☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO _______
|
Virginia
|
26-1379210
|
(State or other jurisdiction
of incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
814 East Main Street
Richmond, Virginia
|
23219 |
(Address of principal executive offices)
|
(Zip Code) |
Large accelerated filer ☒
|
Accelerated filer ☐ |
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
|
Page Number
|
|||
PART I. FINANCIAL INFORMATION
|
||||
Item 1.
|
||||
3
|
||||
4
|
||||
5
|
||||
6
|
||||
Item 2.
|
18
|
|||
Item 3.
|
34
|
|||
Item 4.
|
34
|
|||
PART II. OTHER INFORMATION
|
||||
Item 1.
|
35
|
|||
Item 1A.
|
35 | |||
Item 6.
|
35
|
|||
36 |
June 30,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Investment in real estate, net of accumulated depreciation
of $644,718 and $557,597, respectively
|
$
|
4,770,883
|
$
|
4,823,489
|
||||
Assets held for sale
|
0
|
39,000
|
||||||
Restricted cash-furniture, fixtures and other escrows
|
28,244
|
29,425
|
||||||
Due from third party managers, net
|
57,676
|
31,460
|
||||||
Other assets, net
|
47,771
|
56,509
|
||||||
Total Assets
|
$
|
4,904,574
|
$
|
4,979,883
|
||||
Liabilities
|
||||||||
Revolving credit facility
|
$
|
301,300
|
$
|
270,000
|
||||
Term loans
|
571,461
|
570,934
|
||||||
Mortgage debt
|
435,556
|
497,029
|
||||||
Accounts payable and other liabilities
|
88,685
|
124,856
|
||||||
Total Liabilities
|
1,397,002
|
1,462,819
|
||||||
Shareholders' Equity
|
||||||||
Preferred stock, authorized 30,000,000 shares; none issued
and outstanding
|
0
|
0
|
||||||
Common stock, no par value, authorized 800,000,000 shares;
issued and outstanding 223,055,340 and 222,938,648 shares, respectively
|
4,455,191
|
4,453,205
|
||||||
Accumulated other comprehensive income
|
4,959
|
4,589
|
||||||
Distributions greater than net income
|
(952,578
|
)
|
(940,730
|
)
|
||||
Total Shareholders' Equity
|
3,507,572
|
3,517,064
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
4,904,574
|
$
|
4,979,883
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Revenues:
|
||||||||||||||||
Room
|
$
|
306,283
|
$
|
237,340
|
$
|
575,676
|
$
|
443,490
|
||||||||
Other
|
25,421
|
20,296
|
48,953
|
38,633
|
||||||||||||
Total revenue
|
331,704
|
257,636
|
624,629
|
482,123
|
||||||||||||
Expenses:
|
||||||||||||||||
Operating
|
80,345
|
61,459
|
155,499
|
118,288
|
||||||||||||
Hotel administrative
|
25,217
|
18,857
|
50,053
|
37,055
|
||||||||||||
Sales and marketing
|
26,270
|
19,896
|
50,379
|
37,915
|
||||||||||||
Utilities
|
10,193
|
7,719
|
19,946
|
15,319
|
||||||||||||
Repair and maintenance
|
12,279
|
9,605
|
24,195
|
18,689
|
||||||||||||
Franchise fees
|
14,163
|
10,933
|
26,637
|
20,378
|
||||||||||||
Management fees
|
11,545
|
8,947
|
21,757
|
16,984
|
||||||||||||
Property taxes, insurance and other
|
17,821
|
13,076
|
34,748
|
25,528
|
||||||||||||
Ground lease
|
2,839
|
2,506
|
5,655
|
4,972
|
||||||||||||
General and administrative
|
6,151
|
5,060
|
12,905
|
9,888
|
||||||||||||
Transaction and litigation costs (reimbursements)
|
(2,586
|
)
|
1,116
|
(2,586
|
)
|
1,409
|
||||||||||
Loss on impairment of depreciable real estate assets
|
0
|
0
|
7,875
|
0
|
||||||||||||
Depreciation
|
43,893
|
33,824
|
87,660
|
67,308
|
||||||||||||
Total expenses
|
248,130
|
192,998
|
494,723
|
373,733
|
||||||||||||
Operating income
|
83,574
|
64,638
|
129,906
|
108,390
|
||||||||||||
Interest and other expense, net
|
(11,849
|
)
|
(9,560
|
)
|
(23,566
|
)
|
(18,363
|
)
|
||||||||
Gain on sale of real estate
|
16,140
|
0
|
16,140
|
0
|
||||||||||||
Income before income taxes
|
87,865
|
55,078
|
122,480
|
90,027
|
||||||||||||
Income tax expense
|
(259
|
)
|
(360
|
)
|
(509
|
)
|
(623
|
)
|
||||||||
Net income
|
$
|
87,606
|
$
|
54,718
|
$
|
121,971
|
$
|
89,404
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Interest rate derivatives
|
(1,175
|
)
|
(5,501
|
)
|
370
|
(12,195
|
)
|
|||||||||
Comprehensive income
|
$
|
86,431
|
$
|
49,217
|
$
|
122,341
|
$
|
77,209
|
||||||||
Basic and diluted net income per common share
|
$
|
0.39
|
$
|
0.31
|
$
|
0.55
|
$
|
0.51
|
||||||||
Weighted average common shares outstanding - basic and diluted
|
223,052
|
174,667
|
223,049
|
174,667
|
Six Months Ended
|
||||||||
June 30,
|
||||||||
2017
|
2016
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
121,971
|
$
|
89,404
|
||||
Adjustments to reconcile net income to cash provided by operating activities:
|
||||||||
Depreciation
|
87,660
|
67,308
|
||||||
Loss on impairment of depreciable real estate assets
|
7,875
|
0
|
||||||
Gain on sale of real estate
|
(16,140
|
)
|
0
|
|||||
Other non-cash expenses, net
|
3,617
|
3,233
|
||||||
Changes in operating assets and liabilities, net of amounts acquired or
assumed with acquisitions:
|
||||||||
Increase in due from third party managers, net
|
(26,206
|
)
|
(20,350
|
)
|
||||
Decrease (increase) in other assets, net
|
8,429
|
(1,552
|
)
|
|||||
Decrease in accounts payable and other liabilities
|
(30,897
|
)
|
(1,373
|
)
|
||||
Net cash provided by operating activities
|
156,309
|
136,670
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of hotel properties, net
|
(18,131
|
)
|
0
|
|||||
Deposits and other disbursements for potential acquisitions
|
0
|
(503
|
)
|
|||||
Capital improvements
|
(28,866
|
)
|
(35,488
|
)
|
||||
Decrease (increase) in capital improvement reserves
|
(190
|
)
|
1,611
|
|||||
Net proceeds from sale of real estate
|
28,531
|
0
|
||||||
Net cash used in investing activities
|
(18,656
|
)
|
(34,380
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repurchases of common shares
|
0
|
(361
|
)
|
|||||
Repurchases of common shares to satisfy employee withholding requirements
|
(432
|
)
|
(459
|
)
|
||||
Distributions paid to common shareholders
|
(133,811
|
)
|
(104,713
|
)
|
||||
Net proceeds from revolving credit facility
|
31,300
|
40,800
|
||||||
Proceeds from term loans
|
0
|
50,000
|
||||||
Proceeds from mortgage debt
|
0
|
24,000
|
||||||
Payments of mortgage debt
|
(34,590
|
)
|
(86,881
|
)
|
||||
Financing costs
|
(120
|
)
|
(3,062
|
)
|
||||
Net cash used in financing activities
|
(137,653
|
)
|
(80,676
|
)
|
||||
Net change in cash and cash equivalents
|
0
|
21,614
|
||||||
Cash and cash equivalents, beginning of period
|
0
|
0
|
||||||
Cash and cash equivalents, end of period
|
$
|
0
|
$
|
21,614
|
||||
Supplemental cash flow information:
|
||||||||
Interest paid
|
$
|
23,532
|
$
|
19,620
|
||||
Supplemental disclosure of noncash investing and financing activities:
|
||||||||
Accrued distribution to common shareholders
|
$
|
22,301
|
$
|
17,451
|
||||
Mortgage debt assumed by buyer upon sale of real estate
|
$
|
27,073
|
$
|
0
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Total revenue
|
$
|
331,704
|
$
|
333,869
|
$
|
624,629
|
$
|
623,836
|
||||||||
Net income
|
$
|
85,020
|
$
|
72,179
|
$
|
119,385
|
$
|
117,025
|
||||||||
Basic and diluted net income per common share
|
$
|
0.38
|
$
|
0.32
|
$
|
0.54
|
$
|
0.52
|
||||||||
Weighted average common shares outstanding - basic and diluted
|
223,052
|
223,397
|
223,049
|
223,397
|
June 30,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Land
|
$
|
710,191
|
$
|
707,878
|
||||
Building and Improvements
|
4,288,611
|
4,270,095
|
||||||
Furniture, Fixtures and Equipment
|
405,015
|
391,421
|
||||||
Franchise Fees
|
11,784
|
11,692
|
||||||
5,415,601
|
5,381,086
|
|||||||
Less Accumulated Depreciation
|
(644,718
|
)
|
(557,597
|
)
|
||||
Investment in Real Estate, net
|
$
|
4,770,883
|
$
|
4,823,489
|
Location
|
Brand
|
Date of Purchase Contract
|
Rooms
|
Refundable Deposits
|
Gross Purchase Price
|
|||||||||||
Birmingham, AL (a)(b)
|
Home2 Suites
|
8/28/2015
|
105
|
$
|
3
|
$
|
19,219
|
|||||||||
Birmingham, AL (a)(b)
|
Hilton Garden Inn
|
8/28/2015
|
105
|
2
|
19,219
|
|||||||||||
Phoenix, AZ (a)
|
Hampton
|
10/25/2016
|
210
|
500
|
44,100
|
|||||||||||
Orlando, FL (a)
|
Home2 Suites
|
1/18/2017
|
128
|
3
|
20,736
|
|||||||||||
548
|
$
|
508
|
$
|
103,274
|
(a) |
As of June 30, 2017, these hotels were under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise brands. Assuming all conditions to closing are met, the purchases of these hotels are expected to close over the next three to 15 months from June 30, 2017. If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing.
|
(b) |
The Home2 Suites and Hilton Garden Inn hotels in Birmingham, AL are part of an adjoining two-hotel complex located on the same site.
|
As of June 30, 2017
|
As of December 31, 2016
|
|||||||||||||||||||
|
Maturity Date
|
Outstanding Balance
|
Interest Rate
|
Outstanding Balance
|
Interest Rate
|
|||||||||||||||
Revolving credit facility (1)
|
5/18/2019
|
$
|
301,300
|
2.77
|
%
|
(2)
|
$
|
270,000
|
2.32
|
%
|
(2)
|
|||||||||
Term loans
|
||||||||||||||||||||
$425 million term loans
|
5/18/2020
|
425,000
|
3.01
|
%
|
(3)
|
425,000
|
2.90
|
%
|
(3)
|
|||||||||||
$50 million term loan
|
4/8/2021
|
50,000
|
2.54
|
%
|
(4)
|
50,000
|
2.54
|
%
|
(4)
|
|||||||||||
$100 million term loan
|
4/8/2023
|
100,000
|
3.13
|
%
|
(4)
|
100,000
|
3.13
|
%
|
(4)
|
|||||||||||
Total term loans at stated value
|
575,000
|
575,000
|
||||||||||||||||||
Unamortized debt issuance costs
|
(3,539
|
)
|
(4,066
|
)
|
||||||||||||||||
Total term loans
|
571,461
|
570,934
|
||||||||||||||||||
Total revolving credit facility and term loans
|
$
|
872,761
|
$
|
840,934
|
(1) |
Unamortized debt issuance costs related to the revolving credit facility totaled approximately $2.3 million and $2.8 million as of June 30, 2017 and December 31, 2016, respectively, and are included in other assets, net in the Company's consolidated balance sheets.
|
(2) |
Annual variable interest rate at the balance sheet date.
|
(3) |
Effective annual interest rate which includes the effect of interest rate swaps on $322.5 million of the outstanding loan balance, resulting in an annual fixed interest rate of approximately 3.10% on this portion of the debt, subject to adjustment based on the Company's leverage ratio. See Note 6 for more information on the interest rate swap agreements. Remaining portion is variable rate debt.
|
(4) |
Annual fixed interest rate at the balance sheet date which includes the effect of an interest rate swap on the outstanding loan balance, subject to adjustment based on the Company’s leverage ratio. See Note 6 for more information on the interest rate swap agreements.
|
Location
|
Brand
|
Interest Rate (1)
|
Loan Assumption or Origination Date
|
Maturity Date
|
Principal Assumed or Originated
|
Outstanding balance as of June 30, 2017
|
Outstanding balance as of December 31, 2016
|
||||||||||||||||
Irving, TX
|
Homewood Suites
|
5.83
|
%
|
12/29/2010
|
(2)
|
$
|
6,052
|
$
|
0
|
$
|
5,072
|
||||||||||||
Gainesville, FL
|
Homewood Suites
|
5.89
|
%
|
9/1/2016
|
(2)
|
12,051
|
0
|
11,966
|
|||||||||||||||
Duncanville, TX
|
Hilton Garden Inn
|
5.88
|
%
|
10/21/2008
|
(2)
|
13,966
|
0
|
12,126
|
|||||||||||||||
Dallas, TX
|
Hilton
|
3.95
|
%
|
5/22/2015
|
(3)
|
28,000
|
0
|
27,246
|
|||||||||||||||
San Juan Capistrano, CA
|
Residence Inn
|
4.15
|
%
|
9/1/2016
|
6/1/2020
|
16,210
|
15,940
|
16,104
|
|||||||||||||||
Colorado Springs, CO
|
Hampton
|
6.25
|
%
|
9/1/2016
|
7/6/2021
|
7,923
|
7,819
|
7,883
|
|||||||||||||||
Franklin, TN
|
Courtyard
|
6.25
|
%
|
9/1/2016
|
8/6/2021
|
14,679
|
14,487
|
14,604
|
|||||||||||||||
Franklin, TN
|
Residence Inn
|
6.25
|
%
|
9/1/2016
|
8/6/2021
|
14,679
|
14,487
|
14,604
|
|||||||||||||||
Grapevine, TX
|
Hilton Garden Inn
|
4.89
|
%
|
8/29/2012
|
9/1/2022
|
11,810
|
10,560
|
10,707
|
|||||||||||||||
Collegeville/Philadelphia, PA
|
Courtyard
|
4.89
|
%
|
8/30/2012
|
9/1/2022
|
12,650
|
11,312
|
11,468
|
|||||||||||||||
Hattiesburg, MS
|
Courtyard
|
5.00
|
%
|
3/1/2014
|
9/1/2022
|
5,732
|
5,285
|
5,357
|
|||||||||||||||
Rancho Bernardo, CA
|
Courtyard
|
5.00
|
%
|
3/1/2014
|
9/1/2022
|
15,060
|
13,884
|
14,074
|
|||||||||||||||
Kirkland, WA
|
Courtyard
|
5.00
|
%
|
3/1/2014
|
9/1/2022
|
12,145
|
11,197
|
11,350
|
|||||||||||||||
Seattle, WA
|
Residence Inn
|
4.96
|
%
|
3/1/2014
|
9/1/2022
|
28,269
|
26,050
|
26,409
|
|||||||||||||||
Anchorage, AK
|
Embassy Suites
|
4.97
|
%
|
9/13/2012
|
10/1/2022
|
23,230
|
20,848
|
21,133
|
|||||||||||||||
Somerset, NJ
|
Courtyard
|
4.73
|
%
|
3/1/2014
|
10/6/2022
|
8,750
|
8,047
|
8,160
|
|||||||||||||||
Tukwila, WA
|
Homewood Suites
|
4.73
|
%
|
3/1/2014
|
10/6/2022
|
9,431
|
8,672
|
8,795
|
|||||||||||||||
Prattville, AL
|
Courtyard
|
4.12
|
%
|
3/1/2014
|
2/6/2023
|
6,596
|
6,033
|
6,123
|
|||||||||||||||
Huntsville, AL
|
Homewood Suites
|
4.12
|
%
|
3/1/2014
|
2/6/2023
|
8,306
|
7,598
|
7,711
|
|||||||||||||||
San Diego, CA
|
Residence Inn
|
3.97
|
%
|
3/1/2014
|
3/6/2023
|
18,600
|
16,992
|
17,248
|
|||||||||||||||
Miami, FL
|
Homewood Suites
|
4.02
|
%
|
3/1/2014
|
4/1/2023
|
16,677
|
15,252
|
15,479
|
|||||||||||||||
Syracuse, NY
|
Courtyard
|
4.75
|
%
|
10/16/2015
|
8/1/2024
|
(4)
|
11,199
|
10,772
|
10,905
|
||||||||||||||
Syracuse, NY
|
Residence Inn
|
4.75
|
%
|
10/16/2015
|
8/1/2024
|
(4)
|
11,199
|
10,772
|
10,905
|
||||||||||||||
New Orleans, LA
|
Homewood Suites
|
4.36
|
%
|
7/17/2014
|
8/11/2024
|
27,000
|
25,251
|
25,577
|
|||||||||||||||
Westford, MA
|
Residence Inn
|
4.28
|
%
|
3/18/2015
|
4/11/2025
|
10,000
|
9,507
|
9,626
|
|||||||||||||||
Denver, CO
|
Hilton Garden Inn
|
4.46
|
%
|
9/1/2016
|
6/11/2025
|
34,118
|
33,454
|
33,857
|
|||||||||||||||
Oceanside, CA
|
Courtyard
|
4.28
|
%
|
9/1/2016
|
10/1/2025
|
13,655
|
13,456
|
13,576
|
|||||||||||||||
Omaha, NE
|
Hilton Garden Inn
|
4.28
|
%
|
9/1/2016
|
10/1/2025
|
22,682
|
22,350
|
22,550
|
|||||||||||||||
Boise, ID
|
Hampton
|
4.37
|
%
|
5/26/2016
|
6/11/2026
|
24,000
|
23,618
|
23,813
|
|||||||||||||||
Burbank, CA
|
Courtyard
|
3.55
|
%
|
11/3/2016
|
12/1/2026
|
25,564
|
25,243
|
25,564
|
|||||||||||||||
San Diego, CA
|
Courtyard
|
3.55
|
%
|
11/3/2016
|
12/1/2026
|
25,473
|
25,153
|
25,473
|
|||||||||||||||
San Diego, CA
|
Hampton
|
3.55
|
%
|
11/3/2016
|
12/1/2026
|
18,963
|
18,725
|
18,963
|
|||||||||||||||
$
|
514,669
|
432,764
|
494,428
|
||||||||||||||||||||
Unamortized fair value adjustment of assumed debt
|
4,781
|
5,229
|
|||||||||||||||||||||
Unamortized debt issuance costs
|
(1,989
|
)
|
(2,628
|
)
|
|||||||||||||||||||
Total
|
$
|
435,556
|
$
|
497,029
|
(1) |
Interest rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan.
