Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Significant Accounting Policies

Summary of changes in reporting period

			Number of
			days in 2013
	2013	2012	versus 2012 (1)
First quarter	December 29 — March 31	December 31 — March 23	8 days
Second quarter	April 1 — June 30	March 24 — June 15	7 days
Third quarter	July 1 — September 30	June 16 — September 7	8 days
Fourth quarter	October 1 — December 31	September 8 — December 28	(20 days)
Full year	December 29, 2012 — December 31, 2013	December 31, 2011 — December 28, 2012	3 days

(1) Number of days in 2013 versus 2012 does not include the leap day, February 29, 2012, as this extra day was not caused by the Marriott calendar conversion.

Schedule of estimated effects of a Third-Party manager's fiscal calendar on calendar year total revenue and net income

The Company estimates that Marriott’s fiscal calendar had the following effects on the Company’s total revenue and net income based on the average daily revenues and income generated by its Marriott hotels during the years ended December 31, 2014, 2013 and 2012 as follows (in thousands):

	2014		2013 (1)		2012 (1)
Total revenue	$	—	$	2,300	$	(1,251)
Net income	$	—	$	672	$	(328)

(1) Increases (decreases) to total revenue and net income based on the Marriott fiscal calendars for 2013 (368 days) and 2012 (364 days) versus a standard 365 day year.

Schedule of amortization of deferred financing fees

Total amortization and write-off of deferred financing fees for 2014, 2013 and 2012 was as follows (in thousands):

	2014		2013		2012
Continuing operations:
Amortization of deferred financing fees	$	2,777	$	2,955	$	3,690
Write-off of deferred financing fees		—		—		3
Total deferred financing fees — continuing operations		2,777		2,955		3,693
Discontinued operations:
Amortization of deferred financing fees		—		2		74
Write-off of deferred financing fees		—		—		185
Total deferred financing fees — discontinued operations		—		2		259
Total amortization and write-off of deferred financing fees	$	2,777	$	2,957	$	3,952

Schedule of assets measured at fair value on a recurring and non-recurring basis

The following table presents the Company’s assets measured at fair value on a recurring and non-recurring basis at December 31, 2014 and 2013 (in thousands):

	Fair Value Measurements at Reporting Date
	Total		Level 1		Level 2		Level 3
December 31, 2014:
Interest rate cap derivative agreements	$	—	$	—	$	—	$	—
Life insurance policy (1)		1,198		—		1,198		—
Total assets at December 31, 2014	$	1,198	$	—	$	1,198	$	—
December 31, 2013:
Interest rate cap derivative agreements	$	16	$	—	$	16	$	—
Life insurance policy (1)		1,385		—		1,385		—
Total assets at December 31, 2013	$	1,401	$	—	$	1,401	$	—

(1) Includes the split life insurance policy for one of the Company’s former associates, which the Company values using Level 2 measurements. These amounts are included in other assets, net on the accompanying consolidated balance sheets, and will be used to reimburse the Company for payments made to the former associate from the related retirement benefit agreement, which is included in accrued payroll and employee benefits on the accompanying consolidated balance sheets.

Schedule of liabilities measured at fair value on a recurring and non-recurring basis

The following table presents the Company’s liabilities measured at fair value on a recurring and non-recurring basis at December 31, 2014 and 2013 (in thousands):

	Fair Value Measurements at Reporting Date
	Total		Level 1		Level 2		Level 3
December 31, 2014:
Interest rate swap derivative agreement	$	—	$	—	$	—	$	—
Retirement benefit agreement (1)		1,198		—		1,198		—
Total liabilities at December 31, 2014	$	1,198	$	—	$	1,198	$	—
December 31, 2013:
Interest rate swap derivative agreement	$	1,066	$	—	$	1,066	$	—
Retirement benefit agreement (1)		1,385		—		1,385		—
Total liabilities at December 31, 2013	$	2,451	$	—	$	2,451	$	—

(1) Includes the retirement benefit agreement for one of the Company’s former associates, which the Company values using Level 2 measurements. The agreement calls for the balance of the retirement benefit agreement to be paid out to the former associate in 10 annual installments, beginning in 2011. As such, the Company has paid the former associate a total of $0.8 million through December 31, 2014, which was reimbursed to the Company using funds from the related split life insurance policy noted above. These amounts are included in accrued payroll and employee benefits in the accompanying consolidated balance sheets.

Schedule of computation of basic and diluted earnings per common share

The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share data):

	Year Ended		Year Ended		Year Ended
	December 31, 2014		December 31, 2013		December 31, 2012
Numerator:
Net income	$	87,939	$	70,001	$	49,557
Income from consolidated joint venture attributable to non-controlling interest		(6,676)		(4,013)		(1,761)
Distributions to non-controlling interest		(32)		(32)		(31)
Preferred stock dividends and redemption charges		(9,200)		(19,013)		(29,748)
Dividends paid on unvested restricted stock compensation		(969)		(201)		—
Undistributed income allocated to unvested restricted stock compensation		—		(235)		(203)
Numerator for basic and diluted earnings available to common stockholders	$	71,062	$	46,507	$	17,814
Denominator:
Weighted average basic and diluted common shares outstanding		192,674		161,784		127,027
Basic and diluted earnings available to common stockholders per common share	$	0.37	$	0.29	$	0.14