þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 46-2488594 | |
(State or other jurisdiction of incorporation or organization) | (IRS employer identification number) | |
14185 Dallas Parkway, Suite 1100 | ||
Dallas, Texas | 75254 | |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer | ¨ | Accelerated filer | þ |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Emerging growth company | þ |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock | BHR | New York Stock Exchange | ||
Preferred Stock, Series B | BHR-PB | New York Stock Exchange | ||
Preferred Stock, Series D | BHR-PD | New York Stock Exchange |
Common Stock, $0.01 par value per share | 32,883,068 | |
(Class) | Outstanding at May 6, 2019 |
March 31, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Investments in hotel properties, gross | $ | 1,719,275 | $ | 1,562,806 | |||
Accumulated depreciation | (276,799 | ) | (262,905 | ) | |||
Investments in hotel properties, net | 1,442,476 | 1,299,901 | |||||
Cash and cash equivalents | 73,802 | 182,578 | |||||
Restricted cash | 86,309 | 75,910 | |||||
Accounts receivable, net of allowance of $108 and $101, respectively | 23,314 | 12,739 | |||||
Inventories | 2,358 | 1,862 | |||||
Prepaid expenses | 7,275 | 4,409 | |||||
Investment in Ashford Inc., at fair value | 10,821 | 10,114 | |||||
Investment in unconsolidated entity | 1,872 | 1,766 | |||||
Derivative assets | 815 | 772 | |||||
Operating lease right-of-use assets | 82,308 | — | |||||
Other assets | 10,314 | 13,831 | |||||
Intangible assets, net | 5,303 | 27,678 | |||||
Due from related party, net | 350 | — | |||||
Due from third-party hotel managers | 14,402 | 4,927 | |||||
Total assets | $ | 1,761,719 | $ | 1,636,487 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Indebtedness, net | $ | 1,046,749 | $ | 985,873 | |||
Accounts payable and accrued expenses | 76,777 | 64,116 | |||||
Dividends and distributions payable | 9,174 | 8,514 | |||||
Due to Ashford Inc. | 5,114 | 4,001 | |||||
Due to related party, net | — | 224 | |||||
Due to third-party hotel managers | 2,415 | 1,633 | |||||
Operating lease liabilities | 60,617 | — | |||||
Other liabilities | 26,524 | 29,033 | |||||
Total liabilities | 1,227,370 | 1,093,394 | |||||
Commitments and contingencies (note 16) | |||||||
5.50% Series B cumulative convertible preferred stock, $0.01 par value, 4,965,850 shares issued and outstanding at March 31, 2019 and December 31, 2018 | 106,123 | 106,123 | |||||
Redeemable noncontrolling interests in operating partnership | 51,010 | 44,885 | |||||
Equity: | |||||||
Preferred stock, $0.01 value, 50,000,000 shares authorized: | |||||||
Series D cumulative preferred stock, 1,600,000 shares issued and outstanding at March 31, 2019 and December 31, 2018 | 16 | 16 | |||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 32,841,263 and 32,511,660 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 328 | 325 | |||||
Additional paid-in capital | 514,739 | 512,545 | |||||
Accumulated deficit | (132,575 | ) | (115,410 | ) | |||
Total stockholders’ equity of the Company | 382,508 | 397,476 | |||||
Noncontrolling interest in consolidated entities | (5,292 | ) | (5,391 | ) | |||
Total equity | 377,216 | 392,085 | |||||
Total liabilities and equity | $ | 1,761,719 | $ | 1,636,487 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
REVENUE | |||||||
Rooms | $ | 76,731 | $ | 65,507 | |||
Food and beverage | 32,114 | 23,500 | |||||
Other | 19,663 | 13,482 | |||||
Total hotel revenue | 128,508 | 102,489 | |||||
Other | 5 | — | |||||
Total revenue | 128,513 | 102,489 | |||||
EXPENSES | |||||||
Hotel operating expenses: | |||||||
Rooms | 16,982 | 14,918 | |||||
Food and beverage | 22,210 | 15,620 | |||||
Other expenses | 38,895 | 29,664 | |||||
Management fees | 4,416 | 3,617 | |||||
Total hotel expenses | 82,503 | 63,819 | |||||
Property taxes, insurance and other | 7,460 | 5,604 | |||||
Depreciation and amortization | 16,686 | 13,006 | |||||
Impairment charges | — | 12 | |||||
Advisory services fee | 6,024 | 5,244 | |||||
Transaction costs | 634 | 488 | |||||
Corporate general and administrative | 1,126 | 28 | |||||
Total expenses | 114,433 | 88,201 | |||||
OPERATING INCOME (LOSS) | 14,080 | 14,288 | |||||
Equity in earnings (loss) of unconsolidated entity | (50 | ) | (3 | ) | |||
Interest income | 362 | 200 | |||||
Other income (expense) | (117 | ) | (63 | ) | |||
Interest expense and amortization of loan costs | (14,193 | ) | (10,179 | ) | |||
Write-off of loan costs and exit fees | (312 | ) | (2 | ) | |||
Unrealized gain (loss) on investment in Ashford Inc. | 707 | 528 | |||||
Unrealized gain (loss) on derivatives | (872 | ) | 73 | ||||
INCOME (LOSS) BEFORE INCOME TAXES | (395 | ) | 4,842 | ||||
Income tax (expense) benefit | (927 | ) | (572 | ) | |||
NET INCOME (LOSS) | (1,322 | ) | 4,270 | ||||
(Income) loss attributable to noncontrolling interests in consolidated entities | (99 | ) | 42 | ||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | 440 | (292 | ) | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | (981 | ) | 4,020 | ||||
Preferred dividends | (2,532 | ) | (1,707 | ) | |||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (3,513 | ) | $ | 2,313 | ||
INCOME (LOSS) PER SHARE - BASIC: | |||||||
Net income (loss) attributable to common stockholders | $ | (0.11 | ) | $ | 0.07 | ||
Weighted average common shares outstanding – basic | 32,115 | 31,680 | |||||
INCOME (LOSS) PER SHARE - DILUTED: | |||||||
Net income (loss) attributable to common stockholders | $ | (0.11 | ) | $ | 0.07 | ||
Weighted average common shares outstanding – diluted | 32,115 | 31,683 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
NET INCOME (LOSS) | $ | (1,322 | ) | $ | 4,270 | ||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | |||||||
Total other comprehensive income (loss) | — | — | |||||
TOTAL COMPREHENSIVE INCOME (LOSS) | (1,322 | ) | 4,270 | ||||
Comprehensive (income) loss attributable to noncontrolling interests in consolidated entities | (99 | ) | 42 | ||||
Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership | 440 | (292 | ) | ||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | $ | (981 | ) | $ | 4,020 |
8.25% Series D Cumulative Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Noncontrolling Interests in Consolidated Entities | Total | 5.50% Series B Cumulative Convertible Preferred Stock | Redeemable Noncontrolling Interests in Operating Partnership | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 1,600 | $ | 16 | 32,512 | $ | 325 | $ | 512,545 | $ | (115,410 | ) | (5,391 | ) | $ | 392,085 | 4,966 | $ | 106,123 | $ | 44,885 | ||||||||||||||||||||
Impact of adoption of new accounting standard (1) | — | — | — | — | — | (103 | ) | — | (103 | ) | — | — | — | |||||||||||||||||||||||||||
Purchase of common stock | — | — | (17 | ) | — | (202 | ) | — | — | (202 | ) | — | — | — | ||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | 978 | — | — | 978 | — | — | 550 | |||||||||||||||||||||||||||||
Preferred stock offering costs | — | — | (13 | ) | — | (13 | ) | — | — | — | ||||||||||||||||||||||||||||||
Issuance of restricted shares/units | — | — | 237 | 2 | (2 | ) | — | — | — | — | — | 7 | ||||||||||||||||||||||||||||
Forfeiture of restricted common shares | — | — | (1 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Dividends declared – common stock ($0.16/share) | — | — | — | — | — | (5,329 | ) | — | (5,329 | ) | — | — | — | |||||||||||||||||||||||||||
Dividends declared – preferred stock-Series B ($0.34/share) | — | — | — | — | — | (1,707 | ) | — | (1,707 | ) | — | — | — | |||||||||||||||||||||||||||
Dividends declared – preferred stock-Series D ($0.52/share) | — | — | — | — | — | (825 | ) | — | (825 | ) | — | — | — | |||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | — | — | — | (778 | ) | ||||||||||||||||||||||||||||
Redemption/conversion of operating partnership units | — | — | 110 | 1 | 1,433 | (285 | ) | — | 1,149 | — | — | (1,149 | ) | |||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | (981 | ) | 99 | (882 | ) | — | — | (440 | ) | ||||||||||||||||||||||||||
Redemption value adjustment | — | — | — | — | — | (7,935 | ) | — | (7,935 | ) | — | — | 7,935 | |||||||||||||||||||||||||||
Balance at March 31, 2019 | 1,600 | $ | 16 | 32,841 | $ | 328 | $ | 514,739 | $ | (132,575 | ) | $ | (5,292 | ) | $ | 377,216 | 4,966 | $ | 106,123 | $ | 51,010 |
8.25% Series D Cumulative Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Noncontrolling Interests in Consolidated Entities | Total | 5.50% Series B Cumulative Convertible Preferred Stock | Redeemable Noncontrolling Interests in Operating Partnership | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2018 | — | $ | — | 32,120 | $ | 321 | $ | 469,791 | $ | (88,807 | ) | $ | (4,753 | ) | $ | 376,552 | 4,966 | $ | 106,123 | $ | 46,627 | |||||||||||||||||||
Purchase of common stock | — | — | (7 | ) | — | (74 | ) | — | — | (74 | ) | — | — | — | ||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | 2,449 | — | — | 2,449 | — | — | 144 | |||||||||||||||||||||||||||||
Issuance of restricted shares/units | — | — | 406 | 4 | 54 | — | — | 58 | — | — | 18 | |||||||||||||||||||||||||||||
Forfeiture of restricted common shares | — | — | (2 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Dividends declared – common stock ($0.16/share) | — | — | — | — | — | (5,275 | ) | — | (5,275 | ) | — | — | — | |||||||||||||||||||||||||||
Dividends declared – preferred stock-Series B ($0.34/share) | — | — | — | — | — | (1,707 | ) | — | (1,707 | ) | — | — | — | |||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | — | — | — | (822 | ) | ||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 4,020 | (42 | ) | 3,978 | — | — | 292 | ||||||||||||||||||||||||||||
Balance at March 31, 2018 | — | $ | — | 32,517 | $ | 325 | $ | 472,220 | $ | (91,769 | ) | $ | (4,795 | ) | $ | 375,981 | 4,966 | $ | 106,123 | $ | 46,259 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income (loss) | $ | (1,322 | ) | $ | 4,270 | ||
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: | |||||||
Depreciation and amortization | 16,686 | 13,006 | |||||
Equity-based compensation | 1,528 | 2,593 | |||||
Bad debt expense | 87 | 57 | |||||
Amortization of loan costs | 1,180 | 988 | |||||
Write-off of loan costs and exit fees | 312 | 2 | |||||
Amortization of intangibles | 119 | 43 | |||||
Amortization of non-refundable membership initiation fees | (27 | ) | — | ||||
Interest expense accretion on refundable membership club deposits | 225 | — | |||||
Impairment charges | — | 12 | |||||
Unrealized (gain) loss on investment in Ashford Inc. | (707 | ) | (528 | ) | |||
Realized and unrealized (gain) loss on derivatives | 937 | (73 | ) | ||||
Net settlement of trading derivatives | (925 | ) | (270 | ) | |||
Equity in (earnings) loss of unconsolidated entity | 50 | 3 | |||||
Deferred income tax expense (benefit) | 179 | 136 | |||||
Changes in operating assets and liabilities, exclusive of the effect of hotel acquisitions and dispositions: | |||||||
Accounts receivable and inventories | (9,354 | ) | (5,419 | ) | |||
Insurance receivable | — | (5,387 | ) | ||||
Prepaid expenses and other assets | (1,536 | ) | (3,747 | ) | |||
Accounts payable and accrued expenses | (49 | ) | 781 | ||||
Operating lease right-of-use assets | 115 | — | |||||
Due to/from related party, net | (493 | ) | (498 | ) | |||
Due to/from third-party hotel managers | (2,518 | ) | (637 | ) | |||
Due to/from Ashford Inc. | 1,113 | (1,436 | ) | ||||
Operating lease liabilities | (30 | ) | — | ||||
Other liabilities | (6,186 | ) | 53 | ||||
Net cash provided by (used in) operating activities | (616 | ) | 3,949 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Acquisition of hotel properties, net of cash and restricted cash acquired | (112,095 | ) | (4,500 | ) | |||
Investment in unconsolidated entity | (156 | ) | (2,000 | ) | |||
Improvements and additions to hotel properties | (36,644 | ) | (15,736 | ) | |||
Net cash provided by (used in) investing activities | (148,895 | ) | (22,236 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Borrowings on indebtedness | 249,000 | — | |||||
Repayments of indebtedness | (187,086 | ) | (714 | ) | |||
Payments of loan costs and exit fees | (2,441 | ) | (92 | ) | |||
Payments for derivatives | (55 | ) | (67 | ) | |||
Purchase of common stock | (202 | ) | (74 | ) | |||
Payments for dividends and distributions | (7,979 | ) | (7,518 | ) | |||
Preferred stock offering costs | (110 | ) | — | ||||
Other | 7 | 18 | |||||
Net cash provided by (used in) financing activities | 51,134 | (8,447 | ) | ||||
Net change in cash, cash equivalents and restricted cash | (98,377 | ) | (26,734 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 258,488 | 185,342 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 160,111 | $ | 158,608 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Interest paid | $ | 12,363 | $ | 9,031 | |||
Income taxes paid (refund) | (1,224 | ) | (743 | ) | |||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||
Dividends and distributions declared but not paid | 9,174 | 8,374 | |||||
Capital expenditures accrued but not paid | 14,891 | 4,138 | |||||
Non-cash dividends paid | — | 58 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||
Cash and cash equivalents at beginning of period | $ | 182,578 | $ | 137,522 | |||
Restricted cash at beginning of period | 75,910 | 47,820 | |||||
Cash, cash equivalents and restricted cash at beginning of period | $ | 258,488 | $ | 185,342 | |||
Cash and cash equivalents at end of period | $ | 73,802 | $ | 95,223 | |||
Restricted cash at end of period | 86,309 | 63,385 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 160,111 | $ | 158,608 |
• | historical seasonality patterns at some of our hotel properties cause fluctuations in our overall operating results. Consequently, operating results for the three months ended March 31, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019; |
• | on April 4, 2018, we acquired the Ritz-Carlton, Sarasota. The operating results of the hotel property have been included in the results of operations as of its acquisition date; |
• | on June 1, 2018, we sold the Tampa Renaissance; and |
• | on January 15, 2019, we acquired the Ritz-Carlton, Lake Tahoe. The operating results of the hotel property have been included in the results of operations as of its acquisition date. |
Three Months Ended March 31, 2019 | ||||||||||||||||||||||
Primary Geographical Market | Number of Hotels | Rooms | Food and Beverage | Other Hotel | Other | Total | ||||||||||||||||
California | 5 | $ | 29,914 | $ | 10,165 | $ | 3,926 | $ | — | $ | 44,005 | |||||||||||
Colorado | 1 | 9,597 | 4,836 | 3,666 | — | 18,099 | ||||||||||||||||
Florida | 2 | 14,996 | 8,096 | 4,822 | — | 27,914 | ||||||||||||||||
Illinois | 1 | 3,323 | 1,138 | 296 | — | 4,757 | ||||||||||||||||
Pennsylvania | 1 | 4,237 | 808 | 229 | — | 5,274 | ||||||||||||||||
Washington | 1 | 5,116 | 1,814 | 383 | — | 7,313 | ||||||||||||||||
Washington, D.C. | 1 | 8,708 | 4,561 | 382 | — | 13,651 | ||||||||||||||||
USVI | 1 | 840 | 696 | 5,959 | — | 7,495 | ||||||||||||||||
Corporate entities | — | — | — | — | 5 | 5 | ||||||||||||||||
Total | 13 | $ | 76,731 | $ | 32,114 | $ | 19,663 | $ | 5 | $ | 128,513 |
Three Months Ended March 31, 2018 | ||||||||||||||||||||||
Primary Geographical Market | Number of Hotels | Rooms | Food and Beverage | Other Hotel | Other | Total | ||||||||||||||||
California | 4 | $ | 19,104 | $ | 7,306 | $ | 3,474 | $ | — | $ | 29,884 | |||||||||||
Colorado | 1 | 9,797 | 4,819 | 3,543 | — | 18,159 | ||||||||||||||||
Florida | 1 | 5,473 | 802 | 752 | — | 7,027 | ||||||||||||||||
Illinois | 1 | 3,419 | 1,251 | 210 | — | 4,880 | ||||||||||||||||
Pennsylvania | 1 | 6,153 | 1,173 | 297 | — | 7,623 | ||||||||||||||||
Washington | 1 | 5,502 | 1,664 | 265 | — | 7,431 | ||||||||||||||||
Washington, D.C. | 1 | 8,961 | 4,339 | 284 | — | 13,584 | ||||||||||||||||
USVI | 1 | 1,816 | 199 | 4,546 | — | 6,561 | ||||||||||||||||
Sold hotel properties | 1 | 5,282 | 1,947 | 111 | — | 7,340 | ||||||||||||||||
Total | 12 | $ | 65,507 | $ | 23,500 | $ | 13,482 | $ | — | $ | 102,489 |
March 31, 2019 | December 31, 2018 | ||||||
Land | $ | 455,298 | $ | 428,567 | |||
Buildings and improvements | 1,089,457 | 989,180 | |||||
Furniture, fixtures and equipment | 114,086 | 103,025 | |||||
Construction in progress | 60,434 | 42,034 | |||||
Total cost | 1,719,275 | 1,562,806 | |||||
Accumulated depreciation | (276,799 | ) | (262,905 | ) | |||
Investments in hotel properties, net | $ | 1,442,476 | $ | 1,299,901 |
Land (1) | $ | 26,731 | |
Buildings and improvements | 89,340 | ||
Furniture, fixtures and equipment | 2,172 | ||
$ | 118,243 | ||
Capital reserves | 6,150 | ||
Key money | (3,811 | ) | |
$ | 120,582 | ||
Net other assets (liabilities) | $ | 912 |
(1) | Amount includes the value of a 3.4-acre parking lot adjacent to the hotel which could be used for future development of luxury town homes. |
Three Months Ended March 31, 2019 | |||
Total revenue | $ | 13,491 | |
Net income (loss) | $ | 3,028 |
March 31, 2019 | |||
Assets | |||
Operating lease right-of-use assets | $ | 82,308 | |
Liabilities | |||
Operating lease liabilities | $ | 60,617 |
Classification | Three Months Ended March 31, 2019 | |||||
Operating lease cost (1) (2) | Hotel operating expenses - other | $ | 1,383 |
Three Months Ended March 31, 2019 | |||
Supplemental Cash Flows Information | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases (in thousands) | $ | 782 | |
Weighted Average Remaining Lease Term | |||
Operating leases (1) | 48 years | ||
Weighted Average Discount Rate | |||
Operating leases (1) | 4.96 | % |
Operating Leases | ||||
2019 | $ | 2,346 | ||
2020 | 3,140 | |||
2021 | 3,152 | |||
2022 | 3,164 | |||
2023 | 3,176 | |||
Thereafter | 150,980 | |||
Total future minimum lease payments | 165,958 | |||
Less: interest | (105,341 | ) | ||
Present value of lease liabilities | $ | 60,617 |
2019 | $ | 3,161 | ||
2020 | 3,156 | |||
2021 | 3,152 | |||
2022 | 3,164 | |||
2023 | 3,177 | |||
Thereafter | 151,244 | |||
Total | $ | 167,054 |
Three Months Ended March 31, | |||
2018 | |||
Total hotel revenue | $ | 7,340 | |
Total hotel operating expenses | (4,978 | ) | |
Operating income (loss) | 2,362 | ||
Property taxes, insurance and other | (269 | ) | |
Depreciation and amortization | (937 | ) | |
Impairment charges | (12 | ) | |
Interest expense and amortization of loan costs | (488 | ) | |
Income (loss) before income taxes | 656 | ||
(Income) loss before income taxes attributable to redeemable noncontrolling interests in operating partnership | (74 | ) | |
Income (loss) before income taxes attributable to the Company | $ | 582 |
March 31, 2019 | December 31, 2018 | ||||||
Total assets | $ | 420,106 | $ | 379,005 | |||
Total liabilities | 144,363 | 108,726 | |||||
Series B cumulative convertible preferred stock | 201,338 | 200,847 | |||||
Redeemable noncontrolling interests | 3,810 | 3,531 | |||||
Total stockholders’ equity of Ashford Inc. | 69,968 | 65,443 | |||||
Noncontrolling interests in consolidated entities | 627 | 458 | |||||
Total equity | 70,595 | 65,901 | |||||
Total liabilities and equity | $ | 420,106 | $ | 379,005 | |||
Our investment in Ashford Inc., at fair value | $ | 10,821 | $ | 10,114 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Total revenue | $ | 63,320 | $ | 48,168 | |||
Total operating expenses | (60,778 | ) | (53,204 | ) | |||
Operating income (loss) | 2,542 | (5,036 | ) | ||||
Equity in earnings (loss) of unconsolidated entities | (275 | ) | — | ||||
Interest expense and loan amortization cost | (366 | ) | (166 | ) | |||
Other income (expense) | (33 | ) | 73 | ||||
Income tax (expense) benefit | (1,300 | ) | (706 | ) | |||
Net income (loss) | 568 | (5,835 | ) | ||||
(Income) loss from consolidated entities attributable to noncontrolling interests | 163 | 173 | |||||
Net (income) loss attributable to redeemable noncontrolling interests | (21 | ) | (61 | ) | |||
Net income (loss) attributable to Ashford Inc. | $ | 710 | $ | (5,723 | ) | ||
Preferred dividends | (2,791 | ) | — | ||||
Amortization of preferred stock discount | (491 | ) | — | ||||
Net income attributable to common stockholders | $ | (2,572 | ) | $ | (5,723 | ) | |
Our unrealized gain (loss) on investment in Ashford Inc. | $ | 707 | $ | 528 |
March 31, 2019 | December 31, 2018 | ||||||