|
(2) |
Loans were repaid in full during the three months ended March 31, 2017.
|
(3) |
Assets securing this loan were classified as held for sale as of December 31, 2016. In April 2017, the assets securing this loan were sold, and the loan was assumed by the buyer of those assets.
|
(4) |
Outstanding principal balance is callable by lender or prepayable by the Company on August 1, 2019.
|
2017 (July - December)
|
$
|
5,329
|
||
2018
|
11,071
|
|||
2019
|
333,008
|
|||
2020
|
451,164
|
|||
2021
|
95,311
|
|||
Thereafter
|
413,181
|
|||
1,309,064
|
||||
Unamortized fair value adjustment of assumed debt
|
4,781
|
|||
Unamortized debt issuance costs related to term loans and mortgage debt
|
(5,528
|
)
|
||
Total
|
$
|
1,308,317
|
Hedge Type
|
Notional Amount at
June 30, 2017
|
Origination Date
|
Maturity Date
|
Swap Fixed Interest Rate
|
Fair Value Asset (Liability)
|
||||||||||||||
June 30, 2017
|
December 31, 2016
|
||||||||||||||||||
Cash flow hedge
|
$
|
212,500
|
5/21/2015
|
5/18/2020
|
1.58
|
%
|
$
|
262
|
$
|
(198
|
)
|
||||||||
Cash flow hedge
|
110,000
|
7/2/2015
|
5/18/2020
|
1.62
|
%
|
12
|
(246
|
)
|
|||||||||||
Cash flow hedge
|
50,000
|
4/7/2016
|
3/31/2021
|
1.09
|
%
|
1,169
|
1,289
|
||||||||||||
Cash flow hedge
|
100,000
|
4/7/2016
|
3/31/2023
|
1.33
|
%
|
3,250
|
3,744
|
||||||||||||
Cash flow hedge (1)
|
75,000
|
5/31/2017
|
6/30/2024
|
1.96
|
%
|
266
|
0
|
||||||||||||
$
|
4,959
|
$
|
4,589
|
(1)
|
In May 2017, the Company entered into a forward interest rate swap agreement with a commercial bank, which beginning on July 31, 2017 will effectively fix the interest rate on $75 million of the $85 million term loan. See Note 5 for more information on the term loan.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||||||||||||||||||
(in thousands, except statistical data)
|
2017
|
Percent of Revenue
|
2016
|
Percent of Revenue
|
Percent Change
|
2017
|
Percent of Revenue
|
2016
|
Percent of Revenue
|
Percent Change
|
||||||||||||||||||||||||||||||
Total revenue
|
$
|
331,704
|
100.0
|
%
|
$
|
257,636
|
100.0
|
%
|
28.7
|
%
|
$
|
624,629
|
100.0
|
%
|
$
|
482,123
|
100.0
|
%
|
29.6
|
%
|
||||||||||||||||||||
Hotel operating expense
|
180,012
|
54.3
|
%
|
137,416
|
53.3
|
%
|
31.0
|
%
|
348,466
|
55.8
|
%
|
264,628
|
54.9
|
%
|
31.7
|
%
|
||||||||||||||||||||||||
Property taxes, insurance and other expense
|
17,821
|
5.4
|
%
|
13,076
|
5.1
|
%
|
36.3
|
%
|
34,748
|
5.6
|
%
|
25,528
|
5.3
|
%
|
36.1
|
%
|
||||||||||||||||||||||||
Ground lease expense
|
2,839
|
0.9
|
%
|
2,506
|
1.0
|
%
|
13.3
|
%
|
5,655
|
0.9
|
%
|
4,972
|
1.0
|
%
|
13.7
|
%
|
||||||||||||||||||||||||
General and administrative expense
|
6,151
|
1.9
|
%
|
5,060
|
2.0
|
%
|
21.6
|
%
|
12,905
|
2.1
|
%
|
9,888
|
2.1
|
%
|
30.5
|
%
|
||||||||||||||||||||||||
Transaction and litigation costs (reimbursements)
|
(2,586
|
)
|
1,116
|
n/a
|
(2,586
|
)
|
1,409
|
n/a
|
||||||||||||||||||||||||||||||||
Loss on impairment of depreciable real estate assets
|
-
|
-
|
n/a
|
7,875
|
-
|
n/a
|
||||||||||||||||||||||||||||||||||
Depreciation expense
|
43,893
|
33,824
|
29.8
|
%
|
87,660
|
67,308
|
30.2
|
%
|
||||||||||||||||||||||||||||||||
Interest and other expense, net
|
11,849
|
9,560
|
23.9
|
%
|
23,566
|
18,363
|
28.3
|
%
|
||||||||||||||||||||||||||||||||
Gain on sale of real estate
|
16,140
|
-
|
n/a
|
16,140
|
-
|
n/a
|
||||||||||||||||||||||||||||||||||
Income tax expense
|
259
|
360
|
-28.1
|
%
|
509
|
623
|
-18.3
|
%
|
||||||||||||||||||||||||||||||||
Number of hotels owned at end of period
|
235
|
179
|
31.3
|
%
|
235
|
179
|
31.3
|
%
|
||||||||||||||||||||||||||||||||
ADR
|
$
|
137.56
|
$
|
138.16
|
-0.4
|
%
|
$
|
135.58
|
$
|
135.79
|
-0.2
|
%
|
||||||||||||||||||||||||||||
Occupancy
|
81.5
|
%
|
82.2
|
%
|
-0.9
|
%
|
78.0
|
%
|
78.2
|
%
|
-0.3
|
%
|
||||||||||||||||||||||||||||
RevPAR
|
$
|
112.10
|
$
|
113.59
|
-1.3
|
%
|
$
|
105.70
|
$
|
106.13
|
-0.4
|
%
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2017
|
2016
|
Percent Change
|
2017
|
2016
|
Percent Change
|
|||||||||||||||||||
ADR
|
$
|
137.53
|
$
|
137.08
|
0.3
|
%
|
$
|
135.42
|
$
|
134.99
|
0.3
|
%
|
||||||||||||
Occupancy
|
81.5
|
%
|
81.9
|
%
|
-0.5
|
%
|
78.0
|
%
|
77.8
|
%
|
0.3
|
%
|
||||||||||||
RevPAR
|
$
|
112.08
|
$
|
112.27
|
-0.2
|
%
|
$
|
105.59
|
$
|
104.97
|
0.6
|
%
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net income
|
$
|
87,606
|
$
|
54,718
|
$
|
121,971
|
$
|
89,404
|
||||||||
Depreciation of real estate owned
|
43,664
|
33,594
|
87,201
|
66,848
|
||||||||||||
Gain on sale of real estate
|
(16,140
|
)
|
-
|
(16,140
|
)
|
-
|
||||||||||
Loss on impairment of depreciable real estate assets
|
-
|
-
|
7,875
|
-
|
||||||||||||
Amortization of favorable and unfavorable leases, net
|
168
|
119
|
333
|
381
|
||||||||||||
Funds from operations
|
115,298
|
88,431
|
201,240
|
156,633
|
||||||||||||
Transaction and litigation costs (reimbursements)
|
(2,586
|
)
|
1,116
|
(2,586
|
)
|
1,409
|
||||||||||
Non-cash straight-line ground lease expense
|
938
|
817
|
1,877
|
1,636
|
||||||||||||
Modified funds from operations
|
$
|
113,650
|
$
|
90,364
|
$
|
200,531
|
$
|
159,678
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net income
|
$
|
87,606
|
$
|
54,718
|
$
|
121,971
|
$
|
89,404
|
||||||||
Depreciation
|
43,893
|
33,824
|
87,660
|
67,308
|
||||||||||||
Amortization of favorable and unfavorable leases, net
|
168
|
119
|
333
|
381
|
||||||||||||
Interest and other expense, net
|
11,849
|
9,560
|
23,566
|
18,363
|
||||||||||||
Income tax expense
|
259
|
360
|
509
|
623
|
||||||||||||
EBITDA
|
143,775
|
98,581
|
234,039
|
176,079
|
||||||||||||
Transaction and litigation costs (reimbursements)
|
(2,586
|
)
|
1,116
|
(2,586
|
)
|
1,409
|
||||||||||
Gain on sale of real estate
|
(16,140
|
)
|
-
|
(16,140
|
)
|
-
|
||||||||||
Loss on impairment of depreciable real estate assets
|
-
|
-
|
7,875
|
-
|
||||||||||||
Non-cash straight-line ground lease expense
|
938
|
817
|
1,877
|
1,636
|
||||||||||||
Adjusted EBITDA
|
$
|
125,987
|
$
|
100,514
|
$
|
225,065
|
$
|
179,124
|
Number of Hotels and Guest Rooms by Brand
|
||||||||
Number of
|
Number of
|
|||||||
Brand
|
Hotels
|
Rooms
|
||||||
Hilton Garden Inn
|
41
|
5,703
|
||||||
Courtyard
|
40
|
5,460
|
||||||
Hampton
|
36
|
4,422
|
||||||
Homewood Suites
|
34
|
3,831
|
||||||
Residence Inn
|
32
|
3,696
|
||||||
SpringHill Suites
|
17
|
2,248
|
||||||
TownePlace Suites
|
12
|
1,196
|
||||||
Fairfield Inn
|
11
|
1,300
|
||||||
Home2 Suites
|
6
|
669
|
||||||
Marriott
|
3
|
932
|
||||||
Embassy Suites
|
2
|
316
|
||||||
Renaissance
|
1
|
205
|
||||||
Total
|
235
|
29,978
|
Number of Hotels and Guest Rooms by State
|
||||||||
Number of
|
Number of
|
|||||||
State
|
Hotels
|
Rooms
|
||||||
Alabama
|
13
|
1,224
|
||||||
Alaska
|
1
|
169
|
||||||
Arizona
|
11
|
1,434
|
||||||
Arkansas
|
4
|
408
|
||||||
California
|
27
|
3,807
|
||||||
Colorado
|
4
|
567
|
||||||
Florida
|
23
|
2,851
|
||||||
Georgia
|
6
|
596
|
||||||
Idaho
|
2
|
416
|
||||||
Illinois
|
8
|
1,420
|
||||||
Indiana
|
4
|
479
|
||||||
Iowa
|
3
|
301
|
||||||
Kansas
|
4
|
422
|
||||||
Louisiana
|
4
|
541
|
||||||
Maryland
|
2
|
233
|
||||||
Massachusetts
|
4
|
466
|
||||||
Michigan
|
1
|
148
|
||||||
Minnesota
|
2
|
244
|
||||||
Mississippi
|
2
|
168
|
||||||
Missouri
|
4
|
544
|
||||||
Nebraska
|
4
|
621
|
||||||
New Jersey
|
5
|
629
|
||||||
New York
|
4
|
550
|
||||||
North Carolina
|
12
|
1,337
|
||||||
Ohio
|
2
|
252
|
||||||
Oklahoma
|
4
|
545
|
||||||
Pennsylvania
|
3
|
391
|
||||||
South Carolina
|
5
|
538
|
||||||
Tennessee
|
12
|
1,356
|
||||||
Texas
|
34
|
4,072
|
||||||
Utah
|
2
|
257
|
||||||
Virginia
|
15
|
2,383
|
||||||
Washington
|
4
|
609
|
||||||
Total
|
235
|
29,978
|
City
|
State
|
Brand
|
Manager
|
Date Acquired or Completed
|
Rooms
|
|||||||
Anchorage
|
AK
|
Embassy Suites
|
Stonebridge
|
4/30/2010
|
169
|
|||||||
Auburn
|
AL
|
Hilton Garden Inn
|
LBA
|
3/1/2014
|
101
|
|||||||
Birmingham
|
AL
|
Courtyard
|
LBA
|
3/1/2014
|
84
|
|||||||
Birmingham
|
AL
|
Homewood Suites
|
McKibbon
|
3/1/2014
|
95
|
|||||||
Dothan
|
AL
|
Hilton Garden Inn
|
LBA
|
6/1/2009
|
104
|
|||||||
Dothan
|
AL
|
Residence Inn
|
LBA
|
3/1/2014
|
84
|
|||||||
Huntsville
|
AL
|
Hampton
|
LBA
|
9/1/2016
|
98
|
|||||||
Huntsville
|
AL
|
Hilton Garden Inn
|
LBA
|
3/1/2014
|
101
|
|||||||
Huntsville
|
AL
|
Home2 Suites
|
LBA
|
9/1/2016
|
77
|
|||||||
Huntsville
|
AL
|
Homewood Suites
|
LBA
|
3/1/2014
|
107
|
|||||||
Mobile
|
AL
|
Hampton
|
McKibbon
|
9/1/2016
|
101
|
|||||||
Montgomery
|
AL
|
Hilton Garden Inn
|
LBA
|
3/1/2014
|
97
|
|||||||
Montgomery
|
AL
|
Homewood Suites
|
LBA
|
3/1/2014
|
91
|
|||||||
Prattville
|
AL
|
Courtyard
|
LBA
|
3/1/2014
|
84
|
|||||||
Rogers
|
AR
|
Hampton
|
Raymond
|
8/31/2010
|
122
|
|||||||
Rogers
|
AR
|
Homewood Suites
|
Raymond
|
4/30/2010
|
126
|
|||||||
Rogers
|
AR
|
Residence Inn
|
Raymond
|
3/1/2014
|
88
|
|||||||
Springdale
|
AR
|
Residence Inn
|
Aimbridge
|
3/1/2014
|
72
|
|||||||
Chandler
|
AZ
|
Courtyard
|
North Central
|
11/2/2010
|
150
|
|||||||
Chandler
|
AZ
|
Fairfield Inn & Suites
|
North Central
|
11/2/2010
|
110
|
|||||||
Phoenix
|
AZ
|
Courtyard
|
North Central
|
11/2/2010
|
164
|
|||||||
Phoenix
|
AZ
|
Courtyard
|
North Central
|
9/1/2016
|
127
|
|||||||
Phoenix
|
AZ
|
Hampton
|
North Central
|
9/1/2016
|
125
|
|||||||
Phoenix
|
AZ
|
Homewood Suites
|
North Central
|
9/1/2016
|
134
|
|||||||
Phoenix
|
AZ
|
Residence Inn
|
North Central
|
11/2/2010
|
129
|
|||||||
Scottsdale
|
AZ
|
Hilton Garden Inn
|
North Central
|
9/1/2016
|
122
|
|||||||
Tucson
|
AZ
|
Hilton Garden Inn
|
Western
|
7/31/2008
|
125
|
|||||||
Tucson
|
AZ
|
Residence Inn
|
Western
|
3/1/2014
|
124
|
|||||||
Tucson
|
AZ
|
TownePlace Suites
|
Western
|
10/6/2011
|
124
|
|||||||
Agoura Hills
|
CA
|
Homewood Suites
|
Dimension
|
3/1/2014
|
125
|
|||||||
Burbank
|
CA
|
Courtyard
|
Huntington
|
8/11/2015
|
190
|
|||||||
Burbank
|
CA
|
Residence Inn
|
Marriott
|
3/1/2014
|
166
|
|||||||
Burbank
|
CA
|
SpringHill Suites
|
Marriott
|
7/13/2015
|
170
|
|||||||
Clovis
|
CA
|
Hampton
|
Dimension
|
7/31/2009
|
86
|
|||||||
Clovis
|
CA
|
Homewood Suites
|
Dimension
|
2/2/2010
|
83
|
|||||||
Cypress
|
CA
|
Courtyard
|
Dimension
|
3/1/2014
|
180
|
|||||||
Cypress
|
CA
|
Hampton
|
Dimension
|
6/29/2015
|
110
|
|||||||
Oceanside
|
CA
|
Courtyard
|
Marriott
|
9/1/2016
|
142
|
|||||||
Oceanside
|
CA
|
Residence Inn
|
Marriott
|
3/1/2014
|
125
|
|||||||
Rancho Bernardo/San Diego
|
CA
|
Courtyard
|
InnVentures
|
3/1/2014
|
210
|
|||||||
Sacramento
|
CA
|
Hilton Garden Inn
|
Dimension
|
3/1/2014
|
153
|
|||||||
San Bernardino
|
CA
|
Residence Inn
|
InnVentures
|
2/16/2011
|
95
|
|||||||
San Diego
|
CA
|
Courtyard
|
Huntington
|
9/1/2015
|
245
|
|||||||
San Diego
|
CA
|
Hampton
|
Dimension
|
3/1/2014
|
177
|
|||||||
San Diego
|
CA
|
Hilton Garden Inn
|
InnVentures
|
3/1/2014
|
200
|
|||||||
San Diego
|
CA
|
Residence Inn
|
Dimension
|
3/1/2014
|
121
|
|||||||
San Jose
|
CA
|
Homewood Suites
|
Dimension
|
3/1/2014
|
140
|
|||||||
San Juan Capistrano
|
CA
|
Residence Inn
|
Marriott
|
9/1/2016
|
130
|
City
|
State
|
Brand
|
Manager
|
Date Acquired or Completed
|
Rooms
|
|||||||
Santa Ana
|
CA
|
Courtyard
|
Dimension
|
5/23/2011
|
155
|
|||||||
Santa Clarita
|
CA
|
Courtyard
|
Dimension
|
9/24/2008
|
140
|
|||||||
Santa Clarita
|
CA
|
Fairfield Inn
|
Dimension
|
10/29/2008
|
66
|
|||||||
Santa Clarita
|
CA
|
Hampton
|
Dimension
|
10/29/2008
|
128
|
|||||||
Santa Clarita
|
CA
|
Residence Inn
|
Dimension
|
10/29/2008
|
90
|
|||||||
Tulare
|
CA
|
Hampton
|
InnVentures
|
3/1/2014
|
86
|
|||||||
Tustin
|
CA
|
Fairfield Inn & Suites
|
Marriott
|
9/1/2016
|
145
|
|||||||
Tustin
|
CA
|
Residence Inn
|
Marriott
|
9/1/2016
|
149
|
|||||||
Colorado Springs
|
CO
|
Hampton
|
Chartwell
|
9/1/2016
|
101
|
|||||||
Denver
|
CO
|
Hilton Garden Inn
|
Stonebridge
|
9/1/2016
|
221
|
|||||||
Highlands Ranch
|
CO
|
Hilton Garden Inn
|
Dimension
|
3/1/2014
|
128
|
|||||||
Highlands Ranch
|
CO
|
Residence Inn
|
Dimension
|
3/1/2014
|
117
|
|||||||
Boca Raton
|
FL
|
Hilton Garden Inn
|
White Lodging
|
9/1/2016
|
149
|
|||||||
Cape Canaveral
|
FL
|
Homewood Suites
|
LBA
|
9/1/2016
|
153
|
|||||||
Fort Lauderdale
|
FL
|
Hampton
|
Vista Host
|
12/31/2008
|
109
|
|||||||
Fort Lauderdale
|
FL
|
Hampton
|
LBA
|
6/23/2015
|
156
|
|||||||
Fort Lauderdale
|
FL
|
Residence Inn
|
