(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Large accelerated filer | ¨ | x | |||||||||
Non-accelerated filer | ¨ | Smaller reporting company | |||||||||
Emerging growth company |
Class | Outstanding at August 2, 2023 | ||||
Common Shares of Beneficial Interest ($0.01 par value per share) |
Page | ||||||||
Item1. | ||||||||
Item2. | ||||||||
Item3. | ||||||||
Item4. | ||||||||
Item1. | ||||||||
Item1A. | ||||||||
Item2. | ||||||||
Item3. | ||||||||
Item4. | ||||||||
Item5. | ||||||||
Item6. |
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Assets: | |||||||||||
Investment in hotel properties, net | $ | $ | |||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Right of use asset, net | |||||||||||
Hotel receivables (net of allowance for doubtful accounts of $ | |||||||||||
Deferred costs, net | |||||||||||
Prepaid expenses and other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Equity: | |||||||||||
Mortgage debt, net | $ | $ | |||||||||
Revolving credit facility | |||||||||||
Construction loan | |||||||||||
Unsecured term loan, net | |||||||||||
Accounts payable and accrued expenses | |||||||||||
Lease liability, net | |||||||||||
Distributions payable | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 14) | |||||||||||
Equity: | |||||||||||
Shareholders’ Equity: | |||||||||||
Preferred shares, $ | |||||||||||
Common shares, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Noncontrolling Interests: | |||||||||||
Noncontrolling interest in Operating Partnership | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
For the three months ended | For the six months ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Room | $ | $ | $ | $ | |||||||||||||||||||
Food and beverage | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Reimbursable costs from related parties | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Hotel operating expenses: | |||||||||||||||||||||||
Room | |||||||||||||||||||||||
Food and beverage | |||||||||||||||||||||||
Telephone | |||||||||||||||||||||||
Other hotel operating | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Franchise and marketing fees | |||||||||||||||||||||||
Advertising and promotions | |||||||||||||||||||||||
Utilities | |||||||||||||||||||||||
Repairs and maintenance | |||||||||||||||||||||||
Management fees | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
Total hotel operating expenses | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Property taxes, ground rent and insurance | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Other charges | |||||||||||||||||||||||
Reimbursable costs from related parties | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income before gain on sale of hotel properties | |||||||||||||||||||||||
Gain on sale of hotel properties | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest and other income | |||||||||||||||||||||||
Interest expense, including amortization of deferred fees | ( | ( | ( | ( | |||||||||||||||||||
Loss on early extinguishment of debt | ( | ||||||||||||||||||||||
Gain from partial lease termination | |||||||||||||||||||||||
Income (loss) before income tax expense | ( | ||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income (loss) | ( | ||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | ( | ( | ( | ||||||||||||||||||||
Net income (loss) attributable to Chatham Lodging Trust | ( | ||||||||||||||||||||||
Preferred dividends | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | $ | $ | $ | ( | ||||||||||||||||||
Income (loss) per common share - basic: | |||||||||||||||||||||||
Net income (loss) attributable to common shareholders (Note 11) | $ | $ | $ | $ | ( | ||||||||||||||||||
Income (loss) per common share - diluted: | |||||||||||||||||||||||
Net income (loss) attributable to common shareholders (Note 11) | $ | $ | $ | $ | ( | ||||||||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Distributions declared per common share: | $ | $ | $ | $ |
Three months ended June 30, 2022 and 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Shares | Common Shares | Additional Paid - In Capital | Accumulated Deficit | Total Shareholders’ Equity | Noncontrolling Interest in Operating Partnership | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, net of offering costs of $ | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of share based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends accrued on preferred shares | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, net of offering costs of | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of share based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common shares ($ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions declared on LTIP units ($ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends accrued on preferred shares | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 and 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Shares | Common Shares | Additional Paid - In Capital | Accumulated Deficit | Total Shareholders’ Equity | Noncontrolling Interest in Operating Partnership | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares pursuant to Equity Incentive Plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, net of offering costs of $ | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of share based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends accrued on preferred shares | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interest | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares pursuant to Equity Incentive Plan | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, net of offering costs of | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of share based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common shares ($ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions declared on LTIP units ($ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends accrued on preferred shares | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interest | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | ( | $ | $ | $ |
For the six months ended | |||||||||||
June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization of deferred franchise fees | |||||||||||
Amortization of deferred financing fees included in interest expense | |||||||||||
Gain on sale of hotel properties | ( | ( | |||||||||
Loss on early extinguishment of debt | |||||||||||
Share based compensation | |||||||||||
Gain from partial lease termination | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Right of use asset | |||||||||||
Hotel receivables | ( | ( | |||||||||
Deferred costs | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable and accrued expenses | |||||||||||
Lease liability | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Improvements and additions to hotel properties | ( | ( | |||||||||
Acquisition of hotel properties | ( | ||||||||||
Investment in hotel properties under development | ( | ||||||||||
Proceeds from sale of hotel properties, net | |||||||||||
Receipt of deferred key money | |||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Borrowings on revolving credit facility | |||||||||||
Repayments on revolving credit facility | ( | ||||||||||
Borrowings on construction loan | |||||||||||
Repayments on construction loan | ( | ||||||||||
Borrowings on unsecured term loan | |||||||||||
Payments on mortgage debt | ( | ( | |||||||||
Payment of financing costs | ( | ( | |||||||||
Payment of offering costs on common shares | ( | ||||||||||
Proceeds from issuance of common shares | |||||||||||
Distributions-common shares/units | ( | ( | |||||||||
Distributions-preferred shares | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net change in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Capitalized interest | $ | $ | |||||||||
Cash paid for taxes | $ | $ | |||||||||
Remeasurement of right of use asset from partial lease termination | $ | $ | |||||||||
Remeasurement of lease liability from partial lease termination | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
Land and improvements | $ | $ | |||||||||
Building and improvements | |||||||||||
Furniture, fixtures and equipment | |||||||||||
Renovations in progress | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Investment in hotel properties, net | $ | $ |
Collateral | Interest Rate | Maturity Date | June 30, 2023 Property Carrying Value | Balance Outstanding on Loan as of | |||||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Revolving Credit Facility (1) | % | October 28, 2026 | $ | $ | $ | ||||||||||||||||||||||||
Unsecured Term Loan (2) | % | October 28, 2025 | |||||||||||||||||||||||||||
Construction Loan (3) | % | August 4, 2024 | |||||||||||||||||||||||||||
Homewood Suites by Hilton San Antonio, TX | % | February 6, 2023 | |||||||||||||||||||||||||||
Residence Inn by Marriott Vienna, VA | % | February 6, 2023 | |||||||||||||||||||||||||||
Courtyard by Marriott Houston, TX | % | May 6, 2023 | |||||||||||||||||||||||||||
