Service Properties Trust (SVC) 10-Q6 May 142014 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2014	5-May-14
Document and Entity Information	'	'
Entity Registrant Name	'HOSPITALITY PROPERTIES TRUST	'
Entity Central Index Key	'0000945394	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	149,741,487
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Real estate properties, at cost:	'	'
Land	$1,470,513	$1,470,513
Buildings, improvements and equipment	5,968,554	5,946,852
Total real estate properties, gross	7,439,067	7,417,365
Accumulated depreciation	-1,812,007	-1,757,151
Total real estate properties, net	5,627,060	5,660,214
Cash and cash equivalents	33,830	22,500
Restricted cash (FF&E reserve escrow)	26,863	30,873
Due from related persons	38,503	38,064
Other assets, net	209,931	215,893
Total assets	5,936,187	5,967,544
LIABILITIES AND SHAREHOLDERS' EQUITY	'	'
Unsecured term loan	400,000	400,000
Senior notes, net of discounts	2,345,151	2,295,527
Convertible senior notes	8,478	8,478
Security deposits	29,718	27,876
Accounts payable and other liabilities	94,053	130,448
Due to related persons	8,145	13,194
Dividends payable	5,166	5,166
Total liabilities	2,890,711	2,880,689
Commitments and contingencies	'	'
Preferred shares of beneficial interest, no par value, 100,000,000 shares authorized:	'	'
Common shares of beneficial interest, $.01 par value; 200,000,000 shares authorized; 149,730,332 and 149,606,024 shares issued and outstanding, respectively	1,497	1,496
Additional paid in capital	4,113,065	4,109,600
Cumulative net income	2,555,604	2,518,054
Cumulative other comprehensive income	10,534	15,952
Cumulative preferred distributions	-285,151	-279,985
Cumulative common distributions	-3,630,180	-3,558,369
Total shareholders' equity	3,045,476	3,086,855
Total liabilities and shareholders' equity	5,936,187	5,967,544
Series D	'	'
Preferred shares of beneficial interest, no par value, 100,000,000 shares authorized:	'	'
Preferred shares	$280,107	$280,107

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Common shares, par value (in dollars per share)	$0.01	$0.01
Common shares, shares authorized	200,000,000	200,000,000
Common shares, shares issued	149,730,332	149,606,024
Common shares, shares outstanding	149,730,332	149,606,024
Series D	'	'
Preferred shares, par value (in dollars per share)	'	'
Preferred shares, shares authorized	100,000,000	100,000,000
Preferred shares, dividend yield (as a percent)	7.13%	7.13%
Preferred shares, shares issued	11,600,000	11,600,000
Preferred shares, shares outstanding	11,600,000	11,600,000
Preferred shares, aggregate liquidation preference (in dollars)	$290,000	$290,000

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenues:	'	'
Hotel operating revenues	$329,936	$291,651
Rental income	63,386	62,212
FF&E reserve income	928	603
Total revenue	394,250	354,466
Expenses:	'	'
Hotel operating expenses	230,617	206,649
Depreciation and amortization	78,287	72,280
General and administrative	11,465	12,144
Acquisition related costs	61	276
Total expenses	320,430	291,349
Operating income	73,820	63,117
Interest income	25	19
Interest expense (including amortization of deferred financing costs and debt discounts of $1,831 and $1,512, respectively)	-35,368	-35,188
Loss on extinguishment of debt	-214	'
Income before income taxes and equity in earnings (losses) of an investee	38,263	27,948
Income tax expense	-616	-518
Equity in earnings (losses) of an investee	-97	76
Net income	37,550	27,506
Preferred distributions	-5,166	-8,097
Net income available for common shareholders	32,384	19,409
Net income	37,550	27,506
Other comprehensive income (loss):	'	'
Unrealized gain (loss) on TravelCenters of America common shares	-5,438	12,420
Equity interest in investee's unrealized gains (losses)	19	-8
Other comprehensive income (loss)	-5,419	12,412
Comprehensive income	$32,131	$39,918
Weighted average common shares outstanding (in shares)	149,636	125,426
Basic and diluted earnings per common shares:	'	'
Net income available for common shareholders (in dollars per share)	$0.22	$0.15

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	'	'
Interest expense, amortization of deferred financing costs and debt discounts	$1,831	$1,512

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net income	$37,550	$27,506
Adjustments to reconcile net income to cash provided by operating activities:	'	'
Depreciation and amortization	78,287	72,280
Amortization of deferred financing costs and debt discounts as interest	1,831	1,512
Straight line rental income	-42	-62
Security deposits replenished (applied to payment shortfalls)	1,837	-5,917
FF&E reserve income and deposits	-12,556	-6,845
Loss on extinguishment of debt	214	'
Equity in (earnings) losses of an investee	97	-76
Deferred income taxes	'	-212
Other non-cash (income) expense, net	252	-1,100
Changes in assets and liabilities:	'	'
(Increase) decrease in due from related persons	-2	260
Increase in other assets	-1,382	-12,063
Decrease in accounts payable and other liabilities	-25,183	-23,734
Decrease in due to related persons	-1,833	-3,346
Cash provided by operating activities	79,070	48,203
Cash flows from investing activities:	'	'
Real estate acquisitions and deposits	5,000	-3,000
Real estate improvements	-41,607	-49,364
FF&E reserve fundings	-769	-15,111
Eminent domain proceeds	6,178	'
Cash used in investing activities	-31,198	-67,475
Cash flows from financing activities:	'	'
Proceeds from issuance of common shares, net	'	393,473
Proceeds from issuance of senior notes, net of discount	346,616	'
Repayment of senior notes	-300,000	'
Borrowings under revolving credit facility	370,000	95,000
Repayments of revolving credit facility	-370,000	-405,000
Deferred financing costs	-6,181	'
Distributions to preferred shareholders	-5,166	-8,097
Distributions to common shareholders	-71,811	-58,110
Cash (used in) provided by financing activities	-36,542	17,266
Increase (decrease) in cash and cash equivalents	11,330	-2,006
Cash and cash equivalents at beginning of period	22,500	20,049
Cash and cash equivalents at end of period	33,830	18,043
Supplemental cash flow information:	'	'
Cash paid for interest	54,116	55,064
Cash paid for income taxes	1,737	132
Non-cash investing activities:	'	'
Hotel managers' deposits in FF&E reserve	9,745	5,891
Hotel managers' purchases with FF&E reserve	($14,524)	($23,816)

Basis_of_Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2014
Basis of Presentation	'
Basis of Presentation	'
	Note 1. Basis of Presentation

	The accompanying condensed consolidated financial statements of Hospitality Properties Trust and its subsidiaries, or HPT, we, our or us, are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2013, or our 2013 Annual Report. In the opinion of our management, all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation, have been included in these condensed consolidated financial statements. These condensed consolidated financial statements include the accounts of HPT and its subsidiaries, all of which are 100% owned directly or indirectly by HPT. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Our operating results for interim periods and those of our managers and tenants are not necessarily indicative of the results that may be expected for the full year. Reclassifications have been made to the prior year’s condensed consolidated financial statements to conform to the current year’s presentation.

	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in our condensed consolidated financial statements include the allowance for doubtful accounts, purchase price allocations, useful lives of fixed assets and impairment of real estate and intangible assets.

	We have determined that each of our taxable REIT subsidiaries, or TRSs, is a variable interest entity, or VIE, as defined under the Consolidation Topic of the Financial Accounting Standards Board, or FASB, Accounting Standards CodificationTM. We have concluded that we must consolidate each of our TRSs because we are the entity with the power to direct the activities that most significantly impact the VIEs’ performance and we have the obligation to absorb the majority of the potential variability in gains and losses of each VIE, with the primary focus on losses, and are, therefore, the primary beneficiary of each VIE. The assets of our TRSs were $28,341 as of March 31, 2014 and consist primarily of amounts due from certain of their hotel managers and working capital advances to certain of their hotel managers. These assets can be used to settle obligations of both us and our TRSs. The liabilities of our TRSs were $41,702 as of March 31, 2014 and consist primarily of security deposits they hold and amounts payable to certain of their hotel managers. Creditors have recourse to both us and our TRSs for these liabilities.

New_Accounting_Pronouncements

New Accounting Pronouncements	3 Months Ended
New Accounting Pronouncements	Mar. 31, 2014
New Accounting Pronouncements	'
New Accounting Pronouncements	'
	Note 2. New Accounting Pronouncements

	In April 2014, the FASB issued Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update amends the criteria for reporting discontinued operations to, among other things, change the criteria for disposals to qualify as discontinued operations. The update is effective for interim and annual reporting periods beginning after December 15, 2014 with early adoption permitted. The implementation of this update is not expected to cause any changes to our condensed consolidated financial statements.

