Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

At March 31, 2016, we were not involved in any material litigation. Various claims and lawsuits arising in the normal course of business are pending against us, but we do not expect the results of such proceedings to have a material adverse effect on our consolidated financial position or results of operations.

Renovation Commitments

Certain of our hotel franchise and loan agreements require us to make planned renovations to our hotels (Note 4). We do not currently expect to, and are not obligated to, fund any planned renovations on our Unconsolidated Hotels beyond our original investment.

At March 31, 2016, 11 hotels were either undergoing renovation or in the planning stage of renovations, and we currently expect that six will be completed during the first half of 2016, one will be completed during the second half of 2016 and four will be completed during the first half of 2017. The following table summarizes our capital commitments related to our Consolidated Hotels (in thousands):



	March 31, 2016			December 31, 2015
Capital commitments	$	129,003		$	114,193
Less: paid	(68,632		)	(54,164		)
Unpaid commitments	60,371			60,029
Less: amounts in cash or restricted cash designated for renovations	(38,463		)	(48,575		)
Unfunded commitments	$	21,908		$	11,454

Ground Lease Commitments

Three of our hotels are subject to ground leases. Scheduled future minimum ground lease payments during the remainder of 2016, each of the next four calendar years following December 31, 2016 and thereafter are as follows (in thousands):



Years Ending December 31,	Total
2016 (remainder)	$	2,336
2017	3,181
2018	3,254
2019	3,328
2020	3,404
Thereafter through 2106	654,600
Total	$	670,103

For the three months ended March 31, 2016 and 2015, we recorded rent expense of $0.9 million and $0.8 million, respectively, inclusive of percentage rents of $0.1 million and less than $0.1 million, respectively, related to these ground leases, which are included in Property taxes, insurance, rent and other in the consolidated financial statements.