Hyatt Place Pittsburgh, PA | % | July 6, 2023 | |||||||||||||||||||||||||||
Residence Inn by Marriott Bellevue, WA | % | December 6, 2023 | |||||||||||||||||||||||||||
Residence Inn by Marriott Garden Grove, CA | % | April 6, 2024 | |||||||||||||||||||||||||||
Residence Inn by Marriott Silicon Valley I, CA | % | July 1, 2024 | |||||||||||||||||||||||||||
Residence Inn by Marriott Silicon Valley II, CA | % | July 1, 2024 | |||||||||||||||||||||||||||
Residence Inn by Marriott San Mateo, CA | % | July 1, 2024 | |||||||||||||||||||||||||||
Residence Inn by Marriott Mountain View, CA | % | July 1, 2024 | |||||||||||||||||||||||||||
SpringHill Suites by Marriott Savannah, GA | % | July 6, 2024 | |||||||||||||||||||||||||||
Hilton Garden Inn Marina del Rey, CA | % | July 6, 2024 | |||||||||||||||||||||||||||
Homewood Suites by Hilton Billerica, MA | % | December 6, 2024 | |||||||||||||||||||||||||||
Hampton Inn & Suites Houston Medical Center, TX | % | January 6, 2025 | |||||||||||||||||||||||||||
Total debt before unamortized debt issue costs | $ | $ | $ | ||||||||||||||||||||||||||
Unamortized term loan and mortgage debt issue costs | ( | ( | |||||||||||||||||||||||||||
Total debt outstanding | $ | $ |
Amount | |||||
2023 (remaining six months) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total debt before unamortized debt issue costs | $ | ||||
Unamortized term loan and mortgage debt issue costs | ( | ||||
Total debt outstanding | $ |
Record Date | Payment Date | Common share distribution amount | LTIP unit distribution amount | |||||||||||||||||||||||
March | 3/31/2023 | 4/17/2023 | $ | $ | ||||||||||||||||||||||
June | 6/30/2023 | 7/17/2023 | ||||||||||||||||||||||||
Total 2023 | $ | $ |
Record Date | Payment Date | Dividend per Preferred Share | ||||||||||||||||||
March | 3/31/2023 | 4/17/2023 | $ | |||||||||||||||||
June | 6/30/2023 | 7/17/2023 | ||||||||||||||||||
Total 2023 | $ |
For the three months ended | For the six months ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | $ | $ | $ | ( | ||||||||||||||||||
Dividends on unvested shares and units | ( | ( | |||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | $ | $ | $ | ( | ||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average number of common shares - basic | |||||||||||||||||||||||
Unvested shares and units | |||||||||||||||||||||||
Weighted average number of common shares - diluted | |||||||||||||||||||||||
Basic income (loss) per common share: | |||||||||||||||||||||||
Net income (loss) attributable to common shareholders per weighted average basic common share | $ | $ | $ | $ | ( | ||||||||||||||||||
Diluted income (loss) per common share: | |||||||||||||||||||||||
Net income (loss) attributable to common shareholders per weighted average diluted common share | $ | $ | $ | $ | ( |
For the six months ended | For the year ended | ||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Number of Shares | Weighted-Average Grant Date Fair Value | Number of Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||
Non-vested at beginning of the period | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ||||||||||||||||||||||
Non-vested at end of the period | $ | $ |
For the six months ended | For the year ended | ||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Number of Units | Weighted-Average Grant Date Fair Value | Number of Units | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||
Non-vested at beginning of the period | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Non-vested at end of the period | $ | $ |
Relative TSR Hurdles (Percentile) | Payout Percentage | ||||||||||
Threshold | |||||||||||
Target | |||||||||||
Maximum |
Grant Date | Number of Units Granted | Estimated Value Per Unit | Volatility | Dividend Yield | Risk Free Interest Rate | |||||||||||||||
2018 Time-Based LTIP Unit Awards | 3/1/2018 | $ | ||||||||||||||||||
2018 Performance-Based LTIP Unit Awards | 3/1/2018 | $ | ||||||||||||||||||
2019 Time-Based LTIP Unit Awards | 3/1/2019 | $ | ||||||||||||||||||
2019 Performance-Based LTIP Unit Awards | 3/1/2019 | $ | ||||||||||||||||||
2020 Time-Based LTIP Unit Awards | 3/1/2020 | $ | ||||||||||||||||||
2020 Performance-Based LTIP Unit Awards (1) | 3/1/2020 | $ | ||||||||||||||||||
2021 Time-Based LTIP Unit Awards | 3/1/2021 | $ | ||||||||||||||||||
2021 Performance-Based LTIP Unit Awards | 3/1/2021 | $ | ||||||||||||||||||
2022 Time-Based LTIP Unit Awards | 3/1/2022 | $ | ||||||||||||||||||
2022 Performance-Based LTIP Unit Awards | 3/1/2022 | $ | ||||||||||||||||||
2023 Time-Based LTIP Unit Awards | 3/1/2023 | $ | ||||||||||||||||||
2023 Performance-Based LTIP Unit Awards | 3/1/2023 | $ |
Total Future Lease Payments | Amount | ||||
2023 (remaining six months) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total lease payments | $ | ||||
Less: Imputed interest | ( | ||||
Present value of lease liabilities | $ |
Right of Use Asset | Lease Liability | ||||||||||
Balance as of January 1, 2023 | $ | $ | |||||||||
Amortization | ( | ( | |||||||||
Partial lease termination | $ | ( | $ | ( | |||||||
Balance as of June 30, 2023 | $ | $ |
Lease Term and Discount Rate | June 30, 2023 | ||||
Weighted-average remaining lease term (years) | |||||
Weighted-average discount rate |
For the three months ended | |||||||||||||||||
June 30, 2023 | June 30, 2022 | % Change | |||||||||||||||
Room | $ | 77,486 | $ | 75,761 | 2.3 | % | |||||||||||
Food and beverage | 2,094 | 1,968 | 6.4 | % | |||||||||||||
Other | 4,531 | 3,674 | 23.3 | % | |||||||||||||
Cost reimbursements from related parties | 365 | 358 | 2.0 | % | |||||||||||||
Total revenue | $ | 84,476 | $ | 81,761 | 3.3 | % |
For the three months ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | Percentage Change | |||||||||||||||||||||||||||||||||
Same Property (39 hotels) | Actual (39 hotels) | Same Property (39 hotels) | Actual (43 hotels) | Same Property (39 hotels) | Actual (39 / 43 hotels) | ||||||||||||||||||||||||||||||
Occupancy | 78.9 | % | 78.9 | % | 77.3 | % | 76.8 | % | 2.1 | % | 2.7 | % | |||||||||||||||||||||||
ADR | $ | 182.40 | $ | 182.40 | $ | 178.14 | $ | 176.33 | 2.4 | % | 3.4 | % | |||||||||||||||||||||||
RevPAR | $ | 143.96 | $ | 143.96 | $ | 137.68 | $ | 135.35 | 4.6 | % | 6.4 | % |
For the three months ended | |||||||||||||||||
June 30, 2023 | June 30, 2022 | % Change | |||||||||||||||
Hotel operating expenses: | |||||||||||||||||
Room | $ | 14,578 | $ | 14,480 | 0.7 | % | |||||||||||
Food and beverage | 1,584 | 1,429 | 10.8 | % | |||||||||||||
Telephone | 360 | 359 | 0.3 | % | |||||||||||||
Other hotel operating | 950 | 879 | 8.1 | % | |||||||||||||
General and administrative | 7,305 | 6,804 | 7.4 | % | |||||||||||||
Franchise and marketing fees | 6,801 | 6,559 | 3.7 | % | |||||||||||||
Advertising and promotions | 1,460 | 1,230 | 18.7 | % | |||||||||||||
Utilities | 2,899 | 2,784 | 4.1 | % | |||||||||||||
Repairs and maintenance | 3,894 | 3,347 | 16.3 | % | |||||||||||||
Management fees | 2,791 | 2,727 | 2.3 | % | |||||||||||||
Insurance | 701 | 747 | (6.2) | % | |||||||||||||
Total hotel operating expenses | $ | 43,323 | $ | 41,345 | 4.8 | % |
For the three months ended | |||||||||||||||||
June 30, 2023 | June 30, 2022 | % Change | |||||||||||||||
Mortgage debt interest | $ | 4,512 | $ | 5,107 | (11.7) | % | |||||||||||
Credit facility and term loan interest and unused fees | 1,638 | 689 | 137.7 | % | |||||||||||||
Interest rate cap | — | (45) | (100.0) | % | |||||||||||||
Construction loan interest | — | 817 | (100.0) | % | |||||||||||||
Capitalized interest | — | — | — | % | |||||||||||||
Amortization of deferred financing costs | 292 | 368 | (20.7) | % | |||||||||||||
Total | $ | 6,442 | $ | 6,936 | (7.1) | % |
For the six months ended | |||||||||||||||||
June 30, 2023 | June 30, 2022 | % Change | |||||||||||||||
Room | $ | 139,157 | $ | 125,926 | 10.5 | % | |||||||||||
Food and beverage | 4,182 | 3,382 | 23.7 | % | |||||||||||||
Other | 8,022 | 6,654 | 20.6 | % | |||||||||||||
Cost reimbursements from related parties | 730 | 684 | 6.7 | % | |||||||||||||
Total revenue | $ | 152,091 | $ | 136,646 | 11.3 | % |
For the six months ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | Percentage Change | |||||||||||||||||||||||||||||||||
Same Property (39 hotels) | Actual (39 hotels) | Same Property (39 hotels) | Actual (43 hotels) | Same Property (39 hotels) | Actual (39 / 43 hotels) | ||||||||||||||||||||||||||||||
Occupancy | 73.8 | % | 73.8 | % | 69.1 | % | 68.2 | % | 6.8 | % | 8.2 | % | |||||||||||||||||||||||
ADR | $ | 176.21 | $ | 176.25 | $ | 165.34 | $ | 162.94 | 6.6 | % | 8.2 | % | |||||||||||||||||||||||
RevPAR | $ | 130.00 | $ | 129.99 | $ | 114.17 | $ | 111.19 | 13.9 | % | 16.9 | % |
For the six months ended | |||||||||||||||||
June 30, 2023 | June 30, 2022 | % Change | |||||||||||||||
Hotel operating expenses: | |||||||||||||||||
Room | $ | 28,694 | $ | 26,074 | 10.0 | % | |||||||||||
Food and beverage | 3,141 | 2,476 | 26.9 | % | |||||||||||||