Carrying value of the investment in OpenKey (in thousands) | $ | 1,872 | $ | 1,766 | |||
Ownership interest in OpenKey | 8.4 | % | 8.2 | % |
Three Months Ended March 31, | ||||||||
Line Item | 2019 | 2018 | ||||||
Equity in earnings (loss) of unconsolidated entity | $ | (50 | ) | $ | (3 | ) |
Indebtedness | Collateral | Maturity | Interest Rate | March 31, 2019 | December 31, 2018 | |||||||||
Secured revolving credit facility (3) | None | November 2019 | Base Rate (2) + 1.25% to 2.50% or LIBOR (1) + 2.25% to 3.50% | $ | — | $ | — | |||||||
Mortgage loan (4) | Park Hyatt Beaver Creek | April 2019 | LIBOR (1) + 2.75% | 67,500 | 67,500 | |||||||||
Mortgage loan (5) | Capital Hilton | November 2019 | LIBOR(1) + 2.65% | — | 187,086 | |||||||||
Hilton La Jolla Torrey Pines | ||||||||||||||
Mortgage loan (6) | Ritz-Carlton, St. Thomas | December 2019 | LIBOR (1) + 4.95% | 42,000 | 42,000 | |||||||||
Mortgage loan (7) | Pier House Resort | March 2020 | LIBOR (1) + 2.25% | 70,000 | 70,000 | |||||||||
Mortgage loan | Courtyard Philadelphia | June 2020 | LIBOR (1) + 2.16% | 435,000 | 435,000 | |||||||||
Courtyard San Francisco Downtown | ||||||||||||||
Sofitel Chicago Magnificent Mile | ||||||||||||||
Marriott Seattle Waterfront | ||||||||||||||
Mortgage loan | Hotel Yountville | May 2022 | LIBOR (1) + 2.55% | 51,000 | 51,000 | |||||||||
Mortgage loan | Bardessono Hotel | August 2022 | LIBOR (1) + 2.55% | 40,000 | 40,000 | |||||||||
Mortgage loan | Ritz-Carlton, Sarasota | April 2023 | LIBOR (1) + 2.65% | 100,000 | 100,000 | |||||||||
Mortgage loan | Ritz-Carlton, Lake Tahoe | January 2024 | LIBOR (1) + 2.10% | 54,000 | — | |||||||||
Mortgage loan (5) | Capital Hilton | February 2024 | LIBOR (1) + 1.70% | 195,000 | — | |||||||||
Hilton La Jolla Torrey Pines | ||||||||||||||
1,054,500 | 992,586 | |||||||||||||
Deferred loan costs, net | (7,751 | ) | (6,713 | ) | ||||||||||
Indebtedness, net | $ | 1,046,749 | $ | 985,873 |
(1) | LIBOR rates were 2.495% and 2.503% at March 31, 2019 and December 31, 2018, respectively. |
(2) | Base Rate, as defined in the secured revolving credit facility agreement, is the greater of (i) the prime rate set by Bank of America, or (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%. |
(3) | Our borrowing capacity under our secured revolving credit facility is $100.0 million. We have an option, subject to lender approval, to further increase the borrowing capacity to an aggregate of $250.0 million. We may use up to $15.0 million for standby letters of credit. The secured revolving credit facility has two one-year extension options subject to advance notice, satisfaction of certain conditions and a 0.25% extension fee. |
(4) | This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the first was exercised in April 2019. |
(5) | On January 22, 2019, we refinanced this mortgage loan with an outstanding balance of $186.8 million with a new $195.0 million mortgage loan with a five-year term. The new mortgage loan is interest only and bears interest at a rate of LIBOR + 1.70%. |
(6) | This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the second was exercised in December 2018. |
(7) | This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the third was exercised in March 2019. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net income (loss) attributable to common stockholders - basic and diluted: | |||||||
Net income (loss) attributable to the Company | $ | (981 | ) | $ | 4,020 | ||
Less: Dividends on preferred stock | (2,532 | ) | (1,707 | ) | |||
Less: Dividends on common stock | (5,158 | ) | (5,116 | ) | |||
Less: Dividends on unvested performance stock units | (75 | ) | (72 | ) | |||
Less: Dividends on unvested restricted shares | (96 | ) | (87 | ) | |||
Undistributed net income (loss) allocated to common stockholders | (8,842 | ) | (2,962 | ) | |||
Add back: Dividends on common stock | 5,158 | 5,116 | |||||
Distributed and undistributed net income (loss) - basic and diluted | $ | (3,684 | ) | $ | 2,154 | ||
Weighted average common shares outstanding: | |||||||
Weighted average common shares outstanding – basic | 32,115 | 31,680 | |||||
Advisory services incentive fee shares | — | 3 | |||||
Weighted average common shares outstanding – diluted | 32,115 | 31,683 | |||||
Income (loss) per share - basic: | |||||||
Net income (loss) allocated to common stockholders per share | $ | (0.11 | ) | $ | 0.07 | ||
Income (loss) per share - diluted: | |||||||
Net income (loss) allocated to common stockholders per share | $ | (0.11 | ) | $ | 0.07 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net income (loss) allocated to common stockholders is not adjusted for: | |||||||
Income (loss) allocated to unvested restricted shares | $ | 96 | $ | 87 | |||
Income (loss) allocated to unvested performance stock units | 75 | 72 | |||||
Income (loss) attributable to redeemable noncontrolling interests in operating partnership | (440 | ) | 292 | ||||
Dividends on preferred stock - Series B | 1,707 | 1,707 | |||||
Total | $ | 1,438 | $ | 2,158 | |||
Weighted average diluted shares are not adjusted for: | |||||||
Effect of unvested restricted shares | 87 | 49 | |||||
Effect of unvested performance stock units | 288 | 16 | |||||
Effect of assumed conversion of operating partnership units | 4,342 | 4,124 | |||||
Effect of assumed conversion of preferred stock - Series B | 6,569 | 6,569 | |||||
Effect of advisory services incentive fee shares | 73 | — | |||||
Total | 11,359 | 10,758 |
Three Months Ended March 31, | |||||||
Interest rate caps: | 2019 | 2018 | |||||
Notional amount (in thousands) | $ | 177,500 | $ | 150,000 | |||
Strike rate low end of range | 3.00 | % | 2.43 | % | |||
Strike rate high end of range | 7.80 | % | 7.80 | % | |||
Effective date range | January 2019 - March 2019 | February 2018 | |||||
Termination date range | March 2020 - February 2021 | March 2019 | |||||
Total cost of interest rate caps (in thousands) | $ | 55 | $ | 67 | |||
Interest rate floors: | |||||||
Notional amount (in thousands) | $ | 2,000,000 | $ | — | |||
Strike rate | 1.63 | % | — | % | |||
Effective date | January 2019 | n/a | |||||
Termination date | March 2020 | n/a | |||||
Total cost of interest rate floors (in thousands) | $ | 75 | $ | — |
Interest rate caps: (1) | March 31, 2019 | December 31, 2018 | |||||
Notional amount (in thousands) | $ | 913,000 | $ | 1,292,500 | |||
Strike rate low end of range | 3.00 | % | 2.43 | % | |||
Strike rate high end of range | 7.80 | % | 11.61 | % | |||
Effective date range | March 2017 - March 2019 | January 2017 - December 2018 | |||||
Termination date range | April 2019 - February 2021 | January 2019 - June 2020 | |||||
Aggregate principal balance on corresponding mortgage loans (in thousands) | $ | 845,500 | $ | 805,500 | |||
Interest rate floors: (1) (2) | |||||||
Notional amount (in thousands) | $ | 11,250,000 | $ | 10,850,000 | |||
Strike rate low end of range | (0.25 | )% | (0.25 | )% | |||
Strike rate high end of range | 2.00 | % | 2.00 | % | |||
Effective date range | July 2015 - January 2019 | July 2015 - July 2018 | |||||
Termination date range | June 2019 - July 2020 | March 2019 - July 2020 |
(1) | No instruments were designated as cash flow hedges. |
(2) | Cash collateral is posted by us as well as our counterparties. We offset the fair value of the derivative and the obligation/right to return/reclaim cash collateral. |
• | Level 1: Fair value measurements that are quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. |
• | Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. |
• | Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. |
Quoted Market Prices (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Counterparty and Cash Collateral Netting(1) | Total | ||||||||||||||||
March 31, 2019 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate derivatives - floors | $ | — | $ | 83 | $ | — | $ | 96 | $ | 179 | ||||||||||
Interest rate derivatives - caps | — | 4 | — | — | 4 | |||||||||||||||
Credit default swaps | — | (252 | ) | — | 884 | 632 | ||||||||||||||
— | (165 | ) | — | 980 | 815 | (2) | ||||||||||||||
Non-derivative assets: | ||||||||||||||||||||
Investment in Ashford Inc. | 10,821 | — | — | — | 10,821 | |||||||||||||||
Total | $ | 10,821 | $ | (165 | ) | $ | — | $ | 980 | $ | 11,636 |
Quoted Market Prices (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Counterparty and Cash Collateral Netting(1) | Total | ||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate derivatives - floors | $ | — | $ | 76 | $ | — | $ | 73 | $ | 149 | ||||||||||
Interest rate derivatives - caps | — | 20 | — | — | 20 | |||||||||||||||
Credit default swaps | — | 546 | — | 57 | 603 | |||||||||||||||
— | 642 | — | 130 | 772 | (2) | |||||||||||||||
Non-derivative assets: | ||||||||||||||||||||
Investment in Ashford Inc. | 10,114 | — | — | — | 10,114 | |||||||||||||||
Total | $ | 10,114 | $ | 642 | $ | — | $ | 130 | $ | 10,886 |
(1) | Represents net cash collateral posted between us and our counterparties. |
(2) | Reported as “derivative assets” in our condensed consolidated balance sheets. |
Gain (Loss) Recognized in Income | |||||||||
Three Months Ended March 31, | |||||||||
2019 | 2018 | ||||||||
Assets | |||||||||
Derivative assets: | |||||||||
Interest rate derivatives - floors | $ | (68 | ) | $ | (27 | ) | |||
Interest rate derivatives - caps | (71 | ) | (5 | ) | |||||
Credit default swaps | (798 | ) | (1) | 105 | (1) | ||||
Total derivative assets | $ | (937 | ) | $ | 73 | ||||
Non-derivative assets: | |||||||||
Investment in Ashford Inc. | 707 | 528 | |||||||
Total | $ | (230 | ) | $ | 601 | ||||
Total combined | |||||||||
Interest rate derivatives - floors | $ | (3 | ) | $ | (27 | ) | |||
Interest rate derivatives - caps | (71 | ) | (5 | ) | |||||
Credit default swaps | (798 | ) | 105 | ||||||
Unrealized gain (loss) on derivatives | (872 | ) | 73 | ||||||
Realized gain (loss) on interest rate floors | (65 | ) | (2) | — | |||||
Unrealized gain (loss) on investment in Ashford Inc. | 707 | 528 | |||||||
Net | $ | (230 | ) | $ | 601 |
(1) | Excludes costs of $63 associated with credit default swaps for both the three months ended March 31, 2019 and 2018, respectively, that’s included in “other income (expense)” in our condensed consolidated statements of operations. |
(2) | Included in “other income (expense)” in our condensed consolidated statements of operations. |
March 31, 2019 | December 31, 2018 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
Financial assets and liabilities measured at fair value: | ||||||||||||||||
Investment in Ashford Inc. | $ | 10,821 | $ | 10,821 | $ | 10,114 | $ | 10,114 | ||||||||
Derivative assets | 815 | 815 | 772 | 772 | ||||||||||||
Financial assets not measured at fair value: | ||||||||||||||||
Cash and cash equivalents | $ | 73,802 | $ | 73,802 | $ | 182,578 | $ | 182,578 | ||||||||
Restricted cash | 86,309 | 86,309 | 75,910 | 75,910 | ||||||||||||
Accounts receivable, net | 23,314 | 23,314 | 12,739 | 12,739 | ||||||||||||
Due from related party, net | 350 | 350 | — | — | ||||||||||||
Due from third-party hotel managers | 14,402 | 14,402 | 4,927 | 4,927 | ||||||||||||
Financial liabilities not measured at fair value: | ||||||||||||||||
Indebtedness | $ | 1,054,500 | $992,738 to $1,097,239 | $ | 992,586 | $936,904 to $1,035,526 | ||||||||||
Accounts payable and accrued expenses | 76,777 | 76,777 | 64,116 | 64,116 | ||||||||||||
Dividends and distributions payable | 9,174 | 9,174 | 8,514 | 8,514 | ||||||||||||
Due to Ashford Inc. | 5,114 | 5,114 | 4,001 | 4,001 | ||||||||||||
Due to related party, net | — | — | 224 | 224 | ||||||||||||
Due to third-party hotel managers | 2,415 | 2,415 | 1,633 | 1,633 |
Three Months Ended March 31, | ||||||||||
Type | Line Item | 2019 | 2018 | |||||||
Performance LTIP units | Advisory services fee | $ | 257 | $ | 8 | |||||
LTIP units | Advisory services fee | 293 | 136 | |||||||
$ | 550 | $ | 144 |
Three Months Ended March 31, | ||||||||
Line Item | 2019 | 2018 | ||||||
Common units converted to stock | 110 | — | ||||||
Fair value of common units converted | $ | 1,434 | $ | — |
March 31, 2019 | December 31, 2018 | ||||||
Redeemable noncontrolling interests in Braemar OP | $ | 51,010 | $ | 44,885 | |||
Adjustments to redeemable noncontrolling interests (1) | $ | 7,958 | $ | 23 | |||
Ownership percentage of operating partnership | 11.12 | % | 11.22 | % |
(1) | Reflects the excess of the redemption value over the accumulated historical cost. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | $ | 440 | $ | (292 | ) | ||
Aggregate distributions to holders of common units, LTIP units and performance LTIP units | 778 | 822 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Common stock dividends declared | $ | 5,329 | $ | 5,275 |
Three Months Ended March 31, | ||||||||
Line Item | 2019 | 2018 | ||||||
Advisory services fee | $ | 410 | $ | 1,577 |
Three Months Ended March 31, | ||||||||
Line Item | 2019 | 2018 | ||||||
Advisory services fee | $ | 510 | $ | 825 | ||||
Management fees | 39 | 47 | ||||||
Corporate general and administrative - Premier | 19 | — | ||||||
$ | 568 | $ | 872 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Series D Cumulative Preferred Stock | $ | 825 | $ | — |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
(Income) loss from consolidated entities attributable to noncontrolling interests | $ | (99 | ) | $ | 42 |
(i) | filing of income tax return where the Company does not compute its income as a REIT; |
(ii) | stockholders’ approval on ceasing to be qualified as a REIT; |
(iii) | board of directors’ approval on ceasing to be qualified as a REIT; |
(iv) | board’s determination based on advise of the counsel to cease to be qualified as a REIT; or |
(v) | determination within the meaning of Section 1313(a) of IRC to cease to be qualified as a REIT. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Series B Convertible Preferred Stock | $ | 1,707 | $ | 1,707 |
(i) | 90% of the base fee paid for the same month in the prior year; and |
(ii) | 1/12th of the G&A Ratio (as defined) multiplied by the total market capitalization of Braemar. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Advisory services fee | |||||||
Base advisory fee | $ | 2,660 | $ | 2,107 | |||
Reimbursable expenses (1) | 580 | 420 | |||||
Equity-based compensation (2) | 1,470 | 2,547 | |||||
Incentive fee | 1,314 | 170 | |||||
Total | $ | 6,024 | $ | 5,244 |
(1) | Reimbursable expenses include overhead, internal audit, risk management advisory and asset management services. |
(2) | Equity-based compensation is associated with equity grants of Braemar’s common stock, PSUs, LTIP units and Performance LTIP units awarded to officers and employees of Ashford LLC. |
Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||
Company | Product or Service | Total | Investments in Hotel Properties, net (1) | Indebtedness, net (2) | Other Hotel Revenue | Other Hotel Expenses | Advisory Services Fee | Corporate General and Administrative | ||||||||||||||||||||
Ashford LLC | Insurance claims services | $ | 30 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 30 | |||||||||||||
J&S | Audio visual commissions | 79 | — | — | 79 | — | — | — | ||||||||||||||||||||
Lismore Capital | Mortgage placement services | 275 | — | (275 | ) | — | — | — | — | |||||||||||||||||||
OpenKey | Mobile key app | 5 | — | — | — | 5 | — | — | ||||||||||||||||||||
Premier | Project management services | 3,553 | 3,441 | — | — | — | 112 | — | ||||||||||||||||||||
Pure Wellness | Hypoallergenic premium rooms | 29 | 17 | — | — | 12 | — | — | ||||||||||||||||||||
RED Leisure | Watersports activities and travel/transportation services | 180 | — | — | — | 180 | — | — |
(1) | Recorded in furniture, fixtures and equipment and depreciated over the estimated useful life. |
(2) | Recorded as deferred loan costs, which are included in “indebtedness, net” on our consolidated balance sheets and amortized over the initial term of the applicable loan agreement. |
Three Months Ended March 31, 2018 | |||||||||||||
Company | Product or Service | Total | Other Hotel Expenses | Corporate General and Administrative | |||||||||
Ashford LLC | Insurance claims services | $ | 38 | $ | — | $ | 38 | ||||||
OpenKey | Mobile key app | 8 | 8 | — | |||||||||
Pure Wellness | Hypoallergenic premium rooms | 9 | 9 | — | |||||||||
RED Leisure | Watersports activities and travel/transportation services | 180 | 180 | — |
(1) | Recorded in furniture, fixtures and equipment and depreciated over the estimated useful life. |
(2) | Recorded as deferred loan costs, which are included in “indebtedness, net” on our consolidated balance sheets and amortized over the initial term of the applicable loan agreement. |
Due to Ashford Inc. | ||||||||||
Company | Product or Service | March 31, 2019 | December 31, 2018 | |||||||
Ashford LLC | Advisory services | $ | 2,940 | $ | 2,264 | |||||
Ashford LLC | Insurance claims services | 30 | 37 | |||||||
J&S | Audio visual services | 44 | — | |||||||
OpenKey | Mobile key app | 12 | 13 | |||||||
Premier | Project management services | 2,071 | 1,657 | |||||||
Pure Wellness | Hypoallergenic premium rooms | 17 | 30 | |||||||
$ | 5,114 | $ | 4,001 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Property management fees, including incentive property management fees | $ | 409 | $ | 438 | |||
Market service and project management fees | — | 1,369 | |||||
Corporate general and administrative expenses | 87 | 82 | |||||
Total | $ | 496 | $ | 1,889 |
• | our business and investment strategy; |
• | our projected operating results and dividend rates; |
• | our ability to obtain future financing arrangements; |
• | our understanding of our competition; |
• | market trends; |
• | projected capital expenditures; |
• | anticipated acquisitions or dispositions; and |
• | the impact of technology on our operations and business. |
• | the factors discussed in our Form 10-K for the year ended December 31, 2018, as originally filed with the Securities and Exchange Commission (the “SEC”) on March 8, 2019 (the “ 2018 10-K”), including those set forth under the sections entitled “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Business,” and “Properties;” |
• | general and economic business conditions affecting the lodging and travel industry; |
• | general volatility of the capital markets and the market price of our common and preferred stock; |
• | changes in our business or investment strategy; |
• | availability, terms and deployment of capital; |
• | unanticipated increases in financing and other costs, including a rise in interest rates; |
• | availability of qualified personnel to our advisor; |
• | changes in our industry and the market in which we operate, interest rates, or local economic conditions; |
• | the degree and nature of our competition; |
• | actual and potential conflicts of interest with Ashford Trust, Ashford LLC, Ashford Inc., Remington Lodging, our executive officers and our non-independent directors; |
• | changes in personnel of Ashford LLC or the lack of availability of qualified personnel; |
• | changes in governmental regulations, accounting rules, tax rates and similar matters; |
• | legislative and regulatory changes, including changes to the Internal Revenue Code of 1986, as amended (the “Code”) and related rules, regulations and interpretations governing the taxation of real estate investment trusts (“REITs”); and |
• | limitations imposed on our business and our ability to satisfy complex rules in order for us to qualify as a REIT for U.S. federal income tax purposes. |
Revenues | $ | 27,976 | |
Expenses | (9,078 | ) | |
Net Earnings | $ | 18,898 |
• | Occupancy-Occupancy means the total number of hotel rooms sold in a given period divided by the total number of rooms available. Occupancy measures the utilization of our hotels’ available capacity. We use occupancy to measure demand at a specific hotel or group of hotels in a given period. |
• | ADR-ADR means average daily rate and is calculated by dividing total hotel rooms revenues by total number of rooms sold in a given period. ADR measures average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. We use ADR to assess the pricing levels that we are able to generate. |