LBA
|
9/1/2016
|
156
|
|||||||
Gainesville
|
FL
|
Hilton Garden Inn
|
McKibbon
|
9/1/2016
|
104
|
|||||||
Gainesville
|
FL
|
Homewood Suites
|
McKibbon
|
9/1/2016
|
103
|
|||||||
Jacksonville
|
FL
|
Homewood Suites
|
McKibbon
|
3/1/2014
|
119
|
|||||||
Lakeland
|
FL
|
Courtyard
|
LBA
|
3/1/2014
|
78
|
|||||||
Miami
|
FL
|
Courtyard
|
Dimension
|
3/1/2014
|
118
|
|||||||
Miami
|
FL
|
Hampton
|
White Lodging
|
4/9/2010
|
121
|
|||||||
Miami
|
FL
|
Homewood Suites
|
Dimension
|
3/1/2014
|
162
|
|||||||
Orlando
|
FL
|
Fairfield Inn & Suites
|
Marriott
|
7/1/2009
|
200
|
|||||||
Orlando
|
FL
|
SpringHill Suites
|
Marriott
|
7/1/2009
|
200
|
|||||||
Panama City
|
FL
|
Hampton
|
LBA
|
3/12/2009
|
95
|
|||||||
Panama City
|
FL
|
TownePlace Suites
|
LBA
|
1/19/2010
|
103
|
|||||||
Pensacola
|
FL
|
TownePlace Suites
|
McKibbon
|
9/1/2016
|
97
|
|||||||
Sanford
|
FL
|
SpringHill Suites
|
LBA
|
3/1/2014
|
105
|
|||||||
Sarasota
|
FL
|
Homewood Suites
|
Hilton
|
3/1/2014
|
100
|
|||||||
Tallahassee
|
FL
|
Fairfield Inn & Suites
|
LBA
|
9/1/2016
|
97
|
|||||||
Tallahassee
|
FL
|
Hilton Garden Inn
|
LBA
|
3/1/2014
|
85
|
|||||||
Tampa
|
FL
|
Embassy Suites
|
White Lodging
|
11/2/2010
|
147
|
|||||||
Tampa
|
FL
|
TownePlace Suites
|
McKibbon
|
3/1/2014
|
94
|
|||||||
Albany
|
GA
|
Fairfield Inn & Suites
|
LBA
|
1/14/2010
|
87
|
|||||||
Atlanta
|
GA
|
Home2 Suites
|
McKibbon
|
7/1/2016
|
128
|
|||||||
Columbus
|
GA
|
SpringHill Suites
|
LBA
|
3/1/2014
|
89
|
|||||||
Columbus
|
GA
|
TownePlace Suites
|
LBA
|
3/1/2014
|
86
|
|||||||
Macon
|
GA
|
Hilton Garden Inn
|
LBA
|
3/1/2014
|
101
|
|||||||
Savannah
|
GA
|
Hilton Garden Inn
|
Newport
|
3/1/2014
|
105
|
|||||||
Cedar Rapids
|
IA
|
Hampton
|
Schulte
|
9/1/2016
|
103
|
|||||||
Cedar Rapids
|
IA
|
Homewood Suites
|
Schulte
|
9/1/2016
|
95
|
|||||||
Davenport
|
IA
|
Hampton
|
Schulte
|
9/1/2016
|
103
|
|||||||
Boise
|
ID
|
Hampton
|
Raymond
|
4/30/2010
|
186
|
|||||||
Boise
|
ID
|
SpringHill Suites
|
InnVentures
|
3/1/2014
|
230
|
|||||||
Des Plaines
|
IL
|
Hilton Garden Inn
|
Raymond
|
9/1/2016
|
252
|
|||||||
Hoffman Estates
|
IL
|
Hilton Garden Inn
|
White Lodging
|
9/1/2016
|
184
|
|||||||
Mettawa
|
IL
|
Hilton Garden Inn
|
White Lodging
|
11/2/2010
|
170
|
|||||||
Mettawa
|
IL
|
Residence Inn
|
White Lodging
|
11/2/2010
|
130
|
|||||||
Rosemont
|
IL
|
Hampton
|
Raymond
|
9/1/2016
|
158
|
|||||||
Schaumburg
|
IL
|
Hilton Garden Inn
|
White Lodging
|
11/2/2010
|
166
|
City
|
State
|
Brand
|
Manager
|
Date Acquired or Completed
|
Rooms
|
|||||||
Skokie
|
IL
|
Hampton
|
Raymond
|
9/1/2016
|
225
|
|||||||
Warrenville
|
IL
|
Hilton Garden Inn
|
White Lodging
|
11/2/2010
|
135
|
|||||||
Indianapolis
|
IN
|
SpringHill Suites
|
White Lodging
|
11/2/2010
|
130
|
|||||||
Merrillville
|
IN
|
Hilton Garden Inn
|
White Lodging
|
9/1/2016
|
124
|
|||||||
Mishawaka
|
IN
|
Residence Inn
|
White Lodging
|
11/2/2010
|
106
|
|||||||
South Bend
|
IN
|
Fairfield Inn & Suites
|
White Lodging
|
9/1/2016
|
119
|
|||||||
Overland Park
|
KS
|
Fairfield Inn & Suites
|
True North
|
3/1/2014
|
110
|
|||||||
Overland Park
|
KS
|
Residence Inn
|
True North
|
3/1/2014
|
120
|
|||||||
Overland Park
|
KS
|
SpringHill Suites
|
True North
|
3/1/2014
|
102
|
|||||||
Wichita
|
KS
|
Courtyard
|
Aimbridge
|
3/1/2014
|
90
|
|||||||
Baton Rouge
|
LA
|
SpringHill Suites
|
Dimension
|
9/25/2009
|
119
|
|||||||
Lafayette
|
LA
|
Hilton Garden Inn
|
LBA
|
7/30/2010
|
153
|
|||||||
Lafayette
|
LA
|
SpringHill Suites
|
LBA
|
6/23/2011
|
103
|
|||||||
New Orleans
|
LA
|
Homewood Suites
|
Dimension
|
3/1/2014
|
166
|
|||||||
Andover
|
MA
|
SpringHill Suites
|
Marriott
|
11/5/2010
|
136
|
|||||||
Marlborough
|
MA
|
Residence Inn
|
True North
|
3/1/2014
|
112
|
|||||||
Westford
|
MA
|
Hampton
|
True North
|
3/1/2014
|
110
|
|||||||
Westford
|
MA
|
Residence Inn
|
True North
|
3/1/2014
|
108
|
|||||||
Annapolis
|
MD
|
Hilton Garden Inn
|
White Lodging
|
3/1/2014
|
126
|
|||||||
Silver Spring
|
MD
|
Hilton Garden Inn
|
White Lodging
|
7/30/2010
|
107
|
|||||||
Novi
|
MI
|
Hilton Garden Inn
|
White Lodging
|
11/2/2010
|
148
|
|||||||
Maple Grove
|
MN
|
Hilton Garden Inn
|
North Central
|
9/1/2016
|
120
|
|||||||
Rochester
|
MN
|
Hampton
|
Raymond
|
8/3/2009
|
124
|
|||||||
Kansas City
|
MO
|
Hampton
|
Raymond
|
8/31/2010
|
122
|
|||||||
Kansas City
|
MO
|
Residence Inn
|
True North
|
3/1/2014
|
106
|
|||||||
St. Louis
|
MO
|
Hampton
|
Raymond
|
8/31/2010
|
190
|
|||||||
St. Louis
|
MO
|
Hampton
|
Raymond
|
4/30/2010
|
126
|
|||||||
Hattiesburg
|
MS
|
Courtyard
|
LBA
|
3/1/2014
|
84
|
|||||||
Hattiesburg
|
MS
|
Residence Inn
|
LBA
|
12/11/2008
|
84
|
|||||||
Carolina Beach
|
NC
|
Courtyard
|
Crestline
|
3/1/2014
|
144
|
|||||||
Charlotte
|
NC
|
Fairfield Inn & Suites
|
Newport
|
9/1/2016
|
94
|
|||||||
Charlotte
|
NC
|
Homewood Suites
|
McKibbon
|
9/24/2008
|
118
|
|||||||
Durham
|
NC
|
Homewood Suites
|
McKibbon
|
12/4/2008
|
122
|
|||||||
Fayetteville
|
NC
|
Home2 Suites
|
LBA
|
2/3/2011
|
118
|
|||||||
Fayetteville
|
NC
|
Residence Inn
|
Aimbridge
|
3/1/2014
|
92
|
|||||||
Greensboro
|
NC
|
SpringHill Suites
|
Newport
|
3/1/2014
|
82
|
|||||||
Holly Springs
|
NC
|
Hampton
|
LBA
|
11/30/2010
|
124
|
|||||||
Jacksonville
|
NC
|
Home2 Suites
|
LBA
|
9/1/2016
|
105
|
|||||||
Wilmington
|
NC
|
Fairfield Inn & Suites
|
Crestline
|
3/1/2014
|
122
|
|||||||
Winston-Salem
|
NC
|
Courtyard
|
McKibbon
|
3/1/2014
|
122
|
|||||||
Winston-Salem
|
NC
|
Hampton
|
McKibbon
|
9/1/2016
|
94
|
|||||||
Omaha
|
NE
|
Courtyard
|
Marriott
|
3/1/2014
|
181
|
|||||||
Omaha
|
NE
|
Hampton
|
White Lodging
|
9/1/2016
|
139
|
|||||||
Omaha
|
NE
|
Hilton Garden Inn
|
White Lodging
|
9/1/2016
|
178
|
|||||||
Omaha
|
NE
|
Homewood Suites
|
White Lodging
|
9/1/2016
|
123
|
|||||||
Cranford
|
NJ
|
Homewood Suites
|
Dimension
|
3/1/2014
|
108
|
|||||||
Mahwah
|
NJ
|
Homewood Suites
|
Dimension
|
3/1/2014
|
110
|
|||||||
Mount Laurel
|
NJ
|
Homewood Suites
|
Newport
|
1/11/2011
|
118
|
|||||||
Somerset
|
NJ
|
Courtyard
|
Newport
|
3/1/2014
|
162
|
|||||||
West Orange
|
NJ
|
Courtyard
|
Newport
|
1/11/2011
|
131
|
|||||||
Islip/Ronkonkoma
|
NY
|
Hilton Garden Inn
|
White Lodging
|
3/1/2014
|
165
|
|||||||
New York
|
NY
|
Renaissance
|
Highgate
|
3/1/2014
|
205
|
City
|
State
|
Brand
|
Manager
|
Date Acquired or Completed
|
Rooms
|
|||||||
Syracuse
|
NY
|
Courtyard
|
New Castle
|
10/16/2015
|
102
|
|||||||
Syracuse
|
NY
|
Residence Inn
|
New Castle
|
10/16/2015
|
78
|
|||||||
Mason
|
OH
|
Hilton Garden Inn
|
Schulte
|
9/1/2016
|
110
|
|||||||
Twinsburg
|
OH
|
Hilton Garden Inn
|
Gateway
|
10/7/2008
|
142
|
|||||||
Oklahoma City
|
OK
|
Hampton
|
Raymond
|
5/28/2010
|
200
|
|||||||
Oklahoma City
|
OK
|
Hilton Garden Inn
|
Raymond
|
9/1/2016
|
155
|
|||||||
Oklahoma City
|
OK
|
Homewood Suites
|
Raymond
|
9/1/2016
|
100
|
|||||||
Oklahoma City (West)
|
OK
|
Homewood Suites
|
Chartwell
|
9/1/2016
|
90
|
|||||||
Collegeville/Philadelphia
|
PA
|
Courtyard
|
White Lodging
|
11/15/2010
|
132
|
|||||||
Malvern/Philadelphia
|
PA
|
Courtyard
|
White Lodging
|
11/30/2010
|
127
|
|||||||
Pittsburgh
|
PA
|
Hampton
|
Vista Host
|
12/31/2008
|
132
|
|||||||
Charleston
|
SC
|
Home2 Suites
|
LBA
|
9/1/2016
|
122
|
|||||||
Columbia
|
SC
|
Hilton Garden Inn
|
Newport
|
3/1/2014
|
143
|
|||||||
Columbia
|
SC
|
TownePlace Suites
|
Newport
|
9/1/2016
|
91
|
|||||||
Greenville
|
SC
|
Residence Inn
|
McKibbon
|
3/1/2014
|
78
|
|||||||
Hilton Head
|
SC
|
Hilton Garden Inn
|
McKibbon
|
3/1/2014
|
104
|
|||||||
Chattanooga
|
TN
|
Homewood Suites
|
LBA
|
3/1/2014
|
76
|
|||||||
Franklin
|
TN
|
Courtyard
|
Chartwell
|
9/1/2016
|
126
|
|||||||
Franklin
|
TN
|
Residence Inn
|
Chartwell
|
9/1/2016
|
124
|
|||||||
Jackson
|
TN
|
Hampton
|
Vista Host
|
12/30/2008
|
83
|
|||||||
Johnson City
|
TN
|
Courtyard
|
LBA
|
9/25/2009
|
90
|
|||||||
Knoxville
|
TN
|
Homewood Suites
|
McKibbon
|
9/1/2016
|
103
|
|||||||
Knoxville
|
TN
|
SpringHill Suites
|
McKibbon
|
9/1/2016
|
103
|
|||||||
Knoxville
|
TN
|
TownePlace Suites
|
McKibbon
|
9/1/2016
|
97
|
|||||||
Memphis
|
TN
|
Homewood Suites
|
Hilton
|
3/1/2014
|
140
|
|||||||
Nashville
|
TN
|
Hilton Garden Inn
|
Vista Host
|
9/30/2010
|
194
|
|||||||
Nashville
|
TN
|
Home2 Suites
|
Vista Host
|
5/31/2012
|
119
|
|||||||
Nashville
|
TN
|
TownePlace Suites
|
LBA
|
9/1/2016
|
101
|
|||||||
Addison
|
TX
|
SpringHill Suites
|
Marriott
|
3/1/2014
|
159
|
|||||||
Allen
|
TX
|
Hampton
|
Gateway
|
9/26/2008
|
103
|
|||||||
Allen
|
TX
|
Hilton Garden Inn
|
Gateway
|
10/31/2008
|
150
|
|||||||
Arlington
|
TX
|
Hampton
|
Western
|
12/1/2010
|
98
|
|||||||
Austin
|
TX
|
Courtyard
|
White Lodging
|
11/2/2010
|
145
|
|||||||
Austin
|
TX
|
Fairfield Inn & Suites
|
White Lodging
|
11/2/2010
|
150
|
|||||||
Austin
|
TX
|
Hampton
|
Vista Host
|
4/14/2009
|
124
|
|||||||
Austin
|
TX
|
Hilton Garden Inn
|
White Lodging
|
11/2/2010
|
117
|
|||||||
Austin
|
TX
|
Homewood Suites
|
Vista Host
|
4/14/2009
|
97
|
|||||||
Austin/Round Rock
|
TX
|
Homewood Suites
|
Vista Host
|
9/1/2016
|
115
|
|||||||
Beaumont
|
TX
|
Residence Inn
|
Western
|
10/29/2008
|
133
|
|||||||
Burleson/Fort Worth
|
TX
|
Hampton
|
LBA
|
10/7/2014
|
88
|
|||||||
Dallas
|
TX
|
Homewood Suites
|
Western
|
9/1/2016
|
130
|
|||||||
Denton
|
TX
|
Homewood Suites
|
Chartwell
|
9/1/2016
|
107
|
|||||||
Duncanville
|
TX
|
Hilton Garden Inn
|
Gateway
|
10/21/2008
|
142
|
|||||||
El Paso
|
TX
|
Hilton Garden Inn
|
Western
|
12/19/2011
|
145
|
|||||||
El Paso
|
TX
|
Homewood Suites
|
Western
|
3/1/2014
|
114
|
|||||||
Fort Worth
|
TX
|
Courtyard
|
LBA
|
2/2/2017
|
124
|
|||||||
Fort Worth
|
TX
|
TownePlace Suites
|
Western
|
7/19/2010
|
140
|
|||||||
Frisco
|
TX
|
Hilton Garden Inn
|
Western
|
12/31/2008
|
102
|
|||||||
Grapevine
|
TX
|
Hilton Garden Inn
|
Western
|
9/24/2010
|
110
|
|||||||
Houston
|
TX
|
Courtyard
|
LBA
|
9/1/2016
|
124
|
|||||||
Houston
|
TX
|
Marriott
|
Western
|
1/8/2010
|
206
|
|||||||
Houston
|
TX
|
Residence Inn
|
Western
|
3/1/2014
|
129
|
|||||||
Houston
|
TX
|
Residence Inn
|
Western
|
9/1/2016
|
120
|
|||||||
Irving
|
TX
|
Homewood Suites
|
Western
|
12/29/2010
|
77
|
City
|
State
|
Brand
|
Manager
|
Date Acquired or Completed
|
Rooms
|
|||||||
Lewisville
|
TX
|
Hilton Garden Inn
|
Gateway
|
10/16/2008
|
165
|
|||||||
Round Rock
|
TX
|
Hampton
|
Vista Host
|
3/6/2009
|
94
|
|||||||
San Antonio
|
TX
|
TownePlace Suites
|
Western
|
3/1/2014
|
106
|
|||||||
Shenandoah
|
TX
|
Courtyard
|
LBA
|
9/1/2016
|
124
|
|||||||
Stafford
|
TX
|
Homewood Suites
|
Western
|
3/1/2014
|
78
|
|||||||
Texarkana
|
TX
|
Courtyard
|
Aimbridge
|
3/1/2014
|
90
|
|||||||
Texarkana
|
TX
|
Hampton
|
Aimbridge
|
1/31/2011
|
81
|
|||||||
Texarkana
|
TX
|
TownePlace Suites
|
Aimbridge
|
3/1/2014
|
85
|
|||||||
Provo
|
UT
|
Residence Inn
|
Dimension
|
3/1/2014
|
114
|
|||||||
Salt Lake City
|
UT
|
SpringHill Suites
|
White Lodging
|
11/2/2010
|
143
|
|||||||
Alexandria
|
VA
|
Courtyard
|
Marriott
|
3/1/2014
|
178
|
|||||||
Alexandria
|
VA
|
SpringHill Suites
|
Marriott
|
3/28/2011
|
155
|
|||||||
Bristol
|
VA
|
Courtyard
|
LBA
|
11/7/2008
|
175
|
|||||||
Charlottesville
|
VA
|
Courtyard
|
Crestline
|
3/1/2014
|
139
|
|||||||
Fairfax
|
VA
|
Marriott
|
White Lodging
|
9/1/2016
|
316
|
|||||||
Harrisonburg
|
VA
|
Courtyard
|
Newport
|
3/1/2014
|
125
|
|||||||
Manassas
|
VA
|
Residence Inn
|
Crestline
|
2/16/2011
|
107
|
|||||||
Richmond
|
VA
|
Courtyard
|
White Lodging
|
12/8/2014
|
135
|
|||||||
Richmond
|
VA
|
Marriott
|
White Lodging
|
3/1/2014
|
410
|
|||||||
Richmond
|
VA
|
Residence Inn
|
White Lodging
|
12/8/2014
|
75
|
|||||||
Richmond
|
VA
|
SpringHill Suites
|
McKibbon
|
9/1/2016
|
103
|
|||||||
Suffolk
|
VA
|
Courtyard
|
Crestline
|
3/1/2014
|
92
|
|||||||
Suffolk
|
VA
|
TownePlace Suites
|
Crestline
|
3/1/2014
|
72
|
|||||||
Virginia Beach
|
VA
|
Courtyard
|
Crestline
|
3/1/2014
|
141
|
|||||||
Virginia Beach
|
VA
|
Courtyard
|
Crestline
|
3/1/2014
|
160
|
|||||||
Kirkland
|
WA
|
Courtyard
|
InnVentures
|
3/1/2014
|
150
|
|||||||
Seattle
|
WA
|
Residence Inn
|
InnVentures
|
3/1/2014
|
234
|
|||||||
Tukwila
|
WA
|
Homewood Suites
|
Dimension
|
3/1/2014
|
106
|
|||||||
Vancouver
|
WA
|
SpringHill Suites
|
InnVentures
|
3/1/2014
|
119
|
|||||||
Total
|
29,978
|
July 1 -
December 31, 2017
|
2018
|
2019
|
2020
|
2021
|
Thereafter
|
Total
|
Fair Market Value
|
|||||||||||||||||||||||||
Total debt:
|