Telephone | 722 | 760 | (5.0) | % | |||||||||||||
Other hotel operating | 1,863 | 1,611 | 15.6 | % | |||||||||||||
General and administrative | 14,112 | 12,153 | 16.1 | % | |||||||||||||
Franchise and marketing fees | 12,141 | 10,966 | 10.7 | % | |||||||||||||
Advertising and promotions | 2,975 | 2,419 | 23.0 | % | |||||||||||||
Utilities | 6,050 | 5,673 | 6.6 | % | |||||||||||||
Repairs and maintenance | 7,623 | 6,792 | 12.2 | % | |||||||||||||
Management fees | 5,079 | 4,645 | 9.3 | % | |||||||||||||
Insurance | 1,400 | 1,457 | (3.9) | % | |||||||||||||
Total hotel operating expenses | $ | 83,800 | $ | 75,026 | 11.7 | % |
For the six months ended | |||||||||||||||||
June 30, 2023 | June 30, 2022 | % Change | |||||||||||||||
Mortgage debt interest | $ | 9,258 | $ | 10,184 | (9.1) | % | |||||||||||
Credit facility and term loan interest and unused fees | 2,617 | 1,703 | 53.7 | % | |||||||||||||
Interest rate cap | (16) | (289) | (94.5) | % | |||||||||||||
Construction loan interest | 415 | 1,355 | (69.4) | % | |||||||||||||
Capitalized interest | — | (330) | (100.0) | % | |||||||||||||
Amortization of deferred financing costs | 606 | 702 | (13.7) | % | |||||||||||||
Total | $ | 12,880 | $ | 13,325 | (3.3) | % |
For the three months ended | For the six months ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Funds From Operations (“FFO”): | |||||||||||||||||||||||
Net income (loss) | $ | 9,365 | $ | 9,322 | $ | 4,324 | $ | (376) | |||||||||||||||
Preferred dividends | (1,987) | (1,987) | (3,975) | (3,975) | |||||||||||||||||||
Net income (loss) attributable to common shares and common units | 7,378 | 7,335 | 349 | (4,351) | |||||||||||||||||||
Gain on sale of hotel properties | (55) | (2,020) | (55) | (2,020) | |||||||||||||||||||
Depreciation | 14,616 | 15,223 | 28,821 | 30,193 | |||||||||||||||||||
FFO attributable to common share and unit holders | 21,939 | 20,538 | 29,115 | 23,822 | |||||||||||||||||||
Other charges | 38 | 150 | 38 | 400 | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | 691 | — | |||||||||||||||||||
Gain from partial lease termination | (164) | — | (164) | — | |||||||||||||||||||
Adjusted FFO attributable to common share and unit holders | $ | 21,813 | $ | 20,688 | $ | 29,680 | $ | 24,222 | |||||||||||||||
Weighted average number of common shares and units | |||||||||||||||||||||||
Basic | 50,434,230 | 50,010,107 | 50,308,726 | 49,928,420 | |||||||||||||||||||
Diluted | 50,550,159 | 50,231,943 | 50,430,784 | 50,139,358 |
For the three months ended | For the six months ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”): | |||||||||||||||||||||||
Net income (loss) | $ | 9,365 | $ | 9,322 | $ | 4,324 | $ | (376) | |||||||||||||||
Interest expense, including amortization of deferred fees | 6,442 | 6,936 | 12,880 | 13,325 | |||||||||||||||||||
Depreciation and amortization | 14,670 | 15,277 | 28,928 | 30,313 | |||||||||||||||||||
EBITDA | 30,477 | 31,535 | 46,132 | 43,262 | |||||||||||||||||||
Gain on sale of hotel properties | (55) | (2,020) | (55) | (2,020) | |||||||||||||||||||
EBITDAre | 30,422 | 29,515 | 46,077 | 41,242 | |||||||||||||||||||
Other charges | 38 | 150 | 38 | 400 | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | 691 | — | |||||||||||||||||||
Gain from partial lease termination | (164) | — | (164) | — | |||||||||||||||||||
Share based compensation | 1,555 | 1,419 | 3,007 | 2,713 | |||||||||||||||||||
Adjusted EBITDA | $ | 31,851 | $ | 31,084 | $ | 49,649 | $ | 44,355 |
For the three months ended | For the six months ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net income (loss) | $ | 9,365 | $ | 9,322 | $ | 4,324 | $ | (376) | ||||||||||||||||||
Add: | Interest expense, including amortization of deferred fees | 6,442 | 6,936 | 12,880 | 13,325 | |||||||||||||||||||||
Depreciation and amortization | 14,670 | 15,277 | 28,928 | 30,313 | ||||||||||||||||||||||
Corporate general and administrative | 4,612 | 4,462 | 8,954 | 8,405 | ||||||||||||||||||||||
Other charges | 38 | 150 | 38 | 400 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | 691 | — | ||||||||||||||||||||||
Less: | Interest and other income | (189) | (1) | (209) | (1) | |||||||||||||||||||||
Gain on sale of hotel properties | (55) | (2,020) | (55) | (2,020) | ||||||||||||||||||||||
Gain from partial lease termination | (164) | — | (164) | — | ||||||||||||||||||||||
Adjusted Hotel EBITDA | $ | 34,719 | $ | 34,126 | $ | 55,387 | $ | 50,046 |
2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total/ Weighted Average | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Floating rate: | |||||||||||||||||||||||||||||||||||||||||||||||
Debt | — | — | $90,000 | — | — | — | $90,000 | $ | 90,000 | ||||||||||||||||||||||||||||||||||||||
Average interest rate | — | — | 6.40% | — | — | — | 6.40% | ||||||||||||||||||||||||||||||||||||||||
Fixed rate: | |||||||||||||||||||||||||||||||||||||||||||||||
Debt | $63,741 | $297,003 | $15,961 | — | — | — | $376,705 | $365,215 | |||||||||||||||||||||||||||||||||||||||
Average interest rate | 4.85% | 4.64% | 4.25% | — | — | — | 4.66% |
Exhibit Number | Description of Exhibit | |||||||
Articles of Amendment and Restatement of Chatham Lodging Trust (1) | ||||||||
Articles of Amendment of Chatham Lodging Trust (2) | ||||||||
Fourth Amended and Restated Bylaws of Chatham Lodging Trust (3) | ||||||||
Articles Supplementary to the Company's Declaration of Trust designating the 6.625% Series A Cumulative Redeemable Preferred Shares of Beneficial Interest, $0.01 par value per share (4) | ||||||||
31.1† | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section302 of the Sarbanes-Oxley Act of 2002 | |||||||
31.2† | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section302 of the Sarbanes-Oxley Act of 2002 | |||||||
32.1†† | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section906 of the Sarbanes-Oxley Act of 2002 | |||||||
101.INS | The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the interactive date file because its XBRL tags are embedded within the inline XBRL document. |
† | Filed herewith. | ||||
†† | Furnished herewith. | ||||
(1) | Incorporated by reference to Exhibit 3.1 to the Company's Annual Report on Form 10-K filed with the SEC on February 29, 2016 (File No. 001-34693). | ||||
(2) | Incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q filed with the SEC on May 4, 2023 (File No. 001-34693). | ||||
(3) | Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on February 24, 2023 (File No. 001-34693). | ||||
(4) | Incorporated by reference to Exhibit 3.3 of the Company's Registration Statement on Form 8-A filed with the SEC on June 25, 2021 (File No. 001-34693). | ||||
CHATHAM LODGING TRUST | |||||||||||
Dated: | August 2, 2023 | By: /s/ JEREMY B. WEGNER | |||||||||
Jeremy B. Wegner | |||||||||||
Senior Vice President and Chief Financial Officer | |||||||||||
(Principal Financial and Accounting Officer and duly authorized officer of the registrant) |
CHATHAM LODGING TRUST | ||||||||
Dated: | August 2, 2023 | /s/ JEFFREY H. FISHER | ||||||
Jeffrey H. Fisher | ||||||||
Chairman, President and Chief Executive Officer |
CHATHAM LODGING TRUST | ||||||||
Dated: | August 2, 2023 | /s/ JEREMY B. WEGNER | ||||||
Jeremy B. Wegner | ||||||||
Senior Vice President and Chief Financial Officer |
CHATHAM LODGING TRUST | ||||||||
Dated: | August 2, 2023 | /s/ JEFFREY H. FISHER | ||||||
Jeffrey H. Fisher | ||||||||
Chairman, President and Chief Executive Officer | ||||||||
/s/ JEREMY B. WEGNER | ||||||||
Jeremy B. Wegner | ||||||||
Senior Vice President and Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts related to receivables | $ 408 | $ 344 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred shares, shares issued (in shares) | 4,800,000 | 4,800,000 |
Preferred shares, shares outstanding (in shares) | 4,800,000 | 4,800,000 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common shares, shares issued (in shares) | 48,856,806 | 48,808,105 |
Common shares, shares outstanding (in shares) | 48,856,806 | 48,808,105 |
Consolidated Statements of Operations - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Total revenue | $ 84,476,000 | $ 81,761,000 | $ 152,091,000 | $ 136,646,000 |
Total hotel operating expenses | 43,323,000 | 41,345,000 | 83,800,000 | 75,026,000 |
Depreciation and amortization | 14,670,000 | 15,277,000 | 28,928,000 | 30,313,000 |
Property taxes, ground rent and insurance | 6,069,000 | 5,932,000 | 12,174,000 | 10,890,000 |
General and administrative | 4,612,000 | 4,462,000 | 8,954,000 | 8,405,000 |
Other charges | 38,000 | 150,000 | 38,000 | 400,000 |
Reimbursable costs from related parties | 365,000 | 358,000 | 730,000 | 684,000 |
Total operating expenses | 69,077,000 | 67,524,000 | 134,624,000 | 125,718,000 |
Operating income before gain on sale of hotel properties | 15,399,000 | 14,237,000 | 17,467,000 | 10,928,000 |
Gain on sale of hotel properties | 55,000 | 2,020,000 | 55,000 | 2,020,000 |
Operating income | 15,454,000 | 16,257,000 | 17,522,000 | 12,948,000 |