• | RevPAR-RevPAR means revenue per available room and is calculated by multiplying ADR by the average daily occupancy. RevPAR is one of the commonly used measures within the hotel industry to evaluate hotel operations. RevPAR does not include revenues from food and beverage sales or parking, telephone or other non-rooms revenues generated by the property. Although RevPAR does not include these ancillary revenues, it is generally considered the leading indicator of |
Three Months Ended March 31, | Favorable (Unfavorable) | |||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||
Revenue | ||||||||||||||
Rooms | $ | 76,731 | $ | 65,507 | $ | 11,224 | 17.1 | % | ||||||
Food and beverage | 32,114 | 23,500 | 8,614 | 36.7 | ||||||||||
Other | 19,663 | 13,482 | 6,181 | 45.8 | ||||||||||
Total hotel revenue | 128,508 | 102,489 | 26,019 | 25.4 | ||||||||||
Other | 5 | — | 5 | |||||||||||
Total revenue | 128,513 | 102,489 | 26,024 | 25.4 | ||||||||||
Expenses | ||||||||||||||
Hotel operating expenses: | ||||||||||||||
Rooms | 16,982 | 14,918 | (2,064 | ) | (13.8 | ) | ||||||||
Food and beverage | 22,210 | 15,620 | (6,590 | ) | (42.2 | ) | ||||||||
Other expenses | 38,895 | 29,664 | (9,231 | ) | (31.1 | ) | ||||||||
Management fees | 4,416 | 3,617 | (799 | ) | (22.1 | ) | ||||||||
Total hotel expenses | 82,503 | 63,819 | (18,684 | ) | (29.3 | ) | ||||||||
Property taxes, insurance and other | 7,460 | 5,604 | (1,856 | ) | (33.1 | ) | ||||||||
Depreciation and amortization | 16,686 | 13,006 | (3,680 | ) | (28.3 | ) | ||||||||
Impairment charges | — | 12 | 12 | 100.0 | ||||||||||
Advisory services fee | 6,024 | 5,244 | (780 | ) | (14.9 | ) | ||||||||
Transaction costs | 634 | 488 | (146 | ) | (29.9 | ) | ||||||||
Corporate general and administrative | 1,126 | 28 | (1,098 | ) | (3,921.4 | ) | ||||||||
Total expenses | 114,433 | 88,201 | (26,232 | ) | (29.7 | ) | ||||||||
Operating income (loss) | 14,080 | 14,288 | (208 | ) | (1.5 | ) | ||||||||
Equity in earnings (loss) of unconsolidated entity | (50 | ) | (3 | ) | (47 | ) | (1,566.7 | ) | ||||||
Interest income | 362 | 200 | 162 | 81.0 | ||||||||||
Other income (expense) | (117 | ) | (63 | ) | (54 | ) | (85.7 | ) | ||||||
Interest expense and amortization of loan costs | (14,193 | ) | (10,179 | ) | (4,014 | ) | (39.4 | ) | ||||||
Write-off of loan costs and exit fees | (312 | ) | (2 | ) | (310 | ) | (15,500.0 | ) | ||||||
Unrealized gain (loss) on investment in Ashford Inc. | 707 | 528 | 179 | 33.9 | ||||||||||
Unrealized gain (loss) on derivatives | (872 | ) | 73 | (945 | ) | 1,294.5 | ||||||||
Income (loss) before income taxes | (395 | ) | 4,842 | (5,237 | ) | (108.2 | ) | |||||||
Income tax (expense) benefit | (927 | ) | (572 | ) | (355 | ) | (62.1 | ) | ||||||
Net income (loss) | (1,322 | ) | 4,270 | (5,592 | ) | (131.0 | ) | |||||||
(Income) loss from consolidated entities attributable to noncontrolling interests | (99 | ) | 42 | (141 | ) | (335.7 | ) | |||||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | 440 | (292 | ) | 732 | 250.7 | |||||||||
Net income (loss) attributable to the Company | $ | (981 | ) | $ | 4,020 | $ | (5,001 | ) | (124.4 | )% |
Hotel Properties | Location | Acquisition/Disposition | Acquisition/Disposition Date | |||
Ritz-Carlton, Sarasota (1) | Sarasota, FL | Acquisition | April 4, 2018 | |||
Tampa Renaissance | Tampa, FL | Disposition | June 1, 2018 | |||
Ritz-Carlton, Lake Tahoe (1) | Truckee, CA | Acquisition | January 15, 2019 |
(1) | The operating results of these hotel properties have been included in our results of operations as of their acquisition dates. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Occupancy | 75.38 | % | 78.67 | % | |||
ADR (average daily rate) | $ | 318.53 | $ | 266.01 | |||
RevPAR (revenue per available room) | $ | 240.11 | $ | 209.27 | |||
Rooms revenue (in thousands) | $ | 76,731 | $ | 65,507 | |||
Total hotel revenue (in thousands) | $ | 128,508 | $ | 102,489 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Occupancy | 74.59 | % | 77.80 | % | |||
ADR (average daily rate) | $ | 281.18 | $ | 270.03 | |||
RevPAR (revenue per available room) | $ | 209.75 | $ | 210.09 | |||
Rooms revenue (in thousands) | $ | 59,139 | $ | 60,225 | |||
Total hotel revenue (in thousands) | $ | 94,662 | $ | 95,149 |
• | advisory fees payable to Ashford LLC; |
• | recurring maintenance necessary to maintain our hotel properties in accordance with brand standards; |
• | interest expense and scheduled principal payments on outstanding indebtedness, including our secured revolving credit facility (see “Contractual Obligations and Commitments”); |
• | distributions, in the form of dividends on our common stock, necessary to qualify for taxation as a REIT; |
• | dividends on preferred stock; and |
• | capital expenditures to improve our hotel properties. |
• | consolidated indebtedness (less cash and cash equivalents in excess of $10,000,000) to total asset value (based on property capitalization rates defined within the secured revolving credit facility agreement) not to exceed 60%. Our ratio was 58.2% at March 31, 2019. |
• | consolidated recourse indebtedness other than the secured revolving credit facility not to exceed $50,000,000. |
• | consolidated fixed charge coverage ratio not less than 1.40x initially, with such ratio being increased beginning October 1, 2017 to 1.50x. Our ratio was 1.77x at March 31, 2019. |
• | indebtedness of the consolidated parties that accrues interest at a variable rate (other than the secured revolving credit facility) that is not subject to a “cap,” “collar,” or other similar arrangement not to exceed 25% of consolidated indebtedness. |
• | consolidated tangible net worth not less than 75% of the consolidated tangible net worth on the closing date of the secured revolving credit facility plus 75% of the net proceeds of any future equity issuances. |
• | secured debt that is secured by real property not to exceed 70% of the as-is appraised value of such real property. |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Net income (loss) | $ | (1,322 | ) | $ | 4,270 | |||
Interest expense and amortization of loan costs | 14,193 | 10,179 | ||||||
Depreciation and amortization | 16,686 | 13,006 | ||||||
Income tax expense (benefit) | 927 | 572 | ||||||
Equity in (earnings) loss of unconsolidated entities | 50 | 3 | ||||||
Company’s portion of EBITDA of OpenKey | (49 | ) | (2 | ) | ||||
EBITDA | 30,485 | 28,028 | ||||||
Impairment charges on real estate | — | 12 | ||||||
EBITDAre | 30,485 | 28,040 | ||||||
Amortization of favorable (unfavorable) contract assets (liabilities) | 119 | 43 | ||||||
Transaction and management conversion costs | 634 | 503 | ||||||
Other (income) expense | 117 | 63 | ||||||
Write-off of loan costs and exit fees | 312 | 2 | ||||||
Unrealized (gain) loss on investment in Ashford Inc. | (707 | ) | (528 | ) | ||||
Unrealized (gain) loss on derivatives | 872 | (73 | ) | |||||
Non-cash stock/unit-based compensation | 1,528 | 2,593 | ||||||
Legal, advisory and settlement costs | 71 | (1,141 | ) | |||||
Advisory services incentive fee | 1,314 | 170 | ||||||
Uninsured hurricane and wildfire related costs | — | 467 | ||||||
Company’s portion of adjustments to EBITDAre of OpenKey | 11 | — | ||||||
Adjusted EBITDAre | $ | 34,756 | $ | 30,139 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net income (loss) | $ | (1,322 | ) | $ | 4,270 | ||
(Income) loss from consolidated entities attributable to noncontrolling interest | (99 | ) | 42 | ||||
Net (Income) loss attributable to redeemable noncontrolling interests in operating partnership | 440 | (292 | ) | ||||
Preferred dividends | (2,532 | ) | (1,707 | ) | |||
Net income (loss) attributable to common stockholders | (3,513 | ) | 2,313 | ||||
Depreciation and amortization on real estate (1) | 15,904 | 12,258 | |||||
Impairment charges on real estate | — | 12 | |||||
Net income (loss) attributable to redeemable noncontrolling interests in operating partnership | (440 | ) | 292 | ||||
Equity in (earnings) loss of unconsolidated entity | 50 | 3 | |||||
Company’s portion of FFO of OpenKey | (51 | ) | (2 | ) | |||
FFO available to common stockholders and OP unitholders | 11,950 | 14,876 | |||||
Series B Cumulative Convertible Preferred dividends | 1,707 | 1,707 | |||||
Transaction and management conversion costs | 634 | 503 | |||||
Other (income) expense | 117 | 63 | |||||
Interest expense accretion on refundable membership club benefits | 225 | — | |||||
Write-off of loan costs and exit fees | 312 | 2 | |||||
Amortization of loan costs (1) | 1,155 | 964 | |||||
Unrealized (gain) loss on investment in Ashford Inc. | (707 | ) | (528 | ) | |||
Unrealized (gain) loss on derivatives | 872 | (73 | ) | ||||
Non-cash stock/unit-based compensation | 1,528 | 2,593 | |||||
Legal, advisory and settlement costs | 71 | (1,141 | ) | ||||
Advisory services incentive fee | 1,314 | 170 | |||||
Uninsured hurricane and wildfire related costs | — | 467 | |||||
Company’s portion of adjustments to FFO of OpenKey | 11 | — | |||||
Adjusted FFO available to common stockholders and OP unitholders | $ | 19,189 | $ | 19,603 |
(1) | Net of adjustments for noncontrolling interest in consolidated entities. The following table presents the amounts of the adjustments for non-controlling interests for each line item: |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Depreciation and amortization on real estate | $ | (782 | ) | $ | (748 | ) | |
Amortization of loan costs | (25 | ) | (24 | ) |
Hotel Property | Location | Service Type | Total Rooms | % Owned | Owned Rooms | ||||||||
Fee Simple Properties | |||||||||||||
Capital Hilton | Washington, D.C. | Full | 550 | 75 | % | 413 | |||||||
Seattle Marriott Waterfront | Seattle, WA | Full | 361 | 100 | % | 361 | |||||||
Philadelphia Courtyard (1) | Philadelphia, PA | Select | 499 | 100 | % | 499 | |||||||
San Francisco Courtyard Downtown (1) | San Francisco, CA | Select | 410 | 100 | % | 410 | |||||||
Chicago Sofitel Magnificent Mile | Chicago, IL | Full | 415 | 100 | % | 415 | |||||||
Pier House Resort | Key West, FL | Full | 142 | 100 | % | 142 | |||||||
Ritz-Carlton, St. Thomas (2) | St. Thomas, USVI | Full | 180 | 100 | % | 180 | |||||||
Park Hyatt Beaver Creek | Beaver Creek, CO | Full | 190 | 100 | % | 190 | |||||||
Hotel Yountville | Yountville, CA | Full | 80 | 100 | % | 80 | |||||||
Ritz-Carlton, Sarasota | Sarasota, FL | Full | 266 | 100 | % | 266 | |||||||
Ritz-Carlton, Lake Tahoe | Truckee, CA | Full | 170 | 100 | % | 170 | |||||||
Ground Lease Properties | |||||||||||||
Hilton La Jolla Torrey Pines (3) | La Jolla, CA | Full | 394 | 75 | % | 296 | |||||||
Bardessono Hotel (4) | Yountville, CA | Full | 62 | 100 | % | 62 | |||||||
Total | 3,719 | 3,484 |
(1) | Announced plans to convert to Autograph Collection. These hotel properties will be full service upon conversion. |
(2) | Due to the impact from hurricanes Irma and Maria, rooms counts at the Ritz-Carlton, St. Thomas were approximately 59 and 23 during the months of January 2019 and February 2019. In March 2019, the hotel property was closed for renovation reducing the room count to 0 at March 31, 2019. The hotel had 180 total rooms in service prior to the hurricanes. |
(3) | The ground lease expires in 2067. |
(4) | The initial ground lease expires in 2065. The ground lease contains two 25-year extension options, at our election. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Plan | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plan | ||||||||||
Common stock: | ||||||||||||||
January1 to January 31 | 329 | $ | — | (2) | — | $ | 50,000,000 | |||||||
February 1 to February 28 | 229 | $ | — | (2) | — | $ | 50,000,000 | |||||||
March 1 to March 31 | 17,592 | (1) | $ | 11.63 | (2) | — | $ | 50,000,000 | ||||||
Total | 18,150 | $ | 11.63 | — |
(1) | Includes 17,392 shares that were withheld to cover tax-withholding requirements related to the vesting of restricted shares of our common stock issued to employees of our advisor pursuant to the Company’s stockholder-approved stock incentive plan. |
(2) | There is no cost associated with the forfeiture of 329, 229 and 200 restricted shares of our common stock in January, February and March, respectively. |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibit | Description | ||
3.1 | |||
3.2 | |||
3.3 | |||
3.4 | |||
3.5 | |||
3.6 | |||
31.1* | |||
31.2* | |||
32.1* | |||
32.2* |
The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 are formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements Comprehensive Income; (iii) Consolidated Statement of Equity; (iv) Consolidated Statements of Cash Flows; and (v) Notes to the Consolidated Financial Statements. In accordance with Rule 402 of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be part of any registration statement or other document filed under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. | |||
101.INS | XBRL Instance Document | Submitted electronically with this report. | |
101.SCH | XBRL Taxonomy Extension Schema Document | Submitted electronically with this report. | |
101.CAL | XBRL Taxonomy Calculation Linkbase Document | Submitted electronically with this report. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Submitted electronically with this report. | |
101.LAB | XBRL Taxonomy Label Linkbase Document | Submitted electronically with this report. | |
101.PRE | XBRL Taxonomy Presentation Linkbase Document | Submitted electronically with this report. |
Date: | May 8, 2019 | By: | /s/ RICHARD J. STOCKTON | |
Richard J. Stockton | ||||
President and Chief Executive Officer | ||||
Date: | May 8, 2019 | By: | /s/ DERIC S. EUBANKS | |
Deric S. Eubanks | ||||
Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Braemar Hotels & Resorts Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ RICHARD J. STOCKTON | |
Richard J. Stockton | |
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Braemar Hotels & Resorts Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ DERIC S. EUBANKS | |
Deric S. Eubanks | |
Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ RICHARD J. STOCKTON | |
Richard J. Stockton | |
President and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ DERIC S. EUBANKS | |
Deric S. Eubanks | |
Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
May 06, 2019 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Braemar Hotels & Resorts Inc. | |
Entity Central Index Key | 0001574085 | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Small Business | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,883,068 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Allowance for doubtful notes receivable | $ 108 | $ 101 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 32,841,263 | 32,511,660 |
Common stock, shares outstanding (in shares) | 32,841,263 | 32,511,660 |
Series B Preferred Stock | ||
Series B preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Series B preferred stock, shares issued (in shares) | 4,965,850 | 4,965,850 |
Series B preferred stock, shares outstanding (in shares) | 4,965,850 | 4,965,850 |
Series D Preferred Stock | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 1,600,000 | 1,600,000 |
Preferred stock, shares outstanding (in shares) | 1,600,000 | 1,600,000 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||
NET INCOME (LOSS) | $ (1,322) | $ 4,270 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | ||
Total other comprehensive income (loss) | 0 | 0 |
TOTAL COMPREHENSIVE INCOME (LOSS) | (1,322) | 4,270 |
Comprehensive (income) loss attributable to noncontrolling interests in consolidated entities | (99) | 42 |
Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership | 440 | (292) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | $ (981) | $ 4,020 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (1,322) | $ 4,270 |
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: | ||
Depreciation and amortization | 16,686 | 13,006 |
Equity-based compensation | 1,528 | 2,593 |
Bad debt expense | 87 | 57 |
Amortization of loan costs | 1,180 | 988 |
Write-off of loan costs and exit fees | 312 | 2 |
Amortization of intangibles | 119 | 43 |
Amortization of non-refundable membership initiation fees | (27) | 0 |
Interest expense accretion on refundable membership club deposits | 225 | 0 |
Impairment charges | 0 | 12 |
Unrealized (gain) loss on investment in Ashford Inc. | (707) | (528) |
Realized and unrealized (gain) loss on derivatives | 937 | (73) |
Net settlement of trading derivatives | (925) | (270) |
Equity in (earnings) loss of unconsolidated entity | 50 | 3 |
Deferred income tax expense (benefit) | 179 | 136 |
Changes in operating assets and liabilities, exclusive of the effect of hotel acquisitions and dispositions: | ||
Accounts receivable and inventories | (9,354) | (5,419) |
Insurance receivable | 0 | (5,387) |
Prepaid expenses and other assets | (1,536) | (3,747) |
Accounts payable and accrued expenses | (49) | 781 |
Operating lease right-of-use assets | 115 | 0 |
Due to/from related party, net | (493) | (498) |
Due to/from third-party hotel managers | (2,518) | (637) |
Due to/from Ashford Inc. | 1,113 | (1,436) |
Operating lease liabilities | (30) | 0 |
Other liabilities | (6,186) | 53 |
Net cash provided by (used in) operating activities | (616) | 3,949 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of hotel properties, net of cash and restricted cash acquired | (112,095) | (4,500) |
Investment in unconsolidated entity | (156) | (2,000) |
Improvements and additions to hotel properties | (36,644) | (15,736) |
Net cash provided by (used in) investing activities | (148,895) | (22,236) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings on indebtedness | 249,000 | 0 |
Repayments of indebtedness | (187,086) | (714) |
Payments of loan costs and exit fees | (2,441) | (92) |
Payments for derivatives | (55) | (67) |
Purchase of common stock | (202) | (74) |
Payments for dividends and distributions | (7,979) | (7,518) |
Preferred stock offering costs | (110) | 0 |
Other | 7 | 18 |
Net cash provided by (used in) financing activities | 51,134 | (8,447) |
Net change in cash, cash equivalents and restricted cash | (98,377) | (26,734) |
Cash, cash equivalents and restricted cash at beginning of period | 258,488 | 185,342 |
Cash, cash equivalents and restricted cash at end of period | 160,111 | 158,608 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Interest paid | 12,363 | 9,031 |
Income taxes paid (refund) | (1,224) | (743) |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Dividends and distributions declared but not paid | 9,174 | 8,374 |
Capital expenditures accrued but not paid | 14,891 | 4,138 |
Non-cash dividends paid | $ 0 | $ 58 |
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Mar. 31, 2018 |
---|---|---|
SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents at beginning of period | $ 182,578 | $ 137,522 |
Restricted cash at beginning of period | 75,910 | 47,820 |
Cash, cash equivalents and restricted cash at beginning of period | 258,488 | 185,342 |
Cash, cash equivalents and restricted cash at beginning of period | 258,488 | 185,342 |
Cash and cash equivalents at end of period | 73,802 | 95,223 |
Restricted cash at end of period | 86,309 | 63,385 |
Cash, cash equivalents and restricted cash at end of period | 160,111 | 158,608 |
Cash, cash equivalents and restricted cash at end of period | $ 160,111 | $ 158,608 |
