COVID-19. The Company anticipates certain of our space lease tenants may default on their rent obligations in the next several months. There is no certainty as to when, or if, these tenants will start paying rent again in the future. As a result, the Company may record rental income only when cash is received in the near term. Derivatives and Hedging Activities In the normal course of business, the Company is exposed to the effects of interest rate changes. The Company limits the risks associated with interest rate changes by following established risk management policies and procedures which may include the use of derivative instruments. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking various hedge transactions. The Company assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract and are recorded on the balance sheet at fair value, with offsetting changes recorded to other comprehensive income (loss). The Company nets assets and liabilities when the right of offset exists. Ineffective portions of changes in the fair value of a cash flow hedge are recognized as interest expense. The Company incorporates credit valuation adjustments to reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As a result of the material adverse impact that the COVID-19 pandemic has had, and is expected to continue to have, on the Company's results of operations during the three months ended March 31, 2020 , the Company is working with its lender group to obtain debt covenant waivers and extensions, which may change the timing of debt payments and could impact our ability to apply hedge accounting in the future. If we were to discontinue hedge accounting this could result in the recognition of a portion or all of the $20.8 million balance of accumulated other comprehensive loss as of March 31, 2020 into net loss. Additionally, the discontinuation of hedge accounting could require future changes in the fair market values of hedges to be recognized on the consolidated statement of operations (loss) income through net (loss) income. Any future defaults by the Company under the terms of its hedges, including those which may arise from cross default provisions with loan agreements, could result in the Company being immediately liable for the fair market value liability of the defaulted hedges. 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 online 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 condensed consolidated balance sheets. 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. 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 (loss) 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 March 2020, the Financial Accounting Standards Board issued Accounting Standard Update 2020-04, Reference Rate Reform (Topic 848) ("ASU 2020-04"). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. As of March 31, 2020, the Company has elected to apply the hedge accounting |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 (in thousands): Three Months Ended Primary Markets March 31, 2020 Orlando, FL $ 30,194 Phoenix, AZ 24,106 Houston, TX 21,263 Dallas, TX 15,537 San Francisco/San Mateo, CA 13,626 Atlanta, GA 13,309 San Diego, CA 10,641 Denver, CO 9,685 San Jose-Santa Cruz, CA 9,593 Austin, TX 7,530 Other 59,869 Total $ 215,353 Three Months Ended Primary Markets March 31, 2019 Orlando, FL $ 36,156 Phoenix, AZ 32,844 Houston, TX 26,741 Dallas, TX 21,390 San Diego, CA 19,800 San Francisco/San Mateo, CA 19,406 Atlanta, GA 16,782 San Jose-Santa Cruz, CA 15,759 Denver, CO 11,751 Washington, DC-MD-VA 11,600 Other 81,458 Total $ 293,687 |
Investment Properties
Investment Properties | 3 Months Ended |
Mar. 31, 2020 | |
Asset Acquisition And Disposition [Abstract] | |
Investment Properties | Investment Properties From time to time, the Company evaluates 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. Acquisitions The Company did not acquire any hotels during the three months ended March 31, 2020 or 2019 . Dispositions The Company did not sell any hotels during the three months ended March 31, 2020 or 2019 . In January 2020, the Company entered into an agreement to sell the 522 -room Renaissance Atlanta Waverly Hotel & Convention Center for $155 million . The transaction was initially expected to close in the first quarter, however the Company entered into an amendment to the sale agreement to extend the closing date until July 31, 2020. The buyer has a $7.75 million non-refundable deposit at risk should the transaction not proceed. Based on the current status of the financial markets, and overall economic uncertainty, the Company can make no assurances that the Renaissance Atlanta Waverly Hotel & Convention Center will close as agreed upon, or at all. As a result of this uncertainty, the hotel was not presented as held for sale as of March 31, 2020. In February 2020, the Company entered into an agreement to sell the 492 -room Renaissance Austin Hotel for $100.5 million . The transaction was initially expected to close in the first quarter 2020, but the Company subsequently entered into an amendment to the sale agreement that extended the closing until April 16, 2020. The transaction did not close as contemplated by the amended agreement and as a result, subsequent to March 31, 2020 the agreement has been terminated. The Company retained the $2 million deposit that was previously released from escrow and will recognize this amount as other income in April. In March 2020, the Company entered into an agreement to sell the seven Kimpton hotel assets, which includes Kimpton Canary Hotel Santa Barbara, Kimpton Hotel Monaco Chicago, Kimpton Hotel Monaco Denver, Kimpton Hotel Monaco Salt Lake City, Kimpton Hotel Palomar Philadelphia, Kimpton Lorien Hotel & Spa and Kimpton RiverPlace Hotel (collectively, the “Kimpton Portfolio”) in an all-cash transaction valued at approximately $483 million , inclusive of $6 million of cash in existing furniture, fixture and equipment replacement reserve accounts. In connection with entering into the agreement, a $20 million at-risk deposit was placed in escrow by buyer. T |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt as of March 31, 2020 and December 31, 2019 consisted of the following (dollar amounts in thousands): Balance Outstanding as of Rate Type Rate (1) Maturity Date March 31, 2020 December 31, 2019 Mortgage Loans Marriott Dallas Downtown Fixed (2) 4.05 % 1/3/2022 $ 51,000 $ 51,000 Kimpton Hotel Palomar Philadelphia Fixed (2) 4.14 % 1/13/2023 57,750 58,000 Renaissance Atlanta Waverly Hotel & Convention Center Fixed (2) 3.82 % 8/14/2024 100,000 100,000 Andaz Napa Variable 2.89 % 9/13/2024 56,000 56,000 The Ritz-Carlton, Pentagon City Fixed (2) 4.95 % 1/31/2025 65,000 65,000 Residence Inn Boston Cambridge Fixed 4.48 % 11/1/2025 60,547 60,731 Grand Bohemian Hotel Orlando, Autograph Collection Fixed 4.53 % 3/1/2026 58,030 58,286 Marriott San Francisco Airport Waterfront Fixed 4.63 % 5/1/2027 115,000 115,000 Total Mortgage Loans 4.22 % (3) $ 563,327 $ 564,017 Unsecured Term Loan $175M* Fixed (4) 2.89 % 2/15/2021 175,000 175,000 Unsecured Term Loan $125M* Fixed (4) 3.38 % 10/22/2022 125,000 125,000 Unsecured Term Loan $150M* Variable 2.56 % 8/21/2023 150,000 150,000 Unsecured Term Loan $125M* Fixed (4) 3.37 % 9/13/2024 125,000 125,000 Senior Unsecured Revolving Credit Facility* Variable 2.66 % 2/28/2022 (5) 500,000 160,000 Loan discounts and unamortized deferred financing costs, net (6) — — — (5,545 ) (5,963 ) Total Debt, net of loan discounts and unamortized deferred financing costs 3.32 % (3) $ 1,632,782 $ 1,293,054 *Denotes a loan agreement under which the Company has breached a financial maintenance covenant as of March 31, 2020. (1) Variable index is one-month LIBOR. Interest rates are as of March 31, 2020 . For variable interest loans for which the spread to LIBOR may vary, as it is determined by the Company's leverage ratio, the Company expects these rates will increase in future periods due to a higher expected leverage ratio. (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) Represents the weighted average interest rate as of March 31, 2020 . (4) 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. (5) The maturity of the Senior Unsecured Revolving Credit Facility can be extended through February 2023 at the Company's discretion and requires the payment of an extension fee. (6) Includes loan discounts upon modifications and deferred financing costs, net of accumulated amortization. In connection with repaying one mortgage loan during the three months ended March 31, 2019 , the Company wrote off the related unamortized deferred financing costs of $213 thousand , which is included in loss on extinguishment of debt on the condensed consolidated statements of operations and comprehensive (loss) income for the period then ended. Total debt outstanding as of March 31, 2020 and December 31, 2019 was $1,638 million and $1,299 million , respectively, and had a weighted average interest rate of 3.32% and 3.72% per annum, respectively. The following table shows scheduled principal payments and debt maturities for the next five years and thereafter (in thousands): As of Weighted average 2020 $ 3,580 4.47% 2021 180,401 2.94% 2022 182,915 3.60% 2023 211,863 3.02% 2024 281,534 3.46% Thereafter 278,034 4.66% Total Mortgage and Unsecured Term Loans $ 1,138,327 3.61% Senior Unsecured Revolving Credit Facility 500,000 2.66% Loan discounts and unamortized deferred financing costs, net (5,545 ) — Debt, net of loan discounts and unamortized deferred financing costs $ 1,632,782 3.32% Of the total outstanding debt at March 31, 2020 , none of the mortgage loans were recourse to the Company. Some of the loans require compliance with certain covenants, such as debt service coverage ratios, loan-to-value tests, investment restrictions and distribution limitations. As of March 31, 2020 , the Company was not in compliance with one of its debt financial maintenance covenants, which was a common financial covenant that resulted in an event of default under both its Senior Unsecured Revolving Credit Facility and its unsecured term loans. In addition, management anticipates being unable to meet most, if not all, of its other debt financial maintenance covenant requirements during the next twelve months due to the ongoing impact of the COVID-19 pandemic, which is expected to significantly reduce our operating income. The Company is currently in discussions with its lender group to obtain temporary covenant relief and an extension of its term loan maturing in February 2021. Refer to Note 2 for further discussion. Senior Unsecured Revolving Credit Facility As of December 31, 2019, approximately $160 million was outstanding under the Senior Unsecured Revolving Credit Facility. On March 12, 2020, the Company provided notice to the lenders to borrow the remaining $340 million available amount under the Amended and Restated Credit Agreement. The Company increased its borrowings under the Senior Unsecured Revolving Credit Facility as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of current uncertainty resulting from the COVID-19 pandemic. The proceeds from the incremental Senior Unsecured Revolving Credit Facility borrowings are currently being held in demand deposits and money market accounts, certificates of deposits and similar accounts with a maturity of three months or less and is included in cash and cash equivalents on the Company’s condensed consolidated balance sheets. In accordance with the terms of the Amended and Restated Credit Agreement, the proceeds from the incremental Senior Unsecured Revolving Credit Facility borrowings may in the future be used for working capital, general corporate or other purposes permitted by the Amended and Restated Credit Agreement. As of March 31, 2020 , there was $500 million outstanding on the Senior Unsecured Revolving Credit Facility. During the three months ended March 31, 2020 , the Company incurred unused commitment fees of approximately $0.2 million and interest expense of $1.5 million . During the three months ended March 31, 2019 , the Company incurred unused commitment fees of approximately $0.4 million and no interest expense. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , 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 (loss) on the condensed consolidated statements of operations and comprehensive (loss) 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 sheets. The following table summarizes the terms of the derivative financial instruments held by the Company as of March 31, 2020 and December 31, 2019 , respectively (in thousands): March 31, 2020 December 31, 2019 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 + 1.60% 10/22/2015 2/15/2021 $ 50,000 $ (422 ) $ 50,000 $ 167 $175M Term Loan Swap 1.29% 1-Month LIBOR + 1.60% 10/22/2015 2/15/2021 65,000 (543 ) 65,000 223 $175M Term Loan Swap 1.29% 1-Month LIBOR + 1.60% 10/22/2015 2/15/2021 60,000 (501 ) 60,000 206 $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.55% 1/15/2016 10/22/2022 50,000 (1,974 ) 50,000 (403 ) $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.55% 1/15/2016 10/22/2022 25,000 (988 ) 25,000 (202 ) $125M Term Loan Swap 1.84% 1-Month LIBOR + 1.55% 1/15/2016 10/22/2022 25,000 (991 ) 25,000 (207 ) $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.55% 1/15/2016 10/22/2022 25,000 (990 ) 25,000 (204 ) Mortgage Debt Swap 1.54% 1-Month LIBOR + 2.60% 1/13/2016 1/13/2023 57,750 (1,935 ) 58,000 13 Mortgage Debt Swap 1.80% 1-Month LIBOR + 2.25% 3/1/2017 1/3/2022 51,000 (1,377 ) 51,000 (266 ) Mortgage Debt Swap 1.80% 1-Month LIBOR + 2.10% 3/1/2017 1/3/2022 45,000 (1,227 ) 45,000 (248 ) Mortgage Debt Swap 1.81% 1-Month LIBOR + 2.10% 3/1/2017 1/3/2022 45,000 (1,215 ) 45,000 (235 ) $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.45% 10/13/2017 9/13/2022 40,000 (1,598 ) 40,000 (403 ) $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.45% 10/13/2017 9/13/2022 40,000 (1,600 ) 40,000 (405 ) $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.45% 10/13/2017 9/13/2022 25,000 (1,003 ) 25,000 (256 ) $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.45% 10/13/2017 9/13/2022 20,000 (800 ) 20,000 (202 ) Mortgage Debt Swap 2.80% 1-Month LIBOR + 2.10% 6/1/2018 2/1/2023 24,000 (1,624 ) 24,000 (894 ) Mortgage Debt Swap 2.89% 1-Month LIBOR + 2.10% 1/17/2019 2/1/2023 41,000 (2,878 ) 41,000 (1,638 ) $ 688,750 $ (21,666 ) $ 689,000 $ (4,954 ) The table below details the location in the condensed consolidated financial statements of the loss recognized on derivative financial instruments designated as cash flow hedges for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Effect of derivative instruments: Location in Statements of Operations and Comprehensive (Loss) Income: Loss recognized in other comprehensive income Unrealized loss on interest rate derivative instruments $ (17,120 ) $ (5,084 ) (Loss) gain reclassified from accumulated other comprehensive income to net income Reclassification adjustment for amounts recognized in net income $ 409 $ (1,413 ) Total interest expense in which effects of cash flow hedges are recorded Interest expense $ 13,024 $ 12,587 The Company expects approximately $10.4 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense in the next 12 months. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 (in thousands): Fair Value Measurement Date March 31, 2020 December 31, 2019 Location on Condensed Consolidated Balance Sheets/Description of instrument 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) $ — $ — $ 13 $ — Liabilities Interest rate swap liabilities (1) $ (21,666 ) $ — (4,967 ) — Nonrecurring measurements Intangible assets, net of accumulated amortization Goodwill — $ 3,735 — $ 14,035 (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 Goodwill Our goodwill balance and related activity as of March 31, 2020 and December 31, 2019 is as follows (in thousands): Goodwill Cumulative Impairment Losses Balance Balance as of March 31, 2020 $ 34,352 $ (25,768 ) $ 8,584 Balance as of December 31, 2019 $ 34,352 $ (9,400 ) $ 24,952 As a result of the material adverse effect that the COVID-19 pandemic has had on the lodging industry and in our portfolio, the Company performed a single-step analysis to identify and measure impairment for three of our hotels with goodwill, including Andaz Napa, Andaz Savannah and Bohemian Hotel Savannah Riverfront, Autograph Collection at March 31, 2020. Management determined the fair value of the hotels and related goodwill using Level 3 assumptions, which included discounted cash flows based on projected operating income, timing and amount of planned capital expenditures, a terminal capitalization rate, and the applied discount rate. Based on our analysis, we identified goodwill impairments of $6.1 million related to Andaz Savannah and $10.3 million related to Bohemian Hotel Savannah Riverfront, Autograph Collection. The goodwill impairments were directly attributed to the material adverse impact that the COVID-19 pandemic has had, and is expected to continue to have, on the results of operations at each hotel. The goodwill impairment charge totaling $16.4 million was included in impairment and other losses on the Company’s condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2020 . Management believes that we used reasonable estimates and judgments in our fair value determination at March 31, 2020 . However, it is not currently known when the operations at these hotel properties will resume. Furthermore, we cannot predict when business levels will return to normalized levels after the effects of the COVID-19 pandemic subside. There also can be no guarantee that the demand for lodging, and consumer confidence in travel generally, will recover as quickly as other industries. The changes in facts and circumstances as they arise may result in an additional impairment and other losses in the future. During our annual goodwill impairment testing for the year ended December 31, 2019, we completed a single-step analysis to identify and measure goodwill impairment related to Bohemian Hotel Savannah Riverfront, Autograph Collection. Management determined the fair value of the hotel and related goodwill using Level 3 assumptions, which included discounted cash flows based on projected operating income, timing and amount of planned capital expenditures, terminal capitalization rate, and the applied discount rate. The goodwill impairment was attributed to changes in the supply and demand dynamics in the Savannah, Georgia market since the acquisition of the hotel in 2012. Based on the fair value determined by management, the Company recorded a goodwill impairment charge of $9.4 million , which was included in impairment and other losses on the Company’s consolidated statements of operations and comprehensive income for the year ended December 31, 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 March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Total Debt, net of discounts $ 1,138,327 $ 1,072,845 $ 1,139,017 $ 1,160,588 Senior Unsecured Revolving Credit Facility 500,000 478,718 160,000 160,886 Total $ 1,638,327 $ 1,551,563 $ 1,299,017 $ 1,321,474 The Company estimated the fair value of its total debt, net of discounts, using a weighted average effective interest rate of 4.61% and 3.15% per annum as of March 31, 2020 and December 31, 2019 , respectively. The Company has determined that its debt instrument valuations are classified in Level 2 of the fair value hierarchy. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Coronavirus Aid, Relief, and Economic Security ("CARES") Act, was signed into U.S. law on March 27, 2020 and provides an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the U.S. economy. The assistance includes tax relief and government loans, grants and investments for entities in affected industries. The Company is currently considering the programs and tax benefits that apply to its operations including the corporate net operating loss carryback, increases in the interest expense limitation, employee retention credit, and deferrals of both employer payroll taxes and corporate estimated taxes. The Company estimated the TRS income tax benefit for the three months ended March 31, 2020 using an estimated federal and state combined effective tax rate of 10.10% and recognized an income tax benefit of $7.3 million . The income tax benefit during the three months ended March 31, 2020 was primarily attributed to the net operating loss carryback opportunity allowed for under the CARES Act. The Company estimated the TRS income tax expense for the three months ended March 31, 2019 using an estimated federal and state combined effective tax rate of 30.39% and recognized an income tax expense of $6.1 million . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 . As of March 31, 2020 , 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. During the three months ended March 31, 2020 , 165,516 shares were repurchased under the Repurchase Program, at a weighted average price of $13.68 per share for an aggregate purchase price of $2.3 million . No shares were purchased as part of the Repurchase Program during the three months ended March 31, 2019 . As of March 31, 2020 , the Company had approximately $94.7 million remaining under its share repurchase authorization. Distributions The Company declared the following dividend during the three months ended March 31, 2020 : Dividend per Share/Unit For the Quarter Ended Record Date Payable Date $0.275 March 31, 2020 March 31, 2020 April 15, 2020 Due to the material adverse impact that the COVID-19 pandemic is expected to continue to have on the Company's results of operations, the Company expects to suspend its quarterly dividend through the balance of the 2020 unless it determines an additional dividend is required to maintain its REIT status. Non-Controlling Interest of Common Units in Operating Partnership During the three months ended March 31, 2020 , 1,305,759 vested LTIP partnership units (“LTIP Units”), a class of limited partnership units in the Operating Partnership, were converted into common limited partnership units in the Operating Partnership ("Common Units") on a one-for-one basis and subsequently all 1,305,759 Common Units were tendered to the Operating Partnership for redemption. At the Company's election, 848,742 Common Units were redeemed for common stock and 457,017 Common Units were redeemed for cash totaling $8.6 million . As of March 31, 2020 , the Operating Partnership had 3,358,302 LTIP Units outstanding, representing a 2.9% partnership interest held by the limited partners . Of the 3,358,302 LTIP Units outstanding at March 31, 2020 , 791,701 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 | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per common share is calculated by dividing net 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 net 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 (loss) income attributable to common stockholders to basic and diluted earnings per share (in thousands, except share and per share data): Three Months Ended March 31, 2020 2019 Numerator: Net (loss) income attributable to common stockholders $ (36,138 ) $ 16,703 Dividends paid on unvested share-based compensation (150 ) (143 ) Net (loss) income available to common stockholders $ (36,288 ) $ 16,560 Denominator: Weighted average shares outstanding - Basic 112,984,868 112,619,144 Effect of dilutive share-based compensation (1) — 288,395 Weighted average shares outstanding - Diluted 112,984,868 112,907,539 Basic and diluted earnings per share: Net (loss) income per share available to common stockholders - basic and diluted $ (0.32 ) $ 0.15 (1) During the three months ended March 31, 2020 , the Company excluded 327,475 anti-dilutive shares from its calculation of diluted earnings per share. |
Share Based Compensation
Share Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
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 March 2020 2020 Restricted Stock Units 112,937 163,501 $9.70 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 March 2020 2020 LTIP Units 100,899 868,723 $5.79 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. 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 March 31, 2020 : 2015 Incentive Award Plan Restricted Stock Units (1) 2015 Incentive Award Plan LTIP Units (1) Total Unvested as of December 31, 2019 247,108 1,683,965 1,931,073 Granted 276,438 969,622 1,246,060 Vested (2) (98,279 ) (86,986 ) (185,265 ) Expired — — — Forfeited (3,154 ) — (3,154 ) Unvested as of March 31, 2020 422,113 2,566,601 2,988,714 Weighted average fair value of unvested shares/units $ 10.99 $ 7.46 $ 7.96 (1) Includes time-based and performance-based units. (2) During the three months ended March 31, 2020 , 28,072 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 March 2, 2020 Absolute TSR Restricted Stock Units - Type I 25% $2.07 24.62% 1.13% - 0.95% 7.05% Relative TSR Restricted Stock Units - Type I 75% $6.73 24.62% 1.13% - 0.95% 7.05% Absolute TSR Restricted Stock Units - Type II 25% $2.14 24.62% 1.13% - 0.95% 7.05% Relative TSR Restricted Stock Units - Type II 75% $7.00 24.62% 1.13% - 0.95% 7.05% Absolute TSR Class A LTIPs 25% $2.34 24.62% 1.13% - 0.95% 7.05% Relative TSR Class A LTIPs 75% $6.85 24.62% 1.13% - 0.95% 7.05% 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 months ended March 31, 2020 the Company recognized approximately $2.0 million 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 months ended March 31, 2020 we capitalized approximately $0.3 million related to Restricted Stock Units provided to certain members of management who oversee development and capital projects on behalf of the Company. Share-based compensation expense during the three months ended March 31, 2020 included $0.4 million of accelerated share-based compensation for reductions in corporate personnel as a result of COVID-19. As of March 31, 2020 , there was $16.2 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 2.1 additional years. For the three months ended March 31, 2019 , the Company recognized approximately $1.9 million , 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 months ended March 31, 2019 we capitalized approximately $0.1 million 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 | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company is a lessee to long-term ground, parking, and its corporate office leases, which are accounted for as operating leases. The following is a summary of the Company's leases as of and for the three months ended March 31, 2020 (dollar amounts in thousands): March 31, 2020 Weighted average remaining lease term, including reasonably certain extension options (1) 30 years Weighted average discount rate 5.94% ROU asset (2) $ 45,980 Lease liability (3) $ 27,052 Operating lease rent expense $ 602 Variable lease costs 1,872 Total rent and variable lease costs $ 2,474 (1) The weighted average remaining lease term including all available extension options is approximately 61 years . (2) The ROU asset is included in other assets on the accompanying condensed consolidated balance sheet as of March 31, 2020 . (3) The lease liability is included in other liabilities on the accompanying condensed consolidated balance sheet as of March 31, 2020 . 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 March 31, 2020 (in thousands): Year Ending December 31, 2020 2020 (excluding the three months ended March 31, 2020) $ 1,803 2021 2,417 2022 2,431 2023 2,445 2024 2,460 Thereafter 49,862 Total undiscounted lease payments $ 61,418 Less imputed interest (34,366 ) Lease liability (1) $ 27,052 (1) The lease liability is included in other liabilities on the accompanying condensed consolidated balance sheet as of March 31, 2020 . Management and Franchise Agreements In order to maintain its qualification as a REIT, the Company cannot directly or indirectly operate any of its hotels. The Company leases each hotel to TRS lessees, which in turn engage property managers to manage the hotels. Each hotel is operated pursuant to a hotel management agreement with an independent third-party hotel management company. Pursuant to the hotel management agreements, the management company controls the day-to-day operation of each hotel, and the Company is granted limited approval rights with respect to certain of the management company’s actions. The hotel management agreements typically contain a two-tiered fee structure, wherein the management company receives a base management fee and, if certain financial thresholds are met or exceeded, an incentive management fee. Many hotel management agreements also require the maintenance of a capital reserve fund based on a percentage of hotel revenues to be used for capital expenditures to maintain the quality of the hotels. As a result of the material adverse impact on the results of operations attributed to the COVID-19 pandemic, certain of the Company's third-party managers have suspended required contributions to the furniture, fixture and equipment replacement reserve for a period of time. Additionally, for certain hotels we have the ability to utilize a portion of these cash balances for hotel operating expenses. Usage of such replacement reserves may be subject to lender approval for hotels encumbered by mortgage loans or may be required to be replenished. Management agreements for brand-managed hotels have terms generally ranging from 20 to 30 years and allow for one or more renewal periods at the option of the hotel managers. Assuming all renewal periods are exercised, the average remaining term is 27 years . Management agreements for franchised hotels generally contain initial terms between 10 and 15 years with an average remaining initial term of approximately five years . The Company is generally limited in its ability to sell, lease or otherwise transfer the hotels unless the transferee assumes the related hotel management agreement. However, most agreements include owner rights to terminate the agreements on the basis of the manager’s failure to meet certain performance-based metrics. Typically, these criteria are subject to the manager’s ability to ‘cure’ and avoid termination by payment to the Company of specified deficiency amounts (or, in some instances, waiver of the right to receive specified future management fees). Franchise agreements contain initial terms of 17 to 20 years , with an average remaining initial term of approximately 11 years . The franchise agreements require royalty fees based on a percentage of gross room revenue and, for certain hotels, an additional fee based on a percentage of gross food and beverage revenue. In addition, franchise agreements require fees for marketing, reservation or other program fees based on a percentage of the hotel's gross room revenue. Many franchise agreements also require the maintenance of a capital reserve fund based on a percentage of hotel revenues to be used for capital expenditures to maintain the quality of the hotels. For the three months ended March 31, 2020 and 2019 , the Company incurred management and franchise fees of $7.3 million and $12.3 million , respectively, which is included on the condensed consolidated statements of operations and comprehensive (loss) income for the periods then ended. 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 March 31, 2020 and December 31, 2019 , the Company had a balance of $66.9 million and $70.8 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 March 31, 2020 and December 31, 2019 , respectively. As noted above, certain of the Company's third-party managers have suspended required contributions to the furniture, fixture and equipment replacement reserve for a period of time. Additionally, for certain hotels we have the ability to utilize a portion of these cash balances for hotel operating expenses. Usage of such replacement reserves may be subject to lender approval for hotels encumbered by mortgage loans or may be required to be replenished. Renovation and Construction Commitments As of March 31, 2020 , the Company had various contracts outstanding with third parties in connection with the renovation of certain of its hotel properties. The remaining commitments under these contracts at March 31, 2020 totaled $24.4 million . 