Interest and other income | 189,000 | 1,000 | 209,000 | 1,000 |
Interest expense, including amortization of deferred fees | (6,442,000) | (6,936,000) | (12,880,000) | (13,325,000) |
Loss on early extinguishment of debt | 0 | 0 | (691,000) | 0 |
Gain from partial lease termination | 164,000 | 0 | 164,000 | 0 |
Income (loss) before income tax expense | 9,365,000 | 9,322,000 | 4,324,000 | (376,000) |
Income tax expense | 0 | 0 | 0 | 0 |
Net income (loss) | 9,365,000 | 9,322,000 | 4,324,000 | (376,000) |
Net (income) loss attributable to noncontrolling interests | (221,000) | (171,000) | (28,000) | 82,000 |
Net income (loss) attributable to Chatham Lodging Trust | 9,144,000 | 9,151,000 | 4,296,000 | (294,000) |
Preferred dividends | (1,987,000) | (1,987,000) | (3,975,000) | (3,975,000) |
Net income (loss) attributable to common shareholders | $ 7,157,000 | $ 7,164,000 | $ 321,000 | $ (4,269,000) |
Income (loss) per common share - basic: | ||||
Net loss attributable to common shareholders (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.01 | $ (0.09) |
Income (loss) per common share - diluted: | ||||
Net loss attributable to common shareholders (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.01 | $ (0.09) |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 48,846,913 | 48,795,348 | 48,842,850 | 48,791,455 |
Diluted (in shares) | 48,962,842 | 49,017,184 | 48,964,908 | 48,791,455 |
Distributions declared per common share (in dollars per share) | $ 0.07 | $ 0 | $ 0.14 | $ 0 |
Room | ||||
Total revenue | $ 77,486,000 | $ 75,761,000 | $ 139,157,000 | $ 125,926,000 |
Total hotel operating expenses | 14,578,000 | 14,480,000 | 28,694,000 | 26,074,000 |
Food and beverage | ||||
Total revenue | 2,094,000 | 1,968,000 | 4,182,000 | 3,382,000 |
Total hotel operating expenses | 1,584,000 | 1,429,000 | 3,141,000 | 2,476,000 |
Other | ||||
Total revenue | 4,531,000 | 3,674,000 | 8,022,000 | 6,654,000 |
Reimbursable costs from related parties | ||||
Total revenue | 365,000 | 358,000 | 730,000 | 684,000 |
Telephone | ||||
Total hotel operating expenses | 360,000 | 359,000 | 722,000 | 760,000 |
Other hotel operating | ||||
Total hotel operating expenses | 950,000 | 879,000 | 1,863,000 | 1,611,000 |
General and administrative | ||||
Total hotel operating expenses | 7,305,000 | 6,804,000 | 14,112,000 | 12,153,000 |
Franchise and marketing fees | ||||
Total hotel operating expenses | 6,801,000 | 6,559,000 | 12,141,000 | 10,966,000 |
Advertising and promotions | ||||
Total hotel operating expenses | 1,460,000 | 1,230,000 | 2,975,000 | 2,419,000 |
Utilities | ||||
Total hotel operating expenses | 2,899,000 | 2,784,000 | 6,050,000 | 5,673,000 |
Repairs and maintenance | ||||
Total hotel operating expenses | 3,894,000 | 3,347,000 | 7,623,000 | 6,792,000 |
Management fees | ||||
Total hotel operating expenses | 2,791,000 | 2,727,000 | 5,079,000 | 4,645,000 |
Insurance | ||||
Total hotel operating expenses | $ 701,000 | $ 747,000 | $ 1,400,000 | $ 1,457,000 |
Consolidated Statements of Equity (Parenthetical) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Distributions declared per common share (in dollars per share) | $ 0.07 | $ 0 | $ 0.14 | $ 0 |
Distributions declared on LTIP units (in dollars per share) | $ 0.07 | $ 0.14 | ||
Common Shares | ||||
Issuance of shares, offering costs | $ 0 | $ 79,000 | $ 0 | $ 107,000 |
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Statement of Cash Flows [Abstract] | ||
Accrued distributions payable | $ 5,327 | $ 1,656 |
Accrued share based compensation | 235 | 270 |
Accounts payable and accrued expenses | $ 700 | $ 802 |
Organization |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Chatham Lodging Trust (“we,” “us” or the “Company”) was formed as a Maryland real estate investment trust on October 26, 2009. The Company is internally-managed and invests primarily in upscale extended-stay and premium-branded select-service hotels. The Company has elected to be treated as a real estate investment trust for federal income tax purposes ("REIT"). The net proceeds from our share offerings are contributed to Chatham Lodging, L.P., our operating partnership (the “Operating Partnership”), in exchange for partnership interests. Substantially all of the Company’s assets are held by, and all operations are conducted through, the Operating Partnership. The Company is the sole general partner of the Operating Partnership and owns 100% of the common units of limited partnership interest in the Operating Partnership ("common units"). Certain of the Company’s executive officers hold vested and unvested long-term incentive plan units in the Operating Partnership ("LTIP units"), which are presented as non-controlling interests on our consolidated balance sheets. As of June 30, 2023, the Company owned 39 hotels with an aggregate of 5,915 rooms located in 16 states and the District of Columbia. To qualify as a REIT, the Company cannot operate the hotels. Therefore, the Operating Partnership and its subsidiaries lease the Company's wholly owned hotels to taxable REIT subsidiary lessees (“TRS Lessees”), which are wholly owned by the Company’s taxable REIT subsidiary (“TRS”) holding company. Each hotel is leased to a TRS Lessee under a percentage lease that provides for rental payments equal to the greater of (i) a fixed base rent amount or (ii) a percentage rent based on hotel revenue. Lease revenue from each TRS Lessee is eliminated in consolidation. The TRS Lessees have entered into management agreements with a third-party management company that provides day-to-day management for the hotels. As of June 30, 2023, Island Hospitality Management LLC (“IHM”), which is 100% owned by Jeffrey H. Fisher, the Company's Chairman, President and Chief Executive Officer, managed all of the Company’s hotels.
|
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial information. These unaudited consolidated financial statements, in the opinion of management, include all adjustments consisting of normal, recurring adjustments which are considered necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of equity, and consolidated statements of cash flows for the periods presented. Interim results are not necessarily indicative of full year performance due to seasonal and other factors, including the timing of the acquisition or sale of hotels. The consolidated financial statements include all of the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions are eliminated in consolidation. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited financial statements prepared in accordance with GAAP, and the related notes thereto as of December 31, 2022, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04 Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform-related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. In December 2022, the FASB issued ASU No. 2022-06 Reference Rate Reform (Topic 848). ASU 2022-06 amended and deferred the sunset provision in ASU 2020-04 from December 31, 2022 to December 31, 2024. As of June 30, 2023, the Company does not anticipate that this guidance will have a material impact on its consolidated financial statements; however, the Company will continue to evaluate the impact that ASU 2020-04 may have on its consolidated financial statements and related disclosures.
|
Acquisition of Hotel Properties |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition of Hotel Properties | Acquisition of Hotel PropertiesOn March 8, 2022, the Company acquired the Hilton Garden Inn Destin Miramar Beach ("HGI Destin") hotel property in Miramar Beach, FL for $31.0 million. The Company allocated the purchase price of the hotel based on the estimated fair values of the assets on the date of acquisition. Property acquisition costs of $48 thousand were capitalized in 2022. |
Disposition of Hotel Properties |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition of Hotel Properties | Disposition of Hotel Properties On May 6, 2022, the Company sold the Hilton Garden Inn Boston-Burlington ("HGI Burlington") hotel property in Burlington, MA for $23.2 million and recognized a gain on sale of the hotel property of $0.5 million. Proceeds from the sale were used to repay amounts outstanding on the Company's revolving credit facility. On May 13, 2022, the Company sold a portfolio of three hotels, the Homewood Suites Dallas-Market Center ("HWS Dallas") hotel property in Dallas, TX, the Courtyard Houston West University ("CY Houston West U") hotel property in Houston, TX, and the Residence Inn Houston West University ("RI Houston West U") hotel property in Houston, TX, for $57.0 million, and recognized a gain on sale of the hotel properties of $1.8 million. Proceeds from the sale were used to repay amounts outstanding on the Company's revolving credit facility. The sales did not represent a strategic shift that had or will have a major effect on the Company's operations and financial results and did not qualify to be reported as discontinued operations.