Revenue_Recognition

Revenue Recognition	3 Months Ended
Revenue Recognition	Mar. 31, 2014
Revenue Recognition	'
Revenue Recognition	'
	Note 3. Revenue Recognition

	We report hotel operating revenues for managed hotels in our condensed consolidated statements of income and comprehensive income. We generally recognize hotel operating revenues, consisting primarily of room and food and beverage sales, when services are provided. Our share of the net operating results of our managed hotels in excess of the minimum returns due to us and certain other amounts as provided under the management agreements, or additional returns, are generally determined annually. We recognize additional returns due to us under our management agreements at year end when all contingencies are met and the income is earned. We had no deferred additional returns for the three months ended March 31, 2014 and 2013.

	We recognize rental income from operating leases on a straight line basis over the term of the lease agreements except for one lease in which there is uncertainty regarding the collection of future rent increases. Rental income includes $42 and $62 for the three months ended March 31, 2014 and 2013, respectively, of adjustments necessary to record rent on the straight line basis. Other assets, net, include $5,492 and $5,450 of straight line rent receivables at March 31, 2014 and December 31, 2013, respectively.

	We determine percentage rent due to us under our leases annually and recognize it at year end when all contingencies have been met and the rent is earned. We had deferred percentage rent of $874 and $610 for the three months ended March 31, 2014 and 2013, respectively.

	We own all the capital expenditure reserves, or FF&E reserves, for our hotels. We do not report the amounts which are escrowed as FF&E reserves for our managed hotels as FF&E reserve income. We report deposits by our third party hotel tenants into the escrow accounts as FF&E reserve income.

Per_Common_Share_Amounts

Per Common Share Amounts	3 Months Ended
Per Common Share Amounts	Mar. 31, 2014
Per Common Share Amounts	'
Per Common Share Amounts	'
	Note 4. Per Common Share Amounts

	We compute per common share amounts using the weighted average number of our common shares outstanding during the period. We had no dilutive common shares during the periods presented.

Shareholders_Equity

Shareholders' Equity	3 Months Ended
Shareholders' Equity	Mar. 31, 2014
Shareholders' Equity	'
Shareholders' Equity	'
	Note 5. Shareholders’ Equity

	Common Share Issuances

	During the three months ended March 31, 2014 and the period April 1, 2014 to May 5, 2014, we issued 21,772 and 11,155, respectively, of our common shares to Reit Management & Research LLC, or RMR, as part of its compensation under our business management agreement. In March 2014, we also issued 102,536 of our common shares to RMR for the incentive fee for 2013 pursuant to the business management agreement. See Note 10 for further information regarding this agreement.

	Distributions

	On January 15, 2014, we paid a $0.4453 per share distribution to our Series D preferred shareholders. On March 3, 2014, we declared a $0.4453 per share distribution to our Series D preferred shareholders of record on March 31, 2014. We paid this amount on April 15, 2014.

	On February 20, 2014, we paid a $0.48 per share distribution to our common shareholders. On April 8, 2014, we declared a $0.49 per share distribution to our common shareholders of record on April 25, 2014. We expect to pay this amount on or about May 21, 2014.

	Other Comprehensive Income (Loss)

	Other comprehensive income (loss) represents the unrealized gain (loss) on the TravelCenters of America LLC, or TA, shares we own and our share of the comprehensive income (loss) of Affiliates Insurance Company, or AIC. See Note 10 for further information regarding these investments.

Indebtedness

Indebtedness	3 Months Ended
Indebtedness	Mar. 31, 2014
Indebtedness	'
Indebtedness	'
	Note 6. Indebtedness

	Our principal debt obligations at March 31, 2014 were: (1) our $400,000 unsecured term loan; (2) an aggregate principal amount of $2,355,000 of public issuances of unsecured senior notes; and (3) our public issuance of $8,478 outstanding principal amount of convertible senior notes due 2027. As of both March 31, 2014 and May 5, 2014, we had no amounts outstanding and $750,000 available under our revolving credit facility.

	On January 8, 2014, we amended the agreements governing our unsecured revolving credit facility and unsecured term loan with Wells Fargo Bank, National Association, as administrative agent, and a syndicate of other lenders.

	As a result of the amendment, the stated maturity date of our $750,000 revolving credit facility was extended from September 7, 2015 to July 15, 2018. Subject to the payment of an extension fee and meeting certain other conditions, we have an option to further extend the stated maturity date by an additional one year to July 15, 2019. The amended credit agreement provides that we can borrow, repay and reborrow funds available under the revolving credit facility until maturity, and no principal repayment is due until maturity. The $750,000 maximum amount of our revolving credit facility and the $400,000 amount of the term loan remained unchanged by the amendment. The amended credit agreement includes a feature under which maximum borrowings under the revolving credit facility and term loan may be increased to up to $2,300,000 on a combined basis in certain circumstances. Under the amendment, the interest rate paid on borrowings under the revolving credit facility was reduced from LIBOR plus a premium of 130 basis points to LIBOR plus a premium of 110 basis points, and the facility fee was reduced from 30 basis points to 20 basis points per annum on the total amount of lending commitments. Both the interest rate premium and the facility fee are subject to adjustment based upon changes to our credit ratings. The weighted average interest rate for borrowings under our revolving credit facility was 1.25% and 1.51% for the three months ended March 31, 2014 and 2013, respectively.

	As a result of the amendment, the stated maturity date of our $400,000 unsecured term loan was extended from March 13, 2017 to April 15, 2019. Our term loan is prepayable without penalty at any time. Under the amendment, the interest rate paid on borrowings under the term loan agreement was reduced from LIBOR plus a premium of 145 basis points to LIBOR plus a premium of 120 basis points. The interest rate premium is subject to adjustment based on changes to our credit ratings. As of March 31, 2014, the interest rate for the amount outstanding under our term loan was 1.35%. The weighted average interest rate for the amount outstanding under our term loan was 1.38% and 1.66% for the three months ended March 31, 2014 and 2013, respectively.

	As a result of the amendments to our revolving credit facility and term loan, we recorded a loss on early extinguishment of debt of $214 during the three months ended March 31, 2014.

	Our borrowings under the amended credit facilities continue to be unsecured. Prior to the effectiveness of the amendment, certain of our subsidiaries had guaranteed our obligations under the revolving credit facility and term loan. As a result of the amendment, none of those subsidiary guarantees remain in effect. The amended credit agreement provides that, with certain exceptions, a subsidiary of ours is required to guaranty our obligations under the revolving credit facility and term loan only if that subsidiary has separately incurred debt (other than nonrecourse debt), within the meaning specified in the amended credit agreement, or provided a guarantee of debt incurred by us or any of our other subsidiaries.

	Our revolving credit facility and term loan agreement provides for acceleration of payment of all amounts outstanding upon the occurrence and continuation of certain events of default, such as a change of control of us, which includes RMR ceasing to act as our business manager. Our revolving credit facility and term loan agreement contains a number of covenants that restrict our ability to incur debt in excess of calculated amounts, restrict our ability to make distributions under certain circumstances and generally require us to maintain certain financial ratios. We believe we were in compliance with the terms and conditions of the agreement governing our revolving credit facility and term loan at March 31, 2014.

	On February 15, 2014, we redeemed at par all of our outstanding 7.875% senior notes due 2014 for $300,000 plus accrued and unpaid interest (an aggregate of $311,813).

	On March 12, 2014, we issued $350,000 of 4.65% unsecured senior notes due 2024 in a public offering for net proceeds of $345,999 after underwriting discounts and other offering expenses.

Real_Estate_Properties

Real Estate Properties	3 Months Ended
Real Estate Properties	Mar. 31, 2014
Real Estate Properties	'
Real Estate Properties	'
	Note 7. Real Estate Properties

	At March 31, 2014, we owned 291 hotels and owned or leased 185 travel centers which are operated under 11 operating agreements.

	During the three months ended March 31, 2014, we funded $42,376 of improvements to certain of our properties that pursuant to the terms of our management and lease agreements with our hotel managers and tenants resulted in increases in our contractual annual minimum returns and rents of $3,068. See Notes 10 and 11 for further information about our fundings of improvements to certain of our properties.