||||||||||||||||||||||||||||||||
Maturities
|
$
|
5,329
|
$
|
11,071
|
$
|
333,008
|
$
|
451,164
|
$
|
95,311
|
$
|
413,181
|
$
|
1,309,064
|
$
|
1,306,559
|
||||||||||||||||
Average interest rates
|
3.4
|
%
|
3.4
|
%
|
3.5
|
%
|
3.8
|
%
|
4.1
|
%
|
4.0
|
%
|
||||||||||||||||||||
Variable rate debt:
|
||||||||||||||||||||||||||||||||
Maturities
|
$
|
-
|
$
|
-
|
$
|
301,300
|
$
|
425,000
|
$
|
50,000
|
$
|
100,000
|
$
|
876,300
|
$
|
877,317
|
||||||||||||||||
Average interest rates (1)
|
2.9
|
%
|
2.9
|
%
|
2.9
|
%
|
3.0
|
%
|
3.0
|
%
|
3.1
|
%
|
||||||||||||||||||||
Fixed rate debt:
|
||||||||||||||||||||||||||||||||
Maturities
|
$
|
5,329
|
$
|
11,071
|
$
|
31,708
|
$
|
26,164
|
$
|
45,311
|
$
|
313,181
|
$
|
432,764
|
$
|
429,242
|
||||||||||||||||
Average interest rates
|
4.5
|
%
|
4.5
|
%
|
4.5
|
%
|
4.5
|
%
|
4.4
|
%
|
4.3
|
%
|
(1)
|
The average interest rate gives effect to interest rate swaps, as applicable. |
Exhibit
Number
|
Description of Documents
|
3.1
|
|
3.2
|
|
31.1
|
|
31.2
|
|
32.1
|
|
101
|
The following materials from Apple Hospitality REIT, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive Income, (iii) the Consolidated Statements of Cash Flows, and (iv) related notes to these financial statements, tagged as blocks of text and in detail (FILED HEREWITH)
|
|
|
|
|
|
Apple Hospitality REIT, Inc.
|
|
|
||
|
|
|
|
|
By:
|
/s/ Justin G. Knight
|
|
|
Date: August 7, 2017
|
|
Justin G. Knight,
|
|
|
|
|
President and
Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
By:
|
/s/ Bryan Peery
|
|
|
Date: August 7, 2017
|
|
Bryan Peery,
|
|
|
|
|
Chief Financial Officer
(Principal Financial and Principal Accounting Officer)
|
|
|
|
|
|
|
Date: August 7, 2017
|
|
/s/ Justin G. Knight
|
|
|
Justin G. Knight
President and Chief Executive Officer
|
|
|
Apple Hospitality REIT, Inc.
|
|
|
|
Date: August 7, 2017
|
|
/s/ Bryan Peery
|
|
|
Bryan Peery
Chief Financial Officer
Apple Hospitality REIT, Inc.
|
/s/ Justin G. Knight
|
|
Justin G. Knight
|
|
President and Chief Executive Officer
|
|
|
|
/s/ Bryan Peery
|
|
Bryan Peery
|
|
Chief Financial Officer
|
|
|
|
August 7, 2017
|
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Aug. 01, 2017 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Apple Hospitality REIT, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 223,055,340 | |
Amendment Flag | false | |
Entity Central Index Key | 0001418121 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Investment in real estate accumulated depreciation (in Dollars) | $ 644,718 | $ 557,597 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 223,055,340 | 222,938,648 |
Common stock, shares outstanding | 223,055,340 | 222,938,648 |
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Revenues: | ||||
Room | $ 306,283 | $ 237,340 | $ 575,676 | $ 443,490 |
Other | 25,421 | 20,296 | 48,953 | 38,633 |
Total revenue | 331,704 | 257,636 | 624,629 | 482,123 |
Expenses: | ||||
Operating | 80,345 | 61,459 | 155,499 | 118,288 |
Hotel administrative | 25,217 | 18,857 | 50,053 | 37,055 |
Sales and marketing | 26,270 | 19,896 | 50,379 | 37,915 |
Utilities | 10,193 | 7,719 | 19,946 | 15,319 |
Repair and maintenance | 12,279 | 9,605 | 24,195 | 18,689 |
Franchise fees | 14,163 | 10,933 | 26,637 | 20,378 |
Management fees | 11,545 | 8,947 | 21,757 | 16,984 |
Property taxes, insurance and other | 17,821 | 13,076 | 34,748 | 25,528 |
Ground lease | 2,839 | 2,506 | 5,655 | 4,972 |
General and administrative | 6,151 | 5,060 | 12,905 | 9,888 |
Transaction and litigation costs (reimbursements) | (2,586) | 1,116 | (2,586) | 1,409 |
Loss on impairment of depreciable real estate assets | 0 | 0 | 7,875 | 0 |
Depreciation | 43,893 | 33,824 | 87,660 | 67,308 |
Total expenses | 248,130 | 192,998 | 494,723 | 373,733 |
Operating income | 83,574 | 64,638 | 129,906 | 108,390 |
Interest and other expense, net | (11,849) | (9,560) | (23,566) | (18,363) |
Gain on sale of real estate | 16,140 | 0 | 16,140 | 0 |
Income before income taxes | 87,865 | 55,078 | 122,480 | 90,027 |
Income tax expense | (259) | (360) | (509) | (623) |
Net income | 87,606 | 54,718 | 121,971 | 89,404 |
Other comprehensive income (loss): | ||||
Interest rate derivatives | (1,175) | (5,501) | 370 | (12,195) |
Comprehensive income | $ 86,431 | $ 49,217 | $ 122,341 | $ 77,209 |
Basic and diluted net income per common share (in Dollars per share) | $ 0.39 | $ 0.31 | $ 0.55 | $ 0.51 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 223,052 | 174,667 | 223,049 | 174,667 |
Organization and Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Organization and Summary of Significant Accounting Policies Organization Apple Hospitality REIT, Inc., together with its wholly-owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is a self-advised REIT that invests in income-producing real estate, primarily in the lodging sector, in the United States. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of these entities, and therefore does not consolidate the entities. As of June 30, 2017, the Company owned 235 hotels with an aggregate of 29,978 rooms located in 33 states. The Company’s common shares are listed on the New York Stock Exchange under the ticker symbol “APLE.” Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its 2016 Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2017. Use of Estimates The preparation of the financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Net Income Per Common Share Basic net income per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. Basic and diluted net income per common share were the same for each of the periods presented. Accounting Standards Recently Adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business, which is intended to add guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The Company adopted this standard effective January 1, 2017 on a prospective basis. Prior to the adoption of this standard, the Company’s acquisitions of hotel properties were accounted for as existing businesses, and therefore all transaction costs associated with the acquisitions, including title, legal, accounting, brokerage commissions and other related costs were expensed as incurred. Under the new standard, effective January 1, 2017, acquisitions of hotel properties (including the acquisition of one hotel during the first quarter of 2017, as discussed in Note 3) will generally be accounted for as acquisitions of a group of assets, with costs incurred to effect an acquisition being capitalized as part of the cost of the assets acquired, instead of accounted for separately as expenses in the period that they are incurred. Asset acquisitions now require the Company to complete its allocation of the purchase price at the time of the acquisition as the measurement period applicable to business combinations does not apply to asset acquisitions. Accounting Standards Recently Issued In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which affects virtually all aspects of an entity’s revenue recognition. The core principle of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March, April, May and December 2016, the FASB issued ASUs No. 2016-08, 2016-10, 2016-12 and 2016-20, respectively, all related to Revenue from Contracts with Customers (Topic 606), which further clarify the application of the standard. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effectiveness of ASU No. 2014-09 to annual and interim periods beginning after December 15, 2017, and permitted early application for annual reporting periods beginning after December 15, 2016. The Company plans to adopt this standard on January 1, 2018 using the modified retrospective approach. Although the Company is still evaluating this ASU, based on its assessment to date, the Company does not believe there will be a significant change to the amount or timing of the recording of revenue in its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20), Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope of Accounting Standards Codification (“ASC”) Subtopic 610-20 and adds guidance for the derecognition of nonfinancial assets, including partial sales. The standard is effective in conjunction with ASU No. 2014-09, presented above, which is effective for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The provisions of this update must be applied at the same time as the adoption of ASU No. 2014-09. The Company plans to adopt this standard on January 1, 2018 using the modified retrospective approach. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Merger with Apple REIT Ten, Inc. |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 2. Merger with Apple REIT Ten, Inc. Effective September 1, 2016, the Company completed its previously announced merger with Apple REIT Ten, Inc. (“Apple Ten”) (the “merger”). Pursuant to the Agreement and Plan of Merger entered into on April 13, 2016, as amended on July 13, 2016 (the “Merger Agreement”), Apple Ten merged with and into a wholly-owned subsidiary of the Company (“Acquisition Sub”), at which time the separate corporate existence of Apple Ten ceased and Acquisition Sub became the surviving corporation in the merger. Acquisition Sub was formed solely for the purpose of engaging in the merger and had not conducted any prior activities. As a result of the merger, the Company acquired the business of Apple Ten, a real estate investment trust, which immediately prior to the effective time of the merger, owned 56 hotels located in 17 states with an aggregate of 7,209 rooms. The Company accounted for the merger in accordance with ASC 805, Business Combinations. The Company was considered the acquirer for financial reporting purposes, which required, among other things, that the assets acquired and liabilities assumed from Apple Ten be recognized at their acquisition date fair values. For purpose of accounting for the transaction, the aggregate value of the merger consideration paid to Apple Ten shareholders was estimated to be approximately $1.0 billion, and was comprised of approximately $956.1 million for the issuance of approximately 48.7 million common shares of the Company valued at $19.62 per share, which was the closing price of the Company’s common shares on August 31, 2016 (the date that the merger was approved), and $93.6 million in cash, which was funded through borrowings on the Company’s $540 million revolving credit facility (the “revolving credit facility”). Transaction and litigation costs (reimbursements) related to the merger were expensed in the period incurred and totaled approximately $1.2 million for the six months ended June 30, 2016. Transaction and litigation costs (reimbursements) for the six months ended June 30, 2017 included $2.6 million of additional proceeds from the Company’s director and officer insurance carriers in connection with the merger litigation. Further discussion of the merger litigation is included in Note 10. Effective September 1, 2016, upon completion of the merger, the Company assumed approximately $145.7 million in mortgage debt, prior to any fair value adjustments, secured by nine properties. The Company also assumed the outstanding balance on Apple Ten’s credit facility totaling $111.1 million, which was terminated and repaid in full on September 1, 2016 with borrowings on the Company’s revolving credit facility. As contemplated in the Merger Agreement, in connection with the completion of the merger, the advisory and related party arrangements with respect to Apple Ten and its advisors, as described in more detail in Note 7, were terminated. The following unaudited pro forma information for the three and six month periods ended June 30, 2017 and 2016, is presented as if the merger, effective September 1, 2016, had occurred on January 1, 2016, and is based on assumptions and estimates considered appropriate by the Company. The pro forma information is provided for illustrative purposes only and does not necessarily reflect what the operating results would have been had the merger been completed on January 1, 2016, nor is it necessarily indicative of future operating results. The pro forma information does not give effect to any cost synergies or other operating efficiencies that could result from the merger. Amounts are in thousands except per share data.