Organization and Description of Business |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Braemar Hotels & Resorts Inc., together with its subsidiaries (“Braemar”), is a Maryland corporation that invests primarily in high revenue per available room (“RevPAR”) luxury hotels and resorts. High RevPAR, for purposes of our investment strategy, means RevPAR of at least twice the then-current U.S. national average RevPAR for all hotels as determined by Smith Travel Research. Braemar has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code. Braemar conducts its business and owns substantially all of its assets through its operating partnership, Braemar Hospitality Limited Partnership (“Braemar OP”). In this report, the terms the “Company,” “we,” “us” or “our,” refers to Braemar Hotels & Resorts Inc. and, as the context may require, all entities included in its condensed consolidated financial statements. We are advised by Ashford Hospitality Advisors LLC (“Ashford LLC” or the “Advisor”) through an advisory agreement. Ashford LLC is a subsidiary of Ashford Inc. All of the hotel properties in our portfolio are currently asset-managed by Ashford LLC. We do not have any employees. All of the services that might be provided by employees are provided to us by Ashford LLC. We do not operate any of our hotel properties directly; instead we employ hotel management companies to operate them for us under management contracts. As of March 31, 2019, Remington Lodging & Hospitality, LLC, together with its affiliates (“Remington Lodging”), which is beneficially wholly-owned by Mr. Monty J. Bennett, Chairman of our board of directors, and Mr. Archie Bennett, Jr., Chairman Emeritus of Ashford Hospitality Trust, Inc. (“Ashford Trust”), managed three of our thirteen hotel properties. Third-party management companies managed the remaining hotel properties. Ashford Inc. also provides other products and services to us or our hotel properties through certain entities in which Ashford Inc. has an ownership interest. These products and services include project management services, mortgage placement services, real estate advisory services, watersports activities, travel/transportation services and mobile key technology. The accompanying condensed consolidated financial statements include the accounts of such wholly-owned and majority owned subsidiaries of Braemar OP that as of March 31, 2019, own thirteen hotel properties in six states, the District of Columbia and the U.S. Virgin Islands (“USVI”). The portfolio includes eleven wholly-owned hotel properties and two hotel properties that are owned through a partnership in which Braemar OP has a controlling interest. These hotel properties represent 3,719 total rooms, or 3,484 net rooms, excluding those attributable to our partner. As a REIT, Braemar is required to comply with limitations imposed by the Internal Revenue Code related to operating hotels. As of March 31, 2019, twelve of our thirteen hotel properties were leased by wholly-owned or majority-owned subsidiaries that are treated as taxable REIT subsidiaries (“TRS”) for federal income tax purposes (collectively the TRS entities are referred to as “Braemar TRS”). One hotel property, located in the USVI, is owned by our USVI TRS. Braemar TRS then engages third-party or affiliated hotel management companies to operate the hotel properties under management contracts. Hotel operating results related to the hotel properties are included in the condensed consolidated statements of operations. As of March 31, 2019, ten of the thirteen hotel properties were leased by Braemar’s wholly-owned TRS and the two hotel properties majority-owned through a consolidated partnership were leased to a TRS wholly-owned by such consolidated partnership. Each leased hotel is leased under a percentage lease that provides for each lessee to pay in each calendar month the base rent plus, in each calendar quarter, percentage rent, if any, based on hotel revenues. Lease revenue from Braemar TRS is eliminated in consolidation. The hotel properties are operated under management contracts with Marriott International, Inc. (“Marriott”), Hilton Worldwide (“Hilton”), Accor Business and Leisure Management, LLC (“Accor”), Hyatt Hotels Corporation (“Hyatt”), Ritz-Carlton, Inc., a subsidiary of Marriott (“Ritz-Carlton”) and Remington Lodging, which are eligible independent contractors under the Internal Revenue Code. |
Significant Accounting Policies |
3 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation and Principles of Consolidation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These condensed consolidated financial statements include the accounts of Braemar Hotels & Resorts Inc., its majority-owned subsidiaries, and its majority-owned entities in which it has a controlling interest. All significant intercompany accounts and transactions between consolidated entities have been eliminated in these condensed consolidated financial statements. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made herein are adequate to prevent the information presented from being misleading. However, the financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2018 Annual Report on Form 10-K, as originally filed with the Securities and Exchange Commission (“SEC”) on March 8, 2019, as subsequently amended. Braemar OP is considered to be a variable interest entity (“VIE”), as defined by authoritative accounting guidance. A VIE must be consolidated by a reporting entity if the reporting entity is the primary beneficiary because it has (i) the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. All major decisions related to Braemar OP that most significantly impact its economic performance, including but not limited to operating procedures with respect to business affairs and any acquisitions, dispositions, financings, restructurings or other transactions with sellers, purchasers, lenders, brokers, agents and other applicable representatives, are subject to the approval of our wholly-owned subsidiary, Braemar OP General Partner LLC, its general partner. As such, we consolidate Braemar OP. The following items affect reporting comparability of our historical condensed consolidated financial statements:
Use of Estimates—The preparation of these condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Restricted Cash—Restricted cash includes reserves for debt service, real estate taxes and insurance, as well as excess cash flow deposits and reserves for furniture, fixtures and equipment (“FF&E”) replacements of approximately 4% to 5% of property revenue for certain hotels, as required by certain management or mortgage debt agreement restrictions and provisions. Impairment of Investments in Hotel Properties—Hotel properties are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Recoverability of the hotel is measured by comparison of the carrying amount of the hotel to the estimated future undiscounted cash flows, which take into account current market conditions and our intent with respect to holding or disposing of the hotel. If our analysis indicates that the carrying value of the hotel is not recoverable on an undiscounted cash flow basis, we recognize an impairment charge for the amount by which the property’s net book value exceeds its estimated fair value, or fair value, less cost to sell. In evaluating the impairment of hotel properties, we make many assumptions and estimates, including projected cash flows, expected holding period and expected useful life. Fair value is determined through various valuation techniques, including internally developed discounted cash flow models, comparable market transactions and third-party appraisals, where considered necessary. Asset write-downs resulting from property damage are recorded up to the amount of the allocable property insurance deductible in the period that the property damage occurs. See note 4. Investment in Ashford Inc.—We hold approximately 195,000 shares of Ashford Inc. common stock, which represented approximately 7.9% of the outstanding common stock in Ashford Inc., with a fair value of $10.8 million at March 31, 2019. This investment would typically be accounted for under the equity method of accounting, under Accounting Standard Codification (“ASC”) 323-10 - Investments - Equity Method and Joint Ventures since we exercise significant influence. However, we have elected to record our investment in Ashford Inc. using the fair value option under ASC 825-10 - Fair Value Option - Financial Assets and Financial Liabilities. Investment in Unconsolidated Entity—Investment in unconsolidated entity, in which we have ownership interest of 8.4% at March 31, 2019, is accounted for under the equity method of accounting by recording the initial investment and our percentage of interest in the entities’ net income/loss. We review our investment in unconsolidated entity for impairment in each reporting period pursuant to the applicable authoritative accounting guidance. An investment is impaired when its estimated fair value is less than the carrying amount of our investment. Our investment in unconsolidated entity is considered to be a variable interest in the underlying entity. VIEs, as defined by authoritative accounting guidance, must be consolidated by a reporting entity if the reporting entity is the primary beneficiary because it has (i) the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. Because we do not have the power and financial responsibility to direct the unconsolidated entity’s activities and operations, we are not considered to be the primary beneficiary of this entity on an ongoing basis and therefore such entity should not be consolidated. In evaluating VIEs, our analysis involves considerable management judgment and assumptions. We review our investment in unconsolidated entity for impairment in each reporting period pursuant to the applicable authoritative accounting guidance. An investment is impaired when its estimated fair value is less than the carrying amount of our investment. Any impairment is recorded in equity in earnings (loss) in unconsolidated entity. No such impairment was recorded for the three months ended March 31, 2019 and 2018. Leases—We determine if an arrangement is a lease at commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on our consolidated balance sheets. We currently do not have any finance leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives. The lease terms used to calculate our right-of-use assets may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Equity-Based Compensation—Prior to the adoption of Accounting Standards Update (“ASU”) 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”) in the third quarter of 2018, stock/unit-based compensation for non-employees was accounted for at fair value based on the market price of the shares at period end that resulted in recording expense, included in “advisory services fee” and “management fees,” equal to the fair value of the award in proportion to the requisite service period satisfied during the period. Performance stock units (“PSUs”) and Performance Long-Term Incentive Plan (“Performance LTIP”) units granted to certain executive officers were accounted for at fair value at period end based on a Monte Carlo simulation valuation model that resulted in recording expense, included in “advisory services fee,” equal to the fair value of the award in proportion to the requisite service period satisfied during the period. Stock/unit grants to certain independent directors are recorded at fair value based on the market price of the shares/units at grant date, which amount is fully expensed as the grants of stock/units are fully vested on the date of grant and included in “corporate general and administrative” expense in the condensed consolidated statements of operations. After the adoption of ASU 2018-07 in the third quarter of 2018, stock/unit-based compensation for non-employees is measured at the grant date and expensed ratably over the vesting period based on the original measurement as of the grant date. This results in the recording of expense, included in “advisory services fee,” “management fees” and “corporate general and administrative” expense, equal to the ratable amount of the grant date fair value based on the requisite service period satisfied during the period. PSUs and Performance LTIP units granted to certain executive officers vest based on time and market conditions and are measured at the grant date fair value based on a Monte Carlo simulation valuation model. The subsequent expense is then ratably recognized over the service period as the service is rendered regardless of when, if ever, the market conditions are satisfied. This results in recording expense, included in “advisory services fee,” equal to the ratable amount of the grant date fair value based on the requisite service period satisfied during the period. Stock/unit grants to certain independent directors are measured at the grant date based on the market price of the shares/units at grant date, which amount is fully expensed as the grants of stock/units are fully vested on the date of grant. Recently Adopted Accounting Standards— In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (“ASU 2016-02”). The new standard establishes a ROU model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases ("ASU 2018-10") and ASU 2018-11, Leases (Topic 842), Targeted Improvements (“ASU 2018-11”). The amendments in ASU 2018-10 affect only narrow aspects of the guidance issued in the amendments in ASU 2016-02, including but not limited to lease residual value guarantee, rate implicit in the lease, lease term and purchase option. The amendments in ASU 2018-11 provide an optional transition method for adoption of the new standard, which will allow entities to continue to apply the legacy guidance in ASC 840, including its disclosure requirements, in the comparative periods presented in the year of adoption. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842), Narrow-Scope Improvements for Lessors (“ASU 2018-20”). The amendments create a lessor practical expedient applicable to sales and other similar taxes incurred in connection with a lease, and simplify lessor accounting for lessor costs paid by the lessee. We adopted the standard effective January 1, 2019 on a modified retrospective basis and implemented internal controls to enable the preparation of financial information on adoption. We elected the practical expedients which provide us the option to apply the new guidance at its effective date on January 1, 2019 without having to adjust the comparative prior period financial statements. The package of practical expedients also allowed us to carry forward the historical lease classification. Additionally, we elected the practical expedients allowing us not to separate lease and non-lease components and not record leases with an initial term of twelve months or less (“short-term leases”) on the balance sheet across all existing asset classes. The adoption of this standard has resulted in the recognition of ROU assets and lease liabilities primarily related to our ground lease arrangements for which we are the lessee. As of January 1, 2019, we recorded operating lease liabilities of $60.6 million as well as a corresponding ROU asset of $82.5 million, which includes, among other things, the reclassified intangible assets of $22.3 million. The standard did not have a material impact on our condensed consolidated statements of operations and statements of cash flows. See related disclosures in note 5. Recently Issued Accounting Standards—In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The ASU sets forth an “expected credit loss” impairment model to replace the current “incurred loss” method of recognizing credit losses. The standard requires measurement and recognition of expected credit losses for most financial assets held. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (“ASU 2018-19”). ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. We are currently evaluating the impact that ASU 2016-13 will have on our condensed consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies certain disclosure requirements related to fair value measurements including requiring disclosures on changes in unrealized gains and losses in other comprehensive income for recurring Level 3 fair value measurements and a requirement to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact that ASU 2018-13 will have on the condensed consolidated financial statements and related disclosures. |
Revenue |
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Revenue | Revenue Rooms revenue represents revenues from the occupancy of our hotel rooms and is driven by the occupancy and average daily rate charged. Rooms revenue includes revenue for guest no-shows, day use, and early/late departure fees. The contracts for room stays with customers are generally short in duration and revenues are recognized as services are provided over the course of the hotel stay. Food & Beverage (“F&B”) revenue consists of revenue from the restaurants and lounges at our hotel properties, in-room dining and mini-bars revenue, and banquet/catering revenue from group and social functions. Other F&B revenue may include revenue from audio visual equipment/services, rental of function rooms, and other F&B related revenues. Revenue is recognized as the services or products are provided. Our hotel properties may employ third parties to provide certain services at the property, for example, audio visual services. We evaluate each of these contracts to determine if the hotel is the principal or the agent in the transaction, and record the revenues as appropriate (i.e. gross vs. net). Other revenue consists of ancillary revenue at the property, including attrition and cancellation fees, condo management fees, resort and destination fees, health center fees, spas, golf, telecommunications, parking, entertainment and other guest services, as well as rental revenue primarily from leased retail outlets at our hotel properties, and membership initiation fees and dues, primarily from club memberships. Cancellation fees are recognized from non-cancellable deposits when the customer provides notification of cancellation in accordance with established management policy time frames. Non-refundable membership initiation fees are recognized over the expected life of an active membership. Taxes specifically collected from customers and submitted to taxing authorities are not recorded in revenue. Interest income is recognized when earned. The following tables present our revenue disaggregated by geographical areas (in thousands):
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Investment in Hotel Properties, net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Hotel Properties, net | Investments in Hotel Properties, net Investments in hotel properties, net consisted of the following (in thousands):
Ritz-Carlton, Lake Tahoe On January 15, 2019, the Company acquired a 100% interest in the 170-room Ritz-Carlton, Lake Tahoe located in Truckee, California for $120.0 million. The Company incurred $582,000 in acquisition costs. In connection with the acquisition the Company completed the financing of a $54.0 million mortgage loan secured by the Ritz-Carlton, Lake Tahoe. See note 8. We accounted for this transaction as an asset acquisition because substantially all of the fair value of the gross assets acquired were concentrated in a group of similar identifiable assets. We allocated the cost of the acquisition including transaction costs to the individual assets acquired and liabilities assumed on a relative fair value basis, which is considered a Level 3 valuation technique, as noted in the following table (in thousands):
________
The results of operations of the hotel property have been included in our results of operations as of the acquisition date. The table below summarizes the total revenue and net income (loss) in our condensed consolidated statements of operations for the three months ended March 31, 2019:
Impairment Charges and Insurance Recoveries In September 2017, the Ritz-Carlton, St. Thomas located in St. Thomas, USVI, the Key West Pier House located in Key West, FL and the Tampa Renaissance located in Tampa, FL (sold in 2018) were impacted by the effects of Hurricanes Irma and Maria. The Company holds insurance policies that provide coverage for property damage and business interruption after meeting certain deductibles at all of its hotel properties. For the three months ended March 31, 2019 and 2018, the Company recorded revenue from business interruption losses associated with lost profits from the hurricanes of $6.0 million and $4.9 million, respectively, which are included in “other” hotel revenue in our condensed consolidated statements of operations. The Company received no proceeds from our insurance carriers for property damage and business interruption from the hurricanes during both the three months ended March 31, 2019 and 2018. Additionally, during the three months ended March 31, 2018, the Company recorded revenue of $1.8 million, net of deductibles of $500,000, for business interruption losses associated with lost profits at the Bardessono Hotel and Hotel Yountville as a result of the Napa wildfires, which is included in “other” hotel revenue in our condensed consolidated statements of operations. During the three months ended March 31, 2019 and 2018, we recorded impairment charges of $0 and $12,000, respectively, as a result of a change in estimate of property damage as a result of the hurricanes. As of March 31, 2019, the Company had a net liability of $11.4 million, included in “other liabilities” on the condensed consolidated balance sheet, as it has received insurance proceeds in excess of the sum of its impairment, remediation expenses and business interruption revenue recorded through March 31, 2019. The Company will not record revenue for business interruption losses associated with lost profits or gains from property damage recoveries until the amount for such recoveries is known and the amount is realizable. |