	One of the travel centers we leased to TA under our TA No. 1 lease, located in Roanoke, VA, was taken in August 2013 by eminent domain proceedings brought by the Virginia Department of Transportation, or the VDOT, in connection with certain highway construction. In January 2014, we received $6,178 of proceeds from the VDOT in connection with the taking. See Note 10 for more information regarding this transaction.

	On February 27, 2014, we terminated a previously disclosed agreement to acquire a hotel located in Orlando, FL which had a contract purchase price of $21,000. We terminated this agreement based upon our diligence findings.

	On March 31, 2014, we entered an agreement to acquire a 240 room full service hotel located in Ft. Lauderdale, FL for a contract purchase price of $65,000, excluding closing costs. We currently expect to acquire this hotel during the second quarter of 2014. We plan to convert this hotel to a Sonesta branded hotel and add it to our Sonesta agreement (see Notes 10 and 11 for more information regarding this transaction and the Sonesta agreement).

	On April 29, 2014, we sold our Sonesta ES Suites branded hotel in Myrtle Beach, SC for $4,500, excluding closing costs. See Notes 10 and 12 for further information regarding this transaction.

Income_Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2014
Income Taxes	'
Income Taxes	'
	Note 8. Income Taxes

	We have elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, and, accordingly are generally not subject to federal and most state income taxation on our operating income provided we distribute our taxable income to our shareholders and meet certain organization and operating requirements. We are subject to income tax in Canada, Puerto Rico and certain states despite our REIT status. Also, we lease our managed hotels to our wholly owned TRSs that, unlike most of our other subsidiaries, file separate consolidated federal corporate income tax returns and are subject to federal, state and foreign income taxes. Our consolidated income tax provision included in our condensed consolidated statements of income and comprehensive income includes the income tax provision related to the operations of our TRSs and certain state and foreign income taxes incurred by us despite our REIT status.

	During the three months ended March 31, 2014, we recognized income tax expense of $616, which includes $31 of foreign taxes and $585 of certain state taxes that are payable without regard to our REIT status and TRS tax loss carry forwards.

Segment_Information

Segment Information	3 Months Ended
	Mar. 31, 2014
Segment Information	'
Segment Information	'
	Note 9. Segment Information

		For the Three Months Ended March 31, 2014
		Hotels		Travel Centers		Corporate			Consolidated
	Hotel operating revenues	$	329,936	$	—	$	—		$	329,936
	Rental income	8,103		55,283		—			63,386
	FF&E reserve income	928		—		—			928
	Total revenues	338,967		55,283		—			394,250

	Hotel operating expenses	230,617		—		—			230,617
	Depreciation and amortization	53,016		25,271		—			78,287
	General and administrative	—		—		11,465			11,465
	Acquisition related costs	61		—		—			61
	Total expenses	283,694		25,271		11,465			320,430

	Operating income (loss)	55,273		30,012		(11,465		)	73,820

	Interest income	—		—		25			25
	Interest expense	—		—		(35,368		)	(35,368		)
	Loss on early extinguishment of debt	—		—		(214		)	(214		)
	Income (loss) before income taxes and equity in losses of an investee	55,273		30,012		(47,022		)	38,263
	Income tax expense	—		—		(616		)	(616		)
	Equity in losses of an investee	—		—		(97		)	(97		)

	Net income (loss)	$	55,273	$	30,012	$	(47,735	)	$	37,550

		As of March 31, 2014
		Hotels		Travel Centers		Corporate			Consolidated
	Total assets	$	3,681,451	$	2,193,969	$	60,767		$	5,936,187


		For the Three Months Ended March 31, 2013
		Hotels		Travel Centers		Corporate			Consolidated
	Hotel operating revenues	$	291,651	$	—	$	—		$	291,651
	Rental income	8,688		53,524		—			62,212
	FF&E reserve income	603		—		—			603
	Total revenues	300,942		53,524		—			354,466

	Hotel operating expenses	206,649		—		—			206,649
	Depreciation and amortization	48,677		23,603		—			72,280
	General and administrative	—		—		12,144			12,144
	Acquisition related costs	276		—		—			276
	Total expenses	255,602		23,603		12,144			291,349

	Operating income (loss)	45,340		29,921		(12,144		)	63,117

	Interest income	—		—		19			19
	Interest expense	—		—		(35,188		)	(35,188		)
	Gain on sale of real estate	—		—		—			—
	Income (loss) before income taxes and equity in earnings of an investee	45,340		29,921		(47,313		)	27,948
	Income tax expense	—		—		(518		)	(518		)
	Equity in earnings of an investee	—		—		76			76

	Net income (loss)	$	45,340	$	29,921	$	(47,755	)	$	27,506

		As of December 31, 2013
		Hotels		Travel Centers		Corporate			Consolidated
	Total assets	$	3,701,850	$	2,223,337	$	42,357		$	5,967,544

Related_Person_Transactions

Related Person Transactions	3 Months Ended
Related Person Transactions	Mar. 31, 2014
Related Person Transactions	'
Related Person Transactions	'
	Note 10. Related Person Transactions

	TA

	TA is our former 100% owned subsidiary and our largest tenant, and we are TA’s largest shareholder. TA was created as a separate public company in 2007 as a result of its spin-off from us. As of March 31, 2014, we owned 3,420,000 common shares, representing approximately 9.1% of TA’s outstanding common shares. TA is the lessee of 36% of our real estate properties, at cost, as of March 31, 2014. Mr. Barry Portnoy, one of our Managing Trustees, is a managing director of TA. Mr. Thomas O’Brien, an officer of RMR and a former officer of ours prior to the TA spin-off, is President and Chief Executive Officer and the other managing director of TA. Mr. Arthur Koumantzelis, who was one of our Independent Trustees prior to the TA spin-off, serves as an independent director of TA. RMR provides management services to both us and TA.

	Financial information about TA may be found on the Securities and Exchange Commission’s, or the SEC, website by entering TA’s name at http://www.sec.gov/edgar/searchedgar/companysearch.html. Reference to TA’s financial information on this external website is presented to comply with applicable accounting regulations of the SEC. Except for such financial information contained therein as is required to be included herein under such regulations, TA’s public filings and other information located in external websites are not incorporated by reference into these financial statements. TA has not yet filed its Annual Report on Form 10-K for the year ended December 31, 2013. TA has publicly disclosed that the delay is due to unanticipated delays encountered in connection with TA’s accounting for income taxes as well as general delays encountered in connection with the completion of the TA’s accounting processes and procedures. There is no assurance as to when TA’s Annual Report on Form 10-K for the year ended December 31, 2013 will be completed and filed with the SEC.

	TA has two leases with us, the TA No. 1 lease and the TA No. 2 lease, pursuant to which TA leases 185 travel centers from us. The TA No. 1 lease is for 145 travel centers that TA operates under the “TravelCenters of America” or “TA” brand names. The TA No. 2 lease is for 40 travel centers that TA operates under the “Petro” brand name. The TA No. 1 lease expires on December 31, 2022. The TA No. 2 lease expires on June 30, 2024, and may be extended by TA for up to two additional periods of 15 years each.

	Both of these leases require TA to: (1) make payments to us of minimum rents; (2) pay us percentage rent equal to 3% of non-fuel revenues and 0.3% of fuel revenues above applicable base year revenues subject to certain limitations; (3) pay us at lease expiration an amount equal to an estimate of the cost of removing underground storage tanks on our leased sites; and (4) maintain the leased travel centers, including structural and non-structural components. In addition to minimum and percentage rent, TA is obligated to pay us ground rent of approximately $5,233 per year under the TA No. 1 lease. Previously deferred rent due from TA of $107,085 and $42,915 is due in December 2022 and June 2024, respectively; however, we have not recognized any of the deferred rent as rental income or as rents receivable due to uncertainties regarding future collection.

	We recognized rental income of $55,283 and $53,524 for the three months ended March 31, 2014 and 2013, respectively, under our leases with TA. Rental income for the three months ended March 31, 2014 and 2013 includes ($88) and ($73), respectively, of adjustments necessary to record the scheduled rent increase on our TA No. 1 lease and the estimated future payment to us by TA for the cost of removing underground storage tanks on a straight line basis. As of March 31, 2014 and December 31, 2013, we had accruals for unpaid amounts of $38,177 and $37,034, respectively, owed to us by TA (excluding any deferred rents), which amounts are included in due from related persons on our condensed consolidated balance sheets. We had deferred percentage rent under our TA No. 1 lease of $874 and $610 for the three months ended March 31, 2014 and 2013, respectively. We have waived an estimated $495 of percentage rent under our TA No. 2 lease as of March 31, 2014 because we previously agreed to waive the first $2,500 of percentage rents under the TA No. 2 lease. We determine percentage rent due under our TA leases annually and recognize it at year end when all contingencies are met.

