Long-Term Incentive Plan

3 Months Ended

Mar. 31, 2015

Long-Term Incentive Plan

Long-Term Incentive Plan

9. Long-Term Incentive Plan

Stock Grants

Restricted shares granted pursuant to the Company’s Long-Term Incentive Plan (“LTIP”) generally vest over periods from three to five years from the date of grant.

Compensation expense related to awards of restricted shares and performance shares are measured at fair value on the date of grant and amortized over the relevant requisite service period or derived service period.

The Company’s compensation expense and forfeitures related to restricted shares and performance awards for the three months ended March 31, 2015 and 2014 were as follows (in thousands):

	Three Months Ended		Three Months Ended
	March 31, 2015		March 31, 2014
	(unaudited)		(unaudited)
Compensation expense, including forfeitures	$	4,432	$	2,036

The Company’s total compensation expense differs from the vesting of restricted common stock amount presented in the Company’s consolidated statement of equity due to the Company withholding and using a portion of its restricted shares granted pursuant to its LTIP for purposes of remitting statutory minimum withholding and payroll taxes in connection with the release of restricted common shares to plan participants (“net-settle”). In addition, the Company capitalizes all restricted shares granted to certain of those employees who work on the design and construction of its hotels. The Company’s total compensation expense in relation to its vesting of restricted common stock presented in the Company’s consolidated statement of equity for the three months ended March 31, 2015 is as follows (in thousands):

	Three Months Ended
	March 31, 2015
	(unaudited)
Compensation expense, including forfeitures	$	4,432
Net-settle adjustment		(5,766)
Amortization related to shares issued to design and construction employees		165
Vesting of restricted stock presented on statement of equity	$	(1,169)

In January 2015, the Company recognized a total of $2.5 million in stock compensation and amortization expense related to the departure of its former Chief Executive Officer, including $1.6 million in deferred stock amortization.

Stock Grants

In April 2008, the Compensation Committee of the Company’s board of directors approved a grant of 200,000 non-qualified stock options (the “Options”) to one of the Company’s former associates. The Options fully vested in April 2009, and will expire in April 2018. The exercise price of the options is $17.71 per share.