Leases |
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Leases | Leases On January 1, 2019, we adopted ASC 842 on a modified retrospective basis. We elected the practical expedients which allowed us to apply the new guidance at its effective date on January 1, 2019 without adjusting the comparative prior period financial statements. The package of practical expedients also allowed us to carry forward the historical lease classification. Additionally, we elected the practical expedients allowing us not to separate lease and non-lease components and not record leases with an initial term of twelve months or less (“short-term leases”) on the balance sheet across all existing asset classes. The adoption of this standard has resulted in the recognition of ROU assets and lease liabilities primarily related to our ground lease arrangements for which we are the lessee. As of January 1, 2019, we recorded operating lease liabilities of $60.6 million as well as a corresponding ROU asset of $82.5 million, which includes, among other things, the reclassified intangible assets of $22.3 million. The standard did not have a material impact on our condensed consolidated statements of operations and statements of cash flows. The majority of our leases are operating ground leases. We also have operating equipment leases, such as copier and vehicle leases, at our hotel properties. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years. The exercise of lease renewal options is at our sole discretion. Some leases have variable payments, however, if variable payments are contingent, they are not included in the ROU assets and liabilities. We have no finance leases as of March 31, 2019. As of March 31, 2019, our leased assets and liabilities consisted of the following (in thousands):
We incurred the following lease costs related to our operating leases (in thousands):
_______________________________________ (1) Includes variable lease costs associated with the ground leases and short-term leases, which are immaterial. (2) Includes approximately $323,000 of variable lease cost and $119,000 of amortization costs related to the intangible assets that was reclassified upon adoption of ASC 842. Other information related to leases is as follows:
_______________________________________ (1) Calculated using the lease term, excluding extension options, and discount rates of the ground leases. Future minimum lease payments due under non-cancellable leases as of March 31, 2019 were as follows (in thousands):
Future minimum lease payments due under non-cancellable leases under ASC 840 as of December 31, 2018 were as follows (in thousands):
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Hotel Dispositions |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel Dispositions | Hotel Dispositions On June 1, 2018, the Company sold the Tampa Renaissance hotel for $68.0 million in cash. The sale resulted in a gain of $15.7 million for the year ended December 31, 2018 and was included in “gain (loss) on sale of hotel properties” in our condensed consolidated statements of operations. Since the sale of the hotel property did not represent a strategic shift that has (or will have) a major effect on our operations or financial results, its results of operations were not reported as discontinued operations in our condensed consolidated financial statements. We included the results of operations of this hotel property through the date of disposition in net income (loss) as shown in our condensed consolidated statements of operations for the three months ended March 31, 2018. The following table includes the condensed financial information from this hotel property (in thousands):
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Investment in Unconsolidated Entity |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated Entity | Investment in Unconsolidated Entity Ashford Inc. As of March 31, 2019 and December 31, 2018, we held approximately 195,000 shares of Ashford Inc. common stock. The closing price per share of Ashford Inc. common stock on the NYSE American LLC was $55.53 and $51.90 as of March 31, 2019 and December 31, 2018, respectively. This represented an approximate 7.9% and 8.1% ownership interest in the outstanding common stock of Ashford Inc. for March 31, 2019 and December 31, 2018, respectively. See notes 11 and 12. We have elected to use the fair value option, under the applicable accounting guidance, to account for our investment in Ashford Inc. as the fair value is readily available since Ashford Inc. common stock is traded on a national exchange. The fair value of our investment in Ashford Inc. is included in “investment in Ashford Inc., at fair value” on our condensed consolidated balance sheets, and changes in market value are included in “unrealized gain (loss) on investment in Ashford Inc.” on our condensed consolidated statements of operations. The following tables summarize the condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018, and the condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018, of Ashford Inc. (in thousands): Ashford Inc. Condensed Consolidated Balance Sheets (unaudited)
Ashford Inc. Condensed Consolidated Statements of Operations (unaudited)
OpenKey On March 28, 2018, the Company made a $2.0 million investment in OpenKey, which is controlled and consolidated by Ashford Inc., for an 8.2% ownership interest, which investment was recommended by our Related Party Transactions Committee and unanimously approved by the independent members of our board of directors. On February 6, 2019, the Company made an additional investment of $156,000, which was recommended by our Related Party Transactions Committee and unanimously approved by the independent members of our board of directors. OpenKey is a hospitality-focused mobile key platform that provides a universal smart phone app for keyless entry into hotel guest rooms. Our investment is recorded as “investment in unconsolidated entity” in our condensed consolidated balance sheet and is accounted for under the equity method of accounting as we have been deemed to have significant influence over the entity under the applicable accounting guidance. The following table summarizes our carrying value and ownership interest in OpenKey:
The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):
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Indebtedness |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | Indebtedness Indebtedness consisted of the following (in thousands):
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On April 4, 2018, in connection with the acquisition of the 266-room Ritz-Carlton, Sarasota in Sarasota, Florida, the Company completed the financing of a $100.0 million mortgage loan. This mortgage loan provides for an interest rate of LIBOR + 2.65%. The mortgage loan is interest only until July 1, 2021 and then amortizes 1% annually for the remaining term. The stated maturity is April 2023. On May 23, 2018, the Company refinanced two mortgage loans with an outstanding balance of $357.6 million with a new $435.0 million mortgage loan with a two-year initial term and five one-year extension options subject to the satisfaction of certain conditions. As a result of the refinance the Tampa Renaissance became unencumbered. The new mortgage loan is interest only and bears interest at a rate of LIBOR + 2.16%. The loan is secured by four hotels: Marriott Seattle Waterfront, Courtyard San Francisco Downtown, Courtyard Philadelphia and Sofitel Chicago Magnificent Mile. On January 15, 2019, in connection with the acquisition of the 170-room Ritz-Carlton, Lake Tahoe located in Truckee, California, the Company completed the financing of a $54.0 million mortgage loan. This mortgage loan provides for an interest rate of LIBOR + 2.10%. The mortgage loan is interest only and has a five year term. On January 22, 2019, the Company refinanced its existing mortgage loan with an outstanding balance of approximately $186.8 million and a final maturity date in November 2021 with a new $195.0 million mortgage loan that is interest only, bears interest at a rate of LIBOR + 1.70% and has a five-year term. The mortgage loan is secured by the same two hotels: the Capital Hilton and Hilton La Jolla Torrey Pines. These two hotels are held in a joint venture in which we have a 75% equity interest. We are required to maintain certain financial ratios under our secured revolving credit facility. If we violate covenants in any debt agreement, we could be required to repay all or a portion of our indebtedness before maturity at a time when we might be unable to arrange financing for such repayment on attractive terms, if at all. Violations of certain debt covenants may result in our inability to borrow unused amounts under our line of credit, even if repayment of some or all of our borrowings is not required. The assets of certain of our subsidiaries are pledged under non-recourse indebtedness and are not available to satisfy the debts and other obligations of the consolidated group. As of March 31, 2019, we were in compliance in all material respects with all covenants or other requirements set forth in our debt agreements as amended. |
Income (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) Per Share | Income (Loss) Per Share The following table reconciles the amounts used in calculating basic and diluted income (loss) per share (in thousands, except per share amounts):
Due to their anti-dilutive effect, the computation of diluted income (loss) per share does not reflect the adjustments for the following items (in thousands):
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments Interest Rate Derivatives—We are exposed to risks arising from our business operations, economic conditions and financial markets. To manage these risks, we primarily use interest rate derivatives to hedge our debt and our cash flows. The interest rate derivatives include interest rate caps and interest rate floors, which are subject to master netting settlement arrangements. All derivatives are recorded at fair value. The following table summarizes the interest rate derivatives we entered into over the applicable periods:
_______________ No instruments were designated as cash flow hedges for both the three months ended March 31, 2019 and 2018. Interest rate derivatives consisted of the following:
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Credit Default Swap Derivatives—We use credit default swaps, tied to the CMBX index, to hedge financial and capital market risk. A credit default swap is a derivative contract that functions like an insurance policy against the credit risk of an entity or obligation. The seller of protection assumes the credit risk of the reference obligation from the buyer (us) of protection in exchange for annual premium payments. If a default or a loss, as defined in the credit default swap agreements, occurs on the underlying bonds, then the buyer of protection is protected against those losses. The only liability for us, the buyer, is the annual premium and any change in value of the underlying CMBX index (if the trade is terminated prior to maturity). For all CMBX trades completed to date, we were the buyer of protection. Credit default swaps are subject to master-netting settlement arrangements and credit support annexes. As of March 31, 2019, we held a credit default swap with a notional amount of $50.0 million, an effective date of August 2017 and an expected maturity date of October 2026. Assuming the underlying bonds pay off at par over their remaining average life, our estimated total exposure for these trades was approximately $1.7 million as of March 31, 2019. Cash collateral is posted by us as well as our counterparties. We offset the fair value of the derivative and the obligation/right to return/reclaim cash collateral. The change in market value of credit default swaps is settled net through posting cash collateral or reclaiming cash collateral between us and our counterparties when such change in market value is over $250,000. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair Value Hierarchy—Our financial instruments measured at fair value either on a recurring or a non-recurring basis are classified in a hierarchy for disclosure purposes consisting of three levels based on the observability of inputs in the market place as discussed below:
The fair value of interest rate caps is determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rates of the caps. The variable interest rates used in the calculation of projected receipts on the caps are based on an expectation of future interest rates derived from observable market interest rate curves (LIBOR forward curves) and volatilities (the Level 2 inputs). We also incorporate credit valuation adjustments (the Level 3 inputs) to appropriately reflect both our own non-performance risk and the respective counterparty’s non-performance risk. Fair value of credit default swaps are obtained from a third party who publishes various information including the index composition and price data (Level 2 inputs). The fair value of credit default swaps does not contain credit-risk-related adjustments as the change in fair value is settled net through posting cash collateral or reclaiming cash collateral between us and our counterparty. The fair value of interest rate floors is calculated using a third-party discounted cash flow model based on future cash flows that are expected to be received over the remaining life of the floor. These expected future cash flows are probability-weighted projections based on the contract terms, accounting for both the magnitude and likelihood of potential payments, which are both computed using the appropriate LIBOR forward curve and market implied volatilities as of the valuation date (Level 2 inputs). The fair value of options on futures contracts is determined based on the last reported settlement price as of the measurement date (Level 1 inputs). These exchange-traded options are centrally cleared, and a clearinghouse stands in between all trades to ensure that the obligations involved in the trades are satisfied. When a majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. However, when the valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counter-parties, which we consider significant (10% or more) to the overall valuation of our derivatives, the derivative valuations in their entirety are classified in Level 3 of the fair value hierarchy. Transfers of inputs between levels are determined at the end of each reporting period. In determining the fair values of our derivatives at March 31, 2019, the LIBOR interest rate forward curve (Level 2 inputs) assumed a downtrend from 2.495% to 2.001% for the remaining term of our derivatives. Credit spreads (Level 3 inputs) used in determining the fair values of hedge and non-hedge designated derivatives assumed an uptrend in nonperformance risk for us and all of our counterparties through the maturity dates. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present our assets and liabilities measured at fair value on a recurring basis aggregated by the level within which measurements fall in the fair value hierarchy (in thousands):
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Effect of Fair Value Measured Assets and Liabilities on Condensed Consolidated Statements of Operations The following table summarizes the effect of fair value measured assets and liabilities on our condensed consolidated statements of operations (in thousands):
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Summary of Fair Value of Financial Instruments |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value of Financial Instruments | Summary of Fair Value of Financial Instruments Determining the estimated fair values of certain financial instruments such as notes receivable and indebtedness requires considerable judgment to interpret market data. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Accordingly, the estimates presented are not necessarily indicative of the amounts at which these instruments could be purchased, sold or settled. The carrying amounts and estimated fair values of financial instruments were as follows (in thousands):
Cash, cash equivalents and restricted cash. These financial assets have maturities of less than 90 days and most bear interest at market rates. The carrying value approximates fair value due to their short-term nature. This is considered a Level 1 valuation technique. Accounts receivable, net, due to/from related party, net, accounts payable and accrued expenses, dividends and distributions payable, due to Ashford Inc. and due to/from third-party hotel managers. The carrying values of these financial instruments approximate their fair values due to the short-term nature of these financial instruments. This is considered a Level 1 valuation technique. Investment in Ashford Inc. Fair value of the investment in Ashford Inc. is based on the quoted closing price on the balance sheet date. This is considered a Level 1 valuation technique. Derivative assets. Fair value of interest rate caps is determined using the net present value of expected cash flows of each derivative based on the market-based interest rate curve and adjusted for credit spreads of us and our counterparties. Fair value of credit default swaps are obtained from a third party who publishes the CMBX index composition and price data. Fair values of interest rate floors are calculated using a third-party discounted cash flow model based on future cash flows that are expected to be received over the remaining life of the floor. See notes 10 and 11 for a complete description of the methodology and assumptions utilized in determining fair values. Indebtedness. Fair value of indebtedness is determined using future cash flows discounted at current replacement rates for these instruments. Cash flows are determined using a forward interest rate yield curve. The current replacement rates are determined by using the U.S. Treasury yield curve or the index to which these financial instruments are tied, and adjusted for the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral. We estimated the fair value of the total indebtedness to be approximately 94.1% to 104.1% of the carrying value of $1.1 billion at March 31, 2019, and approximately 94.4% to 104.3% of the carrying value of $992.6 million at December 31, 2018. This is considered a Level 2 valuation technique. |
Redeemable Noncontrolling Interests in Operating Partnership |