	Under the TA No. 1 and No. 2 leases, TA may request that we fund approved amounts for renovations, improvements and equipment at leased travel centers in return for increases in TA’s minimum annual rent. We are not required to fund these improvements and TA is not required to sell them to us. For the three months ended March 31, 2014, we funded $6,063 for capital improvements purchased from TA under this lease provision; and, as a result, TA’s minimum annual rent payable to us increased by approximately $515.

	On August 13, 2013, a travel center located in Roanoke, VA that we leased to TA under the TA No. 1 lease was taken by eminent domain proceedings brought by the VDOT in connection with certain highway construction. Our TA No. 1 lease provides that the annual rent payable by TA to us is reduced by 8.5% of the amount of the proceeds we receive from the taking or, at our option, the fair market value rent of the property on the commencement date of the TA No. 1 lease. In January 2014, we received proceeds from the VDOT of $6,178, which is a portion of the VDOT’s estimate of the value of the property, and as a result the annual rent payable by TA to us under the TA No. 1 lease was reduced by $525 effective January 6, 2014. We and TA intend to challenge the VDOT’s estimate of the property’s value. We have entered a lease agreement with the VDOT to lease this property through August 2014 for $40 per month, and under the terms of the TA No. 1 lease TA will be responsible to pay this ground lease rent. We entered into a sublease for this property with TA, and TA plans to continue operating it as a travel center through August 2014.

	RMR

	We have no employees. Personnel and various services we require to operate our business are provided to us by RMR. We have two agreements with RMR to provide management and administrative services to us: (i) a business management agreement, which relates to our business generally, and (ii) a property management agreement, which relates to the property level operations of the office building component of only one property in Baltimore, MD, which also includes a Royal Sonesta hotel.

	One of our Managing Trustees, Mr. Barry Portnoy, is Chairman, majority owner and an employee of RMR. Our other Managing Trustee, Mr. Adam Portnoy, is the son of Mr. Barry Portnoy, and an owner, President, Chief Executive Officer and a director of RMR. Each of our executive officers is also an officer of RMR, including Mr. Ethan Bornstein, who is the son-in-law of Mr. Barry Portnoy and the brother-in-law of Mr. Adam Portnoy. Certain of TA’s and Sonesta’s executive officers are officers of RMR. Our Independent Trustees also serve as independent directors or independent trustees of other public companies to which RMR provides management services. Mr. Barry Portnoy serves as a managing director or managing trustee of a majority of those companies and Mr. Adam Portnoy serves as a managing trustee of a majority of those companies. In addition, officers of RMR serve as officers of those companies.

	We incurred aggregate business management, property management and incentive fees of $9,659 and $9,893 for the three months ended March 31, 2014 and 2013. The fees for the three months ended March 31, 2014, include $851 of estimated 2014 incentive fees payable in common shares in 2015 based on our common share total return. These amounts are included in general and administrative expenses in our condensed consolidated financial statements. In accordance with the terms of our business management agreement, as amended in December 2013, we issued 32,927 of our common shares to RMR for the three months ended March 31, 2014 as payment for a portion of the base business management fee we recognized for such period. In March 2014, we also issued 102,536 of our common shares to RMR for the incentive fee for 2013 pursuant to the business management agreement.

	Sonesta

	The stockholders of Sonesta are Mr. Barry Portnoy and Mr. Adam Portnoy, who are our Managing Trustees, and they also serve as directors of Sonesta. Sonesta’s Chairman and Chief Executive Officer is an officer of RMR and formerly was our Director of Internal Audit, and other officers and employees of Sonesta are former employees of RMR. In addition, RMR also provides certain services to Sonesta.

	In 2012, pursuant to a series of transactions, we purchased the entities that owned the Royal Sonesta Hotel Boston in Cambridge, MA, or the Cambridge Hotel, and leased the Royal Sonesta Hotel New Orleans in New Orleans, LA, or the New Orleans Hotel, for approximately $150,500. In connection with these transactions, we entered into hotel management agreements with Sonesta International Hotels Corporation, or Sonesta, that provide for Sonesta to manage for us each of the Cambridge Hotel and the New Orleans Hotel. Since that time, we have rebranded additional hotels we own to Sonesta brands and management, and as of March 31, 2014, Sonesta was managing 22 of our hotels pursuant to long term management agreements. We currently lease all hotels that we own and which are managed by Sonesta to one of our TRSs.

	On June 28, 2013, we acquired the fee interest in the New Orleans Hotel from the third party owner from which we previously leased that hotel and, as a result, the lease with the third party terminated. Simultaneous with this acquisition, we and Sonesta amended and restated the prior management agreement we had with Sonesta for this hotel. The terms of the amended and restated management agreement are substantially the same as those contained in our other management agreements with Sonesta relating to full service hotels.

	In April 2012, we entered into a pooling agreement with Sonesta that combined our management agreements with Sonesta for hotels that we owned for purposes of calculating gross revenues, payment of hotel operating expenses, payment of fees and distributions and the calculation of minimum returns due to us. We previously referred to this agreement and combination of hotels and management agreements as our Sonesta No. 1 agreement. The management agreements for all of our hotels then managed by Sonesta, excluding, until June 28, 2013, the New Orleans Hotel, were included in the Sonesta No. 1 agreement. The amended and restated management agreement we entered with Sonesta for the New Orleans Hotel upon our acquiring the fee interest in that hotel was added to our pooling agreement with Sonesta. We now refer to the pooling agreement and combination of our Sonesta branded hotels and management agreements as our Sonesta agreement. See Note 11 for further information about our management agreements with Sonesta.

	Pursuant to our management agreements with Sonesta, we incurred management, system and reservation fees payable to Sonesta of $2,625 and $2,073 for the three months ended March 31, 2014 and 2013, respectively. These amounts are included in hotel operating expenses in our condensed consolidated financial statements. In addition, we also incurred procurement and construction supervision fees payable to Sonesta in connection with capital expenditures at our hotels managed by Sonesta of $547 and $484 for the three months ended March 31, 2014 and 2013, respectively. These amounts have been capitalized in our condensed consolidated financial statements. Under our hotel management agreements with Sonesta, routine property maintenance, which is expensed, is an operating expense of the hotels and improvements and periodic renovations, which are capitalized, are funded by us, except in the case of the New Orleans Hotel for capital expenditures incurred prior to June 28, 2013, which were borne in large part by the former lessor. As of March 31, 2014 and December 31, 2013, we had accruals for unpaid amounts of $326 and $893, respectively, owed to us by Sonesta, which amounts are included in due from related persons in our condensed consolidated balance sheets. As of March 31, 2014 and December 31, 2013 we had accrued amounts due to Sonesta for capital expenditure reimbursements of $4,121 and $6,625, respectively, which amounts are included in due to related persons in our condensed consolidated balance sheets.

	On March 31, 2014, we agreed to acquire a hotel in Ft. Lauderdale, FL for a purchase price of $65,000, excluding closing costs. Upon acquisition of this hotel, we intend to rebrand the hotel as a Sonesta hotel. This acquisition is subject to completion of diligence and other closing conditions and we can provide no assurance that we will acquire this property or that terms of the acquisition will not change. We expect to enter into a hotel management agreement with Sonesta for this property on terms consistent with our other applicable hotel management agreements with Sonesta and to add that management agreement to our Sonesta agreement.

	On April 29, 2014, we sold our Sonesta ES Suites in Myrtle Beach, SC. In connection with this sale, the hotel management agreement with Sonesta for this property was terminated and removed from our Sonesta agreement.

	AIC

	We, RMR, TA and five other companies to which RMR provides management services each currently own approximately 12.5% of Affiliates Insurance Company, or AIC, an Indiana insurance company. All of our Trustees and most of the trustees and directors of the other AIC shareholders currently serve on the board of directors of AIC. RMR provides management and administrative services to AIC pursuant to a management and administrative services agreement with AIC.