For purposes of calculating these pro forma amounts, merger transaction and litigation costs (reimbursements) totaling approximately ($2.6) million for each of the three and six months ended June 30, 2017, and $1.0 million and $1.2 million for the three and six months ended June 30, 2016, respectively, included in the Company’s consolidated statements of operations, were excluded from the pro forma amounts since these costs and reimbursements are attributable to the merger and related transactions and do not have an ongoing impact to the statements of operations. |
Investment in Real Estate |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Disclosure [Text Block] | 3. Investment in Real Estate The Company’s investment in real estate consisted of the following (in thousands):
As of June 30, 2017, the Company owned 235 hotels with an aggregate of 29,978 rooms located in 33 states. On February 2, 2017, the Company closed on the purchase of a newly constructed 124-room Courtyard by Marriott in Fort Worth, Texas, the same day the hotel opened for business, for a gross purchase price of approximately $18.0 million, excluding capitalized transaction costs. The Company used borrowings under its revolving credit facility to purchase the hotel. The acquisition of this hotel property was accounted for as an acquisition of a group of assets, with costs incurred to effect the acquisition, which were not significant, capitalized as part of the cost of the assets acquired. There were no acquisitions during the six month period ended June 30, 2016. The Company leases all of its hotels to its wholly-owned taxable REIT subsidiary (or a subsidiary thereof) under master hotel lease agreements. As of June 30, 2017, the Company had outstanding contracts for the potential purchase of four additional hotels for a total purchase price of approximately $103.3 million. All four hotels are under construction and are planned to be completed and opened for business over the next three to 15 months from June 30, 2017, at which time closing on these hotels is expected to occur. Although the Company is working towards acquiring these hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the location, brand, date of purchase contract, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) contract deposits paid, and gross purchase price for each of the contracts outstanding at June 30, 2017. All dollar amounts are in thousands.
The Company intends to use borrowings under its revolving credit facility to purchase the hotels under contract if a closing occurs. During the first quarter of 2017, the Company identified two properties for potential sale (the Columbus, Georgia SpringHill Suites and TownePlace Suites hotels). In April 2017, the Company entered into separate contracts with the same unrelated party for the sale of these properties for a total combined gross sales price of approximately $10.0 million. Due to the change in the anticipated hold period for each of these hotels, the Company reviewed the estimated undiscounted cash flows generated by each property (including its sale price, net of estimated selling costs) and determined that, for each hotel, the undiscounted cash flows were less than its carrying value; therefore the Company recognized an impairment loss of approximately $7.9 million in the first quarter of 2017 to adjust the bases of these properties to their estimated fair values, which were based on the contracted sale price, net of estimated selling costs, a Level 1 input under the fair value hierarchy. In May 2017, both of these contracts were terminated. In June 2017, the Company entered into a purchase and sale agreement with an unrelated party for the sale of its 316-room Marriott hotel in Fairfax, Virginia for a gross sales price of $42.0 million, which exceeds its carrying value as of June 30, 2017, plus costs to sell. The contract is subject to a number of conditions to closing and therefore there can be no assurance that a closing will occur. If the closing occurs, the sale is expected to be completed within six months from June 30, 2017. The Company plans to use the net proceeds from the sale to pay down borrowings on its revolving credit facility. Since the due diligence period under the contract has not passed and the deposit made by the buyer is refundable as of June 30, 2017, the assets and liabilities related to this property have not been classified as held for sale in the Company’s consolidated balance sheet at June 30, 2017. |
Dispositions |
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Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 4. Dispositions In December 2016, the Company entered into a purchase and sale agreement with an unrelated party for the sale of its 224-room Hilton hotel in Dallas, Texas for a gross sales price of approximately $56.1 million, as amended. The hotel was classified as held for sale at its historical cost (which was less than the contract price, net of costs to sell) in the Company’s consolidated balance sheet at December 31, 2016. On April 20, 2017, the Company completed the sale resulting in a gain of approximately $16.1 million, which is included in the Company’s consolidated statements of operations for the three and six months ended June 30, 2017. The hotel had a carrying value totaling approximately $39.0 million at the date of sale. Under the contract, at closing, the mortgage loan secured by the Dallas, Texas Hilton hotel was assumed by the buyer with the buyer receiving a credit for the amount assumed, which was approximately $27.1 million at the date of sale. The net proceeds from the sale were used to pay down borrowings on the Company’s revolving credit facility. The Company’s consolidated statements of operations include operating income of approximately $0.1 million and $0.7 million for the three months ended June 30, 2017 and 2016, respectively, and approximately $1.2 million and $1.3 million for the six months ended June 30, 2017 and 2016, respectively, relating to the results of operations of the Dallas, Texas Hilton hotel. The sale of this property does not represent a strategic shift that has, or will have, a major effect on the Company’s operations and financial results, and therefore the operating results for the period of ownership of this property are included in income from continuing operations for the three and six months ended June 30, 2017 and 2016. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] | 5. Debt $965 Million Credit Facility The Company utilizes an unsecured “$965 million credit facility” comprised of (i) a $540 million revolving credit facility with an initial maturity date of May 18, 2019 and (ii) a $425 million term loan facility with a maturity date of May 18, 2020, consisting of three term loans, all funded during 2015 (the “$425 million term loans”). Subject to certain conditions including covenant compliance and additional fees, the revolving credit facility maturity date may be extended one year and the amount of the total credit facility may be increased from $965 million to $1.25 billion. The Company may make voluntary prepayments in whole or in part, at any time. Interest payments on the $965 million credit facility are due monthly and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month LIBOR (the London Inter-Bank Offered Rate for a one-month term) plus a margin ranging from 1.50% to 2.30%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. In conjunction with the $425 million term loans, the Company entered into two interest rate swap agreements, which effectively fix the interest rate on $322.5 million of the outstanding balance at approximately 3.10%, subject to adjustment based on the Company’s leverage ratio, through maturity. See Note 6 for more information on the interest rate swap agreements. The Company is also required to pay quarterly an unused facility fee at an annual rate of 0.20% or 0.30% on the unused portion of the revolving credit facility, based on the amount of borrowings outstanding during the quarter. $150 Million Term Loan Facility On April 8, 2016, the Company entered into an unsecured $150 million term loan facility with a syndicate of commercial banks (the “$150 million term loan facility”), consisting of a term loan of up to $50 million that will mature on April 8, 2021 (the “$50 million term loan”) and a term loan of up to $100 million that will mature on April 8, 2023 (the “$100 million term loan,” and collectively with the $50 million term loan, the “$150 million term loans”). The Company initially borrowed $50 million under the $150 million term loan facility on April 8, 2016 and borrowed the remaining $100 million on September 30, 2016. The credit agreement contains requirements and covenants similar to the Company’s $965 million credit facility. The Company may make voluntary prepayments in whole or in part, at any time, subject to certain conditions. Interest payments on the $150 million term loan facility are due monthly and the interest rate is equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.45% to 2.20% for the $50 million term loan and 1.80% to 2.60% for the $100 million term loan, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. The Company also entered into two interest rate swap agreements which, beginning on September 30, 2016, effectively fix the interest rate on the $50 million term loan and $100 million term loan at 2.54% and 3.13%, respectively, subject to adjustment based on the Company’s leverage ratio, through maturity. See Note 6 for more information on the interest rate swap agreements. Proceeds from the $150 million term loan facility were used to pay down outstanding balances under the Company’s revolving credit facility, using the increased availability to repay scheduled mortgage debt maturities through the end of the first quarter of 2017. As of June 30, 2017 and December 31, 2016, the details of the Company’s revolving credit facility, $425 million term loans and $150 million term loans were as set forth below. All dollar amounts are in thousands.
The credit agreements governing the $965 million credit facility and $150 million term loan facility contain mandatory prepayment requirements, customary affirmative covenants, negative covenants and events of default. The credit agreements require that the Company comply with various covenants, which include, among others, a minimum tangible net worth, maximum debt limits, minimum interest and fixed charge coverage ratios, limits on dividend payments and share repurchases and restrictions on certain investments. The Company was in compliance with the applicable covenants at June 30, 2017. $85 Million Term Loan On July 25, 2017, the Company entered into an unsecured $85 million term loan with a syndicate of commercial banks, with a maturity date of July 25, 2024 (the “$85 million term loan”). The proceeds, net of closing costs, from the $85 million term loan were used to pay down the borrowings on the Company’s revolving credit facility. Subject to certain conditions including covenant compliance and additional fees, the $85 million term loan may be increased to $125 million. The loan agreement contains requirements and covenants similar to the Company’s $965 million credit facility. The Company may make voluntary prepayments in whole or in part, at any time, subject to certain conditions. The interest rate for the term loan is equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.80% to 2.60%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. In conjunction with the $85 million term loan, the Company entered into an interest rate swap agreement in May 2017, which was effective on July 31, 2017, to effectively fix the interest rate on $75 million of the $85 million term loan at 3.76%, subject to adjustment based on the Company’s leverage ratio, through maturity. See Note 6 for more information on the interest rate swap agreement. Mortgage Debt As of June 30, 2017, the Company had approximately $432.8 million in outstanding property level debt secured by 28 properties, with maturity dates ranging from June 2020 to December 2026, stated interest rates ranging from 3.55% to 6.25% and effective interest rates ranging from 3.55% to 4.97%. The loans generally provide for monthly payments of principal and interest on an amortized basis and defeasance or prepayment penalties if prepaid. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any fair value adjustments or debt issuance costs as of June 30, 2017 and December 31, 2016 for each of the Company’s debt obligations. All dollar amounts are in thousands.
The aggregate amounts of principal payable under the Company’s total debt obligations (including mortgage debt, the revolving credit facility and term loans), for the five years subsequent to June 30, 2017 and thereafter are as follows (in thousands):
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Text Block] | 6. Fair Value of Financial Instruments Except as described below, the carrying value of the Company’s financial instruments approximates fair value due to the short-term nature of these financial instruments. Debt The Company estimates the fair value of its debt by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity of a debt obligation with similar credit terms and credit characteristics, which are Level 3 inputs under the fair value hierarchy. Market rates take into consideration general market conditions and maturity. As of June 30, 2017 and December 31, 2016, both the carrying value and estimated fair value of the Company’s debt were approximately $1.3 billion. Both the carrying value and estimated fair value of the Company’s debt (as discussed above) is net of unamortized debt issuance costs related to term loans and mortgage debt for each specific year. Derivative Instruments Currently, the Company uses interest rate swaps to manage its interest rate risks on variable rate debt. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the one month LIBOR. The swaps are designed to effectively fix the interest payments on variable rate debt instruments. These swap instruments are recorded at fair value and, if in an asset position, are included in other assets, net, and, if in a liability position, are included in accounts payable and other liabilities in the Company’s consolidated balance sheets. The fair values of the Company’s interest rate swap agreements are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts, which is considered a Level 2 measurement under the fair value hierarchy. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The following table sets forth information for each of the Company’s interest rate swap agreements outstanding as of June 30, 2017 and December 31, 2016. All dollar amounts are in thousands.