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Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests in Operating Partnership | Redeemable Noncontrolling Interests in Operating Partnership Redeemable noncontrolling interests in the operating partnership represents the limited partners’ proportionate share of equity and their allocable share of equity in earnings/losses of Braemar OP, which is an allocation of net income/loss attributable to the common unitholders based on the weighted average ownership percentage of these limited partners’ common units of limited partnership interest in the operating partnership (the “common units”) and units issued under our Long-Term Incentive Plan (the “LTIP units that are vested. Each common unit may be redeemed, by the holder, for either cash or, at our sole discretion, up to one share of our REIT common stock, which is either: (i) issued pursuant to an effective registration statement; (ii) included in an effective registration statement providing for the resale of such common stock; or (iii) issued subject to a registration rights agreement. LTIP units, which are issued to certain executives and employees of Ashford LLC as compensation, generally have vesting periods of three years. Additionally, certain independent members of the board of directors have elected to receive LTIP units as part of their compensation, which are fully vested upon grant. Upon reaching economic parity with common units, each vested LTIP unit can be converted by the holder into one common unit which can then be redeemed for cash or, at our election, settled in our common stock. An LTIP unit will achieve parity with the common units upon the sale or deemed sale of all or substantially all of the assets of our operating partnership at a time when our stock is trading at a level in excess of the price it was trading on the date of the LTIP issuance. More specifically, LTIP units will achieve full economic parity with common units in connection with (i) the actual sale of all or substantially all of the assets of our operating partnership or (ii) the hypothetical sale of such assets, which results from a capital account revaluation, as defined in the partnership agreement, for our operating partnership. The compensation committee of the board of directors of the Company approves the issuance of Performance LTIP units to certain executive officers and directors from time to time. The award agreements provide for the grant of a target number of Performance LTIP units that will be settled in common units of Braemar OP, if and when the applicable vesting criteria have been achieved following the end of the performance and service period, which is generally three years from the grant date. The number of Performance LTIP units actually earned may range from 0% to 200% of target based on achievement of a specified relative total stockholder return based on the formula determined by the Company’s compensation committee on the grant date. As of March 31, 2019, there were approximately 552,000 Performance LTIP units, representing 200% of the target, outstanding. The performance criteria for the Performance LTIP units are based on market conditions under the relevant literature, and the Performance LTIP units were granted to non-employees. Following the adoption of ASU 2018-07, the corresponding compensation cost is recognized ratably over the service period for the award as the service is rendered, based on the grant date fair value of the award, regardless of the actual outcome of the market condition as opposed to being accounted for at fair value based on the market price of the shares at each quarterly measurement date. As of March 31, 2019, we have issued a total of 2.0 million LTIP units (including Performance LTIP units), net of cancellations, all of which, other than approximately 86,000 LTIP units and 60,000 Performance LTIP units issued from March 2015 to February 2019 had reached full economic parity with, and are convertible into, common units. The following table presents compensation expense for Performance LTIP units and LTIP units (in thousands):
The unamortized cost of the unvested Performance LTIP units of $1.9 million at March 31, 2019, will be expensed over a period of 2.8 years with a weighted average period of 1.4 years. The unamortized cost of the unvested LTIP units of $2.6 million at March 31, 2019, will be amortized over a period of 2.9 years with a weighted average period of 1.9 years. The following table presents the common units redeemed and the fair value upon redemption (in thousands):
The following table presents the redeemable noncontrolling interests in Braemar OP (in thousands) and the corresponding approximate ownership percentage of our operating partnership:
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We allocated net income (loss) to the redeemable noncontrolling interests and declared aggregate cash distributions to the holders of common units and holders of LTIP units, which are recorded as a reduction of redeemable noncontrolling interests in operating partnership, as illustrated in the table below (in thousands):
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Equity and Stock-Based Compensation |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Stock-Based Compensation | Equity and Stock-Based Compensation Common Stock Dividends—The following table summarizes the common stock dividends declared during the period (in thousands):
Performance Stock Units—The compensation committee of the board of directors of the Company approves the issuance of grants of PSUs to certain executive officers and directors from time to time. The award agreements provide for the grant of a target number of PSUs that will be settled in shares of common stock of the Company, if and when the applicable vesting criteria have been achieved following the end of the performance and service period, which is generally three years from the grant date. The number of PSUs actually earned may range from 0% to 200% of target based on achievement of a specified relative total stockholder return based on the formula determined by the Company’s compensation committee on the grant date. The performance criteria for the PSUs are based on market conditions under the relevant literature, and the PSUs were granted to non-employees. Following the adoption of ASU 2018-07, the corresponding compensation cost is recognized ratably over the service period for the award as the service is rendered, based on the grant date fair value of the award, regardless of the actual outcome of the market condition as opposed to being accounted for at fair value based on the market price of the shares at each quarterly measurement date. The following table summarizes the compensation expense for PSUs (in thousands):
During the three months ended March 31, 2018, approximately $1.6 million of the compensation expense was related to the accelerated vesting of PSUs granted to one of our executive officers upon his death, in accordance with the terms of the awards. As of March 31, 2019, we had unamortized compensation expense of $6.1 million related to PSUs which is expected to be recognized over a period of 2.8 years with a weighted average period of 2.1 years. Restricted Stock Units—We incur stock-based compensation expense in connection with restricted stock units awarded to employees of Ashford LLC, included in “advisory services fee,” on our condensed consolidated statements of operations, employees of Remington Lodging, which is included in “management fees” on our condensed consolidated statements of operations and employees of Premier Project Management LLC (“Premier”), which is included in “corporate general and administrative” expense on our condensed consolidated statements of operations. We also issue common stock to our independent directors, which immediately vests, and is included in “corporate general and administrative” expense on our condensed consolidated statements of operations. At March 31, 2019, the unamortized cost of the unvested shares of restricted stock was $6.4 million, which will be expensed over a period of 2.9 years with a weighted average period of 2.4 years, and have vesting dates between April 2020 and February 2022. The following table summarizes the stock-based compensation expense for restricted stock units (in thousands):
During the three months ended March 31, 2018, approximately $640,000 of the compensation expense was related to the accelerated vesting of equity awards granted to one of our executive officers upon his death, in accordance with the terms of the awards. 8.25% Series D Cumulative Preferred Stock Dividends—The Series D Cumulative Preferred Stock dividend for all issued and outstanding shares is set at $2.0625 per annum per share. The following table summarizes dividends declared (in thousands):
Stock Repurchases—On December 5, 2017, our board of directors reapproved the stock repurchase program pursuant to which the board of directors granted a repurchase authorization to acquire shares of the Company’s common stock, par value $0.01 per share having an aggregate value of up to $50 million. The board of directors’ authorization replaced any previous repurchase authorizations. No shares were repurchased during the three months ended March 31, 2019 and 2018, pursuant to this authorization. As of March 31, 2019, we have purchased a cumulative 4.3 million shares of our common stock, for approximately $63.2 million, since the program’s inception on November 4, 2014. At-the-Market Equity Distribution Program—On December 11, 2017, the Company established an “at-the-market” equity distribution program pursuant to which it may, from time to time, sell shares of its Common Stock having an aggregate offering price of up to $50 million. As of March 31, 2019, no shares of our common stock have been sold under this program. Noncontrolling Interest in Consolidated Entities—A partner had noncontrolling ownership interests of 25% in two hotel properties with a total carrying value of $(5.3) million and $(5.4) million at March 31, 2019 and December 31, 2018, respectively. The following table summarizes the (income) loss allocated to noncontrolling interests in consolidated entities (in thousands):
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5.5% Series B Cumulative Convertible Preferred Stock |
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5.5% Series B Cumulative Convertible Preferred Stock | 5.5% Series B Cumulative Convertible Preferred Stock Each share of our 5.5% Series B Cumulative Convertible Preferred Stock (the “Series B Convertible Preferred Stock”) is convertible at any time, at the option of the holder, into a number of whole shares of common stock at an initial conversion price of $18.90 (which represents an initial conversion rate of 1.3228 shares of our common stock, subject to certain adjustments). The Series B Convertible Preferred Stock is also subject to conversion upon certain events constituting a change of control. Holders of the Series B Convertible Preferred Stock have no voting rights, subject to certain exceptions. The Company may, at its option, cause the Series B Convertible Preferred Stock to be converted in whole or in part, on a pro-rata basis, into fully paid and nonassessable shares of the Company’s common stock at the conversion price, provided that the “Closing Bid Price” (as defined in the Articles Supplementary) of the Company’s common stock shall have equaled or exceeded 110% of the conversion price for the immediately preceding 45 consecutive trading days ending three days prior to the date of notice of conversion. In the event of such mandatory conversion, the Company shall pay holders of the Series B Convertible Preferred Stock any additional dividend payment to make the holder whole on dividends expected to be received through June 11, 2019, in an amount equal to the net present value, where the discount rate is the dividend rate on the Series B Convertible Preferred Stock, of the difference between (i) the annual dividend payments the holders of Series B Convertible Preferred Stock would have received in cash from the date of the mandatory conversion to June 11, 2019, and (ii) the common stock quarterly dividend payments the holders of Series B Convertible Preferred Stock would have received over the same time period had such holders held common stock. Additionally, the Series B Convertible Preferred Stock contains cash redemption features that consist of: 1) an optional redemption in which on or after June 11, 2020, the Company may redeem shares of the Series B Convertible Preferred Stock, in whole or in part, for cash at a redemption price of $25.00 per share, plus any accumulated, accrued and unpaid dividends; 2) a special optional redemption, in which on or prior to the occurrence of a Change of Control (as defined), the Company may redeem shares of the Series B Convertible Preferred Stock, in whole or in part, for cash at a redemption price of $25.00 per share plus a make-whole premium equal to the present value, computed using a discount rate of 5.5% per annum compounded quarterly, of all dividend payments on the Series B Convertible Preferred Stock for all remaining dividend periods (excluding any accumulated dividend amount) from the date of such exercise up to but excluding June 11, 2019; and 3) a REIT Termination Event and Listing Event Redemption, in which at any time (i) a REIT Termination Event (defined below) occurs or (ii) the Company’s common stock fails to be listed on the NYSE, NYSE American, or NASDAQ, or listed or quoted on an exchange or quotation system that is a successor thereto (each a “National Exchange”), the holder of Series B Cumulative Preferred Stock shall have the right to require the Company to redeem any or all shares of Series B Cumulative Preferred Stock at 103% of the liquidation preference ($25.00 per share, plus any accumulated, accrued, and unpaid dividends) in cash. A REIT Termination Event, shall mean the earliest of:
At March 31, 2019, we had 5.0 million outstanding shares of Series B Convertible Preferred Stock that do not meet the requirements for permanent equity classification prescribed by the authoritative guidance because of certain cash redemption features that are outside our control. As such, the Series B Convertible Preferred Stock is classified outside of permanent equity. The Series B Convertible Preferred Stock dividend for all issued and outstanding shares is set at $1.375 per annum per share. The following table summarizes dividends declared (in thousands):
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Commitments and Contingencies |
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Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Restricted Cash—Under certain management and debt agreements for our hotel properties existing at March 31, 2019, escrow payments are required for insurance, real estate taxes and debt service. In addition, for certain properties based on the terms of the underlying debt and management agreements, we escrow 4% to 5% of gross revenues for capital improvements. Management Fees—Under property management agreements for our hotel properties existing at March 31, 2019, we pay a monthly property management fee equal to the greater of $14,000 (increased annually based on consumer price index adjustments) or 3% of gross revenues, or in some cases 2% to 7% of gross revenues, as well as annual incentive management fees, if applicable. These management agreements expire from December 2019 through December 2065, with renewal options. If we terminate a management agreement prior to its expiration, we may be liable for estimated management fees through the remaining term, liquidated damages or, in certain circumstances, we may substitute a new management agreement. Income Taxes—We and our subsidiaries file income tax returns in the federal jurisdiction and various states. Tax years 2014 through 2018 remain subject to potential examination by certain federal and state taxing authorities. Litigation—We are engaged in various legal proceedings which have arisen but have not been fully adjudicated. The likelihood of loss from these legal proceedings, based on definitions within contingency accounting literature, ranges from remote to reasonably possible and to probable. Based on estimates of the range of potential losses associated with these matters, management does not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial position or results of operations. However, the final results of legal proceedings cannot be predicted with certainty and if we fail to prevail in one or more of these legal matters, and the associated realized losses exceed our current estimates of the range of potential losses, our consolidated financial position or results of operations could be materially adversely affected in future periods. |
Segment Reporting |
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Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We operate in one business segment within the hotel lodging industry: direct hotel investments. Direct hotel investments refers to owning hotel properties through either acquisition or new development. We report operating results of direct hotel investments on an aggregate basis as substantially all of our hotel investments have similar economic characteristics and exhibit similar long-term financial performance. As of March 31, 2019 and December 31, 2018, all of our hotel properties were in the U.S. and its territories. |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions Ashford Inc. Advisory Agreement Ashford LLC, a subsidiary of Ashford Inc., acts as our advisor. Our Chairman Mr. Monty J. Bennett, also serves as Chairman of the board of directors and Chief Executive Officer of Ashford Inc. Under our advisory agreement, we pay advisory fees to Ashford LLC. Through December 31, 2018, we were required to pay Ashford LLC a monthly base fee that is 1/12th the sum of (i) 0.70% of our total market capitalization for the prior month plus the Key Money Asset Management Fee (as defined in our advisory agreement), subject to a minimum monthly base fee, as payment for managing our day-to-day operations in accordance with our investment guidelines. Total market capitalization included the aggregate principal amount of our consolidated indebtedness (including our proportionate share of debt of any entity that is not consolidated but excluding our joint venture partners’ proportionate share of consolidated debt). On January 15, 2019, the Company entered into Amendment No. 1 to the Fifth Amended and Restated Advisory Agreement with Ashford Inc.(“Amendment No. 1”). Amendment No. 1 revised the formula for calculating the base fee to be equal to 1/12th of the sum of (i) 0.70% of the total market capitalization of our company for the prior month, plus (ii) the Net Asset Fee Adjustment (as defined), if any, on the last day of the prior month during which our advisory agreement was in effect; provided, however in no event shall the base fee for any month be less than the minimum base fee as provided by our advisory agreement. The base fee is payable on the 5th business day of each month. The minimum base fee for Braemar for each month will be equal to the greater of:
We are also required to pay Ashford LLC an incentive fee that is measured annually (or for a stub period if the advisory agreement is terminated at other than year-end). Each year that our annual total stockholder return exceeded the average annual total stockholder return for our peer group we would pay Ashford LLC an incentive fee over the following three years, subject to the Fixed Charge Coverage Ratio (“FCCR”) Condition, as defined in the advisory agreement, which relates to the ratio of adjusted EBITDA to fixed charges. We also reimburse Ashford LLC for certain reimbursable overhead and internal audit, risk management advisory and asset management services, as specified in the advisory agreement. We also recorded equity-based compensation expense for equity grants of common stock and LTIP units awarded to officers and employees of Ashford LLC in connection with providing advisory services. The following table summarizes the advisory services fees incurred (in thousands):
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In accordance with our advisory agreement, our advisor, or entities in which our advisor has an interest, have a right to provide products or services to us or our hotel properties, provided such transactions are evaluated and approved by our independent directors. The following tables summarize the entities in which our advisor has an interest with which we or our hotel properties contracted for products and services, the amounts recorded by us for those services and the applicable classification on our condensed consolidated financial statements (in thousands):
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The following table summarizes the due to Ashford Inc. (in thousands):