	We and the other shareholders of AIC have purchased property insurance providing $500,000 of coverage pursuant to an insurance program arranged by AIC and with respect to which AIC is a reinsurer of certain coverage amounts. This program currently expires in June 2014, and we may determine to renew our participation in this program at that time. As of March 31, 2014, we have invested $5,209 in AIC since its formation in 2008. Although we own less than 20% of AIC, we use the equity method to account for this investment because we believe that we have significant influence over AIC as all of our Trustees are also directors of AIC. Our investment in AIC had a carrying value of $5,835 and $5,913 as of March 31, 2014 and December 31, 2013, respectively, which amounts are included in other assets on our condensed consolidated balance sheet. We recognized a loss of $97 and income of $76 related to our investment in AIC for the three months ended March 31, 2014 and 2013, respectively.

	On March 25, 2014, as a result of the removal, without cause, of all of the trustees of CommonWealth REIT, or CWH, CWH underwent a change in control, as defined in the shareholders agreement among us, the other shareholders of AIC and AIC. As a result of that change in control and in accordance with the terms of the shareholders agreement, we provided notice of exercise of our right to purchase shares of AIC CWH then owned. We expect that we and the other non-CWH shareholders will purchase pro rata all of the AIC shares CWH owns. As such, we expect to purchase 2,857 of those shares for $825, and that following these purchases, we and the other remaining six shareholders will then each own approximately 14.3% of AIC.

Hotel_Management_Agreements_an

Hotel Management Agreements and Leases and Renovation Funding	3 Months Ended
	Mar. 31, 2014
Hotel Management Agreements and Leases and Renovation Funding	'
Hotel Management Agreements and Leases and Renovation Funding	'
	Note 11. Hotel Management Agreements and Leases and Renovation Funding

	As of March 31, 2014, 288 of our hotels are leased to our TRSs and managed by independent hotel operating companies and three are leased to third parties.

	Marriott No. 1 agreement. Our management agreement with Marriott International Inc., or Marriott, for 53 hotels provides that we are paid a fixed annual minimum return of $67,612, to the extent that gross revenues of the hotels, after payment of hotel operating expenses, are sufficient to do so. We do not have any security deposits or guarantees for the 53 hotels included in our Marriott No. 1 agreement. Accordingly, the returns we receive from these hotels managed by Marriott are limited to available hotel cash flows after payment of operating expenses. We realized returns of $15,036 during the three months ended March 31, 2014 under this agreement. Marriott’s management and incentive fees are only earned after we receive our minimum returns.

	We currently expect to fund $4,400 of capital improvements during 2014 at certain of the hotels included in our Marriott No. 1 agreement. We funded $769 of this amount during the three months ended March 31, 2014. As we fund these improvements, the annual minimum returns payable to us increase by 10% of the amounts funded.

	Marriott No. 234 agreement. During the three months ended March 31, 2014, the payments we received under our Marriott No. 234 agreement, which requires annual minimum returns to us of $105,793, were $2,635 less than the minimum amounts contractually required. Pursuant to our Marriott No. 234 agreement, Marriott provided us with a limited guarantee for shortfalls up to 90% of our minimum returns through 2019. During the three months ended March 31, 2014, Marriott made $2,548 of guaranty payments to us. We realized returns of $23,806 during the three months ended March 31, 2014 under this agreement. The available balance of this guaranty was $28,124 as of March 31, 2014. Also, during the period from March 31, 2014 to May 5, 2014, the payments we received for these hotels were $1,756 less than the contractual minimum returns due to us.

	We currently expect to fund $7,050 of capital improvements during 2014 to complete renovations at certain of the hotels included in our Marriott No. 234 agreement. We did not make any of these renovation fundings during the three months ended March 31, 2014. As we fund these improvements, the annual minimum returns payable to us increase by 9% of the amounts funded.

	InterContinental agreement. During the three months ended March 31, 2014, the payments we received under our agreement with InterContinental Hotels Group, plc, or InterContinental, covering 91 hotels and requiring annual minimum returns to us of $139,498, were $2,446 less than the minimum amounts contractually required. We applied the available security deposit to cover these shortfalls.

	Under this agreement, InterContinental is required to maintain a minimum security deposit of $30,000 in 2014 and $37,000 thereafter. We were advised by InterContinental that it expects interim period shortfalls during 2014 and 2015 in the required minimum security deposit balance under the agreement. As a result, on January 6, 2014, we entered into a letter agreement with InterContinental under which the minimum security deposit balance required to be maintained during 2014 and 2015 will be reduced by two dollars for every dollar of additional security deposit InterContinental provides to us. Beginning January 1, 2016, any resulting reductions to the minimum security deposit amount will cease to be in effect and the minimum deposit balance required under the InterContinental agreement will revert to $37,000. Since January 1, 2014, InterContinental has provided $4,283 of additional security deposits, which reduced the minimum security deposit amount required to $21,434. Also, during the period from March 31, 2014 to May 5, 2014, the minimum return payments we received under our InterContinental agreement were $2,446 more than the minimum amounts due to us. We replenished the available security deposit by the additional amounts received. The remaining balance of the security deposit was $32,046 as of May 5, 2014.

	When we reduce the amounts of the security deposits we hold for this agreement or any other operating agreements for payment deficiencies, we record income equal to the amounts by which the deposit is reduced up to the minimum return or minimum rent due to us. However, reducing the security deposits does not result in additional cash flow to us of the deficiency amounts, but reducing amounts of security deposits may reduce the refunds due to the respective lessees or managers who have provided us with these deposits upon expiration of the respective lease or management agreement. The security deposits are non-interest bearing and are not held in escrow. Under all of our hotel contracts that include a security deposit, any amounts of the security deposits which are applied to payment deficits may be replenished from future cash flows from the applicable hotel operations pursuant to the terms of the respective contracts.

	We currently expect to fund $22,990 of capital improvements in 2014 to complete renovations at certain of the hotels included in our InterContinental agreement. We did not make any of these renovation fundings during the three months ended March 31, 2014. As we fund these improvements, the annual minimum returns payable to us increase by 8% of the amounts funded.

	Sonesta agreement. Our management agreement with Sonesta provides that we are paid a fixed minimum return equal to 8% of our invested capital, as defined in the management agreement ($60,104 as of March 31, 2014), to the extent that gross revenues of the hotels, after payment of hotel operating expenses and base management fees to Sonesta, are sufficient to do so. We do not have any security deposits or guarantees for our hotels managed by Sonesta. Accordingly, the returns we receive from hotels managed by Sonesta are limited to available hotel cash flows after payment of operating expenses. Sonesta’s incentive management fees, but not its other fees, are only earned after we receive our minimum returns, and we may cancel these management agreements if approximately 75% of our minimum returns are not paid for certain periods. We realized returns of $2,096 during the three months ended March 31, 2014 under this agreement.

	In addition to recurring capital expenditures, we currently expect to fund approximately $108,200 in 2014 and $22,800 in 2015 for renovations and other improvements at certain of the hotels included in our Sonesta agreement. We funded $20,179 of these amounts during the three months ended March 31, 2014. The annual minimum returns due to us under the Sonesta agreement increase by 8% of the amounts funded in excess of threshold amounts, as defined therein. See Note 10 for further information regarding our relationship with Sonesta.

	Wyndham agreement. We currently expect to fund approximately $27,500 of capital improvements in 2014 and $10,075 in 2015 to complete renovations at certain of the hotels included in our Wyndham Hotel Group, or Wyndham, agreement. We funded $15,286 of these amounts during the three months ended March 31, 2014. As we fund these improvements, the annual minimum returns payable to us increase by 8% of the amounts funded.

	Other management agreement and lease matters. As of May 5, 2014, all payments due to us from our managers and tenants under our other operating agreements were current. Minimum return and minimum rent payments due to us under some of these other hotel management agreements and leases are supported by guarantees. The guarantee provided by Wyndham with respect to 22 hotels managed by Wyndham is limited to $35,656 ($8,524 remaining at March 31, 2014), subject to an annual payment limit of $17,828 and expires on July 28, 2020. The guarantee provided by Hyatt Hotels Corporation, or Hyatt, with respect to the 22 hotels managed by Hyatt is limited to $50,000 ($13,066 remaining at March 31, 2014). The guarantee provided by Carlson Hotels Worldwide, or Carlson, with respect to the 11 hotels managed by Carlson is limited to $40,000 ($20,078 remaining at March 31, 2014). The guarantee provided by Wyndham with respect to the lease with Wyndham Vacation Resorts, Inc., or Wyndham Vacation, for part of one hotel is unlimited. The guarantee provided by Marriott with respect to the one hotel leased by Marriott (Marriott No. 5 agreement) is unlimited.