|
Allowance for Doubtful Accounts |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful AccountsThe Company maintains an allowance for doubtful accounts at a level believed to be adequate to absorb estimated probable losses. That estimate is based on past loss experience, current economic and market conditions and other relevant factors. The allowance for doubtful accounts was $0.4 million and $0.3 million as of June 30, 2023 and December 31, 2022, respectively. |
Investment in Hotel Properties |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Hotel Properties | Investment in Hotel Properties Investment in hotel properties,net Investment in hotel properties, net as of June 30, 2023 and December 31, 2022 consisted of the following (in thousands):
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The Company’s mortgage loans are collateralized by first-mortgage liens on certain of the Company’s properties. The mortgage loans are non-recourse except for instances of fraud or misapplication of funds. Mortgage, revolving credit facility, and unsecured term loan debt consisted of the following (dollars in thousands):
1.The interest rate for the revolving credit facility is variable and based on one-month term secured overnight financing rate ("SOFR") plus a spread of 1.50% to 2.25% based on the Company's leverage and a credit spread adjustment of 0.10%. 2.The interest rate for the unsecured term loan is variable and based on one-month term SOFR plus a spread of 1.45% to 2.20% based on the Company's leverage and a credit spread adjustment of 0.10%. 3.On August 4, 2020, a subsidiary of Chatham entered into an agreement with affiliates of Mack Real Estate Credit Strategies to obtain a $40.0 million loan to fund the remaining construction costs of the Home2 Suites by Hilton Woodland Hills Los Angeles ("Home2 Woodland Hills") hotel development. The loan had an initial term of 4 years and there were two six-month extension options. The interest rate on the loan was LIBOR, subject to a 0.25% floor, plus a spread of 7.5%. The loan was repaid on February 1, 2023. On October 28, 2022, the Company entered into a $215.0 million unsecured revolving credit facility and a $90.0 million unsecured delayed-draw term loan facility that replaced the Company’s previous $250.0 million revolving credit facility that was scheduled to mature on March 8, 2023. The revolving credit facility has an initial maturity of October 28, 2026 and provides two six-month extension options. The unsecured delayed-draw term loan facility has an initial maturity of October 28, 2025 and provides two one-year extension options. On December 19, 2022, the Company executed an amendment to its unsecured revolving credit facility, increasing commitments by $45.0 million for a total borrowing capacity of $260.0 million. During the six months ended June 30, 2023, the Company repaid the $39.3 million construction loan on the Home2 Woodland Hills hotel property, and the maturing mortgage loans of $14.4 million on the Homewood Suites San Antonio hotel property, $19.7 million on the Residence Inn Tysons hotel property and $16.0 million on the Courtyard Houston hotel property. The Company utilized borrowings under its unsecured delayed-draw term loan to repay these loans and no prepayment penalties were incurred. The Company estimates the fair value of its fixed rate debt by discounting the future cash flows of each instrument at estimated market rates. All of the Company's mortgage loans are fixed-rate. Rates take into consideration general market conditions, quality and estimated value of collateral and maturity of debt with similar credit terms and are classified within level 3 of the fair value hierarchy. The estimated fair value of the Company’s fixed rate debt as of June 30, 2023 and December 31, 2022 was $365.2 million and $412.7 million, respectively. The Company estimates the fair value of its variable rate debt by taking into account general market conditions and the estimated credit terms it could obtain for debt with similar maturity and is classified within level 3 of the fair value hierarchy. As of June 30, 2023, the Company’s variable rate debt consisted of borrowings under its revolving credit facility and its unsecured delayed-draw term loan. The estimated fair value of the Company’s variable rate debt as of June 30, 2023 and December 31, 2022 was $90.0 million and $39.3 million, respectively. The Company's mortgage debt agreements contain “cash trap” provisions that are triggered when the hotel’s operating results fall below a certain debt service coverage ratio or debt yield. When these provisions are triggered, all of the excess cash flow generated by the hotel is deposited directly into cash management accounts for the benefit of the lenders until a specified debt service coverage ratio or debt yield is reached. Such provisions do not allow the lender the right to accelerate repayment of the underlying debt. As of June 30, 2023, four of our mortgage debt lenders have enforced cash trap provisions resulting in $5.6 million of restricted cash. The Company does not expect that such cash traps will affect its ability to satisfy its short-term liquidity requirements. Future scheduled principal payments of debt obligations as of June 30, 2023, for the current year and each of the next five calendar years and thereafter are as follows (in thousands):
Accounting for Derivative Instruments The Company had interest rate cap agreements to hedge against interest rate fluctuations related to the construction loan for the Home2 Woodland Hills hotel. The Company recorded its derivative instruments on the balance sheet at their estimated fair values. Changes in the fair value of the derivatives are recorded each period in current earnings or in other comprehensive income, depending on whether a derivative is designated as part of a hedging relationship and, if it is, depending on the type of hedging relationship. The Company's interest rate caps were not designated as a hedge but to eliminate the incremental cost to the Company if the one-month LIBOR were to exceed 3.5%. Accordingly, the interest rate caps were recorded on the balance sheet under prepaid expenses and other assets at the estimated fair value and realized and unrealized changes in the fair value are reported in the consolidated statement of operations. During the six months ended June 30, 2023, the Company terminated its interest rate caps related to the construction loan when the loan was repaid.
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Income Taxes |
6 Months Ended |
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Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s TRS is subject to federal and state income taxes. Income tax expense was zero for the three and six months ended June 30, 2023 and 2022. As of each reporting date, the Company's management considers new evidence, both positive and negative, that could impact management's view with regard to future realization of deferred tax assets. The Company's TRS is expecting continued taxable losses in 2023. As of June 30, 2023, the TRS continues to recognize a full valuation allowance equal to 100% of the net deferred tax assets due to the uncertainty of the TRS's ability to utilize these net deferred tax assets. Management will continue to monitor the need for a valuation allowance. On August 16, 2022, the United States enacted the Inflation Reduction Act of 2022, which contains tax-related provisions, including a 15% book-income alternative minimum tax on large corporations with financial accounting profits over $1 billion effective for tax years beginning on or after January 1, 2023, a 1% excise tax on stock repurchases, and the extension and expansion of renewable energy incentives and tax credit programs. The Company is monitoring for potential impacts, but this new law is not expected to have a significant impact on Chatham.
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Dividends Declared and Paid |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Declared and Paid | Dividends Declared and Paid Common Dividends The Company suspended common share dividends beginning after the payment of the March 27, 2020 dividend due to a decline in operating performance caused by the COVID-19 pandemic. The Company reinstated common share dividends during the fourth quarter of 2022. The Company declared total common share dividends of $0.07 per share and distributions on LTIP units of $0.07 per unit for the three months ended June 30, 2023, and $0.14 per share and unit for the six months ended June 30, 2023.
Preferred Dividends During the three and six months ended June 30, 2023, the Company declared dividends of $0.41406 and $0.82812, respectively, per share of 6.625% Series A Cumulative Redeemable Preferred Shares. The preferred share dividends paid were as follows:
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Shareholders' Equity |
6 Months Ended |
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Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Shares The Company is authorized to issue up to 500,000,000 common shares of beneficial interest, $0.01 par value per share ("common shares"). Each outstanding common share entitles the holder to one vote on all matters submitted to a vote of shareholders. Holders of the Company’s common shares are entitled to receive dividends when authorized by the Company's Board of Trustees. As of June 30, 2023, 48,856,806 common shares were outstanding. In January 2021, we established an "at-the-market" equity offering program (the "ATM Program") whereby, from time to time, we could publicly offer and sell our common shares having an aggregate offering price of up to $100.0 million by means of ordinary brokers transactions on the New York Stock Exchange (the "NYSE"), in negotiated transactions or in transactions deemed to be “at-the-market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Cantor Fitzgerald & Co., Barclays Capital Inc., BMO Capital Markets Corp., BofA Securities, Inc., BTIG, LLC, Citigroup Global Markets Inc., Regions Securities LLC, Stifel, Nicolaus & Company, Incorporated and Wells Fargo Securities act as sales agents under the ATM Program. The Company did not issue any shares under the ATM Program during the three and six months ended June 30, 2023. As of June 30, 2023, there was approximately $77.5 million in common shares available for issuance under the ATM Program. In December 2017, we established a $50.0 million dividend reinvestment and stock purchase plan. We filed a new $50.0 million shelf registration statement for the dividend reinvestment and stock purchase plan (the "DRSPP") on December 22, 2020 to replace the prior plan. Under the DRSPP, shareholders may purchase additional common shares by reinvesting some or all of the cash dividends received on common shares. Shareholders may also make optional cash purchases of the Company's common shares subject to certain limitations detailed in the prospectuses for the DRSPP. During the three months ended June 30, 2023, the Company issued 1,651 common shares under the DRSPP at a weighted average price per share of $9.94, which generated $16 thousand of proceeds. During the six months ended June 30, 2023, the Company issued 2,866 common shares under the DRSPP at a weighted average price per share of $10.85, which generated $31 thousand of proceeds. As of June 30, 2023, there was approximately $47.8 million in common shares available for issuance under the DRSPP. Preferred Shares The Company is authorized to issue up to 100,000,000 preferred shares of beneficial interest, $0.01 par value per share, in one or more series. On June 30, 2021, the Company issued 4,800,000 6.625% Series A Cumulative Redeemable Preferred Shares of Beneficial Interest, $0.01 par value per share (the “Series A Preferred Shares”), and received net proceeds of approximately $115.9 million. The Series A Preferred Shares rank senior to common shares with respect to the payment of dividends and distributions of assets in the event of a liquidation, dissolution, or winding up. The Series A Preferred Shares do not have any maturity date and are not subject to mandatory redemptions