The Company assesses, both at inception and on an ongoing basis, the effectiveness of its qualifying cash flow hedges. Changes in fair value on the effective portion of all designated cash flow hedges are recorded to accumulated other comprehensive income, a component of shareholders’ equity in the Company’s consolidated balance sheets. Changes in fair value on the ineffective portion of all designated cash flow hedges are recorded to interest and other expense, net in the Company’s consolidated statements of operations. To adjust qualifying cash flow hedges to their fair value and recognize the impact of hedge accounting, the Company recorded net unrealized gains (losses) of approximately $(1.2) million and $(5.5) million during the three months ended June 30, 2017 and 2016, respectively, and approximately $0.4 million and $(12.2) million during the six months ended June 30, 2017 and 2016, respectively, to other comprehensive income (loss). There was no ineffectiveness recorded on designated cash flow hedges during the three and six months ended June 30, 2017 and 2016. Amounts reported in accumulated other comprehensive income will be reclassified to interest and other expense, net as interest payments are made or received on the Company’s variable-rate derivatives. Net unrealized gains (losses) on cash flow hedges recorded to other comprehensive income (loss) during the three months ended June 30, 2017 and 2016, include approximately $(0.6) million and $(0.9) million, respectively, and during the six months ended June 30, 2017 and 2016, include approximately $(1.4) million and $(1.9) million, respectively, reclassified from accumulated other comprehensive income to interest and other expense, net. The Company estimates that approximately $1.0 million of unrealized gains (losses) included in accumulated other comprehensive income at June 30, 2017 will be reclassified as a net increase to interest and other expense, net within the next 12 months. |
Related Parties |
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Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 7. Related Parties The Company has, and is expected to continue to engage in, transactions with related parties. These transactions cannot be construed to be at arm’s length and the results of the Company’s operations may be different if these transactions were conducted with non-related parties. There have been no changes to the contracts and relationships discussed in the Company’s 2016 Annual Report on Form 10-K. Below is a summary of the significant related party relationships in effect during the six months ended June 30, 2017 and 2016. Prior to the merger, Glade M. Knight, Executive Chairman of the Company, was Chairman and Chief Executive Officer of Apple Ten. Apple Ten’s advisors, Apple Ten Advisors, Inc. (“A10A”) and Apple Realty Group, Inc. (“ARG”), are wholly owned by Mr. Knight. Mr. Knight is also currently a partner and Chief Executive Officer of Energy 11 GP, LLC and Energy Resources 12 GP, LLC, which are the respective general partners of Energy 11, L.P. and Energy Resources 12, L.P. Justin G. Knight, the Company’s President and Chief Executive Officer, and a member of the Company’s Board of Directors, also served as President of Apple Ten prior to the merger. Support Services to Apple Ten, A10A and ARG Prior to and After the Apple Ten Merger Effective September 1, 2016, the Company completed its merger with Apple Ten. As contemplated in the Merger Agreement, in connection with the completion of the merger, the advisory and related party arrangements with respect to the Company, Apple Ten and Apple Ten’s advisors, A10A and ARG, were terminated. Prior to the merger, A10A subcontracted its obligations under the advisory agreement between A10A and Apple Ten to the Company. The Company provided to Apple Ten the advisory services contemplated under the A10A advisory agreement and received an annual advisory fee and was reimbursed by Apple Ten for the use of the Company’s employees and corporate office and other costs associated with the advisory agreement. Additionally, the Company provided support services to Apple Ten’s advisors, who agreed to reimburse the Company for its costs in providing these services. Both the advisory fees and reimbursed costs received by the Company from Apple Ten were recorded as general and administrative expense by Apple Ten and reductions to general and administrative expense by the Company and, therefore, the termination of the subcontract agreement had no financial impact on the combined company after the effective time of the merger. After the merger, the Company has continued and will continue to provide support services to ARG for activities unrelated to Apple Ten. Prior to the merger, advisory fees earned by the Company from Apple Ten for the six months ended June 30, 2016 totaled approximately $1.2 million and are recorded as a reduction to general and administrative expenses in the Company’s consolidated statement of operations. Total reimbursed costs received by the Company from these entities for the six months ended June 30, 2017 and 2016 (including Apple Ten, A10A and ARG prior to September 1, 2016 and ARG thereafter) totaled approximately $0.3 million and $1.7 million, respectively, and are recorded as a reduction to general and administrative expenses in the Company’s consolidated statements of operations. As of June 30, 2017 and December 31, 2016, total amounts due from ARG for reimbursements under the cost sharing structure totaled approximately $0.1 million and $0.2 million, respectively, and are included in other assets, net in the Company’s consolidated balance sheets. As part of the cost sharing arrangement, certain day-to-day transactions may result in amounts due to or from the Company and ARG. To efficiently manage cash disbursements, the Company or ARG may make payments for the other company. Under this cash management process, each company may advance or defer up to $1 million at any time. Each quarter, any outstanding amounts are settled between the companies. This process allows each company to minimize its cash on hand and reduces the cost for each company. The amounts outstanding at any point in time are not significant to either of the companies. Apple Air Holding, LLC (“Apple Air”) The Company, through a wholly-owned subsidiary, Apple Air, owns a Learjet used primarily for acquisition, asset management, renovation and public relations purposes. Prior to the merger, Apple Air was jointly owned by the Company (74%) and Apple Ten (26%), with Apple Ten’s ownership interest accounted for as a minority interest. Effective September 1, 2016, with the completion of the merger, the Company acquired Apple Ten’s 26% equity interest in Apple Air resulting in a 100% equity ownership interest in Apple Air and the elimination of Apple Ten’s minority interest. The aircraft is also leased to affiliates of the Company based on third party rates, which was not significant during the reporting periods. The Company also utilizes aircraft, owned through two entities, one of which is owned by the Company’s Executive Chairman, and the other, its President and Chief Executive Officer, for acquisition, asset management, renovation and public relations purposes, and reimburses these entities at third party rates. Total amounts incurred during the six months ended June 30, 2017 and 2016 were approximately $0.1 million in each period related to aircraft owned through these two entities and are included in general and administrative expenses in the Company’s consolidated statements of operations. |
Shareholders' Equity |
6 Months Ended |
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Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 8. Shareholders’ Equity Distributions The Company’s current annual distribution rate, payable monthly, is $1.20 per common share. For the three months ended June 30, 2017 and 2016, the Company paid distributions of $0.30 per common share for a total of $66.9 million and $52.4 million, respectively. For the six months ended June 30, 2017 and 2016, the Company paid distributions of $0.60 per common share for a total of $133.8 million and $104.7 million, respectively. Additionally, in June 2017, the Company declared a monthly distribution of $0.10 per common share, totaling $22.3 million, which was recorded as a payable as of June 30, 2017 and paid in July 2017. As of December 31, 2016, a monthly distribution of $0.10 per common share, totaling $22.3 million, was recorded as a payable and paid in January 2017. These accrued distributions were included in accounts payable and other liabilities in the Company’s consolidated balance sheets. Equity Distribution Agreement On February 28, 2017, the Company entered into an equity distribution agreement with Robert W. Baird & Co. Incorporated, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Canaccord Genuity Inc., FBR Capital Markets & Co., Jefferies LLC, KeyBanc Capital Markets Inc. and Scotia Capital (USA) Inc. (collectively, the “Sales Agents”), pursuant to which the Company may sell, from time to time, up to an aggregate of $300 million of its common shares through the Sales Agents (the “ATM Program”). During the six months ended June 30, 2017, the Company had no sales under the ATM Program. Share Repurchase Program In connection with the implementation of its ATM Program, in February 2017, the Company terminated its existing written trading plan under the Company’s share repurchase program. During the first six months of 2016, the Company purchased, under its share repurchase program, approximately 20,000 of its common shares at a weighted-average market purchase price of approximately $18.10 per common share for an aggregate purchase price of approximately $0.4 million. The Company did not repurchase any common shares under its share repurchase program during the first six months of 2017. The Company plans to continue to consider opportunistic share repurchases under the $467.5 million remaining portion of the authorized $475 million share repurchase program, which will depend on prevailing market conditions and other factors. The program may be suspended or terminated at any time by the Company and, as a result of an extension of the program approved by the Board of Directors in May 2017, will end in July 2018 if not terminated earlier. |
Compensation Plans |
6 Months Ended |
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Jun. 30, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 9. Compensation Plans In February 2017, the Compensation Committee of the Board of Directors (“Compensation Committee”) approved an executive incentive plan (“2017 Incentive Plan”), effective January 1, 2017, and established incentive goals for 2017. Under the 2017 Incentive Plan, participants are eligible to receive a bonus based on the achievement of certain 2017 performance measures, consisting of operational performance metrics (including targeted Modified Funds from Operations per share, Comparable Hotels revenue per available room growth and Adjusted Hotel EBITDA Margin growth) and shareholder return metrics (including shareholder return relative to a peer group and total shareholder return over one-year and two-year periods). The components of the operational performance metrics and shareholder return metrics are equally weighted and the two metrics each account for 50% of the total target incentive compensation. The range of potential aggregate payouts under the 2017 Incentive Plan is $0 - $18 million. Based on performance through June 30, 2017, the Company has accrued approximately $3.5 million as a liability for potential executive bonus payments under the 2017 Incentive Plan, which is included in accounts payable and other liabilities in the Company’s consolidated balance sheet as of June 30, 2017. Compensation expense recognized by the Company under the 2017 Incentive Plan is included in general and administrative expense in the Company’s consolidated statements of operations and totaled approximately $1.4 million and $3.5 million for the three and six months ended June 30, 2017, respectively. Approximately 25% of awards under the 2017 Incentive Plan, if any, will be paid in cash, and 75% will be issued in stock under the Company’s 2014 Omnibus Incentive Plan, two-thirds of which would vest at the end of 2017 and one-third of which would vest at the end of 2018. During 2016 and 2015, comparable executive incentive plans were approved by the Compensation Committee (“2016 Incentive Plan” and “2015 Incentive Plan”) that were effective January 1, 2016 and January 1, 2015, respectively. The Company recorded approximately $1.7 million and $3.6 million in general and administrative expense related to the 2016 Incentive Plan in the Company’s consolidated statements of operations for the three and six months ended June 30, 2016, respectively. Share Based Compensation Awards During the first quarters of 2017 and 2016, the Company issued 101,305 and 304,345 common shares earned under the 2016 and 2015 Incentive Plans (net of 19,667 and 11,787 common shares surrendered to satisfy tax withholding obligations) at $19.10 and $19.87 per share, or approximately $2.3 million and $6.3 million in share based compensation, including the surrendered shares, respectively. Of the total shares issued under the 2016 Incentive Plan, 60,028 shares were unrestricted at the time of issuance, and the remaining 41,277 restricted shares will vest on December 15, 2017. Of the total shares issued under the 2015 Incentive Plan, 146,279 shares were unrestricted at the time of issuance, and the remaining 158,066 restricted shares vested on December 31, 2016, of which 50,044 common shares were surrendered to satisfy tax withholding obligations. Of the total 2016 share based compensation, approximately $1.9 million was recorded as a liability as of December 31, 2016, which was included in accounts payable and other liabilities in the Company’s consolidated balance sheet and the remaining $0.4 million, which is subject to vesting on December 15, 2017, will be recognized as compensation expense proportionately throughout 2017. Of the total 2015 share based compensation, approximately $1.6 million, which vested on December 31, 2016, was recognized as compensation expense proportionately throughout 2016. For the three months ended June 30, 2017 and 2016, the Company recognized approximately $0.1 million and $0.4 million, respectively, and for the six months ended June 30, 2017 and 2016, the Company recognized approximately $0.2 million and $0.8 million, respectively, of share based compensation expense related to the unvested restricted share awards. |
Legal Proceedings |
6 Months Ended |
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Jun. 30, 2017 | |
Disclosure Text Block Supplement [Abstract] | |
Legal Matters and Contingencies [Text Block] | 10. Legal Proceedings Quinn v. Knight, et al. As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”), on July 19, 2016, a purported shareholder of Apple Ten, now part of the Company, commenced a derivative action in the United States District Court for the Eastern District of Virginia. On November 2, 2016, the parties reached an agreement in principle to settle the litigation, which the Court approved by order dated March 16, 2017. In January 2017, the Company funded the settlement amount of $32 million, which was included in accounts payable and other liabilities in its consolidated balance sheet as of December 31, 2016, and received $10 million of proceeds from its director and officer insurance carriers, which was included in other assets, net in its consolidated balance sheet as of December 31, 2016 and the net $22 million was included in transaction and litigation costs (reimbursements) in the Company’s consolidated statement of operations for the year then ended. In May 2017, the Company received an additional $2.6 million of proceeds from its director and officer insurance carriers, which was included as a reduction in transaction and litigation costs (reimbursements) in the Company’s consolidated statements of operations for the three and six months ended June 30, 2017. The Company does not anticipate additional costs or reimbursements related to this litigation. Moses, et al. v. Apple Hospitality REIT, Inc., et al. As previously disclosed in the 2016 Form 10-K, on April 22, 2014, Plaintiff Susan Moses, purportedly a shareholder of Apple REIT Seven, Inc. (“Apple Seven”) and Apple REIT Eight, Inc. (“Apple Eight”), filed a class action against the Company and several individual directors on behalf of all then-existing shareholders and former shareholders of Apple Seven and Apple Eight, who purchased additional shares under the Dividend Reinvestment Plans (“DRIP”) of Apple Seven, Apple Eight and the Company between July 17, 2007 and February 12, 2014. In January 2017, the parties reached an agreement in principle to settle the litigation for $5.5 million, which settlement remains subject to final court approval, and was included in accounts payable and other liabilities in the Company’s consolidated balance sheets as of December 31, 2016 and June 30, 2017, and in transaction and litigation costs (reimbursements) in the Company’s consolidated statement of operations for the year ended December 31, 2016. At this time, no assurance can be given that the proposed settlement will be approved, and therefore the actual loss incurred could be in excess of the amount accrued as of June 30, 2017. Wilchfort, et al. v. Apple Hospitality REIT, Inc., et al. On February 24, 2017, Plaintiff Marsha Wilchfort, purportedly a shareholder of Apple REIT Six, Inc. (“Apple Six”), Apple Seven and Apple Eight, filed a class action against, among others, the Company and the former individual directors of Apple Six, Apple Seven and Apple Eight, including Mr. Glade Knight, on behalf of all then-existing shareholders and former shareholders of Apple Six, Apple Seven and Apple Eight, who purchased additional shares under Apple Six’s, Apple Seven’s and Apple Eight’s DRIP between July 17, 2007 and December 2012 (in the case of Apple Six shareholders) or June 30, 2013 (in the case of Apple Seven and Apple Eight shareholders). The complaint was filed in the United States District Court for the Eastern District of New York and alleges, among other items, breach of contract under Virginia law, tortious interference and breach of implied duty of good faith and fair dealing. The complaint alleges that the prices at which Plaintiff and the purported class members purchased additional shares through the DRIPs were not indicative of the true value of the units of Apple Six, Apple Seven and Apple Eight. The Company believes that Plaintiff’s claims are without merit and intends to defend this case vigorously. At this time, the Company cannot reasonably predict the outcome of this proceeding or provide a reasonable estimate of the possible loss or range of loss due to this proceeding, if any. |
Subsequent Events |
6 Months Ended |
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Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 11. Subsequent Events In July 2017, the Company paid approximately $22.3 million, or $0.10 per outstanding common share, in distributions to its common shareholders. In July 2017, the Company declared a regular monthly cash distribution of $0.10 per common share for the month of August 2017. The distribution is payable on August 15, 2017. On July 25, 2017, the Company entered into the $85 million term loan with a syndicate of commercial banks, with a maturity date of July 25, 2024. The Company used the proceeds, net of closing costs, to pay down the borrowings on the Company’s revolving credit facility. See Note 5 for additional information related to the $85 million term loan. |
Accounting Policies, by Policy (Policies) |
6 Months Ended |
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Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Organization Apple Hospitality REIT, Inc., together with its wholly-owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is a self-advised REIT that invests in income-producing real estate, primarily in the lodging sector, in the United States. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of these entities, and therefore does not consolidate the entities. As of June 30, 2017, the Company owned 235 hotels with an aggregate of 29,978 rooms located in 33 states. The Company’s common shares are listed on the New York Stock Exchange under the ticker symbol “APLE.” |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its 2016 Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2017. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Earnings Per Share, Policy [Policy Text Block] | Net Income Per Common Share Basic net income per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. Basic and diluted net income per common share were the same for each of the periods presented. |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Standards Recently Adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business, which is intended to add guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The Company adopted this standard effective January 1, 2017 on a prospective basis. Prior to the adoption of this standard, the Company’s acquisitions of hotel properties were accounted for as existing businesses, and therefore all transaction costs associated with the acquisitions, including title, legal, accounting, brokerage commissions and other related costs were expensed as incurred. Under the new standard, effective January 1, 2017, acquisitions of hotel properties (including the acquisition of one hotel during the first quarter of 2017, as discussed in Note 3) will generally be accounted for as acquisitions of a group of assets, with costs incurred to effect an acquisition being capitalized as part of the cost of the assets acquired, instead of accounted for separately as expenses in the period that they are incurred. Asset acquisitions now require the Company to complete its allocation of the purchase price at the time of the acquisition as the measurement period applicable to business combinations does not apply to asset acquisitions. Accounting Standards Recently Issued In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which affects virtually all aspects of an entity’s revenue recognition. The core principle of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March, April, May and December 2016, the FASB issued ASUs No. 2016-08, 2016-10, 2016-12 and 2016-20, respectively, all related to Revenue from Contracts with Customers (Topic 606), which further clarify the application of the standard. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effectiveness of ASU No. 2014-09 to annual and interim periods beginning after December 15, 2017, and permitted early application for annual reporting periods beginning after December 15, 2016. The Company plans to adopt this standard on January 1, 2018 using the modified retrospective approach. Although the Company is still evaluating this ASU, based on its assessment to date, the Company does not believe there will be a significant change to the amount or timing of the recording of revenue in its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20), Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope of Accounting Standards Codification (“ASC”) Subtopic 610-20 and adds guidance for the derecognition of nonfinancial assets, including partial sales. The standard is effective in conjunction with ASU No. 2014-09, presented above, which is effective for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The provisions of this update must be applied at the same time as the adoption of ASU No. 2014-09. The Company plans to adopt this standard on January 1, 2018 using the modified retrospective approach. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Merger with Apple REIT Ten, Inc. (Tables) |
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Business Acquisition, Pro Forma Information [Table Text Block] |
The following unaudited pro forma information for the three and six month periods ended June 30, 2017 and 2016, is presented as if the merger, effective September 1, 2016, had occurred on January 1, 2016, and is based on assumptions and estimates considered appropriate by the Company. The pro forma information is provided for illustrative purposes only and does not necessarily reflect what the operating results would have been had the merger been completed on January 1, 2016, nor is it necessarily indicative of future operating results. The pro forma information does not give effect to any cost synergies or other operating efficiencies that could result from the merger. Amounts are in thousands except per share data.
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Investment in Real Estate (Tables) |
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Property, Plant and Equipment [Table Text Block] |
The Company’s investment in real estate consisted of the following (in thousands):
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Schedule of Outstanding Contracts for Potential Purchase of Hotels [Table Text Block] |
As of June 30, 2017, the Company had outstanding contracts for the potential purchase of four additional hotels for a total purchase price of approximately $103.3 million. All four hotels are under construction and are planned to be completed and opened for business over the next three to 15 months from June 30, 2017, at which time closing on these hotels is expected to occur. Although the Company is working towards acquiring these hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the location, brand, date of purchase contract, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) contract deposits paid, and gross purchase price for each of the contracts outstanding at June 30, 2017. All dollar amounts are in thousands.
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] |
As of June 30, 2017 and December 31, 2016, the details of the Company’s revolving credit facility, $425 million term loans and $150 million term loans were as set forth below. All dollar amounts are in thousands.
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Schedule of Debt [Table Text Block] |
As of June 30, 2017, the Company had approximately $432.8 million in outstanding property level debt secured by 28 properties, with maturity dates ranging from June 2020 to December 2026, stated interest rates ranging from 3.55% to 6.25% and effective interest rates ranging from 3.55% to 4.97%. The loans generally provide for monthly payments of principal and interest on an amortized basis and defeasance or prepayment penalties if prepaid. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any fair value adjustments or debt issuance costs as of June 30, 2017 and December 31, 2016 for each of the Company’s debt obligations. All dollar amounts are in thousands.
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Schedule of Maturities of Long-term Debt [Table Text Block] |
The aggregate amounts of principal payable under the Company’s total debt obligations (including mortgage debt, the revolving credit facility and term loans), for the five years subsequent to June 30, 2017 and thereafter are as follows (in thousands):
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Fair Value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives [Table Text Block] |
The following table sets forth information for each of the Company’s interest rate swap agreements outstanding as of June 30, 2017 and December 31, 2016. All dollar amounts are in thousands.