	Guarantees and security deposits generally. Certain of our managed hotel portfolios had net operating results that were, in the aggregate, $28,095 and $33,007 less than the minimum returns due to us for the three months ended March 31, 2014 and 2013, respectively. When managers of these hotels are required to fund the shortfalls under the terms of our operating agreements or their guarantees, we reflect such fundings (including security deposit applications) in our condensed consolidated statements of income and comprehensive income as a reduction of hotel operating expenses. The reduction to hotel operating expenses was $10,876 and $14,908 in the three months ended March 31, 2014 and 2013, respectively. We had shortfalls in the minimum returns at certain of our managed hotel portfolios not funded by the managers of these hotels under the terms of our operating agreements of $17,219 and $18,099 during the three months ended March 31, 2014 and 2013, respectively, which represents the unguaranteed portion of our minimum returns from Marriott and Sonesta. Certain of our guarantees and our security deposits under the InterContinental and Marriott No. 234 agreements may be replenished by future cash flows from the hotels in excess of our minimum returns.

Fair_Value_of_Assets_and_Liabi

Fair Value of Assets and Liabilities	3 Months Ended
	Mar. 31, 2014
Fair Value of Assets and Liabilities	'
Fair Value of Assets and Liabilities	'
	Note 12. Fair Value of Assets and Liabilities

	The table below presents certain of our assets carried at fair value at March 31, 2014, categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset.


					Fair Value at Reporting Date Using
					Quoted Prices in		Significant			Significant
					Active Markets		Other			Unobservable
					for Identical		Observable			Inputs
					Assets		Inputs
	Description	Total			(Level 1)		(Level 2)			(Level 3)

	Investment securities (1)	$	27,873		$	27,873	$	—		$	—
	Property held for sale (2)	$	4,074		$	—	$	—		$	4,074


	(1) Our investment securities, consisting of our 3,420,000 shares of TA, which are included in other assets in our condensed consolidated balance sheets, are reported at fair value which is based on quoted market prices (Level 1 inputs). Our historical cost basis for these securities is $17,407. The unrealized gain for these securities as of March 31, 2014 is included in cumulative other comprehensive income in our condensed consolidated balance sheets.

	(2) Our property held for sale consists of one Sonesta ES Suites hotel in Myrtle Beach, SC we sold on April 29, 2014. We estimated the fair value less costs to sell this hotel using standard industry valuation techniques and estimates of value developed by hotel brokerage firms (Level 3 inputs).

	In addition to the investment securities included in the table above, our financial instruments include our cash and cash equivalents, restricted cash, rents receivable, revolving credit facility, unsecured term loan, senior notes and security deposits. At March 31, 2014 and December 31, 2013, the fair values of these additional financial instruments approximated their carrying values in our condensed consolidated financial statements due to their short term nature or variable interest rates, except as follows:

		March 31, 2014					December 31, 2013
		Carrying			Fair		Carrying			Fair
		Amount			Value		Amount			Value

	Senior Notes, due 2014 at 7.875%	$	—		$	—	$	300,000		$	304,035
	Senior Notes, due 2015 at 5.125%	280,000			283,965		280,000			283,150
	Senior Notes, due 2016 at 6.3%	275,000			296,049		275,000			297,443
	Senior Notes, due 2017 at 5.625%	300,000			331,071		300,000			327,681
	Senior Notes, due 2018 at 6.7%	350,000			397,968		350,000			399,560
	Senior Notes, due 2022 at 5%	500,000			521,475		500,000			524,810
	Senior Notes, due 2023 at 4.5%	300,000			298,932		300,000			289,950
	Senior Notes, due 2024 at 4.65%	350,000			356,101		—			—
	Convertible Senior Notes, due 2027 at 3.8%	8,478			8,860		8,478			8,983
	Unamortized discounts	(9,849		)	—		(11,120		)	—
	Total financial liabilities	$	2,353,629		$	2,494,421	$	2,302,358		$	2,435,612

	At March 31, 2014, we estimated the fair values of our unsecured senior notes using an average of the bid and ask price of our then outstanding issuances of senior notes (Level 1 inputs). We estimated the fair value of our convertible unsecured senior notes using discounted cash flow analyses and currently prevailing market interest rates (Level 3 inputs) because no market quotes were available at March 31, 2014 and December 31, 2013.

Segment_Information_Tables

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2014
Segment Information	'
Schedule of segment information	'

		For the Three Months Ended March 31, 2014
		Hotels		Travel Centers		Corporate			Consolidated
	Hotel operating revenues	$	329,936	$	—	$	—		$	329,936
	Rental income	8,103		55,283		—			63,386
	FF&E reserve income	928		—		—			928
	Total revenues	338,967		55,283		—			394,250

	Hotel operating expenses	230,617		—		—			230,617
	Depreciation and amortization	53,016		25,271		—			78,287
	General and administrative	—		—		11,465			11,465
	Acquisition related costs	61		—		—			61
	Total expenses	283,694		25,271		11,465			320,430

	Operating income (loss)	55,273		30,012		(11,465		)	73,820

	Interest income	—		—		25			25
	Interest expense	—		—		(35,368		)	(35,368		)
	Loss on early extinguishment of debt	—		—		(214		)	(214		)
	Income (loss) before income taxes and equity in losses of an investee	55,273		30,012		(47,022		)	38,263
	Income tax expense	—		—		(616		)	(616		)
	Equity in losses of an investee	—		—		(97		)	(97		)

	Net income (loss)	$	55,273	$	30,012	$	(47,735	)	$	37,550

		As of March 31, 2014
		Hotels		Travel Centers		Corporate			Consolidated
	Total assets	$	3,681,451	$	2,193,969	$	60,767		$	5,936,187


		For the Three Months Ended March 31, 2013
		Hotels		Travel Centers		Corporate			Consolidated
	Hotel operating revenues	$	291,651	$	—	$	—		$	291,651
	Rental income	8,688		53,524		—			62,212
	FF&E reserve income	603		—		—			603
	Total revenues	300,942		53,524		—			354,466

	Hotel operating expenses	206,649		—		—			206,649
	Depreciation and amortization	48,677		23,603		—			72,280
	General and administrative	—		—		12,144			12,144
	Acquisition related costs	276		—		—			276
	Total expenses	255,602		23,603		12,144			291,349

	Operating income (loss)	45,340		29,921		(12,144		)	63,117

	Interest income	—		—		19			19
	Interest expense	—		—		(35,188		)	(35,188		)
	Gain on sale of real estate	—		—		—			—
	Income (loss) before income taxes and equity in earnings of an investee	45,340		29,921		(47,313		)	27,948
	Income tax expense	—		—		(518		)	(518		)
	Equity in earnings of an investee	—		—		76			76

	Net income (loss)	$	45,340	$	29,921	$	(47,755	)	$	27,506

		As of December 31, 2013
		Hotels		Travel Centers		Corporate			Consolidated
	Total assets	$	3,701,850	$	2,223,337	$	42,357		$	5,967,544

Fair_Value_of_Assets_and_Liabi1

Fair Value of Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2014
Fair Value of Assets and Liabilities	'
Schedule of certain of the entity's assets carried at fair value, categorized by the level of inputs used in the valuation of each asset	'
	The table below presents certain of our assets carried at fair value at March 31, 2014, categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset.


					Fair Value at Reporting Date Using
					Quoted Prices in		Significant			Significant
					Active Markets		Other			Unobservable
					for Identical		Observable			Inputs
					Assets		Inputs
	Description	Total			(Level 1)		(Level 2)			(Level 3)

	Investment securities (1)	$	27,873		$	27,873	$	—		$	—
	Property held for sale (2)	$	4,074		$	—	$	—		$	4,074


	(1) Our investment securities, consisting of our 3,420,000 shares of TA, which are included in other assets in our condensed consolidated balance sheets, are reported at fair value which is based on quoted market prices (Level 1 inputs). Our historical cost basis for these securities is $17,407. The unrealized gain for these securities as of March 31, 2014 is included in cumulative other comprehensive income in our condensed consolidated balance sheets.