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In response to the market, economic and financial challenges caused by the COVID-19 pandemic, the Company made certain organizational changes, including the departure of our Senior Vice President and Chief Investment Officer in April 2020. As a result of the departure, the Company entered into a Separation Agreement that provides for, among other things (i) $1.4 million payable over a period of 12 months, (ii) continued health insurance coverage at the Company’s expense for up to eighteen months following the separation date; and (iii) all outstanding and unvested equity and equity-based awards held will be treated in accordance with the terms and conditions set forth in the applicable award agreement and equity compensation plan. On April 30, 2020, the buyer parties of the Kimpton Portfolio sale provided a notice to the Company alleging sellers breached the agreement to sell the portfolio and purporting to terminate the agreement prior to the closing date. The Company denied the buyers' allegations and rejected the buyers' purported termination. On the May 4, 2020 closing date, the buyer parties failed to close on the transaction. As a result of the buyer parties’ failure to close, the Company terminated the agreement and is vigorously pursuing, over the buyer parties’ objection, the $20 million deposit currently held in escrow. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 (loss) 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, 2019 , included in the Company's Annual Report on Form 10-K filed with the SEC on February 25, 2020. Operating results for the three months ended March 31, 2020 are not necessarily indicative of actual operating results for the entire year. |
Basis of Presentation and Going Concern Considerations | 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. Going Concern Considerations |
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 future economic conditions. Actual results could differ from these estimates. |
Risks and Uncertainties | Risks and Uncertainties As of March 31, 2020, 24 of the Company’s 39 hotels and resorts had temporarily suspended operations with seven additional hotels temporarily suspending operations in April. It is not currently known when the operations at our hotel properties will resume, or if we will need to suspend operations at additional hotel properties. We will continue to monitor the rapidly evolving situation and guidance from federal, state and local governmental and public health authorities, and we may be required or elect to take additional actions based on their recommendations. Under these circumstances, there may be developments that require us to further adjust our operations. Furthermore, we cannot predict when business levels will return to normalized levels after the effects of the pandemic subside and travel bans and shelter-in-place orders are lifted or upon a resurgence. There also can be no guarantee that the demand for lodging, and consumer confidence in travel generally, will recover as quickly as other industries. As a result, our revenues have declined significantly and we expect this trend to continue. Additionally, we expect the effects of the pandemic to materially and adversely affect our ability to consummate acquisitions and dispositions of hotel properties as well as to cause us to scale back or delay planned renovations and other projects. Due to the speed with which the situation is developing we cannot predict the full extent and duration of the effects of the COVID-19 pandemic on our operations, although the longer and more severe the pandemic or resurgence, the greater the material adverse impact on our business, results of operations, cash flows, financial condition, the market price of our common stock, our ability to make distributions to our shareholders, our access to credit markets and our ability to service our indebtedness. |
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 furniture, fixtures and equipment replacement 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 . As a result of the material adverse impact on the results of operations attributed to the COVID-19 pandemic, certain of the Company's third-party managers have suspended required contributions to the furniture, fixture and equipment replacement reserve for a period of time. Additionally, for certain hotels we have the ability to utilize a portion of these cash balances for hotel operating expenses. Usage of such replacement reserves may be subject to lender approval for hotels encumbered by mortgage loans or may be required to be replenished. |
Goodwill | Goodwill The excess of the cost of an acquired entity (i.e. those that met the definition of an acquired business), over the net of the fair values assigned to assets acquired (including identified intangible assets) and liabilities assumed is recorded as goodwill. Goodwill has been recognized and allocated to specific properties. The Company tests goodwill for impairment annually or more frequently if events or changes in circumstances indicate impairment. The Company has the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The optional q ualitative assessment determines whether it is more likely than not that the specific goodwill's fair value is less than its carrying amount. If it is determined that it is more likely than not that the goodwill is impaired, the Company performs a single-step analysis to identify and measure impairment. The fair value of goodwill is based on either the direct capitalization or the discounted cash flow valuation method. The direct capitalization method is based on a capitalization rate, which is generally observable (a Level 2 input, but at times could be unobservable, which is a Level 3 input), applied to the underlying hotel's most recent stabilized trailing twelve month net operating income at the time of the fair value analysis. The discounted cash flow method is based on estimated future cash flow projections that utilize discount rates, terminal capitalization rates, and planned capital expenditures, which are generally unobservable in the market place (Level 3 inputs), but these estimates approximate the inputs the Company believes would be utilized by market participants in assessing fair value. The estimates of future cash flows are based on a number of factors, including the historical operating results, estimated growth rates, known trends, and market/economic conditions. If the carrying amount of the property’s assets, including goodwill, exceeds its estimated fair value an impairment charge is recorded in an amount equal to that excess but only to the extent the value of goodwill is reduced to zero. As of March 31, 2020 and December 31, 2019 , the Company had goodwill of $8.6 million and $25.0 million , respectively, which is included in intangible assets, net of accumulated amortization on the condensed consolidated balance sheets for the period then ended. During the three months ended March 31, 2020 , the Company determined the carrying value of goodwill related to Andaz Savannah and Bohemian Hotel Savannah Riverfront, Autograph Collection, was in excess of its fair value and therefore recorded an impairment charge of $16.4 million . Refer to Note 7 for further information. During the three months ended March 31, 2019 , no impairment of goodwill was recorded. |
Long-lived Assets and Intangibles - Impairment | Long-lived assets and intangibles 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. Events or circumstances that may cause a review include, but are not limited to, when a hotel property (1) experiences a significant decrease in the market price of the long-lived asset, (2) experiences a current or projected loss from operations combined with a history of operating or cash flow losses, (3) when it becomes more likely than not that a hotel property will be sold before the end of its useful life, (4) an accumulation of costs significantly in excess of the amount originally expected for the acquisition, construction or renovation of a long-lived asset, (5) adverse changes in the demand for lodging at a specific property due to declining national or local economic conditions and/or new hotel construction in markets where the hotel is located, (6) a significant adverse change in legal factors or in the business climate that could affect the value of the long-lived asset and/or (7) a significant adverse change in the extent or manner in which a long-lived asset is being used in its physical condition. 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 charge to the extent that the carrying value exceeds fair value. The COVID-19 pandemic has had, and is expected to continue to have, a material adverse impact on the lodging and hospitality industries, which management considered to be a triggering event during its impairment testing for the three months ended March 31, 2020 . The Company assessed the recoverability of each of its long-lived assets and intangibles and determined that there were no impairments as of March 31, 2020 . Impairment estimates The valuation and possible subsequent impairment of long-lived investment properties and/or goodwill 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. The determination of fair value 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. 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 | Leases 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 variable lease payments that are based on an index or rate, 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 options will be elected. If the extension options are 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 incremental borrowing rate used to discount the lease liability 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 incremental borrowing 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 then adjusts the base incremental borrowing rate to take into consideration an individual leases' credit risk, total lease payments, and remaining lease term. Certain of our hotels have retail space that is leased to third parties for restaurants, retail and other space leases. Rental income from retail leases is recognized on a straight-line basis over the term of the underlying lease and is included in other income on the consolidated statement of operations and comprehensive (loss) income. Percentage rent is recognized at the point in time in which the underlying thresholds are achieved and percentage rent is earned. In March 2020, we began to receive notices and requests for rent deferrals and other concessions from certain of our space lease tenants as a result of the impact of COVID-19. The Company anticipates certain of our space lease tenants may default on their rent obligations in the next several months. There is no certainty as to when, or if, these tenants will start paying rent again in the future. As a result, the Company may record rental income only when cash is received in the near term. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities In the normal course of business, the Company is exposed to the effects of interest rate changes. The Company limits the risks associated with interest rate changes by following established risk management policies and procedures which may include the use of derivative instruments. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking various hedge transactions. The Company assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract and are recorded on the balance sheet at fair value, with offsetting changes recorded to other comprehensive income (loss). The Company nets assets and liabilities when the right of offset exists. Ineffective portions of changes in the fair value of a cash flow hedge are recognized as interest expense. The Company incorporates credit valuation adjustments to reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. As a result of the material adverse impact that the COVID-19 pandemic has had, and is expected to continue to have, on the Company's results of operations during the three months ended March 31, 2020 , the Company is working with its lender group to obtain debt covenant waivers and extensions, which may change the timing of debt payments and could impact our ability to apply hedge accounting in the future. If we were to discontinue hedge accounting this could result in the recognition of a portion or all of the $20.8 million balance of accumulated other comprehensive loss as of March 31, 2020 into net loss. Additionally, the discontinuation of hedge accounting could require future changes in the fair market values of hedges to be recognized on the consolidated statement of operations (loss) income through net (loss) income. Any future defaults by the Company under the terms of its hedges, including those which may arise from cross default provisions with loan agreements, could result in the Company being immediately liable for the fair market value liability of the defaulted hedges. |
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 online 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 condensed consolidated balance sheets. 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. |
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 (loss) 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 March 2020, the Financial Accounting Standards Board issued Accounting Standard Update 2020-04, Reference Rate Reform (Topic 848) ("ASU 2020-04"). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. As of March 31, 2020, the Company has elected to apply the hedge accounting |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 (in thousands): Three Months Ended Primary Markets March 31, 2020 Orlando, FL $ 30,194 Phoenix, AZ 24,106 Houston, TX 21,263 Dallas, TX 15,537 San Francisco/San Mateo, CA 13,626 Atlanta, GA 13,309 San Diego, CA 10,641 Denver, CO 9,685 San Jose-Santa Cruz, CA 9,593 Austin, TX 7,530 Other 59,869 Total $ 215,353 Three Months Ended Primary Markets March 31, 2019 Orlando, FL $ 36,156 Phoenix, AZ 32,844 Houston, TX 26,741 Dallas, TX 21,390 San Diego, CA 19,800 San Francisco/San Mateo, CA 19,406 Atlanta, GA 16,782 San Jose-Santa Cruz, CA 15,759 Denver, CO 11,751 Washington, DC-MD-VA 11,600 Other 81,458 Total $ 293,687 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | Debt as of March 31, 2020 and December 31, 2019 consisted of the following (dollar amounts in thousands): Balance Outstanding as of Rate Type Rate (1) Maturity Date March 31, 2020 December 31, 2019 Mortgage Loans Marriott Dallas Downtown Fixed (2) 4.05 % 1/3/2022 $ 51,000 $ 51,000 Kimpton Hotel Palomar Philadelphia Fixed (2) 4.14 % 1/13/2023 57,750 58,000 Renaissance Atlanta Waverly Hotel & Convention Center Fixed (2) 3.82 % 8/14/2024 100,000 100,000 Andaz Napa Variable 2.89 % 9/13/2024 56,000 56,000 The Ritz-Carlton, Pentagon City Fixed (2) 4.95 % 1/31/2025 65,000 65,000 Residence Inn Boston Cambridge Fixed 4.48 % 11/1/2025 60,547 60,731 Grand Bohemian Hotel Orlando, Autograph Collection Fixed 4.53 % 3/1/2026 58,030 58,286 Marriott San Francisco Airport Waterfront Fixed 4.63 % 5/1/2027 115,000 115,000 Total Mortgage Loans 4.22 % (3) $ 563,327 $ 564,017 Unsecured Term Loan $175M* Fixed (4) 2.89 % 2/15/2021 175,000 175,000 Unsecured Term Loan $125M* Fixed (4) 3.38 % 10/22/2022 125,000 125,000 Unsecured Term Loan $150M* Variable 2.56 % 8/21/2023 150,000 150,000 Unsecured Term Loan $125M* Fixed (4) 3.37 % 9/13/2024 125,000 125,000 Senior Unsecured Revolving Credit Facility* Variable 2.66 % 2/28/2022 (5) 500,000 160,000 Loan discounts and unamortized deferred financing costs, net (6) — — — (5,545 ) (5,963 ) Total Debt, net of loan discounts and unamortized deferred financing costs 3.32 % (3) $ 1,632,782 $ 1,293,054 *Denotes a loan agreement under which the Company has breached a financial maintenance covenant as of March 31, 2020. (1) Variable index is one-month LIBOR. Interest rates are as of March 31, 2020 . For variable interest loans for which the spread to LIBOR may vary, as it is determined by the Company's leverage ratio, the Company expects these rates will increase in future periods due to a higher expected leverage ratio. (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) Represents the weighted average interest rate as of March 31, 2020 . (4) 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. (5) The maturity of the Senior Unsecured Revolving Credit Facility can be extended through February 2023 at the Company's discretion and requires the payment of an extension fee. (6) Includes loan discounts upon modifications and deferred financing costs, 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 2020 $ 3,580 4.47% 2021 180,401 2.94% 2022 182,915 3.60% 2023 211,863 3.02% 2024 281,534 3.46% Thereafter 278,034 4.66% Total Mortgage and Unsecured Term Loans $ 1,138,327 3.61% Senior Unsecured Revolving Credit Facility 500,000 2.66% Loan discounts and unamortized deferred financing costs, net (5,545 ) — Debt, net of loan discounts and unamortized deferred financing costs $ 1,632,782 3.32% |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 , respectively (in thousands): March 31, 2020 December 31, 2019 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 + 1.60% 10/22/2015 2/15/2021 $ 50,000 $ (422 ) $ 50,000 $ 167 $175M Term Loan Swap 1.29% 1-Month LIBOR + 1.60% 10/22/2015 2/15/2021 65,000 (543 ) 65,000 223 $175M Term Loan Swap 1.29% 1-Month LIBOR + 1.60% 10/22/2015 2/15/2021 60,000 (501 ) 60,000 206 $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.55% 1/15/2016 10/22/2022 50,000 (1,974 ) 50,000 (403 ) $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.55% 1/15/2016 10/22/2022 25,000 (988 ) 25,000 (202 ) $125M Term Loan Swap 1.84% 1-Month LIBOR + 1.55% 1/15/2016 10/22/2022 25,000 (991 ) 25,000 (207 ) $125M Term Loan Swap 1.83% 1-Month LIBOR + 1.55% 1/15/2016 10/22/2022 25,000 (990 ) 25,000 (204 ) Mortgage Debt Swap 1.54% 1-Month LIBOR + 2.60% 1/13/2016 1/13/2023 57,750 (1,935 ) 58,000 13 Mortgage Debt Swap 1.80% 1-Month LIBOR + 2.25% 3/1/2017 1/3/2022 51,000 (1,377 ) 51,000 (266 ) Mortgage Debt Swap 1.80% 1-Month LIBOR + 2.10% 3/1/2017 1/3/2022 45,000 (1,227 ) 45,000 (248 ) Mortgage Debt Swap 1.81% 1-Month LIBOR + 2.10% 3/1/2017 1/3/2022 45,000 (1,215 ) 45,000 (235 ) $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.45% 10/13/2017 9/13/2022 40,000 (1,598 ) 40,000 (403 ) $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.45% 10/13/2017 9/13/2022 40,000 (1,600 ) 40,000 (405 ) $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.45% 10/13/2017 9/13/2022 25,000 (1,003 ) 25,000 (256 ) $125M Term Loan Swap 1.92% 1-Month LIBOR + 1.45% 10/13/2017 9/13/2022 20,000 (800 ) 20,000 (202 ) Mortgage Debt Swap 2.80% 1-Month LIBOR + 2.10% 6/1/2018 2/1/2023 24,000 (1,624 ) 24,000 (894 ) Mortgage Debt Swap 2.89% 1-Month LIBOR + 2.10% 1/17/2019 2/1/2023 41,000 (2,878 ) 41,000 (1,638 ) $ 688,750 $ (21,666 ) $ 689,000 $ (4,954 ) |
Schedule of Gain (Loss) Recognized on Derivative Financial Instruments | The table below details the location in the condensed consolidated financial statements of the loss recognized on derivative financial instruments designated as cash flow hedges for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Effect of derivative instruments: Location in Statements of Operations and Comprehensive (Loss) Income: Loss recognized in other comprehensive income Unrealized loss on interest rate derivative instruments $ (17,120 ) $ (5,084 ) (Loss) gain reclassified from accumulated other comprehensive income to net income Reclassification adjustment for amounts recognized in net income $ 409 $ (1,413 ) Total interest expense in which effects of cash flow hedges are recorded Interest expense $ 13,024 $ 12,587 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 (in thousands): Fair Value Measurement Date March 31, 2020 December 31, 2019 Location on Condensed Consolidated Balance Sheets/Description of instrument 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) $ — $ — $ 13 $ — Liabilities Interest rate swap liabilities (1) $ (21,666 ) $ — (4,967 ) — Nonrecurring measurements Intangible assets, net of accumulated amortization Goodwill — $ 3,735 — $ 14,035 (1) Interest rate swap fair values are netted as applicable per the terms of the respective master netting agreements. |
Schedule of Goodwill Balance and Related Activity | Our goodwill balance and related activity as of March 31, 2020 and December 31, 2019 is as follows (in thousands): Goodwill Cumulative Impairment Losses Balance Balance as of March 31, 2020 $ 34,352 $ (25,768 ) $ 8,584 Balance as of December 31, 2019 $ 34,352 $ (9,400 ) $ 24,952 |
