Long-Term Incentive Plan

9 Months Ended

Sep. 30, 2017

Long-Term Incentive Plan

Long-Term Incentive Plan

10. Long-Term Incentive Plan

Stock Grants

Restricted shares granted pursuant to the Company’s 2004 Long-Term Incentive Plan, as amended and restated May 1, 2014, generally vest over periods from three to five years from the date of grant.

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

In accordance with the Compensation Topic of the FASB ASC, the Company has elected to account for forfeitures as they occur. The Company’s amortization expense and forfeitures related to restricted shares for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Amortization expense, including forfeitures	$	1,848	$	1,539	$	6,188	$	5,616

In addition, the Company capitalizes compensation costs related to all restricted shares granted to certain employees who work on the design and construction of its hotels. These capitalized costs were nominal during both the three months ended September 30, 2017 and 2016, and totaled $0.4 million and $0.5 million during the nine months ended September 30, 2017 and 2016, respectively.

Stock Options

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 on April 27, 2018. The exercise price of the Options is $17.71 per share.