	(2) Our property held for sale consists of one Sonesta ES Suites hotel in Myrtle Beach, SC we sold on April 29, 2014. We estimated the fair value less costs to sell this hotel using standard industry valuation techniques and estimates of value developed by hotel brokerage firms (Level 3 inputs).
Schedule of fair value of additional financial instruments	'

		March 31, 2014					December 31, 2013
		Carrying			Fair		Carrying			Fair
		Amount			Value		Amount			Value

	Senior Notes, due 2014 at 7.875%	$	—		$	—	$	300,000		$	304,035
	Senior Notes, due 2015 at 5.125%	280,000			283,965		280,000			283,150
	Senior Notes, due 2016 at 6.3%	275,000			296,049		275,000			297,443
	Senior Notes, due 2017 at 5.625%	300,000			331,071		300,000			327,681
	Senior Notes, due 2018 at 6.7%	350,000			397,968		350,000			399,560
	Senior Notes, due 2022 at 5%	500,000			521,475		500,000			524,810
	Senior Notes, due 2023 at 4.5%	300,000			298,932		300,000			289,950
	Senior Notes, due 2024 at 4.65%	350,000			356,101		—			—
	Convertible Senior Notes, due 2027 at 3.8%	8,478			8,860		8,478			8,983
	Unamortized discounts	(9,849		)	—		(11,120		)	—
	Total financial liabilities	$	2,353,629		$	2,494,421	$	2,302,358		$	2,435,612

Basis_of_Presentation_Details

Basis of Presentation (Details) (USD $)	Mar. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2014
Basis of Presentation	'
Ownership interest in subsidiaries (as a percent)	100.00%
Assets of TRSs	$28,341
Liabilities of TRSs	$41,702

Revenue_Recognition_Details

Revenue Recognition (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
	item	Mar. 31, 2013	Dec. 31, 2013
Revenue Recognition	'	'	'
Deferred additional returns	$0	$0	'
Number of operating leases for which rental income is not recognized on straight line basis over the term of the lease agreements	1	'	'
Adjustments necessary to record rent on straight line basis	42	62	'
Straight line rent receivables	5,492	'	5,450
Deferred percentage rent	$874	$610	'

Per_Common_Share_Amounts_Detai

Per Common Share Amounts (Details)	3 Months Ended
Per Common Share Amounts (Details)	Mar. 31, 2014
Per Common Share Amounts	'
Dilutive common shares	'0

Shareholders_Equity_Details

Shareholders' Equity (Details) (USD $)	0 Months Ended		0 Months Ended		1 Months Ended	3 Months Ended	1 Months Ended
	Jan. 15, 2014	Mar. 03, 2014	Feb. 20, 2014	Apr. 08, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	5-May-14
	Series D	Series D	Common Shares	Subsequent event	RMR	RMR	RMR	RMR
				Common Shares			Common Shares	Subsequent event
Common Share Issuances	'	'	'	'	'	'	'	'
Common shares issued	'	'	'	'	'	21,772	'	11,155
Common shares issued for services rendered by RMR	'	'	'	'	102,536	32,927	102,536	'
Distribution to preferred shareholders (in dollars per share)	$0.45	'	'	'	'	'	'	'
Distribution declared per share (in dollars per share)	'	$0.45	'	'	'	'	'	'
Distribution to common shareholders (in dollars per share)	'	'	$0.48	'	'	'	'	'
Cash distributions paid or payable (in dollars per share)	'	'	'	$0.49	'	'	'	'

Indebtedness_Details

Indebtedness (Details) (USD $)

3 Months Ended

0 Months Ended

3 Months Ended

In Thousands, unless otherwise specified

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

5-May-14

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Feb. 15, 2014

Dec. 31, 2013

Mar. 12, 2014

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Unsecured revolving credit facility

Unsecured term loan

Unsecured senior notes

Senior Notes, due 2014 at 7.875%

Senior Notes, due 2024 at 4.65%

Convertible senior notes, due 2027 at 3.8%

Revolving credit facility and term loan

Subsequent event

Indebtedness

Unsecured term loan outstanding

$400,000

Unsecured senior notes

2,355,000

Convertible senior notes

8,478

Current amount outstanding under revolving credit facility

Extendable term of credit facility

'1 year

Amount available under revolving credit facility

750,000

Maximum borrowing capacity that may be increased

2,300,000

Debt instrument, interest rate description

'LIBOR

Margin over base rate before amendment, in basis points (as a percent)

1.30%

1.45%

Margin over base rate, in basis points (as a percent)

1.10%

1.20%

Interest rate payable for facility fees before amendment, (as a percent)

0.30%

Interest rate payable for facility fees (as a percent)

0.20%

Weighted average interest rate for borrowings (as a percent)

1.25%

1.51%

1.38%

1.66%

Loss on extinguishment of debt

-214

Interest rate (as a percent)

1.35%

Issuance of senior notes

2,345,151

2,295,527

350,000

Interest rate stated percentage

7.88%

4.65%

3.80%

Principal balance of debt repaid

300,000

Debt redeemed

311,813

Proceeds from issuance of senior notes, net of underwriting discounts and other offering expenses

$346,616

$345,999

Real_Estate_Properties_Details

Real Estate Properties (Details) (USD $)	3 Months Ended			0 Months Ended			1 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2014	Feb. 27, 2014	Apr. 29, 2014	Mar. 31, 2014	Mar. 31, 2014	Jan. 31, 2014
	item	Full service hotel in Ft. Lauderdale, FL	Full service hotel in Orlando, FL	Sonesta ES Suites	Hotels	Travel centers	Travel centers
		item		Subsequent event	property	property	Travel center located in Roanoke, VA
							TA No. 1
Real estate properties	'	'	'	'	'	'	'
Number of properties owned	'	'	'	'	291	185	'
Number of operating agreements	11	'	'	'	'	'	'
Funded real estate improvements	$42,376	'	'	'	'	'	'
Increase (decrease) in annual minimum returns and rents	3,068	'	'	'	'	'	-525
Proceeds received from the VDOT in connection with the eminent domain taking	6,178	'	'	'	'	'	6,178
Purchase price	'	65,000	21,000	'	'	'	'
Number of rooms	'	240	'	'	'	'	'
Gross proceeds from sale of hotel	'	'	'	$4,500	'	'	'

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014
Income Taxes	'
Income tax expense	$616
Foreign taxes included in current tax expense	31
Certain state taxes that are payable without regard to entity's REIT status and TRS tax loss carry forwards, included in current tax expense	$585

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Segment Information	'	'	'
Hotel operating revenues	$329,936	$291,651	'
Rental income	63,386	62,212	'
FF&E reserve income	928	603	'
Total revenue	394,250	354,466	'
Hotel operating expenses	230,617	206,649	'
Depreciation and amortization	78,287	72,280	'
General and administrative	11,465	12,144	'
Acquisition related costs	61	276	'
Total expenses	320,430	291,349	'
Operating income (loss)	73,820	63,117	'
Interest income	25	19	'
Interest expense	-35,368	-35,188	'
Loss on extinguishment of debt	-214	'	'
Income before income taxes and equity in earnings (losses) of an investee	38,263	27,948	'
Income tax expense	-616	-518	'
Earnings (losses) recognized related to equity investments	-97	76	'
Net income	37,550	27,506	'
Total assets	5,936,187	'	5,967,544
Corporate	'	'	'
Segment Information	'	'	'
General and administrative	11,465	12,144	'
Total expenses	11,465	12,144	'
Operating income (loss)	-11,465	-12,144	'
Interest income	25	19	'
Interest expense	-35,368	-35,188	'
Loss on extinguishment of debt	-214	'	'
Income before income taxes and equity in earnings (losses) of an investee	-47,022	-47,313	'
Income tax expense	-616	-518	'
Earnings (losses) recognized related to equity investments	-97	76	'
Net income	-47,735	-47,755	'
Total assets	60,767	'	42,357
Hotels	'	'	'
Segment Information	'	'	'
Hotel operating revenues	329,936	291,651	'
Rental income	8,103	8,688	'
FF&E reserve income	928	603	'
Total revenue	338,967	300,942	'
Hotel operating expenses	230,617	206,649	'
Depreciation and amortization	53,016	48,677	'
Acquisition related costs	61	276	'
Total expenses	283,694	255,602	'
Operating income (loss)	55,273	45,340	'
Income before income taxes and equity in earnings (losses) of an investee	55,273	45,340	'
Net income	55,273	45,340	'
Total assets	3,681,451	'	3,701,850
Travel Centers	'	'	'
Segment Information	'	'	'
Rental income	55,283	53,524	'
Total revenue	55,283	53,524	'
Depreciation and amortization	25,271	23,603	'
Total expenses	25,271	23,603	'
Operating income (loss)	30,012	29,921	'
Income before income taxes and equity in earnings (losses) of an investee	30,012	29,921	'
Net income	30,012	29,921	'
Total assets	$2,193,969	'	$2,223,337

Related_Person_Transactions_De

Related Person Transactions (Details) (USD $)