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 March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Total Debt, net of discounts $ 1,138,327 $ 1,072,845 $ 1,139,017 $ 1,160,588 Senior Unsecured Revolving Credit Facility 500,000 478,718 160,000 160,886 Total $ 1,638,327 $ 1,551,563 $ 1,299,017 $ 1,321,474 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Dividends Declared | The Company declared the following dividend during the three months ended March 31, 2020 : Dividend per Share/Unit For the Quarter Ended Record Date Payable Date $0.275 March 31, 2020 March 31, 2020 April 15, 2020 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Common Stockholders to Basic and Diluted | The following table reconciles net (loss) income attributable to common stockholders to basic and diluted earnings per share (in thousands, except share and per share data): Three Months Ended March 31, 2020 2019 Numerator: Net (loss) income attributable to common stockholders $ (36,138 ) $ 16,703 Dividends paid on unvested share-based compensation (150 ) (143 ) Net (loss) income available to common stockholders $ (36,288 ) $ 16,560 Denominator: Weighted average shares outstanding - Basic 112,984,868 112,619,144 Effect of dilutive share-based compensation (1) — 288,395 Weighted average shares outstanding - Diluted 112,984,868 112,907,539 Basic and diluted earnings per share: Net (loss) income per share available to common stockholders - basic and diluted $ (0.32 ) $ 0.15 (1) During the three months ended March 31, 2020 , the Company excluded 327,475 anti-dilutive shares from its calculation of diluted earnings per share. |
Share Based Compensation (Table
Share Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 2020 2020 Restricted Stock Units 112,937 163,501 $9.70 |
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 March 2020 2020 LTIP Units 100,899 868,723 $5.79 |
Schedule of Unvested Incentive Awards | The following is a summary of the unvested incentive awards under the Company's 2015 Incentive Award Plan as of March 31, 2020 : 2015 Incentive Award Plan Restricted Stock Units (1) 2015 Incentive Award Plan LTIP Units (1) Total Unvested as of December 31, 2019 247,108 1,683,965 1,931,073 Granted 276,438 969,622 1,246,060 Vested (2) (98,279 ) (86,986 ) (185,265 ) Expired — — — Forfeited (3,154 ) — (3,154 ) Unvested as of March 31, 2020 422,113 2,566,601 2,988,714 Weighted average fair value of unvested shares/units $ 10.99 $ 7.46 $ 7.96 (1) Includes time-based and performance-based units. (2) During the three months ended March 31, 2020 , 28,072 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 March 2, 2020 Absolute TSR Restricted Stock Units - Type I 25% $2.07 24.62% 1.13% - 0.95% 7.05% Relative TSR Restricted Stock Units - Type I 75% $6.73 24.62% 1.13% - 0.95% 7.05% Absolute TSR Restricted Stock Units - Type II 25% $2.14 24.62% 1.13% - 0.95% 7.05% Relative TSR Restricted Stock Units - Type II 75% $7.00 24.62% 1.13% - 0.95% 7.05% Absolute TSR Class A LTIPs 25% $2.34 24.62% 1.13% - 0.95% 7.05% Relative TSR Class A LTIPs 75% $6.85 24.62% 1.13% - 0.95% 7.05% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Leases | The following is a summary of the Company's leases as of and for the three months ended March 31, 2020 (dollar amounts in thousands): March 31, 2020 Weighted average remaining lease term, including reasonably certain extension options (1) 30 years Weighted average discount rate 5.94% ROU asset (2) $ 45,980 Lease liability (3) $ 27,052 Operating lease rent expense $ 602 Variable lease costs 1,872 Total rent and variable lease costs $ 2,474 (1) The weighted average remaining lease term including all available extension options is approximately 61 years . (2) The ROU asset is included in other assets on the accompanying condensed consolidated balance sheet as of March 31, 2020 . (3) The lease liability is included in other liabilities on the accompanying condensed consolidated balance sheet as of March 31, 2020 . |
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 March 31, 2020 (in thousands): Year Ending December 31, 2020 2020 (excluding the three months ended March 31, 2020) $ 1,803 2021 2,417 2022 2,431 2023 2,445 2024 2,460 Thereafter 49,862 Total undiscounted lease payments $ 61,418 Less imputed interest (34,366 ) Lease liability (1) $ 27,052 (1) The lease liability is included in other liabilities on the accompanying condensed consolidated balance sheet as of March 31, 2020 . |
Organization - Narrative (Detai
Organization - Narrative (Details) | 1 Months Ended | |||||
May 31, 2020property | Apr. 30, 2020property | Mar. 31, 2020marketproperty | Feb. 29, 2020 | Jan. 31, 2020 | Mar. 31, 2019property | |
Organization [Line Items] | ||||||
Number of top lodging markets for investing activity | market | 25 | |||||
Number of hotels operated | 39 | |||||
Number of hotels with temporarily suspended operations | 24 | |||||
Number hotels operating at reduced demand levels | 8 | |||||
Total portfolio occupancy rates (percent) | 27.20% | 74.60% | 65.00% | |||
Wholly Owned Properties | ||||||
Organization [Line Items] | ||||||
Number of hotels operated | 39 | 40 | ||||
XHR LP (Operating Partnership) | ||||||
Organization [Line Items] | ||||||
Ownership by Company (percent) | 97.10% | |||||
Ownership by noncontrolling owners (percent) | 2.90% | |||||
Subsequent Event | ||||||
Organization [Line Items] | ||||||
Number of additional hotels with temporarily suspended operations in April | 7 | |||||
Forecast | ||||||
Organization [Line Items] | ||||||
Number smaller properties planning to recommence operations at modified levels of service | 5 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2020property | Mar. 31, 2020USD ($)property | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |||||
Number of hotels with temporarily suspended operations | property | 24 | ||||
Number of hotels operated | property | 39 | ||||
Number hotels operating at reduced demand levels | property | 8 | ||||
Proceeds from borrowings on credit facility | $ 340,000,000 | $ 0 | |||
Capital expenditure projects deferred | 50,000,000 | ||||
Goodwill | 8,584,000 | $ 25,000,000 | $ 24,952,000 | ||
Goodwill impairment charge | 16,400,000 | 9,400,000 | $ 0 | ||
Accumulated other comprehensive loss | $ 20,822,000 | $ 4,596,000 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of additional hotels with temporarily suspended operations in April | property | 7 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Risks and Uncertainties (Details) - property | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Concentration Risk [Line Items] | |||
Number of hotels with temporarily suspended operations | 24 | ||
Number of hotels operated | 39 | ||
Subsequent Event | |||
Concentration Risk [Line Items] | |||
Number of additional hotels with temporarily suspended operations in April | 7 | ||
Revenue | Geographic Concentration Risk | Minimum | Orlando, FL | |||
Concentration Risk [Line Items] | |||
Concentration risk (percent) | 10.00% | 10.00% | |
Revenue | Geographic Concentration Risk | Minimum | Phoenix, AZ | |||
Concentration Risk [Line Items] | |||
Concentration risk (percent) | 10.00% | 10.00% |
Revenues - Disaggregation by Pr
Revenues - Disaggregation by Primary Geographical Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 215,353 | $ 293,687 |
Orlando, FL | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 30,194 | 36,156 |
Phoenix, AZ | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 24,106 | 32,844 |
Houston, TX | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 21,263 | 26,741 |
Dallas, TX | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 15,537 | 21,390 |
San Francisco/San Mateo, CA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13,626 | 19,406 |
Atlanta, GA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13,309 | 16,782 |
San Diego, CA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 10,641 | 19,800 |
Denver, CO | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9,685 | 11,751 |
San Jose-Santa Cruz, CA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9,593 | 15,759 |
Austin, TX | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7,530 | |
Washington, DC-MD-VA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 11,600 | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 59,869 | $ 81,458 |
Investment Properties - Disposi
Investment Properties - Dispositions (Details) $ in Thousands | Mar. 31, 2020USD ($)property | Feb. 29, 2020USD ($)property | Jan. 31, 2020USD ($)property | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) |
Disposition of Properties | |||||
Number of hotel assets | property | 39 | ||||
Restricted cash and escrows | $ 79,529 | $ 84,105 | $ 69,784 | ||
Hotel Furniture, Fixtures, and Equipment Reserves | |||||
Disposition of Properties | |||||
Restricted cash and escrows | $ 66,900 | $ 70,800 | |||
Renaissance Atlanta Waverly Hotel & Convention Center | |||||
Disposition of Properties | |||||
Number of rooms | property | 522 | ||||
Gross sales price per agreement | $ 155,000 | ||||
Buyer's at-risk deposit for transaction | $ 7,750 | ||||
Renaissance Austin Hotel | |||||
Disposition of Properties | |||||
Number of rooms | property | 492 | ||||
Gross sales price per agreement | $ 100,500 | ||||
Buyer's at-risk deposit for transaction | $ 2,000 | ||||
Kimpton Portfolio | |||||
Disposition of Properties | |||||
Number of hotel assets | property | 7 | ||||
Gross sales price per agreement | $ 483,000 | ||||
Buyer's at-risk deposit for transaction | 20,000 | ||||
Kimpton Portfolio | Hotel Furniture, Fixtures, and Equipment Reserves | |||||
Disposition of Properties | |||||
Restricted cash and escrows | $ 6,000 |
Debt - Summary of Debt Instrume
Debt - Summary of Debt Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Balance outstanding | $ 1,138,327 | |
Loan discounts and unamortized deferred financing costs, net | (5,545) | $ (5,963) |
Debt, net of loan discounts and unamortized deferred financing costs | $ 1,632,782 | $ 1,293,054 |
Weighted average interest rate (percent) | 3.32% | 3.72% |
Mortgages | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 563,327 | $ 564,017 |
Weighted average interest rate (percent) | 4.22% | |
Marriott Dallas Downtown | Mortgages | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 51,000 | 51,000 |
Weighted average interest rate (percent) | 4.05% | |
Kimpton Hotel Palomar Philadelphia | Mortgages | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 57,750 | 58,000 |
Weighted average interest rate (percent) | 4.14% | |
Renaissance Atlanta Waverly Hotel & Convention Center | Mortgages | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 100,000 | 100,000 |
Weighted average interest rate (percent) | 3.82% | |
Andaz Napa | Mortgages | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 56,000 | 56,000 |
Weighted average interest rate (percent) | 2.89% | |
The Ritz-Carlton, Pentagon City | Mortgages | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 65,000 | 65,000 |
Weighted average interest rate (percent) | 4.95% | |
Residence Inn Boston Cambridge | Mortgages | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 60,547 | 60,731 |
Weighted average interest rate (percent) | 4.48% | |