In 2015, $2.0 million of key money consideration was invested in furniture, fixtures and equipment by Ashford Inc. to be used by Braemar, which represented all of the key money consideration for the Bardessono Hotel. Upon adoption of ASC 842, we evaluated this arrangement, which is accounted for as a lease that will expire in 2020. Under the applicable accounting guidance in ASC 842, as the related party lease is provided rent-free, there is no economic substance related to the lease which results in not recording an operating lease right-of-use asset, an operating lease liability or lease expense. Enhanced Return Funding Program Concurrent with the Amendment No. 1, on January 15, 2019, the Company also entered into the Enhanced Return Funding Program Agreement (the “ERFP Agreement”) with Ashford Inc. The “key money investments” concept previously contemplated by our advisory agreement was replaced in the ERFP Agreement. The Amended and Restated Advisory Agreement was also amended to name Ashford Inc. and its subsidiaries as the Company’s sole and exclusive provider of asset management, project management and other services offered by Ashford Inc. or any of its subsidiaries. The independent members of our board of directors and the independent members of the board of directors of Ashford Inc., with the assistance of separate and independent legal counsel, engaged to negotiate the ERFP Agreement on behalf of Ashford Inc. and Braemar, respectively. The ERFP Agreement generally provides that Ashford LLC will provide funding to facilitate the acquisition of properties by Braemar OP that are recommended by Ashford LLC, in an aggregate amount of up to $50 million (subject to increase to up to $100 million by mutual agreement). Each funding will equal 10% of the property acquisition price and will be made either at the time of the property acquisition or at any time generally within the two-year period following the date of such acquisition, in exchange for FF&E for use at the acquired property or any other property owned by Braemar OP. The initial term of the ERFP Agreement is two years (the “Initial Term”), unless earlier terminated pursuant to the terms of the ERFP Agreement. At the end of the Initial Term, the ERFP Agreement shall automatically renew for successive one-year periods (each such period a “Renewal Term”) unless either Ashford Inc. or Braemar provides written notice to the other at least sixty days in advance of the expiration of the Initial Term or Renewal Term, as applicable, that such notifying party intends not to renew the ERFP Agreement. As a result of the Ritz-Carlton, Lake Tahoe acquisition, Braemar is entitled to receive $10.3 million from Ashford LLC in the form of future purchases of FF&E at Braemar hotel properties that will be leased to us by Ashford LLC rent free. Project Management Agreement In connection with Ashford Inc.’s August 8, 2018 acquisition of Remington Lodging’s project management business, we entered into a project management agreement with Ashford Inc.’s indirect subsidiary, Premier Project Management LLC (“Premier”), pursuant to which Premier provides project management services to our hotels, including construction management, interior design, architectural services, and the purchasing, freight management, and supervision of installation of FF&E and related services. Pursuant to the project management agreement, we pay Premier: (a) project management fees of up to 4% of project costs; and (b) for the following services as follows: (i) architectural (6.5% of total construction costs); (ii) construction management for projects without a general contractor (10% of total construction costs); (iii) interior design (6% of the purchase price of the FF&E designed or selected by Premier); and (iv) FF&E purchasing (8% of the purchase price of FF&E purchased by Premier; provided that if the purchase price exceeds $2.0 million for a single hotel in a calendar year, then the purchasing fee is reduced to 6% of the FF&E purchase price in excess of $2.0 million for such hotel in such calendar year). Remington Lodging On August 8, 2018, Ashford Inc. completed the acquisition of Premier As a result of Ashford Inc.’s acquisition, the project management services are no longer provided by Remington Lodging. Remington Lodging continues to provide property management services to the Company with respect to three of our hotel properties. will now be provided by a subsidiary of Ashford Inc. under the respective project management agreement with each customer, including Ashford Trust and Braemar. At March 31, 2019, Remington Lodging managed three of our thirteen hotel properties and we incurred the following fees related to the management agreements with the related party (in thousands):
Certain employees of Remington Lodging, who perform work on behalf of Braemar, were granted shares of restricted stock under the Braemar Stock Plan. These share grants were accounted for under the applicable accounting guidance related to share-based payments granted to non-employees and are recorded as a component of “management fees” in our condensed consolidated statements of operations. For the three months ended March 31, 2019 and 2018, expense related to such grants was $39,000 and $47,000, respectively. The unamortized compensation expense of these grants was $461,000 as of March 31, 2019, which will be amortized over a period of 2.9 years. |
Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These condensed consolidated financial statements include the accounts of Braemar Hotels & Resorts Inc., its majority-owned subsidiaries, and its majority-owned entities in which it has a controlling interest. All significant intercompany accounts and transactions between consolidated entities have been eliminated in these condensed consolidated financial statements. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP in the accompanying unaudited condensed consolidated financial statements. We believe the disclosures made herein are adequate to prevent the information presented from being misleading. However, the financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2018 Annual Report on Form 10-K, as originally filed with the Securities and Exchange Commission (“SEC”) on March 8, 2019, as subsequently amended. Braemar OP is considered to be a variable interest entity (“VIE”), as defined by authoritative accounting guidance. A VIE must be consolidated by a reporting entity if the reporting entity is the primary beneficiary because it has (i) the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. All major decisions related to Braemar OP that most significantly impact its economic performance, including but not limited to operating procedures with respect to business affairs and any acquisitions, dispositions, financings, restructurings or other transactions with sellers, purchasers, lenders, brokers, agents and other applicable representatives, are subject to the approval of our wholly-owned subsidiary, Braemar OP General Partner LLC, its general partner. As such, we consolidate Braemar OP. The following items affect reporting comparability of our historical condensed consolidated financial statements:
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Use of Estimates | Use of Estimates—The preparation of these condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
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Restricted Cash | Restricted Cash—Restricted cash includes reserves for debt service, real estate taxes and insurance, as well as excess cash flow deposits and reserves for furniture, fixtures and equipment (“FF&E”) replacements of approximately 4% to 5% of property revenue for certain hotels, as required by certain management or mortgage debt agreement restrictions and provisions. |
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Impairment of Investments in Hotel Properties | Impairment of Investments in Hotel Properties—Hotel properties are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Recoverability of the hotel is measured by comparison of the carrying amount of the hotel to the estimated future undiscounted cash flows, which take into account current market conditions and our intent with respect to holding or disposing of the hotel. If our analysis indicates that the carrying value of the hotel is not recoverable on an undiscounted cash flow basis, we recognize an impairment charge for the amount by which the property’s net book value exceeds its estimated fair value, or fair value, less cost to sell. In evaluating the impairment of hotel properties, we make many assumptions and estimates, including projected cash flows, expected holding period and expected useful life. Fair value is determined through various valuation techniques, including internally developed discounted cash flow models, comparable market transactions and third-party appraisals, where considered necessary. Asset write-downs resulting from property damage are recorded up to the amount of the allocable property insurance deductible in the period that the property damage occurs. See note 4. |
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Investment in Ashford Inc. | Investment in Ashford Inc.—We hold approximately 195,000 shares of Ashford Inc. common stock, which represented approximately 7.9% of the outstanding common stock in Ashford Inc., with a fair value of $10.8 million at March 31, 2019. This investment would typically be accounted for under the equity method of accounting, under Accounting Standard Codification (“ASC”) 323-10 - Investments - Equity Method and Joint Ventures since we exercise significant influence. However, we have elected to record our investment in Ashford Inc. using the fair value option under ASC 825-10 - Fair Value Option - Financial Assets and Financial Liabilities. |
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Investment in Unconsolidated Entity | Investment in Unconsolidated Entity—Investment in unconsolidated entity, in which we have ownership interest of 8.4% at March 31, 2019, is accounted for under the equity method of accounting by recording the initial investment and our percentage of interest in the entities’ net income/loss. We review our investment in unconsolidated entity for impairment in each reporting period pursuant to the applicable authoritative accounting guidance. An investment is impaired when its estimated fair value is less than the carrying amount of our investment. Our investment in unconsolidated entity is considered to be a variable interest in the underlying entity. VIEs, as defined by authoritative accounting guidance, must be consolidated by a reporting entity if the reporting entity is the primary beneficiary because it has (i) the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. Because we do not have the power and financial responsibility to direct the unconsolidated entity’s activities and operations, we are not considered to be the primary beneficiary of this entity on an ongoing basis and therefore such entity should not be consolidated. In evaluating VIEs, our analysis involves considerable management judgment and assumptions. We review our investment in unconsolidated entity for impairment in each reporting period pursuant to the applicable authoritative accounting guidance. An investment is impaired when its estimated fair value is less than the carrying amount of our investment. Any impairment is recorded in equity in earnings (loss) in unconsolidated entity. No such impairment was recorded for the three months ended March 31, 2019 and 2018. |
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Leases | Leases—We determine if an arrangement is a lease at commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on our consolidated balance sheets. We currently do not have any finance leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives. The lease terms used to calculate our right-of-use assets may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. |
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Equity-Based Compensation | Equity-Based Compensation—Prior to the adoption of Accounting Standards Update (“ASU”) 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”) in the third quarter of 2018, stock/unit-based compensation for non-employees was accounted for at fair value based on the market price of the shares at period end that resulted in recording expense, included in “advisory services fee” and “management fees,” equal to the fair value of the award in proportion to the requisite service period satisfied during the period. Performance stock units (“PSUs”) and Performance Long-Term Incentive Plan (“Performance LTIP”) units granted to certain executive officers were accounted for at fair value at period end based on a Monte Carlo simulation valuation model that resulted in recording expense, included in “advisory services fee,” equal to the fair value of the award in proportion to the requisite service period satisfied during the period. Stock/unit grants to certain independent directors are recorded at fair value based on the market price of the shares/units at grant date, which amount is fully expensed as the grants of stock/units are fully vested on the date of grant and included in “corporate general and administrative” expense in the condensed consolidated statements of operations. After the adoption of ASU 2018-07 in the third quarter of 2018, stock/unit-based compensation for non-employees is measured at the grant date and expensed ratably over the vesting period based on the original measurement as of the grant date. This results in the recording of expense, included in “advisory services fee,” “management fees” and “corporate general and administrative” expense, equal to the ratable amount of the grant date fair value based on the requisite service period satisfied during the period. PSUs and Performance LTIP units granted to certain executive officers vest based on time and market conditions and are measured at the grant date fair value based on a Monte Carlo simulation valuation model. The subsequent expense is then ratably recognized over the service period as the service is rendered regardless of when, if ever, the market conditions are satisfied. This results in recording expense, included in “advisory services fee,” equal to the ratable amount of the grant date fair value based on the requisite service period satisfied during the period. Stock/unit grants to certain independent directors are measured at the grant date based on the market price of the shares/units at grant date, which amount is fully expensed as the grants of stock/units are fully vested on the date of grant. |
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Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards— In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (“ASU 2016-02”). The new standard establishes a ROU model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases ("ASU 2018-10") and ASU 2018-11, Leases (Topic 842), Targeted Improvements (“ASU 2018-11”). The amendments in ASU 2018-10 affect only narrow aspects of the guidance issued in the amendments in ASU 2016-02, including but not limited to lease residual value guarantee, rate implicit in the lease, lease term and purchase option. The amendments in ASU 2018-11 provide an optional transition method for adoption of the new standard, which will allow entities to continue to apply the legacy guidance in ASC 840, including its disclosure requirements, in the comparative periods presented in the year of adoption. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842), Narrow-Scope Improvements for Lessors (“ASU 2018-20”). The amendments create a lessor practical expedient applicable to sales and other similar taxes incurred in connection with a lease, and simplify lessor accounting for lessor costs paid by the lessee. We adopted the standard effective January 1, 2019 on a modified retrospective basis and implemented internal controls to enable the preparation of financial information on adoption. We elected the practical expedients which provide us the option to apply the new guidance at its effective date on January 1, 2019 without having to adjust the comparative prior period financial statements. The package of practical expedients also allowed us to carry forward the historical lease classification. Additionally, we elected the practical expedients allowing us not to separate lease and non-lease components and not record leases with an initial term of twelve months or less (“short-term leases”) on the balance sheet across all existing asset classes. The adoption of this standard has resulted in the recognition of ROU assets and lease liabilities primarily related to our ground lease arrangements for which we are the lessee. As of January 1, 2019, we recorded operating lease liabilities of $60.6 million as well as a corresponding ROU asset of $82.5 million, which includes, among other things, the reclassified intangible assets of $22.3 million. The standard did not have a material impact on our condensed consolidated statements of operations and statements of cash flows. See related disclosures in note 5. Recently Issued Accounting Standards—In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The ASU sets forth an “expected credit loss” impairment model to replace the current “incurred loss” method of recognizing credit losses. The standard requires measurement and recognition of expected credit losses for most financial assets held. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (“ASU 2018-19”). ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. We are currently evaluating the impact that ASU 2016-13 will have on our condensed consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies certain disclosure requirements related to fair value measurements including requiring disclosures on changes in unrealized gains and losses in other comprehensive income for recurring Level 3 fair value measurements and a requirement to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact that ASU 2018-13 will have on the condensed consolidated financial statements and related disclosures. |
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Revenue Recognition | Rooms revenue represents revenues from the occupancy of our hotel rooms and is driven by the occupancy and average daily rate charged. Rooms revenue includes revenue for guest no-shows, day use, and early/late departure fees. The contracts for room stays with customers are generally short in duration and revenues are recognized as services are provided over the course of the hotel stay. Food & Beverage (“F&B”) revenue consists of revenue from the restaurants and lounges at our hotel properties, in-room dining and mini-bars revenue, and banquet/catering revenue from group and social functions. Other F&B revenue may include revenue from audio visual equipment/services, rental of function rooms, and other F&B related revenues. Revenue is recognized as the services or products are provided. Our hotel properties may employ third parties to provide certain services at the property, for example, audio visual services. We evaluate each of these contracts to determine if the hotel is the principal or the agent in the transaction, and record the revenues as appropriate (i.e. gross vs. net). Other revenue consists of ancillary revenue at the property, including attrition and cancellation fees, condo management fees, resort and destination fees, health center fees, spas, golf, telecommunications, parking, entertainment and other guest services, as well as rental revenue primarily from leased retail outlets at our hotel properties, and membership initiation fees and dues, primarily from club memberships. Cancellation fees are recognized from non-cancellable deposits when the customer provides notification of cancellation in accordance with established management policy time frames. Non-refundable membership initiation fees are recognized over the expected life of an active membership. Taxes specifically collected from customers and submitted to taxing authorities are not recorded in revenue. Interest income is recognized when earned. |
Revenue (Tables) |
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables present our revenue disaggregated by geographical areas (in thousands):
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Investment in Hotel Properties, net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investment in Hotel Properties | We accounted for this transaction as an asset acquisition because substantially all of the fair value of the gross assets acquired were concentrated in a group of similar identifiable assets. We allocated the cost of the acquisition including transaction costs to the individual assets acquired and liabilities assumed on a relative fair value basis, which is considered a Level 3 valuation technique, as noted in the following table (in thousands):