3 Months Ended

1 Months Ended

3 Months Ended

1 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

1 Months Ended

In Thousands, except Share data, unless otherwise specified

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2013

Jan. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2013

Dec. 31, 2012

Mar. 31, 2014

Mar. 31, 2013

Mar. 25, 2014

Dec. 31, 2013

Mar. 31, 2014

item

Travel centers

Hotels

RMR

Sonesta

AIC

TA No. 1

Sonesta agreements

item

Travel centers

item

Sonesta agreements

SNSTA

item

Expected

Maximum

Travel center located in Roanoke, VA

property

Ft. Lauderdale, FL

item

TA No. 1

TA No. 2

property

item

property

Maximum

agreement

item

Related Person Transactions

Percentage of ownership formerly held in subsidiary

100.00%

Number of common shares owned

3,420,000

Common shares of TA held by company as a percent of total TA shares outstanding

9.10%

Lessee as percentage of real estate properties

36.00%

Number of Managing Trustees who are Managing Directors

Number of Independent Trustees who are Independent Directors

Number of management agreements or leases

Number of properties leased

185

145

Number of renewal options available

Term of renewal option

'15 years

Percentage of non-fuel revenue over threshold amounts

3.00%

Percentage of fuel revenue over threshold amounts

0.30%

Ground rent payable per year

$5,233

Deferred rent due in December 2022

107,085

Deferred rent due in June 2024

42,915

Rental income

63,386

62,212

55,283

53,524

Adjustments included in rental income necessary to record rent on the straight line basis

-88

-73

Accruals for unpaid rent, excluding any deferred rents

38,177

37,034

Deferred rent accrued

874

610

874

610

Estimated annual percentage rent waived

495

Annual percentage rent to be waived

2,500

Capital improvements from leased facilities, funded

6,063

Increase (decrease) in minimum annual rent

3,068

-525

515

Rate of increase in minimum annual amount (as a percent)

8.50%

Proceeds received from the VDOT in connection with the eminent domain taking

6,178

Ground lease monthly rent to be paid

Number of employees

Number of agreements to provide management and administrative services

Number of properties under property management agreement

Number of Managing Trustees who are Chairmen, majority owners and employees of RMR

Business management, property management

9,659

9,893

2,625

2,073

Incentive fee expected to be paid in common shares

851

Common shares issued for services rendered by RMR

102,536

32,927

Aggregate purchase price advanced

150,500

Procurement and construction supervision fees

547

484

Accruals for unpaid amount

38,503

38,064

326

893

Amount owed for capital expenditure reimbursements

8,145

13,194

4,121

6,625

Purchase price including closing costs

65,000

Number of other companies to which management services are provided holding shares in related party

Equity method investments, ownership percentage

12.50%

14.30%

20.00%

Coverage of property insurance policy

500,000

Amount invested in equity investee

5,209

Earnings (losses) recognized related to equity investments

-97

Equity method investments, carrying value

5,835

5,913

Shares purchased

2,857

Price of shares purchased

$825

Hotel_Management_Agreements_an1

Hotel Management Agreements and Leases and Renovation Funding (Details) (USD $)

3 Months Ended

1 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

1 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

5-May-14

Mar. 31, 2014

Dec. 31, 2014

Mar. 31, 2014

5-May-14

Mar. 31, 2014

Jan. 06, 2014

Jan. 03, 2014

Dec. 31, 2014

Mar. 31, 2014

Jan. 03, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Mar. 31, 2014

Hotels

property

Marriott No. 1 agreement

Marriott No. 234 agreement

InterContinental agreement

Sonesta agreements

Wyndham agreement

Hyatt Hotels Corporation

Carlson

Marriott No 5 contract

property

Forecast

Maximum

property

Forecast

Minimum

Forecast

property

Forecast

property

Management Agreements and Leases

Number of properties leased to TRSs

288

Number of properties leased to third parties

Number of real estate properties leased or managed

Operating agreement annual rent and return

$67,612,000

$105,793,000

$139,498,000

$60,104,000

Realized returns

15,036,000

23,806,000

2,096,000

Security deposit balance required to be maintained with the entity in 2014

30,000,000

Security deposit balance required to be maintained with the entity after 2014

37,000,000

Reduction in the minimum security deposit balance required to be maintained with the entity during 2014 and 2015 for every dollar of additional security deposit paid

Security deposit balance required to be maintained with the entity beginning January 1, 2016

37,000,000

Additional security deposits paid

4,283,000

Security deposit balance required to be maintained with the entity

21,434,000

Amount by which the cash flow available to pay the entity's minimum rent or return was less than the minimum amount

28,095,000

33,007,000

1,756,000

2,635,000

2,446,000

Reduction of hotel operating expenses

10,876,000

14,908,000

Shortfalls due to unguaranteed portions of minimum returns

17,219,000

18,099,000

Percentage of minimum returns for which limited guarantee has been provided

90.00%

Guaranty payments made

2,548,000

Guarantee provided to the entity, remaining amount

28,124,000

8,524,000

13,066,000

20,078,000

Amount expected to be provided for renovation

4,400,000

7,050,000

22,990,000

22,800,000

108,200,000

10,075,000

27,500,000

Amount funded for renovation

769,000

20,179,000

15,286,000

Percentage increase in minimum returns after funding for renovation of hotels

10.00%

9.00%

8.00%

Security deposit balance

29,718,000

27,876,000

32,046,000

Fixed minimum return as a percentage of invested capital

8.00%

Percentage of minimum returns not paid for cancellation of management agreements

75.00%

Guarantee provided to the entity, maximum

35,656,000

50,000,000

40,000,000

Annual guarantee provided to the entity, maximum

$17,828,000

Fair_Value_of_Assets_and_Liabi2

Fair Value of Assets and Liabilities (Details) (USD $)	Apr. 30, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014
In Thousands, except Share data, unless otherwise specified	Sonesta ES Suites	TA	Quoted Prices in Active Markets for Identical Assets (Level 1)	Recurring	Recurring	Nonrecurring
	property		TA	Fair Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Unobservable Inputs (Level 3)
Fair Value of Assets and Liabilities	'	'	'	'	'	'
Investment securities	'	'	'	$27,873	$27,873	'
Property held for sale	'	'	'	4,074	'	4,074
Shares included in investment securities	'	3,420,000	3,420,000	'	'	'
Historical cost of securities	'	'	$17,407	'	'	'
Number of properties classified as held for sale	1	'	'	'	'	'

Fair_Value_of_Assets_and_Liabi3

Fair Value of Assets and Liabilities (Details 2) (USD $)

Feb. 15, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Mar. 12, 2014

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

In Thousands, unless otherwise specified

Senior Notes, due 2014 at 7.875%

Senior Notes, due 2015 at 5.125%

Senior Notes, due 2016 at 6.3%

Senior Notes, due 2017 at 5.625%

Senior Notes, due 2018 at 6.7%

Senior Notes, due 2022 at 5%

Senior Notes, due 2023 at 4.5%

Senior Notes, due 2024 at 4.65%

Convertible senior notes, due 2027 at 3.8%

Carrying Amount

Fair Value

Senior Notes, due 2014 at 7.875%

Senior Notes, due 2015 at 5.125%

Senior Notes, due 2016 at 6.3%

Senior Notes, due 2017 at 5.625%

Senior Notes, due 2018 at 6.7%

Senior Notes, due 2022 at 5%

Senior Notes, due 2023 at 4.5%

Senior Notes, due 2024 at 4.65%

Convertible senior notes, due 2027 at 3.8%

Senior Notes, due 2014 at 7.875%

Senior Notes, due 2015 at 5.125%

Senior Notes, due 2016 at 6.3%

Senior Notes, due 2017 at 5.625%

Senior Notes, due 2018 at 6.7%

Senior Notes, due 2022 at 5%

Senior Notes, due 2023 at 4.5%

Senior Notes, due 2024 at 4.65%

Convertible senior notes, due 2027 at 3.8%

Fair Value of Assets and Liabilities

Financial liabilities

$300,000

$280,000

$275,000

$300,000

$350,000

$500,000

$300,000

$350,000

$8,478

$304,035

$283,965

$283,150

$296,049

$297,443

$331,071

$327,681

$397,968

$399,560

$521,475

$524,810

$298,932

$289,950

$356,101

$8,860

$8,983

Unamortized discounts

-9,849

-11,120

Financial liabilities

$2,353,629

$2,302,358

$2,494,421

$2,435,612

Interest rate stated percentage

7.88%

5.13%

6.30%

5.63%

6.70%

5.00%

4.50%

4.65%

3.80%