Grand Bohemian Hotel Orlando, Autograph Collection | Mortgages | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 58,030 | 58,286 |
Weighted average interest rate (percent) | 4.53% | |
Marriott San Francisco Airport Waterfront | Mortgages | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 115,000 | 115,000 |
Weighted average interest rate (percent) | 4.63% | |
Unsecured Term Loan $175M | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 175,000 | 175,000 |
Weighted average interest rate (percent) | 2.89% | |
Loan agreement with breach of financial maintenance covenant at period end | $ 175,000 | |
Unsecured Term Loan $125M | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 125,000 | 125,000 |
Weighted average interest rate (percent) | 3.38% | |
Loan agreement with breach of financial maintenance covenant at period end | $ 125,000 | |
Unsecured Term Loan $150M | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 150,000 | 150,000 |
Weighted average interest rate (percent) | 2.56% | |
Loan agreement with breach of financial maintenance covenant at period end | $ 150,000 | |
Unsecured Term Loan $125M | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Balance outstanding | $ 125,000 | 125,000 |
Weighted average interest rate (percent) | 3.37% | |
Loan agreement with breach of financial maintenance covenant at period end | $ 125,000 | |
Senior Unsecured Revolving Credit Facility | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Senior unsecured revolving credit facility | $ 500,000 | $ 160,000 |
Weighted average interest rate (percent) | 2.66% | |
Loan agreement with breach of financial maintenance covenant at period end | $ 500,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 0 | $ 213,000 | |
Debt outstanding | $ 1,299,000,000 | ||
Weighted average interest rate (percent) | 3.32% | 3.72% | |
Recourse debt | $ 0 | ||
Proceeds from borrowings on credit facility | $ 340,000,000 | 0 | |
Unsecured Debt | Senior Unsecured Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate (percent) | 2.66% | ||
Senior unsecured revolving credit facility | $ 500,000,000 | $ 160,000,000 | |
Credit facility unused borrowing capacity fee | 200,000 | 400,000 | |
Interest expense | $ 1,500,000 | $ 0 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Principal payments and debt maturities | ||
2020 | $ 3,580 | |
2021 | 180,401 | |
2022 | 182,915 | |
2023 | 211,863 | |
2024 | 281,534 | |
Thereafter | 278,034 | |
Total Mortgage and Unsecured Term Loans | 1,138,327 | |
Loan discounts and unamortized deferred financing costs, net | (5,545) | $ (5,963) |
Debt, net of loan discounts and unamortized deferred financing costs | $ 1,632,782 | $ 1,293,054 |
Weighted average interest rate | ||
2020 (percent) | 4.47% | |
2021 (percent) | 2.94% | |
2022 (percent) | 3.60% | |
2023 (percent) | 3.02% | |
2024 (percent) | 3.46% | |
Thereafter (percent) | 4.66% | |
Total Mortgage and Unsecured Term Loans (percent) | 3.61% | |
Senior Unsecured Revolving Credit Facility (percent) | 2.66% | |
Debt, net of loan discounts and unamortized deferred financing costs (percent) | 3.32% | 3.72% |
Derivatives - Derivative Financ
Derivatives - Derivative Financial Instruments (Details) - Cash Flow Hedge - Interest Rate Swap - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Notional amounts | $ 688,750,000 | $ 689,000,000 |
Estimated fair value | (21,666,000) | (4,954,000) |
A175 Term Loan Hedged One | ||
Derivative [Line Items] | ||
Hedged debt | $ 175,000,000 | |
Fixed rate | 1.30% | |
Notional amounts | $ 50,000,000 | 50,000,000 |
Estimated fair value | $ (422,000) | 167,000 |
A175 Term Loan Hedged One | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.60% | |
A175 Term Loan Hedged Two | ||
Derivative [Line Items] | ||
Hedged debt | $ 175,000,000 | |
Fixed rate | 1.29% | |
Notional amounts | $ 65,000,000 | 65,000,000 |
Estimated fair value | $ (543,000) | 223,000 |
A175 Term Loan Hedged Two | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.60% | |
A175 Term Loan Hedged Three | ||
Derivative [Line Items] | ||
Hedged debt | $ 175,000,000 | |
Fixed rate | 1.29% | |
Notional amounts | $ 60,000,000 | 60,000,000 |
Estimated fair value | $ (501,000) | 206,000 |
A175 Term Loan Hedged Three | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.60% | |
A125 Term Loan Hedged One | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.83% | |
Notional amounts | $ 50,000,000 | 50,000,000 |
Estimated fair value | $ (1,974,000) | (403,000) |
A125 Term Loan Hedged One | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.55% | |
A125 Term Loan Hedged Two | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.83% | |
Notional amounts | $ 25,000,000 | 25,000,000 |
Estimated fair value | $ (988,000) | (202,000) |
A125 Term Loan Hedged Two | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.55% | |
A125 Term Loan Hedged Three | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.84% | |
Notional amounts | $ 25,000,000 | 25,000,000 |
Estimated fair value | $ (991,000) | (207,000) |
A125 Term Loan Hedged Three | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.55% | |
A125 Term Loan Hedged Four | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.83% | |
Notional amounts | $ 25,000,000 | 25,000,000 |
Estimated fair value | $ (990,000) | (204,000) |
A125 Term Loan Hedged Four | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.55% | |
Mortgage Debt Hedged One | ||
Derivative [Line Items] | ||
Fixed rate | 1.54% | |
Notional amounts | $ 57,750,000 | 58,000,000 |
Estimated fair value | $ (1,935,000) | 13,000 |
Mortgage Debt Hedged One | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.60% | |
Mortgage Debt Hedged Two | ||
Derivative [Line Items] | ||
Fixed rate | 1.80% | |
Notional amounts | $ 51,000,000 | 51,000,000 |
Estimated fair value | $ (1,377,000) | (266,000) |
Mortgage Debt Hedged Two | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Mortgage Debt Hedged Three | ||
Derivative [Line Items] | ||
Fixed rate | 1.80% | |
Notional amounts | $ 45,000,000 | 45,000,000 |
Estimated fair value | $ (1,227,000) | (248,000) |
Mortgage Debt Hedged Three | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.10% | |
Mortgage Debt Hedged Four | ||
Derivative [Line Items] | ||
Fixed rate | 1.81% | |
Notional amounts | $ 45,000,000 | 45,000,000 |
Estimated fair value | $ (1,215,000) | (235,000) |
Mortgage Debt Hedged Four | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.10% | |
A125 Term Loan Hedged Five | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.92% | |
Notional amounts | $ 40,000,000 | 40,000,000 |
Estimated fair value | $ (1,598,000) | (403,000) |
A125 Term Loan Hedged Five | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.45% | |
A125 Term Loan Hedged Six | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.92% | |
Notional amounts | $ 40,000,000 | 40,000,000 |
Estimated fair value | $ (1,600,000) | (405,000) |
A125 Term Loan Hedged Six | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.45% | |
A125 Term Loan Hedged Seven | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.92% | |
Notional amounts | $ 25,000,000 | 25,000,000 |
Estimated fair value | $ (1,003,000) | (256,000) |
A125 Term Loan Hedged Seven | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.45% | |
A125 Term Loan Hedged Eight | ||
Derivative [Line Items] | ||
Hedged debt | $ 125,000,000 | |
Fixed rate | 1.92% | |
Notional amounts | $ 20,000,000 | 20,000,000 |
Estimated fair value | $ (800,000) | (202,000) |
A125 Term Loan Hedged Eight | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 1.45% | |
Mortgage Debt Hedged Five | ||
Derivative [Line Items] | ||
Fixed rate | 2.80% | |
Notional amounts | $ 24,000,000 | 24,000,000 |
Estimated fair value | $ (1,624,000) | (894,000) |
Mortgage Debt Hedged Five | LIBOR | ||
Derivative [Line Items] | ||
Basis spread on variable rate | 2.10% | |
Mortgage Debt Hedged Six | ||
Derivative [Line Items] | ||
Fixed rate | 2.89% | |
Notional amounts | $ 41,000,000 | 41,000,000 |
Estimated fair value | $ (2,878,000) | $ (1,638,000) |
Mortgage Debt Hedged Six | 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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Unrealized loss on interest rate derivative instruments | $ (17,120) | $ (5,084) |
Reclassification adjustment for amounts recognized in net income | 409 | (1,413) |
Interest expense | $ 13,024 | $ 12,587 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Expected reclassification from accumulated OCI to interest expense in next twelve months | $ 10.4 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Recurring | Significant Unobservable Inputs (Level 2) | Interest Rate Swap | ||
Other assets | ||
Interest rate swap assets | $ 0 | $ 13 |
Liabilities | ||
Interest rate swap liabilities | (21,666) | (4,967) |
Recurring | Significant Unobservable Inputs (Level 3) | Interest Rate Swap | ||
Other assets | ||
Interest rate swap assets | 0 | 0 |
Liabilities | ||
Interest rate swap liabilities | 0 | 0 |
Nonrecurring | Significant Unobservable Inputs (Level 2) | ||
Intangible assets, net of accumulated amortization | ||
Goodwill | 0 | 0 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Intangible assets, net of accumulated amortization | ||
Goodwill | $ 3,735 | $ 14,035 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Goodwill Balance | |||
Goodwill | $ 34,352 | $ 34,352 | |
Cumulative Impairment Losses | (25,768) | (9,400) | |
Balance | $ 8,584 | $ 24,952 | $ 25,000 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Fair and Carrying Value of Financial Instruments (Details) - Significant Unobservable Inputs (Level 2) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt, net of discounts | $ 1,138,327 | $ 1,139,017 |
Senior Unsecured Revolving Credit Facility | 500,000 | 160,000 |
Total | 1,638,327 | 1,299,017 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Debt, net of discounts | 1,072,845 | 1,160,588 |
Senior Unsecured Revolving Credit Facility | 478,718 | 160,886 |
Total | $ 1,551,563 | $ 1,321,474 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill impairment charge | $ 16,400,000 | $ 9,400,000 | $ 0 |
Level 2 | Measurement Input, Discount Rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Weighted average effective interest rate (percent) | 0.0461 | 0.0315 | |
Andaz Savannah | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill impairment charge | $ 6,100,000 | ||
Bohemian Hotel Savannah Riverfront, Autograph Collection | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill impairment charge | $ 10,300,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Estimated federal and state combined effective rate (percent) | 10.10% | 30.39% |
