XML 69 R28.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Investment In Unconsolidated Joint Ventures (Tables)
 12 Months Ended
Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]  
Investment In Unconsolidated Joint Ventures
As of December 31, 2019 and December 31, 2018 our investment in unconsolidated joint ventures consisted of the following:

 
 
 
Percent
 
 
 
 
Joint Venture
 
Hotel Properties
 
Owned
 
December 31, 2019
 
December 31, 2018

 
 
 
 
 
 
 
 
Cindat Hersha Owner JV, LLC
 
Hilton and IHG branded hotels in NYC
 
31.2
%
 
$
—

 
$
—

Hiren Boston, LLC
 
Courtyard by Marriott, South Boston, MA
 
50.0
%
 
1,434

 
1,879

SB Partners, LLC
 
Holiday Inn Express, South Boston, MA
 
50.0
%
 
—

 
1,125

SB Partners Three, LLC
 
Home2 Suites, South Boston, MA
 
50.0
%
 
7,012

 
1,000


 
 
 
 
 
$
8,446

 
$
4,004
Income Or Loss From Unconsolidated Joint Ventures
Income (loss) recognized during the years ended December 31, 2019, 2018 and 2017, for our investments in unconsolidated joint ventures is as follows:

Year Ended December 31,

2019
 
2018
 
2017
Cindat Hersha Owner JV, LLC
$
—

 
$
—

 
$
(3,717
)
Hiren Boston, LLC
155

 
866

 
750

SB Partners, LLC
626

 
218

 
494

SB Partners Three, LLC
(90
)
 
—

 
—

Income (Loss) from Unconsolidated Joint Venture Investments
$
691

 
$
1,084

 
$
(2,473
)
Summary Financial Information Related To Unconsolidated Joint Ventures
The following tables set forth the total assets, liabilities, equity and components of net income or loss, including the Company’s share, related to the unconsolidated joint ventures discussed above as of December 31, 2019 and December 31, 2018 and for the years ended December 31, 2019, 2018 and 2017. 
Balance Sheets
 
 
 

December 31, 2019
 
December 31, 2018
Assets
 
 
 
Investment in Hotel Properties, Net
$
579,287

 
$
569,609

Other Assets
33,891

 
30,088

Total Assets
$
613,178

 
$
599,697


 
 
 
Liabilities and Equity
 
 
 
Mortgages and Notes Payable
$
430,282

 
$
422,205

Other Liabilities
19,185

 
7,478

Equity:
 
 
 
Hersha Hospitality Trust
9,588

 
15,554

Joint Venture Partners
154,998

 
155,053

Accumulated Other Comprehensive Loss
(875
)
 
(593
)
Total Equity
163,711

 
170,014


 
 
 
Total Liabilities and Equity
$
613,178

 
$
599,697

Statements of Operations
 
 
 
 
 

Year Ended December 31,

2019
 
2018
 
2017
Room Revenue
$
94,384

 
$
98,123

 
$
93,254

Other Revenue
2,408

 
2,350

 
1,965

Operating Expenses
(46,175
)
 
(46,319
)
 
(43,245
)
Lease Expense
(693
)
 
(658
)
 
(691
)
Property Taxes and Insurance
(12,477
)
 
(11,882
)
 
(11,274
)
General and Administrative
(5,783
)
 
(5,489
)
 
(5,179
)
Depreciation and Amortization
(14,947
)
 
(13,403
)
 
(12,331
)
Interest Expense
(28,072
)
 
(26,289
)
 
(20,965
)
Loss on Debt Extinguishment
—

 
(7,270
)
 
—


 
 
 
 
 
Net (Loss) Income
$
(11,355
)
 
$
(10,837
)
 
$
1,534
Reconciliation Of Share In Unconsolidated Joint Ventures' Equity In Investment In Unconsolidated Joint Ventures
The following table is a reconciliation of our share in the unconsolidated joint ventures’ equity to our investment in the unconsolidated joint ventures as presented on our balance sheets as of December 31, 2019 and December 31, 2018.

December 31, 2019
 
December 31, 2018
Our share of equity recorded on the joint ventures' financial statements
$
9,588

 
$
15,554

Adjustment to reconcile our share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures(1)
(1,142
)
 
(11,550
)
Investment in Unconsolidated Joint Ventures
$
8,446

 
$
4,004

(1)
Adjustment to reconcile our share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures consists of the following:
•
the difference between our basis in the investment in joint ventures and the equity recorded on the joint ventures' financial statements;
•
accumulated amortization of our equity in joint ventures that reflects the difference in our portion of the fair value of joint ventures' assets on the date of our investment when compared to the carrying value of the assets recorded on the joint ventures’ financial statements (this excess or deficit investment is amortized over the life of the properties, and the amortization is included in Income (Loss) from Unconsolidated Joint Venture Investments on our consolidated statement of operations); and
•
cumulative impairment of our investment in joint ventures not reflected on the joint ventures' financial statements, if any.