Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies

Schedule of basic management fees

Total basic management fees incurred by the Company during the years ended December 31, 2014, 2013 and 2012 were included in the Company’s consolidated statements of operations as follows (in thousands):

	2014		2013		2012
Continuing operations — property general and administrative expense, and corporate overhead expense	$	31,485	$	25,218	$	22,807
Discontinued operations		—		65		2,061
	$	31,485	$	25,283	$	24,868

Schedule of incentive management fees

Total incentive management fees incurred by the Company during the years ended December 31, 2014, 2013 and 2012 were included in the Company’s consolidated statements of operations as follows (in thousands):

	2014		2013		2012
Continuing operations — property general and administrative expense	$	4,034	$	3,025	$	2,738
Discontinued operations		—		—		587
	$	4,034	$	3,025	$	3,325

Schedule of license and franchise costs

Total license and franchise fees incurred by the Company during the years ended December 31, 2014, 2013 and 2012 were included in the Company’s consolidated statements of operations as follows (in thousands):

	2014		2013		2012
Continuing operations — franchise costs	$	38,271	$	32,932	$	30,067
Discontinued operations		—		73		2,996
	$	38,271	$	33,005	$	33,063

Schedule of assets under capital lease

Assets under capital lease were included in investment in hotel properties, net on the Company’s consolidated balance sheets as follows (in thousands):

	December 31,
	2014		2013
Buildings and improvements	$	58,799	$	58,799
Furniture, fixtures and equipment		104		104
		58,903		58,903
Accumulated depreciation		(3,841)		(2,356)
	$	55,062	$	56,547

Schedule of future minimum lease payments under capital leases

Future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of December 31, 2014 are as follows (in thousands):

2015	$	1,409
2016		1,403
2017		1,403
2018		1,403
2019		1,403
Thereafter		109,414
Total minimum lease payments (1)		116,435
Less: Amount representing interest (2)		(100,852)
Present value of net minimum lease payments (3)	$	15,583

(1) Minimum lease payments do not include percentage rent which may be paid under the Hyatt Chicago Magnificent Mile building lease on the basis of 4.0% of the hotel’s gross room revenues over a certain threshold. The Company recorded zero in percentage rent during both 2014 and 2013, and $3,000 in percentage rent during 2012.

(2) Interest includes the amount necessary to reduce net minimum lease payments to present value calculated at the Company’s incremental borrowing rate at lease inception.

(3) The present value of net minimum lease payments are reflected in the Company’s consolidated balance sheet as of December 31, 2014 as a current obligation of $7,000, which is included in accounts payable and accrued expenses, and as a long-term obligation of $15.6 million, which is included in capital lease obligations, less current portion.

Entity's hotels obligated to unaffiliated third parties under the terms of ground, building and air leases

	2014	2013	2012
Number of hotels with ground, building and/or air leases	9	10	10
Number of ground leases	8	9	9
Number of building leases (1)	1	1	1
Number of air leases	3	3	3
Total number of ground, building and air leases	12	13	13

Schedule of ground, building and air lease rent

Total rent expense incurred pursuant to ground, building and air lease agreements for the years ended December 31, 2014, 2013 and 2012 was included in property tax, ground lease and insurance in the Company’s consolidated statements of operations as follows (in thousands):

	2014		2013		2012
Minimum rent, including straightline adjustments	$	14,999	$	15,228	$	14,950
Percentage rent (1)		2,718		2,131		2,000
	$	17,717	$	17,359	$	16,950

Schedule of future minimum payments of operating leases

Future minimum payments under the terms of the ground and air leases, as well as the sublease on the corporate facility, in effect at December 31, 2014 are as follows (in thousands):

2015	$	8,438
2016		8,499
2017		11,523
2018		11,450
2019		11,236
Thereafter		335,009
Total	$	386,155

Schedule of future minimum payments of obligations under employment agreements

Approximate minimum future obligations under employment agreements are as follows as of December 31, 2014 (in thousands):

2015	$	6,319
2016		706
	$	7,025

Schedule of hotel geographic concentration of risk

									Greater
									Washington DC
	California		New York		Illinois		Massachusetts		Area
Number of hotels	9		3		3		3		3
Percentage of total rooms	31	%	9	%	8	%	14	%	13	%
Percentage of total revenue for the year ended December 31, 2014	33	%	13	%	7	%	14	%	12	%