Income tax expense | $ (7,311) | $ 6,093 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | 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 | 0 | |||
Aggregate offering price of common stock currently available for sale under at the market agreements | $ 62,600,000 | ||||
Shares repurchased (in shares) | 165,516 | 0 | |||
Shares repurchased, weighted average price per share (in dollars per share) | $ 13.68 | ||||
Aggregate repurchase price | $ 2,264,000 | $ 0 | |||
Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program authorized amount | $ 75,000,000 | $ 100,000,000 | |||
Remaining share repurchase authorization | $ 94,700,000 |
Stockholders' Equity - Distribu
Stockholders' Equity - Distributions (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Dividends per Share/Unit (in dollars per share) | $ 0.275 | $ 0.275 |
Record Date | Mar. 31, 2020 | |
Payable Date | Apr. 15, 2020 |
Stockholders' Equity - Non-cont
Stockholders' Equity - Non-controlling Interest of Common Units in Operating Partnership (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Class of Stock [Line Items] | ||
Common limited partnership units redeemed for cash | 457,017 | |
Cash paid for redemption of common limited partnership units | $ 8,623 | $ 0 |
XHR LP (Operating Partnership) | ||
Class of Stock [Line Items] | ||
Ownership by noncontrolling owners (percent) | 2.90% | |
LTIP Units | ||
Class of Stock [Line Items] | ||
LTIP Units converted into common limited partnership units | 1,305,759 | |
Number of units outstanding, vested and nonvested (in shares) | 3,358,302 | |
Number of vested units (in shares) | 791,701 | |
Common stock | ||
Class of Stock [Line Items] | ||
Shares issued for conversion of common limitied partnership units | 848,742 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net (loss) income attributable to common stockholders | $ (36,138) | $ 16,703 |
Dividends paid on unvested share-based compensation | (150) | (143) |
Net (loss) income available to common stockholders | $ (36,288) | $ 16,560 |
Denominator: | ||
Weighted average shares outstanding - Basic (in shares) | 112,984,868 | 112,619,144 |
Effect of dilutive share-based compensation (in shares) | 0 | 288,395 |
Weighted average shares outstanding - Diluted (in shares) | 112,984,868 | 112,907,539 |
Basic and diluted earnings per share: | ||
Net income per share available to common stockholders - basic and diluted (in dollars per share) | $ (0.32) | $ 0.15 |
Anti-dilutive shares excluded from calculation of diluted earnings per share | 327,475 |
Share Based Compensation - Rest
Share Based Compensation - Restricted Stock Unit Grants (Details) - $ / shares | 1 Months Ended | 3 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 1,246,060 | |
Restricted Stock Units, Time-Based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 112,937 | |
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) | 163,501 | |
Absolute TSR Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Component of total award (percent) | 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% | |
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) | $ 9.70 |
Share Based Compensation - LTIP
Share Based Compensation - LTIP Unit Grants (Details) - $ / shares | Mar. 02, 2020 | Mar. 31, 2020 | Mar. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 1,246,060 | ||
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 | ||
A2020 LTIP Units | Time-Based LTIP Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 100,899 | ||
A2020 LTIP Units | Class A LTIP Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 868,723 | ||
A2020 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) | $ 5.79 |
Share Based Compensation - Unve
Share Based Compensation - Unvested Incentive Awards (Details) | 3 Months Ended | |
Mar. 31, 2020$ / sharesshares | Mar. 31, 2019shares | |
Unvested Incentive Awards [Roll Forward] | ||
Unvested as of beginning of period (in shares) | 1,931,073 | |
Granted (in shares) | 1,246,060 | |
Vested (in shares) | (185,265) | |
Expired (in shares) | 0 | |
Forfeited (in shares) | (3,154) | |
Unvested as of end of period (in shares) | 2,988,714 | |
Weighted average fair value of unvested shares/units (in dollars per share) | $ / shares | $ 7.96 | |
Common stock | ||
Unvested Incentive Awards [Roll Forward] | ||
Shares redeemed to satisfy tax withholding on vested share based compensation (in shares) | 28,072 | 22,807 |
2015 Incentive Award Plan | Restricted Stock Units | ||
Unvested Incentive Awards [Roll Forward] | ||
Unvested as of beginning of period (in shares) | 247,108 | |
Granted (in shares) | 276,438 | |
Vested (in shares) | (98,279) | |
Expired (in shares) | 0 | |
Forfeited (in shares) | (3,154) | |
Unvested as of end of period (in shares) | 422,113 | |
Weighted average fair value of unvested shares/units (in dollars per share) | $ / shares | $ 10.99 | |
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) | 1,683,965 | |
Granted (in shares) | 969,622 | |
Vested (in shares) | (86,986) | |
Expired (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Unvested as of end of period (in shares) | 2,566,601 | |
Weighted average fair value of unvested shares/units (in dollars per share) | $ / shares | $ 7.46 |
Share Based Compensation - Assu
Share Based Compensation - Assumptions Used in Fair Value of Performance Awards (Details) - $ / shares | Mar. 02, 2020 | Mar. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Date Fair Value by Component (in dollars per share) | $ 7.96 | |
Absolute TSR Restricted Stock Units - Type I | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 25.00% | |
Grant Date Fair Value by Component (in dollars per share) | $ 2.07 | |
Volatility | 24.62% | |
Interest Rate, maximum | 1.13% | |
Interest Rate, minimum | 0.95% | |
Dividend Yield | 7.05% | |
Relative TSR Restricted Stock Units - Type I | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 75.00% | |
Grant Date Fair Value by Component (in dollars per share) | $ 6.73 | |
Volatility | 24.62% | |
Interest Rate, maximum | 1.13% | |
Interest Rate, minimum | 0.95% | |
Dividend Yield | 7.05% | |
Absolute TSR Restricted Stock Units - Type II | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 25.00% | |
Grant Date Fair Value by Component (in dollars per share) | $ 2.14 | |
Volatility | 24.62% | |
Interest Rate, maximum | 1.13% | |
Interest Rate, minimum | 0.95% | |
Dividend Yield | 7.05% | |
Relative TSR Restricted Stock Units - Type II | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 75.00% | |
Grant Date Fair Value by Component (in dollars per share) | $ 7 | |
Volatility | 24.62% | |
Interest Rate, maximum | 1.13% | |
Interest Rate, minimum | 0.95% | |
Dividend Yield | 7.05% | |
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) | $ 2.34 | |
Volatility | 24.62% | |
Interest Rate, maximum | 1.13% | |
Interest Rate, minimum | 0.95% | |
Dividend Yield | 7.05% | |
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) | $ 6.85 | |
Volatility | 24.62% | |
Interest Rate, maximum | 1.13% | |
Interest Rate, minimum | 0.95% | |
Dividend Yield | 7.05% |
Share Based Compensation - Shar
Share Based Compensation - Share Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation costs | $ 16.2 | |
Unrecognized compensation costs period for recognition | 2 years 1 month 6 days | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Accelerated share-based compensation | $ 0.4 | |
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 | $ 1.9 |
Management | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation capitalized amount | $ 0.3 | $ 0.1 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Other Commitments [Line Items] | |||
Restricted cash and escrows | $ 79,529 | $ 69,784 | $ 84,105 |
Hotel Management Agreement, Franchised Hotels | |||
Other Commitments [Line Items] | |||
Average remaining initial term | 5 years | ||
Hotel Management Agreement, Franchised Hotels | Minimum | |||
Other Commitments [Line Items] | |||
Contractual agreement term | 10 years | ||
Hotel Management Agreement, Franchised Hotels | Maximum | |||
Other Commitments [Line Items] | |||
Contractual agreement term | 15 years | ||
Hotel Management Agreement, Brand-Managed Hotels | |||
Other Commitments [Line Items] | |||
Average remaining term | 27 years | ||
Hotel Management Agreement, Brand-Managed Hotels | Minimum | |||
Other Commitments [Line Items] | |||
Contractual agreement term | 20 years | ||
Hotel Management Agreement, Brand-Managed Hotels | Maximum | |||
Other Commitments [Line Items] | |||
Contractual agreement term | 30 years | ||
Franchise Agreement | |||
Other Commitments [Line Items] | |||
Average remaining initial term | 11 years | ||
Franchise Agreement | Minimum | |||
Other Commitments [Line Items] | |||
Contractual agreement term | 17 years | ||
Franchise Agreement | Maximum | |||
Other Commitments [Line Items] | |||
Contractual agreement term | 20 years | ||
Hotel Property Renovation, Third Party | |||
Other Commitments [Line Items] | |||
Other commitment | $ 24,400 | ||
Management Service | |||
Other Commitments [Line Items] | |||
Expenses | 7,330 | $ 12,309 | |
Hotel Furniture, Fixtures, and Equipment Reserves | |||
Other Commitments [Line Items] | |||
Restricted cash and escrows | $ 66,900 | $ 70,800 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Leases | |
Weighted average remaining lease term, including reasonably certain extension options | 30 years |
Weighted average discount rate (percent) | 5.94% |
ROU asset | $ 45,980 |
Lease liability | 27,052 |
Operating lease rent expense | 602 |
Variable lease costs | 1,872 |
Total rent and variable lease costs | $ 2,474 |
Weighted average remaining lease term including available extension options | 61 years |
Commitments and Contingencies_3
Commitments and Contingencies - Remaining Lease Payments (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Remaining Lease Payments | |
2020 (excluding the three months ended March 31, 2020) | $ 1,803 |
2021 | 2,417 |
2022 | 2,431 |
2023 | 2,445 |
2024 | 2,460 |
Thereafter | 49,862 |
Total undiscounted lease payments | 61,418 |
Less imputed interest | (34,366) |
Lease liability | $ 27,052 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2020 | May 04, 2020 | |
Senior Vice President and Chief Investment Officer | ||
Subsequent Event [Line Items] | ||
Value of separation agreement | $ 1.4 | |
Payment term of separation agreement | 12 months | |
Senior Vice President and Chief Investment Officer | Maximum | ||
Subsequent Event [Line Items] | ||
Maximum period of health insurance coverage per separation agreement | 18 months | |
Buyer party of Kimpton Portfolio | ||
Subsequent Event [Line Items] | ||
Security deposit currently in escrow upon termination of agreement | $ 20 |