or sinking fund requirements. The distribution rate is 6.625% per annum of the $25.00 liquidation preference, which is equivalent to $1.65625 per annum per Series A Preferred Share. Distributions on the Series A Preferred Shares are payable quarterly in arrears with the first distribution on the Series A Preferred Shares paid on October 15, 2021. The Company may not redeem the Series A Preferred Shares before June 30, 2026 except in limited circumstances to preserve the Company's status as a REIT for federal income tax purposes and upon the occurrence of a change of control. On and after June 30, 2026, the Company may, at its option, redeem the Series A Preferred Shares, in whole or from time to time in part, by paying $25.00 per share, plus any accrued and unpaid distributions to, but not including, the date of redemption. Upon the occurrence of a change of control, as defined in the Company's declaration of trust, the result of which common shares and the common securities of the acquiring or surviving entity are not listed on the New York Stock Exchange, the NYSE American or NASDAQ, or any successor exchanges, the Company may, at its option, redeem the Series A Preferred Shares in whole or in part within 120 days following the change of control by paying $25.00 per share, plus any accrued and unpaid distributions through the date of redemption. If the Company does not exercise its right to redeem the Series A Preferred Shares upon a change of control, the holders of Series A Preferred Shares have the right to convert some or all of their shares into a number of common shares based on defined formulas subject to share caps. The share cap on each Series A Preferred Share is 3.701 common shares. As of June 30, 2023, 4,800,000 Series A Preferred Shares were issued and outstanding. During the three months ended June 30, 2023, the Company accrued preferred share dividends of approximately $2.0 million. Operating Partnership Units Holders of common units in the Operating Partnership, if and when issued, will have certain redemption rights, which will enable the unit holders to cause the Operating Partnership to redeem their units in exchange for, at the Company’s option, cash per unit equal to the market price per common share at the time of redemption or for common shares on a one-for-one basis. The number of shares issuable upon exercise of the redemption rights will be adjusted upon the occurrence of share splits, mergers, consolidations or similar pro-rata share transactions, which otherwise would have the effect of diluting the ownership interests of limited partners or shareholders. As of June 30, 2023, there were 1,587,317 vested Operating Partnership LTIP units held by current and former employees.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The two-class method is used to determine earnings per share because unvested restricted shares and unvested LTIP units are considered to be participating shares. The LTIP units held by the non-controlling interest holders, which may be converted to common shares, have been excluded from the denominator of the diluted earnings per common share calculation as there would be no effect on the amounts since limited partners' share of income or loss would also be added back to net income or loss. Unvested restricted shares, unvested long-term incentive plan units and unvested Class A Performance LTIP units that could potentially dilute basic earnings per common share in the future would not be included in the computation of diluted loss per common share, for the periods where a loss has been recorded, because they would have been anti-dilutive for the periods presented. For the six months ended June 30, 2023 and 2022, the Company excluded zero and 210,938, respectively, of unvested shares and units as their effect would have been anti-dilutive. The following is a reconciliation of the amounts used in calculating basic and diluted net income per common share (in thousands, except share and per share data):
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Equity Incentive Plan |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive Plan | Equity Incentive Plan The Company maintains its Equity Incentive Plan to attract and retain independent trustees, executive officers and other key employees. The plan provides for the grant of options to purchase common shares, share awards, share appreciation rights, performance units and other equity-based awards. The plan was amended on May 24, 2022 to increase the maximum number of shares available under the plan by 1,600,000 shares and extend the term of the plan to March 22, 2032. Share awards under this plan generally vest over to five years, though compensation for the Company’s independent trustees includes share grants that vest immediately. The Company pays dividends on unvested shares and units, except for performance-based shares and outperformance based units, for which dividends on unvested performance-based shares and units are accrued and not paid until those shares or units vest. Certain awards may provide for accelerated vesting if there is a change in control. In January 2023 and 2022, the Company issued 43,378 and 34,672 common shares, respectively, to its independent trustees as compensation for services performed in 2022 and 2021, respectively. As of June 30, 2023, there were 1,252,326 common shares available for issuance under the Equity Incentive Plan. Restricted Share Awards From time to time, the Company may award restricted shares under the Equity Incentive Plan as compensation to officers, employees and non-employee trustees. The Company recognizes compensation expense for the restricted shares on a straight-line basis over the vesting period based on the fair market value of the shares on the date of issuance. A summary of the Company’s restricted share awards for the six months ended June 30, 2023 and the year ended December 31, 2022 is as follows:
As of June 30, 2023 and December 31, 2022, there were $69 thousand and $61 thousand, respectively, of unrecognized compensation costs related to restricted share awards. As of June 30, 2023, these costs were expected to be recognized over a weighted-average period of approximately 1.7 years. For the three months ended June 30, 2023 and 2022, the Company recognized approximately $12 thousand and $10 thousand, respectively, and for the six months ended June 30, 2023 and 2022, the Company recognized approximately $22 thousand and $19 thousand, respectively, of expense related to the restricted share awards. Long-Term Incentive Plan Awards LTIP units are a special class of partnership interests in the Operating Partnership which may be issued to eligible participants for the performance of services to or for the benefit of the Company. Under the Equity Incentive Plan, each LTIP unit issued is deemed equivalent to an award of one common share thereby reducing the number of shares available for other equity awards on a one-for-one basis. A summary of the Company's LTIP unit awards for the six months ended June 30, 2023 and the year ended December 31, 2022 is as follows:
Time-Based LTIP Awards On March 1, 2023, the Company’s Operating Partnership, upon the recommendation of the Compensation Committee, granted 171,171 time-based LTIP unit awards (the “2023 Time-Based LTIP Unit Award”). The grants were made pursuant to award agreements that provide for time-based vesting (the "LTIP Unit Time-Based Vesting Agreement"). Time-based LTIP unit awards will vest ratably provided that the recipient remains employed by the Company through the applicable vesting date, subject to acceleration of vesting in the event of the recipient’s death, disability, termination without cause or resignation with good reason, or in the event of a change of control of the Company. Prior to vesting, a holder is entitled to receive distributions on the LTIP units that comprise the 2023 Time-Based LTIP Unit Awards and the prior year LTIP unit awards set forth in the table above. Performance-Based LTIP Awards On March 1, 2023, the Company's Operating Partnership, upon the recommendation of the Compensation Committee, also granted 256,757 performance-based LTIP unit awards (the "2023 Performance-Based LTIP Unit Awards"). The grants were made pursuant to award agreements that have market-based vesting conditions. The Performance-Based LTIP Unit Awards are comprised of Class A Performance LTIP Units that will vest only if and to the extent that (i) the Company achieves certain long-term market-based total shareholder return ("TSR") criteria established by the Compensation Committee and (ii) the recipient remains employed by the Company through the applicable vesting date, subject to acceleration of vesting in the event of the recipient’s death, disability, termination without cause or resignation with good reason, or in the event of a change of control of the Company. Compensation expense is based on an estimated value of $16.64 per 2023 Performance-Based LTIP Unit Award, which takes into account that the number of units that ultimately may vest will depend on the achievement of long-term market-based TSR criteria. The 2023 Performance-Based LTIP Unit Awards have an absolute negative TSR modifier which may reduce payout percentages if the absolute TSR over the measurement period is negative. The 2023 Performance-Based LTIP Unit Awards may be earned based on the Company’s relative TSR performance for the three-year period beginning on March 1, 2023 and ending on February 28, 2026. The 2023 Performance-Based LTIP Unit Awards, if earned, will be paid out between 50% and 200% of target value as follows:
Payouts at performance levels in between the hurdles will be calculated by straight-line interpolation. The Company estimated the aggregate compensation cost to be recognized over the service period determined as of the grant date under ASC 718, excluding the effect of estimated forfeitures, using a Monte Carlo approach. In determining the discounted value of the LTIP units, the Company considered the inherent uncertainty that the LTIP units would never reach parity with the other common units of the Operating Partnership and thus have an economic value of zero to the grantee. Additional factors considered in estimating the value of LTIP units included discounts for illiquidity, expectations for future dividends, risk free interest rates, stock price volatility, and economic environment and market conditions. The grant date fair values of the LTIPs and the assumptions used to estimate the values are as follows:
