We are authorized to issue up to 6,082,664 shares of our common stock under our 2016 Equity Incentive Plan (the “2016 Plan”), of which we have issued or committed to issue 1,351,686 shares as of December 31, 2019. In addition to these shares, additional shares of common stock could be issued in connection with the performance stock unit awards as further described below.

Restricted stock awards issued to our officers and employees generally vest over a three-year period from the date of the grant based on continued employment. We measure compensation expense for the restricted stock awards based upon the fair market value of our common stock at the date of grant. Compensation expense is recognized on a straight-line basis over the vesting period and is included in corporate expenses in the accompanying consolidated statements of operations. A summary of our restricted stock awards from January 1, 2017 to December 31, 2019 is as follows:



	Number of Shares		Weighted- Average Grant Date Fair Value
Unvested balance at January 1, 2017	567,540		$	10.62
Granted	324,502		11.19
Forfeited	(16,669	)	10.80
Vested	(244,411	)	11.29
Unvested balance at December 31, 2017	630,962		10.66
Granted	349,091		10.19
Forfeited	(51,061	)	10.44
Vested	(287,148	)	11.02
Unvested balance at December 31, 2018	641,844		10.25
Granted	162,806		10.38
Forfeited	(21,534	)	10.37
Vested	(310,117	)	10.08
Unvested balance at December 31, 2019	472,999		$	10.40

The remaining share awards are expected to vest as follows: 237,866 during 2020, 139,152 during 2021, 32,005 during 2022, and 63,976 during 2023. As of December 31, 2019, the unrecognized compensation cost related to restricted stock awards was $2.9 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 22 months. For the years ended December 31, 2019, 2018, and 2017, we recorded $2.6 million, $3.1 million and $3.1 million, respectively, of compensation expense related to restricted stock awards.

Performance stock units (“PSUs”) are restricted stock units that vest three years from the date of grant. Each executive officer is granted a target number of PSUs (the “PSU Target Award”). The actual number of shares of common stock issued to each executive officer is based on the Company’s performance as measured by two metrics: (1) relative total stockholder return and (2) hotel market share improvement.

The achievement of certain levels of total stockholder return relative to the total stockholder return of a peer group of publicly-traded lodging REITs is measured over a three-year performance period. There is no payout of shares of our common stock if our total stockholder return falls below the 30th percentile of the total stockholder returns of the peer group. The maximum number of shares of common stock issued to an executive officer is equal to 150% of the PSU Target Award and is earned if our total stockholder return is equal to or greater than the 75th percentile of the total stockholder returns of the peer group.

The improvement in market share for each of our hotels is measured over a three-year performance period based on a report prepared for each hotel by STR Global, a well-recognized and universally accepted benchmarking service for the hospitality industry.



Grant Year	Vesting Year	Total Shareholder Return			Hotel Market Share
2014	2017	100	%		—	%
2015	2018	100	%		—	%
2016	2019	75	%		25	%
2017	2020	50	%		50	%
2018	2021	50	%	(1)	50	%
2019	2022	50	%	(1)	50	%

We measure compensation expense for the PSUs based upon the fair market value of the award at the grant date. Compensation expense is recognized on a straight-line basis over the three-year performance period and is included in corporate expenses in the accompanying consolidated statements of operations. The grant date fair value of the portion of the PSUs based on our relative total stockholder return is determined using a Monte Carlo simulation performed by a third-party valuation firm. The grant date fair value of the portion of the PSUs based on improvement in market share for each of our hotels is the closing price of our common stock on the grant date. The determination of the grant-date fair values of outstanding awards based on our relative total stockholder return included the following assumptions:



Award Grant Date	Volatility		Risk-Free Rate		Fair Value at Grant Date
February 26, 2017	26.7	%	1.46	%	$	10.89
March 2, 2018	26.9	%	2.40	%	$	9.52
April 2, 2018	26.9	%	2.37	%	$	9.00
March 1, 2019	24.3	%	2.54	%	$	9.68



	Number of Units		Weighted- Average Grant Date Fair Value
Unvested balance at January 1, 2017	686,684		$	10.65
Granted	266,009		11.04
Additional units from dividends	33,478		11.17
Vested (1)	(200,374	)	12.15
Unvested balance at December 31, 2017	785,797		10.42
Granted	293,111		9.82
Additional units from dividends	35,197		11.24
Vested (2)	(218,514	)	11.98
Forfeited	(113,668	)	9.86
Unvested balance at December 31, 2018	781,923		11.19
Granted	296,050		10.14
Additional units from dividends	40,662		10.00
Vested (3)	(251,375	)	8.80
Forfeited	(70,728	)	9.93
Unvested balance at December 31, 2019	796,532		$	11.16

The remaining unvested target units are expected to vest as follows: 243,022 during 2020, 287,477 during 2021 and 266,033 during 2022. As of December 31, 2019, the unrecognized compensation cost related to the PSUs was $3.0 million and is expected to be recognized on a straight-line basis over a period of 21 months. For the years ended December 31, 2019, 2018, and 2017, we recorded approximately $2.4 million, $1.9 million, and $2.5 million, respectively, of compensation expense related to the PSUs.

The compensation expense recorded for the year ended December 31, 2018 includes the reversal of $1.0 million of previously recognized compensation expense resulting from the forfeiture of PSUs by our former Executive Vice President and Chief Financial Officer.

During the first quarter of 2019, instead of granting restricted stock for the time-based portion of the annual long-term incentive award, we granted LTIP units to our executive officers. LTIP units are designed to offer executives a long-term incentive comparable to restricted stock, while allowing them a more favorable income tax treatment. Each LTIP unit awarded is deemed

equivalent to an award of one share of common stock reserved under the 2016 Plan. At the time of award, LTIP units do not have full economic parity with common OP units, but can achieve such parity over time upon the occurrence of specified events in accordance with partnership tax rules.



	Number of Units		Weighted- Average Grant Date Fair Value
Unvested balance at January 1, 2019	—		$	—
Granted	281,925		10.65
Forfeited	(37,559	)	10.65
Unvested balance at December 31, 2019	244,366		$	10.65

During the year ended December 31, 2019, we granted 281,925 LTIP units to executive officers, which had a weighted-average grant date fair value of $10.65 per unit. There are currently no vested LTIP units outstanding. The LTIP units are expected to vest ratably in 2020, 2021, and 2022. As of December 31, 2019, the unrecognized compensation cost related to LTIP unit awards was $1.9 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 26 months. We recorded $0.7 million of compensation expense related to LTIP unit awards for the year ended December 31, 2019. We did not record any compensation expense related to LTIP unit awards during 2018 or 2017.