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Organization and Summary of Significant Accounting Policies (Details) |
6 Months Ended |
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Jun. 30, 2017 | |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |
Number of Reportable Segments | 1 |
Number of Hotels | 235 |
Aggregate Number of Hotel Rooms | 29,978 |
Number of States in which Hotels are Located | 33 |
Merger with Apple REIT Ten, Inc. (Details) - Business Acquisition, Pro Forma Information - Apple Ten Merger [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Merger with Apple REIT Ten, Inc. (Details) - Business Acquisition, Pro Forma Information [Line Items] | ||||
Total revenue | $ 331,704 | $ 333,869 | $ 624,629 | $ 623,836 |
Net income | $ 85,020 | $ 72,179 | $ 119,385 | $ 117,025 |
Basic and diluted net income per common share (in Dollars per share) | $ 0.38 | $ 0.32 | $ 0.54 | $ 0.52 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 223,052 | 223,397 | 223,049 | 223,397 |
Investment in Real Estate (Details) - Investment in Real Estate - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Investment in Real Estate [Abstract] | ||
Land | $ 710,191 | $ 707,878 |
Building and Improvements | 4,288,611 | 4,270,095 |
Furniture, Fixtures and Equipment | 405,015 | 391,421 |
Franchise Fees | 11,784 | 11,692 |
5,415,601 | 5,381,086 | |
Less Accumulated Depreciation | (644,718) | (557,597) |
Investment in Real Estate, net | $ 4,770,883 | $ 4,823,489 |
Dispositions (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
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Apr. 20, 2017
USD ($)
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Jun. 30, 2017
USD ($)
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Jun. 30, 2016
USD ($)
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Jun. 30, 2017
USD ($)
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Jun. 30, 2016
USD ($)
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Dec. 31, 2016
USD ($)
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Dispositions (Details) [Line Items] | ||||||
Aggregate Number of Hotel Rooms | 29,978 | 29,978 | ||||
Gain (Loss) on Disposition of Assets | $ 16,140 | $ 0 | $ 16,140 | $ 0 | ||
Real Estate Held-for-sale | 0 | 0 | $ 39,000 | |||
Long-term Debt, Gross | 1,309,064 | 1,309,064 | ||||
Operating Income (Loss) | 83,574 | 64,638 | 129,906 | 108,390 | ||
Hilton Dallas, TX [Member] | Hotels Sold [Member] | ||||||
Dispositions (Details) [Line Items] | ||||||
Aggregate Number of Hotel Rooms | 224 | 224 | ||||
Sale of Real Estate Assets, Gross Sales Price | $ 56,100 | |||||
Gain (Loss) on Disposition of Assets | 16,100 | |||||
Real Estate Held-for-sale | 39,000 | $ 39,000 | ||||
Long-term Debt, Gross | $ 27,100 | |||||
Operating Income (Loss) | $ 100 | $ 700 | $ 1,200 | $ 1,300 |
Debt (Details) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jul. 25, 2017
USD ($)
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Jun. 30, 2017
USD ($)
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Dec. 31, 2016
USD ($)
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Debt (Details) [Line Items] | |||
Debt Issuance Costs, Net (in Dollars) | $ 5,528 | ||
Long-term Debt, Gross (in Dollars) | $ 1,309,064 | ||
Mortgage Debt [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Maturity Date, Description | maturity dates ranging from June 2020 to December 2026 | ||
Long-term Debt, Gross (in Dollars) | $ 432,800 | ||
Number of Hotel Properties Used to Secure Debt | 28 | ||
Minimum [Member] | Mortgage Debt [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.55% | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | ||
Maximum [Member] | Mortgage Debt [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 4.97% | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | ||
$85 Million Term Loan Funded July 25, 2017 [Member] | Interest Rate Swap Executed May 2017 Effective July 31, 2017 [Member] | |||
Debt (Details) [Line Items] | |||
Derivative, Notional Amount (in Dollars) | $ 75,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.76% | ||
$150 Million Unsecured Term Loan Facility [Member] | |||
Debt (Details) [Line Items] | |||
Term Loan Facility, Maximum Borrowing Capacity (in Dollars) | $ 150,000 | ||
Debt Instrument, Description | The Company initially borrowed $50 million under the $150 million term loan facility on April 8, 2016 and borrowed the remaining $100 million on September 30, 2016. | ||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | ||
$150 Million Unsecured Term Loan Facility [Member] | $50 Million Term Loan [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Maturity Date | Apr. 08, 2021 | ||
Debt Instrument, Face Amount (in Dollars) | $ 50,000 | ||
$150 Million Unsecured Term Loan Facility [Member] | $100 Million Term Loan [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Maturity Date | Apr. 08, 2023 | ||
Debt Instrument, Face Amount (in Dollars) | $ 100,000 | ||
$150 Million Unsecured Term Loan Facility [Member] | Amount Borrowed on April 8, 2016 [Member] | |||
Debt (Details) [Line Items] | |||
Proceeds from Issuance of Unsecured Debt (in Dollars) | $ 50,000 | ||
$150 Million Unsecured Term Loan Facility [Member] | Amount Borrowed on September 30, 2016 [Member] | |||
Debt (Details) [Line Items] | |||
Proceeds from Issuance of Unsecured Debt (in Dollars) | 100,000 | ||
$150 Million Unsecured Term Loan Facility [Member] | Minimum [Member] | $50 Million Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.45% | ||
$150 Million Unsecured Term Loan Facility [Member] | Minimum [Member] | $100 Million Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.80% | ||
$150 Million Unsecured Term Loan Facility [Member] | Maximum [Member] | $50 Million Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.20% | ||
$150 Million Unsecured Term Loan Facility [Member] | Maximum [Member] | $100 Million Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.60% | ||
$150 Million Unsecured Term Loan Facility [Member] | Loans with Interest Rates Effectively Fixed by Interest Rate Swaps Effective September 30, 2016 [Member] | |||
Debt (Details) [Line Items] | |||
Number of Interest Rate Derivatives Held | 2 | ||
$150 Million Unsecured Term Loan Facility [Member] | Loans with Interest Rates Effectively Fixed by Interest Rate Swaps Effective September 30, 2016 [Member] | $50 Million Term Loan [Member] | |||
Debt (Details) [Line Items] | |||
Derivative, Notional Amount (in Dollars) | $ 50,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.54% | ||
$150 Million Unsecured Term Loan Facility [Member] | Loans with Interest Rates Effectively Fixed by Interest Rate Swaps Effective September 30, 2016 [Member] | $100 Million Term Loan [Member] | |||
Debt (Details) [Line Items] | |||
Derivative, Notional Amount (in Dollars) | $ 100,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.13% | ||
$965 Million Unsecured Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | $ 965,000 | ||
Line of Credit Facility, Borrowing Capacity, Description | the amount of the total credit facility may be increased from $965 million to $1.25 billion | ||
$965 Million Unsecured Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | ||
$965 Million Unsecured Credit Facility [Member] | $540 Million Unsecured Revolving Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | $ 540,000 | ||
Line of Credit Facility, Expiration Date | May 18, 2019 | ||
Debt Instrument, Maturity Date, Description | maturity date may be extended one year | ||
Debt Issuance Costs, Net (in Dollars) | $ 2,300 | $ 2,800 | |
$965 Million Unsecured Credit Facility [Member] | $425 Million Term Loans [Member] | |||
Debt (Details) [Line Items] | |||
Term Loan Facility, Maximum Borrowing Capacity (in Dollars) | $ 425,000 | ||
Debt Instrument, Maturity Date | May 18, 2020 | ||
Debt Instrument, Description | consisting of three term loans, all funded during 2015 | ||
Number of Term Loans | 3 | ||
$965 Million Unsecured Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
$965 Million Unsecured Credit Facility [Member] | Minimum [Member] | $540 Million Unsecured Revolving Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
$965 Million Unsecured Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.30% | ||
$965 Million Unsecured Credit Facility [Member] | Maximum [Member] | $540 Million Unsecured Revolving Credit Facility [Member] | |||
Debt (Details) [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||
$965 Million Unsecured Credit Facility [Member] | Loans With Interest Rates Effectively Fixed By Interest Rate Swaps [Member] | $425 Million Term Loans [Member] | |||
Debt (Details) [Line Items] | |||
Number of Interest Rate Derivatives Held | 2 | ||
Derivative, Notional Amount (in Dollars) | $ 322,500 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.10% | ||
$965 Million Unsecured Credit Facility and $150 Million Unsecured Term Loan Facility [Member] | |||
Debt (Details) [Line Items] | |||
Line of Credit Facility, Covenant Terms | the $965 million credit facility and $150 million term loan facility contain mandatory prepayment requirements, customary affirmative covenants, negative covenants and events of default. The credit agreements require that the Company comply with various covenants, which include, among others, a minimum tangible net worth, maximum debt limits, minimum interest and fixed charge coverage ratios, limits on dividend payments and share repurchases and restrictions on certain investments. The Company was in compliance with the applicable covenants at June 30, 2017. | ||
Subsequent Event [Member] | $85 Million Term Loan Funded July 25, 2017 [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Maturity Date | Jul. 25, 2024 | ||
Line of Credit Facility, Borrowing Capacity, Description | the $85 million term loan may be increased to $125 million | ||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | ||
Debt Instrument, Face Amount (in Dollars) | $ 85,000 | ||
Debt Instrument, Covenant Description | The loan agreement contains requirements and covenants similar to the Company’s $965 million credit facility. | ||
Subsequent Event [Member] | $85 Million Term Loan Funded July 25, 2017 [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.80% | ||
Subsequent Event [Member] | $85 Million Term Loan Funded July 25, 2017 [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.60% |
Debt (Details) - Revolving Credit Facility and Term Loans - USD ($) $ in Thousands |
6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
||||||||||
Debt Instrument [Line Items] | |||||||||||
Revolving credit facility outstanding balance | $ 301,300 | $ 270,000 | |||||||||
Outstanding balance | 1,309,064 | ||||||||||
Unamortized debt issuance costs | (5,528) | ||||||||||
Total term loans | 571,461 | 570,934 | |||||||||
Debt carrying value | $ 1,308,317 | 1,300,000 | |||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | May 18, 2019 | ||||||||||
Revolving credit facility outstanding balance | [1] | $ 301,300 | $ 270,000 | ||||||||
Interest rate | [2] | 2.77% | 2.32% | ||||||||
$425 Million Term Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | May 18, 2020 | ||||||||||
Interest rate | [3] | 3.01% | 2.90% | ||||||||
Outstanding balance | $ 425,000 | $ 425,000 | |||||||||
$50 Million Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Apr. 08, 2021 | ||||||||||
Interest rate | [4] | 2.54% | 2.54% | ||||||||
Outstanding balance | $ 50,000 | $ 50,000 | |||||||||
$100 Million Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Apr. 08, 2023 | ||||||||||
Interest rate | [4] | 3.13% | 3.13% | ||||||||
Outstanding balance | $ 100,000 | $ 100,000 | |||||||||
Total Term Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding balance | 575,000 | 575,000 | |||||||||
Unamortized debt issuance costs | (3,539) | (4,066) | |||||||||
Total term loans | 571,461 | 570,934 | |||||||||
Total Revolving Credit Facility and Term Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt carrying value | $ 872,761 | $ 840,934 | |||||||||
|
Debt (Details) - Mortgage Note Debt - USD ($) $ in Thousands |
6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
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Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Outstanding Balance | $ 1,309,064 | ||||||||||
Unamortized fair value adjustment of assumed debt | 4,781 | ||||||||||
Unamortized debt issuance costs | (5,528) | ||||||||||
Total | $ 435,556 | $ 497,029 | |||||||||
Homewood Suites Irving, TX [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Homewood Suites | ||||||||||
Interest Rate | [1] | 5.83% | |||||||||
Loan Assumption or Origination Date | Dec. 29, 2010 | ||||||||||
Maturity Date | [2] | ||||||||||
Principal Assumed or Originated | $ 6,052 | ||||||||||
Outstanding Balance | $ 0 | 5,072 | |||||||||
Homewood Suites Gainesville, FL [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Homewood Suites | ||||||||||
Interest Rate | [1] | 5.89% | |||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | ||||||||||
Maturity Date | [2] | ||||||||||
Principal Assumed or Originated | $ 12,051 | ||||||||||
Outstanding Balance | $ 0 | 11,966 | |||||||||
Hilton Garden Inn Duncanville, TX [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Hilton Garden Inn | ||||||||||
Interest Rate | [1] | 5.88% | |||||||||
Loan Assumption or Origination Date | Oct. 21, 2008 | ||||||||||
Maturity Date | [2] | ||||||||||
Principal Assumed or Originated | $ 13,966 | ||||||||||
Outstanding Balance | $ 0 | 12,126 | |||||||||
Hilton Dallas, TX [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Hilton | ||||||||||
Interest Rate | [1] | 3.95% | |||||||||
Loan Assumption or Origination Date | May 22, 2015 | ||||||||||
Maturity Date | [3] | ||||||||||
Principal Assumed or Originated | $ 28,000 | ||||||||||
Outstanding Balance | $ 0 | 27,246 | |||||||||
Residence Inn San Juan Capistrano, CA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Residence Inn | ||||||||||
Interest Rate | [1] | 4.15% | |||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | ||||||||||
Maturity Date | Jun. 01, 2020 | ||||||||||
Principal Assumed or Originated | $ 16,210 | ||||||||||
Outstanding Balance | $ 15,940 | 16,104 | |||||||||
Hampton Colorado Springs, CO [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Hampton | ||||||||||
Interest Rate | [1] | 6.25% | |||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | ||||||||||
Maturity Date | Jul. 06, 2021 | ||||||||||
Principal Assumed or Originated | $ 7,923 | ||||||||||
Outstanding Balance | $ 7,819 | 7,883 | |||||||||
Courtyard Franklin, TN [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Courtyard | ||||||||||
Interest Rate | [1] | 6.25% | |||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | ||||||||||
Maturity Date | Aug. 06, 2021 | ||||||||||
Principal Assumed or Originated | $ 14,679 | ||||||||||
Outstanding Balance | $ 14,487 | 14,604 | |||||||||
Residence Inn Franklin, TN [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Residence Inn | ||||||||||
Interest Rate | [1] | 6.25% | |||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | ||||||||||
Maturity Date | Aug. 06, 2021 | ||||||||||
Principal Assumed or Originated | $ 14,679 | ||||||||||
Outstanding Balance | $ 14,487 | 14,604 | |||||||||
Hilton Garden Inn Grapevine, TX [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Hilton Garden Inn | ||||||||||
Interest Rate | [1] | 4.89% | |||||||||
Loan Assumption or Origination Date | Aug. 29, 2012 | ||||||||||
Maturity Date | Sep. 01, 2022 | ||||||||||
Principal Assumed or Originated | $ 11,810 | ||||||||||
Outstanding Balance | $ 10,560 | 10,707 | |||||||||
Courtyard Collegeville/Philadelphia, PA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Courtyard | ||||||||||
Interest Rate | [1] | 4.89% | |||||||||
Loan Assumption or Origination Date | Aug. 30, 2012 | ||||||||||
Maturity Date | Sep. 01, 2022 | ||||||||||
Principal Assumed or Originated | $ 12,650 | ||||||||||
Outstanding Balance | $ 11,312 | 11,468 | |||||||||
Courtyard Hattiesburg, MS [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Courtyard | ||||||||||
Interest Rate | [1] | 5.00% | |||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | ||||||||||
Maturity Date | Sep. 01, 2022 | ||||||||||
Principal Assumed or Originated | $ 5,732 | ||||||||||
Outstanding Balance | $ 5,285 | 5,357 | |||||||||
Courtyard Rancho Bernardo, CA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Courtyard | ||||||||||
Interest Rate | [1] | 5.00% | |||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | ||||||||||
Maturity Date | Sep. 01, 2022 | ||||||||||
Principal Assumed or Originated | $ 15,060 | ||||||||||
Outstanding Balance | $ 13,884 | 14,074 | |||||||||
Courtyard Kirkland, WA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Courtyard | ||||||||||
Interest Rate | [1] | 5.00% | |||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | ||||||||||
Maturity Date | Sep. 01, 2022 | ||||||||||
Principal Assumed or Originated | $ 12,145 | ||||||||||
Outstanding Balance | $ 11,197 | 11,350 | |||||||||
Residence Inn Seattle, WA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Residence Inn | ||||||||||
Interest Rate | [1] | 4.96% | |||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | ||||||||||
Maturity Date | Sep. 01, 2022 | ||||||||||
Principal Assumed or Originated | $ 28,269 | ||||||||||
Outstanding Balance | $ 26,050 | 26,409 | |||||||||
Embassy Suites Anchorage, AK [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Embassy Suites | ||||||||||
Interest Rate | [1] | 4.97% | |||||||||
Loan Assumption or Origination Date | Sep. 13, 2012 | ||||||||||
Maturity Date | Oct. 01, 2022 | ||||||||||
Principal Assumed or Originated | $ 23,230 | ||||||||||
Outstanding Balance | $ 20,848 | 21,133 | |||||||||
Courtyard Somerset, NJ [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Courtyard | ||||||||||
Interest Rate | [1] | 4.73% | |||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | ||||||||||
Maturity Date | Oct. 06, 2022 | ||||||||||
Principal Assumed or Originated | $ 8,750 | ||||||||||
Outstanding Balance | $ 8,047 | 8,160 | |||||||||
Homewood Suites Tukwila, WA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Homewood Suites | ||||||||||
Interest Rate | [1] | 4.73% | |||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | ||||||||||
Maturity Date | Oct. 06, 2022 | ||||||||||
Principal Assumed or Originated | $ 9,431 | ||||||||||