(1) In February 2023, following the end of the measurement period, the Company’s TSR met certain criteria and based on the Company’s TSR over the measurement period, 234,361 LTIP units vested. The Company recorded $1.4 million and $1.3 million in compensation expense related to the LTIP units for the three months ended June 30, 2023 and 2022, respectively, and $2.7 million and $2.4 million in compensation expense related to the LTIP units for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023 and December 31, 2022, there was $10.0 million and $6.5 million, respectively, of total unrecognized compensation cost related to LTIP units. This cost is expected to be recognized over approximately 2.1 years, which represents the weighted average remaining vesting period of the LTIP units.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Residence Inn Gaslamp hotel property is subject to a ground lease with an expiration date of January 31, 2065 with an extension option by the Company of up to three additional terms of ten years each. Monthly payments are currently approximately $44 thousand per month and increase 10% every five years. The hotel is subject to annual supplemental rent payments calculated as 5% of gross revenues during the applicable lease year, minus 12 times the monthly base rent scheduled for the lease year. The Residence Inn New Rochelle hotel property is subject to an air rights lease and garage lease that each expire on December 1, 2104. The lease agreements with the City of New Rochelle cover the space above the parking garage that is occupied by the hotel as well as 128 parking spaces in a parking garage that is attached to the hotel. The annual base rent for the garage lease is the hotel’s proportionate share of the city’s adopted budget for the operations, management and maintenance of the garage and established reserves to fund for the cost of capital repairs. Aggregate rent for 2023 is approximately $30 thousand per quarter. The Hilton Garden Inn Marina del Rey hotel property is subject to a ground lease with an expiration date of December 31, 2067. Minimum monthly payments are currently approximately $47 thousand per month and a percentage rent payment less the minimum rent is due in arrears equal to 5% to 25% of gross income based on the type of income. The Company entered into a corporate office lease in September 2015. The lease is for a term of 11 years and includes a 12-month rent abatement period and certain tenant improvement allowances. The Company has a renewal option of up to two successive terms of 5 years each. On June 1, 2023, the Company executed an amendment to the corporate office lease to vacate and surrender possession of 7,374 rentable square feet in exchange for an early termination payment of $0.1 million. The partial termination of this lease required the Company to apply ASC 842 and remeasure the right of use asset and lease liability and recognize those adjustments in the consolidated statement of operations. During the six months ended June 30, 2023, the Company recognized a gain from partial lease termination of approximately $0.2 million as a result of this partial termination. The Company shares the space with a related party and is reimbursed for the pro-rata share of rentable space occupied by the related party. The Company is the lessee under ground, air rights, garage and office lease agreements for certain of its properties, all of which qualify as operating leases as of June 30, 2023. These leases typically provide multi-year renewal options to extend term as lessee at the Company's option. Option periods are included in the calculation of the lease obligation liability only when options are reasonably certain to be exercised. In calculating the Company's lease obligations under the various leases, the Company uses discount rates estimated to be equal to what the Company would have to pay to borrow on a collateralized basis over a similar term, for an amount equal to the lease payments, in a similar economic environment. Lease obligations are based on contractually required cash payments while lease expense is recognized on a straight-line basis. The following table includes information regarding the Company's total minimum lease payments for which it is the lessee, as of June 30, 2023, for each of the next five calendar years and thereafter (in thousands):
The Company incurred $0.6 million of fixed lease payments and $0.4 million of variable lease payments for the six months ended June 30, 2023, which are included in property taxes, ground rent and insurance in our consolidated statement of operations. The following table includes information regarding the right of use assets and lease liabilities of the Company as of June 30, 2023 (in thousands):
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company is subject to various claims, lawsuits and legal proceedings, including routine litigation arising in the ordinary course of business, regarding the operation of its hotels, its managers and other Company matters. While it is not possible to ascertain the ultimate outcome of such matters, the Company believes that the aggregate identifiable amount of such liabilities, if any, will not have a material adverse impact on its financial condition or results of operations. Management Agreements The management agreements with IHM have an initial term of five years and automatically renew for two five-year periods unless IHM provides written notice to us no later than 90 days prior to the then current term’s expiration date of its intent not to renew. The IHM management agreements provide for early termination at the Company’s option upon sale of any IHM-managed hotel for no termination fee, with six months advance notice. The IHM management agreements may be terminated for cause, including the failure of the managed hotel to meet specified performance levels. Base management fees are calculated as a percentage of the hotel's gross room revenue. If certain financial thresholds are met or exceeded, an incentive management fee is calculated as 10% of the hotel's net operating income less fixed costs, base management fees and a specified return threshold. The incentive management fee is capped at 1% of gross hotel revenues for the applicable calculation. Management fees totaled approximately $2.8 million and $2.7 million for the three months ended June 30, 2023 and 2022, respectively, and $5.1 million and $4.6 million for the six months ended June 30, 2023 and 2022, respectively. Franchise Agreements The fees associated with the franchise agreements are calculated as a specified percentage of the hotel's gross room revenue. Franchise and marketing fees totaled approximately $6.8 million and $6.6 million for the three months ended June 30, 2023 and 2022, respectively, and $12.1 million and $11.0 million for the six months ended June 30, 2023 and 2022, respectively. The initial term of the agreements range from 10 to 30 years with the weighted average expiration being March 2035.
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of June 30, 2023, Jeffrey H. Fisher, the Company's Chairman, President and Chief Executive Officer, owns 100% of IHM. As of June 30, 2023, the Company had hotel management agreements with IHM to manage all 39 of its hotels. Hotel management, revenue management and accounting fees accrued or paid to IHM for the hotels owned by the Company for the three months ended June 30, 2023 and 2022 were $2.8 million and $2.7 million, respectively, and for the six months ended June 30, 2023 and 2022 were $5.1 million and $4.6 million, respectively. At June 30, 2023 and December 31, 2022, the amounts due to IHM were $0.7 million and $0.4 million, respectively. Cost reimbursements from related parties revenue represent reimbursements of costs incurred on behalf of IHM. These costs relate primarily to office expenses shared with IHM. Various shared office expenses and rent are paid by the Company and allocated to IHM based on the amount of square footage occupied by each entity. As the Company records cost reimbursements based upon costs incurred with no added markup, the revenue and related expense has no impact on the Company’s operating income or net income. Cost reimbursements are recorded based upon the occurrence of a reimbursed activity.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe Company repaid the maturing mortgage loan of $19.7 million on the Hyatt Place Pittsburgh hotel property on July 6, 2023 with available cash. No prepayment penalties were incurred as a result of the repayment. |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
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Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 9,144 | $ 9,151 | $ 4,296 | $ (294) |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial information. These unaudited consolidated financial statements, in the opinion of management, include all adjustments consisting of normal, recurring adjustments which are considered necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of equity, and consolidated statements of cash flows for the periods presented. Interim results are not necessarily indicative of full year performance due to seasonal and other factors, including the timing of the acquisition or sale of hotels. The consolidated financial statements include all of the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions are eliminated in consolidation. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited financial statements prepared in accordance with GAAP, and the related notes thereto as of December 31, 2022, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
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Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04 Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform-related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. In December 2022, the FASB issued ASU No. 2022-06 Reference Rate Reform (Topic 848). ASU 2022-06 amended and deferred the sunset provision in ASU 2020-04 from December 31, 2022 to December 31, 2024. As of June 30, 2023, the Company does not anticipate that this guidance will have a material impact on its consolidated financial statements; however, the Company will continue to evaluate the impact that ASU 2020-04 may have on its consolidated financial statements and related disclosures.
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Investment in Hotel Properties (Tables) |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investment in Hotel Properties | Investment in hotel properties, net as of June 30, 2023 and December 31, 2022 consisted of the following (in thousands):
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Debt (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Mortgage and Revolving Credit Facility Debt | Mortgage, revolving credit facility, and unsecured term loan debt consisted of the following (dollars in thousands):
1.The interest rate for the revolving credit facility is variable and based on one-month term secured overnight financing rate ("SOFR") plus a spread of 1.50% to 2.25% based on the Company's leverage and a credit spread adjustment of 0.10%. 2.The interest rate for the unsecured term loan is variable and based on one-month term SOFR plus a spread of 1.45% to 2.20% based on the Company's leverage and a credit spread adjustment of 0.10%. 3.On August 4, 2020, a subsidiary of Chatham entered into an agreement with affiliates of Mack Real Estate Credit Strategies to obtain a $40.0 million loan to fund the remaining construction costs of the Home2 Suites by Hilton Woodland Hills Los Angeles ("Home2 Woodland Hills") hotel development. The loan had an initial term of 4 years and there were two six-month extension options. The interest rate on the loan was LIBOR, subject to a 0.25% floor, plus a spread of 7.5%. The loan was repaid on February 1, 2023.
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Schedule of Future Scheduled Principal Payments of Debt Obligations | Future scheduled principal payments of debt obligations as of June 30, 2023, for the current year and each of the next five calendar years and thereafter are as follows (in thousands):
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Dividends Declared and Paid (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Common Dividends and Preferred Dividends |
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Amounts Used in Calculating Basic and Diluted Net Income (Loss) Per Share | The following is a reconciliation of the amounts used in calculating basic and diluted net income per common share (in thousands, except share and per share data):
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Equity Incentive Plan (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Share Awards | A summary of the Company’s restricted share awards for the six months ended June 30, 2023 and the year ended December 31, 2022 is as follows:
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Schedule of Long Term Incentive Unit Awards | A summary of the Company's LTIP unit awards for the six months ended June 30, 2023 and the year ended December 31, 2022 is as follows:
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Schedule of Performance-Based Long-Term Incentive Plan Payout Unit Awards | The 2023 Performance-Based LTIP Unit Awards, if earned, will be paid out between 50% and 200% of target value as follows:
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Schedule of Share-based Payment Award, Valuation Assumptions | The grant date fair values of the LTIPs and the assumptions used to estimate the values are as follows:
(1) In February 2023, following the end of the measurement period, the Company’s TSR met certain criteria and based on the Company’s TSR over the measurement period, 234,361 LTIP units vested.
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Lease Maturity | The following table includes information regarding the Company's total minimum lease payments for which it is the lessee, as of June 30, 2023, for each of the next five calendar years and thereafter (in thousands):
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Schedule of Right of Use Asset and Liability | The following table includes information regarding the right of use assets and lease liabilities of the Company as of June 30, 2023 (in thousands):
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Schedule of Lease Cost |
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Organization (Details) |
6 Months Ended |
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Jun. 30, 2023
state
room
| |
Subsidiary, Sale of Stock [Line Items] | |
Aggregate number of rooms in hotels | room | 5,915 |
Number of states in which hotels are owned | state | 16 |
Operating Partnership | |
Subsidiary, Sale of Stock [Line Items] | |
Percentage of common units of limited partnership owned | 100.00% |
Acquisition of Hotel Properties - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Mar. 08, 2022 |
Dec. 31, 2022 |
|
Business Acquisition [Line Items] | ||
Property acquisition costs capitalized | $ 48 | |
Hilton Garden Inn Destin Miramar Beach ("HGI Destin") | ||
Business Acquisition [Line Items] | ||
Consideration transferred | $ 31,000 |
Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Receivables [Abstract] | ||
Allowance for doubtful accounts related to receivables | $ 408 | $ 344 |
Investment in Hotel Properties - (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Investments, All Other Investments [Abstract] | ||
Land and improvements | $ 289,653 | $ 289,589 |
Building and improvements | 1,274,431 | 1,267,035 |
Furniture, fixtures and equipment | 105,856 | 98,373 |
Renovations in progress | 11,550 | 11,710 |
Investment in hotel properties, at cost | 1,681,490 | 1,666,707 |
Less: accumulated depreciation | (431,231) | (402,455) |
Investment in hotel properties, net | $ 1,250,259 | $ 1,264,252 |
Debt - Schedule of Future Scheduled Principal Payments of Debt Obligations (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Disclosure [Abstract] | ||
2023 (remaining six months) | $ 63,741 | |
2024 | 297,003 | |
2025 | 105,961 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Total debt before unamortized debt issue costs | 466,705 | $ 470,257 |
Unamortized term loan and mortgage debt issue costs | (846) | (373) |
Total debt outstanding | $ 465,859 | $ 469,884 |
Income Taxes (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Income Tax Contingency [Line Items] | ||||
Tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
TRS | ||||
Income Tax Contingency [Line Items] | ||||
Percentage of voting interests of gross deferred tax asset | 100.00% |
Dividends Declared and Paid - Common Dividends (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Equity [Abstract] | ||||
Total common share dividends declared (in dollars per shares) | $ 0.07 | $ 0.14 | ||
Distributions declared on LTIP units (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.14 |
Dividends Declared and Paid - Schedule of Common Dividends (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Equity [Abstract] | ||||||
Distributions declared per common share (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0 | $ 0.14 | $ 0 |
Distributions declared on LTIP units (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.14 |
Dividends Declared and Paid - Preferred Dividends (Details) - $ / shares |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2021 |
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Preferred stock, dividends per share, declared (in dollars per share) | $ 0.41406 | $ 0.41406 | $ 0.82812 | ||
Series A Preferred Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Preferred stock, dividends per share, declared (in dollars per share) | $ 0.41406 | $ 0.82812 | |||
Preferred stock distribution rate | 6.625% | 6.625% | 6.625% |
Dividends Declared and Paid - Schedule of Preferred Dividends (Details) - $ / shares |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2023 |
|
Share-Based Payment Arrangement [Abstract] | |||
Preferred stock, dividends per share, declared (in dollars per share) | $ 0.41406 | $ 0.41406 | $ 0.82812 |
Equity Incentive Plan - Schedule of Restricted Share Awards (Details) - Restricted Stock - $ / shares |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Number of Shares | ||
Nonvested at beginning of the period (in shares) | 6,666 | 10,000 |
Granted (in shares) | 2,457 | 0 |
Vested (in shares) | 0 | (3,334) |
Nonvested at end of the period (in shares) | 9,123 | 6,666 |
Weighted-Average Grant Date Fair Value | ||
Nonvested at beginning of the period (in dollars per share) | $ 11.47 | $ 11.47 |
Granted (in dollars per share) | 12.21 | 0 |
Vested (in dollars per share) | 0 | 11.47 |
Nonvested at end of the period (in dollars per share) | $ 11.67 | $ 11.47 |
Equity Incentive Plan - Schedule of LTIP Unit Awards (Details) - Long Term Incentive Plan Units - $ / shares |
1 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Feb. 28, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Number of Units | |||
Nonvested at beginning of the period (in shares) | 905,525 | 764,178 | |
Granted (in shares) | 466,988 | 380,004 | |
Vested (in shares) | (234,361) | (372,558) | (238,657) |
Nonvested at end of the period (in shares) | 999,955 | 905,525 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested at beginning of the period (in dollars per share) | $ 15.03 | $ 15.00 | |
Granted (in dollars per share) | 14.36 | 16.08 | |
Vested (in dollars per share) | 13.27 | 16.61 | |
Nonvested at end of the period (in dollars per share) | $ 15.37 | $ 15.03 |
Equity Incentive Plan - Schedule of Performance-Based Long-Term Incentive Plan Payout Awards (Details) |
Mar. 01, 2022 |
---|---|
Relative TSR Hurdles (Percentile) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Threshold (in percentage) | 25.00% |
Target (in percentage) | 55.00% |
Maximum (in percentage) | 80.00% |
Payout Percentage | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Threshold (in percentage) | 50.00% |
Target (in percentage) | 100.00% |
Maximum (in percentage) | 200.00% |
Equity Incentive Plan - Schedule of Share-based Payment Award, Valuation Assumptions (Details) - $ / shares |
1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 01, 2023 |
Mar. 01, 2022 |
Mar. 01, 2021 |
Mar. 01, 2020 |
Mar. 01, 2019 |
Mar. 01, 2018 |
Feb. 28, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Time-Based LTIP Unit Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of Units Granted (in shares) | 171,171 | 152,004 | 132,381 | 130,206 | 88,746 | 97,968 | ||||
Estimate Value Per Unit (in dollars per share) | $ 11.11 | $ 12.33 | $ 12.52 | $ 13.05 | $ 18.45 | $ 16.83 | ||||
Volatility, percentage | 37.00% | 80.00% | 78.00% | 20.00% | 21.00% | 26.00% | ||||
Dividend Yield, percentage | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||
Risk Free Interest Rate, percentage | 5.11% | 1.01% | 0.08% | 1.06% | 2.57% | 2.07% | ||||
Performance-Based LTIP Unit Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of Units Granted (in shares) | 256,757 | 228,000 | 198,564 | 195,301 | 133,107 | 146,949 | ||||
Estimate Value Per Unit (in dollars per share) | $ 16.64 | $ 18.58 | $ 15.91 | $ 13.66 | $ 18.91 | $ 17.02 | ||||
Volatility, percentage | 69.00% | 66.00% | 64.00% | 20.00% | 21.00% | 26.00% | ||||
Dividend Yield, percentage | 3.50% | 3.50% | 3.40% | 8.10% | 6.20% | 6.20% | ||||
Risk Free Interest Rate, percentage | 4.61% | 1.44% | 0.30% | 0.90% | 2.55% | 2.37% | ||||
Long Term Incentive Plan Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of Units Granted (in shares) | 466,988 | 380,004 | ||||||||
Estimate Value Per Unit (in dollars per share) | $ 15.37 | $ 15.03 | $ 15.00 | |||||||
Vested (in shares) | 234,361 | 372,558 | 238,657 |
Leases - Schedule of Operating Lease Maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
2023 (remaining six months) | $ 933 | |
2024 | 1,875 | |
2025 | 1,940 | |
2026 | 1,727 | |
2027 | 1,272 | |
Thereafter | 63,553 | |
Total lease payments | 71,300 | |
Less: Imputed interest | (50,281) | |
Present value of lease liabilities | $ 21,019 | $ 22,108 |
Leases - Schedule of Right of Use Asset and Lease Liability (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Right of Use Asset | |
Beginning balance | $ 19,297 |
Amortization | (342) |
Partial lease termination | (531) |
Ending balance | 18,424 |
Lease Liability | |
Beginning balance | 22,108 |
Amortization | (394) |
Partial lease termination | (695) |
Ending balance | $ 21,019 |
Leases - Lease Cost (Details) |
Jun. 30, 2023 |
---|---|
Leases [Abstract] | |
Weighted-average remaining lease term (years) | 42 years 1 month 13 days |
Weighted-average discount rate | 6.90% |
Related Party Transactions (Details) - Island Hospitality Management Inc. - Related Party $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
hotel
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
hotel
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Related Party Transaction [Line Items] | |||||
Ownership percentage in related party owned by the company's chairman | 100.00% | 100.00% | |||
Number of hotels managed by related party | hotel | 39 | 39 | |||
Related party transaction, amounts of transaction | $ 2.7 | ||||
Amounts due to related party | $ 0.7 | $ 0.7 | $ 0.4 | ||
Management Fees | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amounts of transaction | $ 2.8 | $ 2.7 | $ 5.1 | $ 4.6 |
Subsequent Events (Details) $ in Millions |
Jul. 06, 2023
USD ($)
|
---|---|
Subsequent Event | Hyatt Place Pittsburgh, PA | |
Subsequent Event [Line Items] | |
Repayments of debt | $ 19.7 |
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