Outstanding Balance | $ 8,672 | 8,795 | |||||||||
Courtyard Prattville, AL [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Courtyard | ||||||||||
Interest Rate | [1] | 4.12% | |||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | ||||||||||
Maturity Date | Feb. 06, 2023 | ||||||||||
Principal Assumed or Originated | $ 6,596 | ||||||||||
Outstanding Balance | $ 6,033 | 6,123 | |||||||||
Homewood Suites Huntsville, AL [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Homewood Suites | ||||||||||
Interest Rate | [1] | 4.12% | |||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | ||||||||||
Maturity Date | Feb. 06, 2023 | ||||||||||
Principal Assumed or Originated | $ 8,306 | ||||||||||
Outstanding Balance | $ 7,598 | 7,711 | |||||||||
Residence Inn San Diego, CA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Residence Inn | ||||||||||
Interest Rate | [1] | 3.97% | |||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | ||||||||||
Maturity Date | Mar. 06, 2023 | ||||||||||
Principal Assumed or Originated | $ 18,600 | ||||||||||
Outstanding Balance | $ 16,992 | 17,248 | |||||||||
Homewood Suites Miami, FL [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Homewood Suites | ||||||||||
Interest Rate | [1] | 4.02% | |||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | ||||||||||
Maturity Date | Apr. 01, 2023 | ||||||||||
Principal Assumed or Originated | $ 16,677 | ||||||||||
Outstanding Balance | $ 15,252 | 15,479 | |||||||||
Courtyard Syracuse, NY [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Courtyard | ||||||||||
Interest Rate | [1] | 4.75% | |||||||||
Loan Assumption or Origination Date | Oct. 16, 2015 | ||||||||||
Maturity Date | [4] | Aug. 01, 2024 | |||||||||
Principal Assumed or Originated | $ 11,199 | ||||||||||
Outstanding Balance | $ 10,772 | 10,905 | |||||||||
Residence Inn Syracuse, NY [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Residence Inn | ||||||||||
Interest Rate | [1] | 4.75% | |||||||||
Loan Assumption or Origination Date | Oct. 16, 2015 | ||||||||||
Maturity Date | [4] | Aug. 01, 2024 | |||||||||
Principal Assumed or Originated | $ 11,199 | ||||||||||
Outstanding Balance | $ 10,772 | 10,905 | |||||||||
Homewood Suites New Orleans, LA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Homewood Suites | ||||||||||
Interest Rate | [1] | 4.36% | |||||||||
Loan Assumption or Origination Date | Jul. 17, 2014 | ||||||||||
Maturity Date | Aug. 11, 2024 | ||||||||||
Principal Assumed or Originated | $ 27,000 | ||||||||||
Outstanding Balance | $ 25,251 | 25,577 | |||||||||
Residence Inn Westford, MA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Residence Inn | ||||||||||
Interest Rate | [1] | 4.28% | |||||||||
Loan Assumption or Origination Date | Mar. 18, 2015 | ||||||||||
Maturity Date | Apr. 11, 2025 | ||||||||||
Principal Assumed or Originated | $ 10,000 | ||||||||||
Outstanding Balance | $ 9,507 | 9,626 | |||||||||
Hilton Garden Inn Denver, CO [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Hilton Garden Inn | ||||||||||
Interest Rate | [1] | 4.46% | |||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | ||||||||||
Maturity Date | Jun. 11, 2025 | ||||||||||
Principal Assumed or Originated | $ 34,118 | ||||||||||
Outstanding Balance | $ 33,454 | 33,857 | |||||||||
Courtyard Oceanside, CA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Courtyard | ||||||||||
Interest Rate | [1] | 4.28% | |||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | ||||||||||
Maturity Date | Oct. 01, 2025 | ||||||||||
Principal Assumed or Originated | $ 13,655 | ||||||||||
Outstanding Balance | $ 13,456 | 13,576 | |||||||||
Hilton Garden Inn Omaha, NE [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Hilton Garden Inn | ||||||||||
Interest Rate | [1] | 4.28% | |||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | ||||||||||
Maturity Date | Oct. 01, 2025 | ||||||||||
Principal Assumed or Originated | $ 22,682 | ||||||||||
Outstanding Balance | $ 22,350 | 22,550 | |||||||||
Hampton Boise, ID [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Hampton | ||||||||||
Interest Rate | [1] | 4.37% | |||||||||
Loan Assumption or Origination Date | May 26, 2016 | ||||||||||
Maturity Date | Jun. 11, 2026 | ||||||||||
Principal Assumed or Originated | $ 24,000 | ||||||||||
Outstanding Balance | $ 23,618 | 23,813 | |||||||||
Courtyard Burbank, CA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Courtyard | ||||||||||
Interest Rate | [1] | 3.55% | |||||||||
Loan Assumption or Origination Date | Nov. 03, 2016 | ||||||||||
Maturity Date | Dec. 01, 2026 | ||||||||||
Principal Assumed or Originated | $ 25,564 | ||||||||||
Outstanding Balance | $ 25,243 | 25,564 | |||||||||
Courtyard San Diego, CA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Courtyard | ||||||||||
Interest Rate | [1] | 3.55% | |||||||||
Loan Assumption or Origination Date | Nov. 03, 2016 | ||||||||||
Maturity Date | Dec. 01, 2026 | ||||||||||
Principal Assumed or Originated | $ 25,473 | ||||||||||
Outstanding Balance | $ 25,153 | 25,473 | |||||||||
Hampton San Diego, CA [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Brand | Hampton | ||||||||||
Interest Rate | [1] | 3.55% | |||||||||
Loan Assumption or Origination Date | Nov. 03, 2016 | ||||||||||
Maturity Date | Dec. 01, 2026 | ||||||||||
Principal Assumed or Originated | $ 18,963 | ||||||||||
Outstanding Balance | 18,725 | 18,963 | |||||||||
Total [Member] | |||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | |||||||||||
Principal Assumed or Originated | 514,669 | ||||||||||
Outstanding Balance | 432,764 | 494,428 | |||||||||
Unamortized fair value adjustment of assumed debt | 4,781 | 5,229 | |||||||||
Unamortized debt issuance costs | (1,989) | (2,628) | |||||||||
Total | $ 435,556 | $ 497,029 | |||||||||
|
Debt (Details) - Future Minimum Debt Payments - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Future Minimum Debt Payments [Abstract] | ||
2017 (July - December) | $ 5,329 | |
2018 | 11,071 | |
2019 | 333,008 | |
2020 | 451,164 | |
2021 | 95,311 | |
Thereafter | 413,181 | |
1,309,064 | ||
Unamortized fair value adjustment of assumed debt | 4,781 | |
Unamortized debt issuance costs related to term loans and mortgage debt | (5,528) | |
Total | $ 1,308,317 | $ 1,300,000 |
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jul. 25, 2017 |
Dec. 31, 2016 |
|
Fair Value of Financial Instruments (Details) [Line Items] | ||||||
Long-term Debt, Fair Value | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 | |||
Long-term Debt | 1,308,317 | $ 1,308,317 | $ 1,300,000 | |||
Derivative, Description of Terms | Company pays a fixed rate of interest and receives a floating rate of interest equal to the one month LIBOR | |||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (1,175) | $ (5,501) | $ 370 | $ (12,195) | ||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | 0 | 0 | 0 | ||
Amount of losses reclassified from accumulated other comprehensive income (loss) to interest expense | 600 | $ 900 | 1,400 | $ 1,900 | ||
Net unrealized losses in accumulated other comprehensive income (loss) expected to be reclassified to interest expense within the next 12 months | 1,000 | 1,000 | ||||
$85 Million Term Loan Funded July 25, 2017 [Member] | Interest Rate Swap Executed May 2017 Effective July 31, 2017 [Member] | ||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||
Derivative, Notional Amount | $ 75,000 | $ 75,000 | ||||
Subsequent Event [Member] | $85 Million Term Loan Funded July 25, 2017 [Member] | ||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||
Debt Instrument, Face Amount | $ 85,000 |
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
|||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | ||||
Fair value asset (liability) | $ 4,959 | $ 4,589 | ||
Interest Rate Swap #1 [Member] | Designated as Hedging Instrument [Member] | ||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | ||||
Notional amount | $ 212,500 | |||
Origination Date | May 21, 2015 | |||
Maturity date | May 18, 2020 | |||
Swap fixed interest rate | 1.58% | |||
Fair value asset (liability) | $ 262 | (198) | ||
Interest Rate Swap #2 [Member] | Designated as Hedging Instrument [Member] | ||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | ||||
Notional amount | $ 110,000 | |||
Origination Date | Jul. 02, 2015 | |||
Maturity date | May 18, 2020 | |||
Swap fixed interest rate | 1.62% | |||
Fair value asset (liability) | $ 12 | (246) | ||
Interest Rate Swap #3 [Member] | Designated as Hedging Instrument [Member] | ||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | ||||
Notional amount | $ 50,000 | |||
Origination Date | Apr. 07, 2016 | |||
Maturity date | Mar. 31, 2021 | |||
Swap fixed interest rate | 1.09% | |||
Fair value asset (liability) | $ 1,169 | 1,289 | ||
Interest Rate Swap #4 [Member] | Designated as Hedging Instrument [Member] | ||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | ||||
Notional amount | $ 100,000 | |||
Origination Date | Apr. 07, 2016 | |||
Maturity date | Mar. 31, 2023 | |||
Swap fixed interest rate | 1.33% | |||
Fair value asset (liability) | $ 3,250 | 3,744 | ||
Interest Rate Swap #5 [Member] | Designated as Hedging Instrument [Member] | ||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | ||||
Notional amount | [1] | $ 75,000 | ||
Origination Date | May 31, 2017 | |||
Maturity date | Jun. 30, 2024 | |||
Swap fixed interest rate | 1.96% | |||
Fair value asset (liability) | $ 266 | $ 0 | ||
|
Related Parties (Details) - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Sep. 01, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Related Parties (Details) [Line Items] | ||||
Related Party Transaction, Description of Transaction | To efficiently manage cash disbursements, the Company or ARG may make payments for the other company. Under this cash management process, each company may advance or defer up to $1 million at any time. Each quarter, any outstanding amounts are settled between the companies. This process allows each company to minimize its cash on hand and reduces the cost for each company. The amounts outstanding at any point in time are not significant to either of the companies. | |||
Aircraft Owned by Executive Officers [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Aircraft Rental Expense | $ 0.1 | $ 0.1 | ||
Reimbursement Recevied From Related Parties For Their Proportionate Share of Staffing and Office Related Costs Provided by Apple Hospitality [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | (0.3) | (1.7) | ||
Due from Related Parties | $ 0.1 | $ 0.2 | ||
Prior to Apple Ten Merger and Related Transactions Completed on September 1, 2016 [Member] | Apple Air Holding, LLC [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 74.00% | |||
Purchase of Apple Ten Equity Interest in Apple Ten Merger [Member] | Apple Air Holding, LLC [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 26.00% | |||
Upon Completion of Apple Ten Merger and Related Transactions on September 1, 2016 [Member] | Apple Air Holding, LLC [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% | |||
Advisory Fees Earned by Apple Hospitality [Member] | Subcontract Agreement between Apple Hospitality and Apple Ten Advisors, Inc. [Member] | Apple Ten [Member] | Prior to Apple Ten Merger and Related Transactions Completed on September 1, 2016 [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ (1.2) | |||
Apple Ten's Minority Interest [Member] | Prior to Apple Ten Merger and Related Transactions Completed on September 1, 2016 [Member] | Apple Air Holding, LLC [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 26.00% |
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Shareholders' Equity (Details) [Line Items] | |||||
Payments of Ordinary Dividends, Common Stock | $ 133,811 | $ 104,713 | |||
Dividends Payable | $ 22,301 | $ 17,451 | $ 22,301 | $ 17,451 | |
Distributions [Member] | |||||
Shareholders' Equity (Details) [Line Items] | |||||
Annual Distribution rate (in Dollars per share) | $ 1.20 | ||||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 | |
Payments of Ordinary Dividends, Common Stock | $ 66,900 | $ 52,400 | $ 133,800 | $ 104,700 | |
Dividends Payable, Amount Per Share (in Dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | ||
Dividends Payable | $ 22,300 | $ 22,300 | $ 22,300 | ||
ATM Program [Member] | |||||
Shareholders' Equity (Details) [Line Items] | |||||
Stock Issuance Program, Authorized Amount | 300,000 | $ 300,000 | |||
Stock Issued During Period, Shares, New Issues (in Shares) | 0 | ||||
Share Repurchase Program [Member] | |||||
Shareholders' Equity (Details) [Line Items] | |||||
Stock Repurchased and Retired During Period, Shares (in Shares) | 20,000 | ||||
Stock Repurchased During Period, Weighted Average Market Purchase Price Per Share (in Dollars per share) | $ 18.10 | ||||
Stock Repurchased and Retired During Period, Value | $ 400 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 467,500 | $ 467,500 | |||
Stock Repurchase Program, Authorized Amount | $ 475,000 | $ 475,000 | |||
Share Repurchase Program, End Date | July 2018 |
Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Mar. 31, 2017 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
2017 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Compensation Arrangement by Cash and Share-based Payment Award, Component Description | The components of the operational performance metrics and shareholder return metrics are equally weighted and the two metrics each account for 50% of the total target incentive compensation. | ||||||
Labor and Related Expense | $ 1.4 | $ 3.5 | |||||
Accrued Bonuses, Current | 3.5 | $ 3.5 | |||||
Portion of Awards Paid in Cash | 25.00% | ||||||
Portion of Awards Issued in Equity | 75.00% | ||||||
2016 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Labor and Related Expense | $ 1.7 | $ 3.6 | |||||
Equity Awards Vesting at the End of 2017 [Member] | 2017 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Portion | two-thirds | ||||||
Equity Awards Vesting at the End of 2018 [Member] | 2017 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Portion | one-third | ||||||
Share Based Compensation [Member] | Equity Awards Issued in First Quarter of 2017 [Member] | 2016 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures (in Shares) | 101,305 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Forfeited (in Shares) | 19,667 | ||||||
Shares Issued, Price Per Share (in Dollars per share) | $ 19.10 | ||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 2.3 | ||||||
Accrued Bonuses, Share Based Compensation, Current | $ 1.9 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.4 | ||||||
Share Based Compensation [Member] | Equity Awards Issued in First Quarter of 2016 [Member] | 2015 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures (in Shares) | 304,345 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Forfeited (in Shares) | 11,787 | ||||||
Shares Issued, Price Per Share (in Dollars per share) | $ 19.87 | ||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 6.3 | ||||||
Share Based Compensation [Member] | Unrestricted Shares at Time of Issuance [Member] | Equity Awards Issued in First Quarter of 2017 [Member] | 2016 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures (in Shares) | 60,028 | ||||||
Share Based Compensation [Member] | Unrestricted Shares at Time of Issuance [Member] | Equity Awards Issued in First Quarter of 2016 [Member] | 2015 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures (in Shares) | 146,279 | ||||||
Share Based Compensation [Member] | Restricted Shares Vesting on December 15, 2017 [Member] | Equity Awards Issued in First Quarter of 2017 [Member] | 2016 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | 41,277 | ||||||
Allocated Share-based Compensation Expense | $ 0.1 | $ 0.2 | |||||
Share Based Compensation [Member] | Restricted Shares Vested on December 31, 2016 [Member] | Equity Awards Issued in First Quarter of 2016 [Member] | 2015 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Forfeited (in Shares) | 50,044 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | 158,066 | ||||||
Allocated Share-based Compensation Expense | $ 0.4 | $ 0.8 | $ 1.6 | ||||
Potential Aggregate Payout [Member] | Minimum [Member] | 2017 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Labor and Related Expense | 0.0 | ||||||
Potential Aggregate Payout [Member] | Maximum [Member] | 2017 Executive Incentive Plan [Member] | |||||||
Compensation Plans (Details) [Line Items] | |||||||
Labor and Related Expense | $ 18.0 |
Legal Proceedings (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|---|
Jan. 31, 2017 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Legal Proceedings (Details) [Line Items] | ||||||
Transaction and Litigation Costs (Reimbursements) | $ (2,586) | $ 1,116 | $ (2,586) | $ 1,409 | ||
Settlement of the Lawsuit Related to the Apple Ten Merger [Member] | ||||||
Legal Proceedings (Details) [Line Items] | ||||||
Estimated Litigation Liability | $ 32,000 | |||||
Payments for Legal Settlements | $ 32,000 | |||||
Insurance Settlements Receivable | 10,000 | |||||
Proceeds from Insurance Settlement, Operating Activities | $ 10,000 | 2,600 | 2,600 | |||
Transaction and Litigation Costs (Reimbursements) | (2,600) | (2,600) | 22,000 | |||
Agreement in Principle in January 2017 to Settle the Lawsuit Filed in 2014 Related to Apple Seven and Apple Eight Terminated DRIPs (Subject to Court Approval) [Member] | ||||||
Legal Proceedings (Details) [Line Items] | ||||||
Estimated Litigation Liability | $ 5,500 | $ 5,500 | 5,500 | |||
Transaction and Litigation Costs (Reimbursements) | $ 5,500 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 25, 2017 |
Jul. 31, 2017 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Subsequent Events (Details) [Line Items] | ||||
Payments of Ordinary Dividends, Common Stock | $ 133,811 | $ 104,713 | ||
Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Payments of Ordinary Dividends, Common Stock | $ 22,300 | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.10 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.10 | |||
Dividends Payable, Date to be Paid | Aug. 15, 2017 | |||
Subsequent Event [Member] | $85 Million Term Loan Funded July 25, 2017 [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 85,000 | |||
Debt Instrument, Maturity Date | Jul. 25, 2024 |
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