________
The results of operations of the hotel property have been included in our results of operations as of the acquisition date. The table below summarizes the total revenue and net income (loss) in our condensed consolidated statements of operations for the three months ended March 31, 2019:
Investments in hotel properties, net consisted of the following (in thousands):
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Balances | As of March 31, 2019, our leased assets and liabilities consisted of the following (in thousands):
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Lease Cost and Other Information | We incurred the following lease costs related to our operating leases (in thousands):
_______________________________________ (1) Includes variable lease costs associated with the ground leases and short-term leases, which are immaterial. (2) Includes approximately $323,000 of variable lease cost and $119,000 of amortization costs related to the intangible assets that was reclassified upon adoption of ASC 842. Other information related to leases is as follows:
_______________________________________ (1) Calculated using the lease term, excluding extension options, and discount rates of the ground leases. |
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Maturities of Operating Lease Liabilities | Future minimum lease payments due under non-cancellable leases as of March 31, 2019 were as follows (in thousands):
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Future Minimum Lease Payments | Future minimum lease payments due under non-cancellable leases under ASC 840 as of December 31, 2018 were as follows (in thousands):
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Hotel Dispositions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed financial information from hotel property | The following table includes the condensed financial information from this hotel property (in thousands):
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Investment in Unconsolidated Entity (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | The following table summarizes our carrying value and ownership interest in OpenKey:
The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):
Ashford Inc. Condensed Consolidated Balance Sheets (unaudited)
Ashford Inc. Condensed Consolidated Statements of Operations (unaudited)
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Indebtedness (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | Indebtedness consisted of the following (in thousands):
__________________
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Income (Loss) Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of amounts used in calculating basic and diluted earnings (loss) per share | The following table reconciles the amounts used in calculating basic and diluted income (loss) per share (in thousands, except per share amounts):
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Summary of computation of diluted income per share | Due to their anti-dilutive effect, the computation of diluted income (loss) per share does not reflect the adjustments for the following items (in thousands):
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Derivative Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | we entered into over the applicable periods:
_______________ No instruments were designated as cash flow hedges for both the three months ended March 31, 2019 and 2018. Interest rate derivatives consisted of the following:
_______________
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present our assets and liabilities measured at fair value on a recurring basis aggregated by the level within which measurements fall in the fair value hierarchy (in thousands):
__________________
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Effect of Fair Value Measured Assets and Liabilities on Consolidated Statements of Operations | The following table summarizes the effect of fair value measured assets and liabilities on our condensed consolidated statements of operations (in thousands):
_______________
|
Summary of Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments were as follows (in thousands):
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Redeemable Noncontrolling Interests in Operating Partnership (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation | The following table presents compensation expense for Performance LTIP units and LTIP units (in thousands):
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Redeemable Noncontrolling Interest | The following table presents the common units redeemed and the fair value upon redemption (in thousands):
The following table presents the redeemable noncontrolling interests in Braemar OP (in thousands) and the corresponding approximate ownership percentage of our operating partnership:
____________________________________
We allocated net income (loss) to the redeemable noncontrolling interests and declared aggregate cash distributions to the holders of common units and holders of LTIP units, which are recorded as a reduction of redeemable noncontrolling interests in operating partnership, as illustrated in the table below (in thousands):
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Equity and Stock-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | The following table summarizes the common stock dividends declared during the period (in thousands):
The following table summarizes dividends declared (in thousands):
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Schedule of Compensation Cost | The following table summarizes the compensation expense for PSUs (in thousands):
The following table summarizes the stock-based compensation expense for restricted stock units (in thousands):
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Schedule of Noncontrolling Interest in Consolidated Entities | The following table summarizes the (income) loss allocated to noncontrolling interests in consolidated entities (in thousands):
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5.5% Series B Cumulative Convertible Preferred Stock (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Temporary Equity Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends Declared | The following table summarizes dividends declared (in thousands):
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Related Party Transactions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table summarizes the advisory services fees incurred (in thousands):
________
At March 31, 2019, Remington Lodging managed three of our thirteen hotel properties and we incurred the following fees related to the management agreements with the related party (in thousands):
n accordance with our advisory agreement, our advisor, or entities in which our advisor has an interest, have a right to provide products or services to us or our hotel properties, provided such transactions are evaluated and approved by our independent directors. The following tables summarize the entities in which our advisor has an interest with which we or our hotel properties contracted for products and services, the amounts recorded by us for those services and the applicable classification on our condensed consolidated financial statements (in thousands):
________
________
The following table summarizes the due to Ashford Inc. (in thousands):
|
Organization and Description of Business (Details) |
Mar. 31, 2019
hotel
state
|
---|---|
Real Estate Properties [Line Items] | |
Number of hotel properties managed by related party | 3 |
Number of hotels | 13 |
Number of states in which entity operates | state | 6 |
Number of rooms | 3,719 |
Number of rooms owned, net of partnership interest | 3,484 |
Wholly Owned Properties | |
Real Estate Properties [Line Items] | |
Number of hotels | 11 |
Consolidated Properties | |
Real Estate Properties [Line Items] | |
Number of hotels | 2 |
Leased by Wholly-Owned or Majority-Owned Taxable REIT Subsidiaries | |
Real Estate Properties [Line Items] | |
Number of hotels | 12 |
US Virgin Islands Taxable REIT Subsidiary | |
Real Estate Properties [Line Items] | |
Number of hotels | 1 |
Leased by Ashford Prime Wholly-Owned Taxable REIT Subsidiary | |
Real Estate Properties [Line Items] | |
Number of hotels | 10 |
Significant Accounting Policies (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
|
Significant Accounting Policies [Line Items] | |||
Ownership percentage | 8.40% | 8.20% | |
Investment in unconsolidated entity | $ 1,872 | $ 1,766 | |
Operating lease liabilities | 60,617 | 0 | |
Operating lease right-of-use assets | $ 82,308 | $ 0 | |
ASU 2016-02 | |||
Significant Accounting Policies [Line Items] | |||
Operating lease right-of-use assets | $ 82,500 | ||
Reclassified intangible assets | $ 22,300 | ||
Ashford Inc. | |||
Significant Accounting Policies [Line Items] | |||
Investment owned (in shares) | 195 | 195 | |
Ownership percentage | 7.90% | 8.10% | |
Investment in unconsolidated entity | $ 10,821 | $ 10,114 | |
Minimum | Restricted Cash | |||
Significant Accounting Policies [Line Items] | |||
Replacement reserve escrow as percentage of property revenue | 4.00% | ||
Maximum | Restricted Cash | |||
Significant Accounting Policies [Line Items] | |||
Replacement reserve escrow as percentage of property revenue | 5.00% |
Revenue (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019
USD ($)
hotel
|
Mar. 31, 2018
USD ($)
hotel
|
|
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 13 | |
Revenue | $ 128,513 | $ 102,489 |
California | ||
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 5 | 4 |
Revenue | $ 44,005 | $ 29,884 |
Colorado | ||
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 1 | 1 |
Revenue | $ 18,099 | $ 18,159 |
Florida | ||
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 2 | 1 |
Revenue | $ 27,914 | $ 7,027 |
Illinois | ||
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 1 | 1 |
Revenue | $ 4,757 | $ 4,880 |
Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 1 | 1 |
Revenue | $ 5,274 | $ 7,623 |
Washington | ||
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 1 | 1 |
Revenue | $ 7,313 | $ 7,431 |
Washington, D.C. | ||
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 1 | 1 |
Revenue | $ 13,651 | $ 13,584 |
USVI | ||
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 1 | 1 |
Revenue | $ 7,495 | $ 6,561 |
Sold hotel properties | ||
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 1 | |
Revenue | $ 7,340 | |
Corporate entities | ||
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 0 | |
Revenue | $ 5 | |
Total hotel revenue | ||
Disaggregation of Revenue [Line Items] | ||
Number of hotels | hotel | 12 | |
Rooms | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 76,731 | $ 65,507 |
Rooms | California | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 29,914 | 19,104 |
Rooms | Colorado | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9,597 | 9,797 |
Rooms | Florida | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 14,996 | 5,473 |
Rooms | Illinois | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,323 | 3,419 |
Rooms | Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,237 | 6,153 |
Rooms | Washington | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,116 | 5,502 |
Rooms | Washington, D.C. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 8,708 | 8,961 |
Rooms | USVI | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 840 | 1,816 |
Rooms | Sold hotel properties | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,282 | |
Rooms | Corporate entities | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | |
Food and beverage | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 32,114 | 23,500 |
Food and beverage | California | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10,165 | 7,306 |
Food and beverage | Colorado | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,836 | 4,819 |
Food and beverage | Florida | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 8,096 | 802 |
Food and beverage | Illinois | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,138 | 1,251 |
Food and beverage | Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 808 | 1,173 |
Food and beverage | Washington | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,814 | 1,664 |
Food and beverage | Washington, D.C. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,561 | 4,339 |
Food and beverage | USVI | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 696 | 199 |
Food and beverage | Sold hotel properties | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,947 | |
Food and beverage | Corporate entities | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | |
Other Hotel | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 19,663 | 13,482 |
Other Hotel | California | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,926 | 3,474 |
Other Hotel | Colorado | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,666 | 3,543 |
Other Hotel | Florida | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,822 | 752 |
Other Hotel | Illinois | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 296 | 210 |
Other Hotel | Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 229 | 297 |
Other Hotel | Washington | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 383 | 265 |
Other Hotel | Washington, D.C. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 382 | 284 |
Other Hotel | USVI | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,959 | 4,546 |
Other Hotel | Sold hotel properties | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 111 | |
Other Hotel | Corporate entities | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5 | 0 |
Other | California | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Other | Colorado | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Other | Florida | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Other | Illinois | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Other | Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Other | Washington | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Other | Washington, D.C. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Other | USVI | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Other | Sold hotel properties | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 0 | |
Other | Corporate entities | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 5 |
Investment in Hotel Properties, net (Investments in Hotel Properties, Net) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Land | $ 455,298 | $ 428,567 |
Buildings and improvements | 1,089,457 | 989,180 |
Furniture, fixtures and equipment | 114,086 | 103,025 |
Construction in progress | 60,434 | 42,034 |
Total cost | 1,719,275 | 1,562,806 |
Accumulated depreciation | (276,799) | (262,905) |
Investments in hotel properties, net | $ 1,442,476 | $ 1,299,901 |
Investment in Hotel Properties, net (Acquisition) (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Jan. 15, 2019
USD ($)
a
room
|
Mar. 31, 2019
USD ($)
hotel
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Real Estate Properties [Line Items] | ||||
Number of rooms | hotel | 3,719 | |||
Transaction costs | $ 634 | $ 488 | ||
Land | 455,298 | $ 428,567 | ||
Buildings and improvements | 1,089,457 | 989,180 | ||
Furniture, fixtures and equipment | 114,086 | 103,025 | ||
Total cost | 1,719,275 | 1,562,806 | ||
Investments in hotel properties, net | 1,442,476 | $ 1,299,901 | ||
Total revenue | 128,513 | 102,489 | ||
NET INCOME (LOSS) | (1,322) | $ 4,270 | ||
Ritz-Carlton, Lake Tahoe | ||||
Real Estate Properties [Line Items] | ||||
Ownership interest acquired | 100.00% | |||
Number of rooms | room | 170 | |||
Consideration transferred | $ 120,000 | |||
Transaction costs | 582 | |||
Face amount of debt | 54,000 | |||
Land | 26,731 | |||
Buildings and improvements | 89,340 | |||
Furniture, fixtures and equipment | 2,172 | |||
Total cost | 118,243 | |||
Capital reserves | 6,150 | |||
Key money | (3,811) | |||
Investments in hotel properties, net | 120,582 | |||
Net other assets (liabilities) | $ 912 | |||
Area of parking lot | a | 3.4 | |||
Total revenue | 13,491 | |||
NET INCOME (LOSS) | $ 3,028 |
Investment in Hotel Properties, net (Impairment Charges and Insurance Recoveries) (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Property, Plant and Equipment [Line Items] | ||
Impairment charges | $ 0 | $ 12,000 |
Proceeds from insurance carriers | 0 | 0 |
Liability for excess of the sum of its impairment, remediation expenses and business interruption revenue recorded | 11,400,000 | |
Bardessono Hotel and Hotel Yountville | ||
Property, Plant and Equipment [Line Items] | ||
Insurance deductible | 500,000 | |
Revenue from business interruption losses | 1,800,000 | |
Other Hotel Revenue | ||
Property, Plant and Equipment [Line Items] | ||
Revenue from business interruption losses | $ 6,000,000 | $ 4,900,000 |
Leases - Narrative and Lease Balances (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities | $ 60,617 | $ 0 | |
Operating lease right-of-use assets | $ 82,308 | $ 0 | |
ASU 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 82,500 | ||
Reclassified intangible assets | $ 22,300 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease renewal term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease renewal term | 50 years |
Leases - Lease Cost and Other Information (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Leases [Abstract] | |
Operating lease cost | $ 1,383 |
Variable lease expense | 323 |
Amortization costs related to the intangible assets and liabilities | 119 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases (in thousands) | $ 782 |
Weighted Average Remaining Lease Term | 48 years |
Weighted Average Discount Rate | 4.96% |
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Operating leases | ||
2019 | $ 2,346 | |
2020 | 3,140 | |
2021 | 3,152 | |
2022 | 3,164 | |
2023 | 3,176 | |
Thereafter | 150,980 | |
Total principal and interest payments | 165,958 | |
Less: present value discount | (105,341) | |
Present value of net minimum lease payments | $ 60,617 | $ 0 |
Leases - Future Minimum Lease Payments (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Leases [Abstract] | |
2019 | $ 3,161 |
2020 | 3,156 |
2021 | 3,152 |
2022 | 3,164 |
2023 | 3,177 |
Thereafter | 151,244 |
Total | $ 167,054 |
Hotel Dispositions (Details) - Renaissance Tampa - Disposal Group, Disposed of by Sale, Not Discontinued Operations - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2018 |
Dec. 31, 2018 |
Jun. 01, 2018 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration for disposal | $ 68,000 | ||
Gain on disposal | $ 15,700 | ||
Total hotel revenue | $ 7,340 | ||
Total hotel operating expenses | (4,978) | ||
Operating income (loss) | 2,362 | ||
Property taxes, insurance and other | (269) | ||
Depreciation and amortization | (937) | ||
Impairment charges | (12) | ||
Interest expense and amortization of loan costs | (488) | ||
Income (loss) before income taxes | 656 | ||
(Income) loss before income taxes attributable to redeemable noncontrolling interests in operating partnership | (74) | ||
Income (loss) before income taxes attributable to the Company | $ 582 |
Investment in Unconsolidated Entity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Feb. 06, 2019 |
Dec. 31, 2018 |
Mar. 28, 2018 |
Dec. 31, 2017 |
|
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 8.40% | 8.20% | ||||
Total assets | $ 1,761,719 | $ 1,636,487 | ||||
Total liabilities | 1,227,370 | 1,093,394 | ||||
Redeemable noncontrolling interests | 51,010 | 44,885 | ||||
Total stockholders’ equity of Ashford Inc. | 382,508 | 397,476 | ||||
Noncontrolling interest in consolidated entities | (5,292) | (5,391) | ||||
Total equity | 377,216 | $ 375,981 | 392,085 | $ 376,552 | ||
Total liabilities and equity | 1,761,719 | 1,636,487 | ||||
Our investment in Ashford Inc., at fair value | 1,872 | $ 1,766 | ||||
Total operating expenses | (114,433) | (88,201) | ||||
OPERATING INCOME (LOSS) | 14,080 | 14,288 | ||||
Equity in earnings (loss) of unconsolidated entity | (50) | (3) | ||||
Income tax (expense) benefit | (927) | (572) | ||||
NET INCOME (LOSS) | (1,322) | 4,270 | ||||
Net (income) loss attributable to redeemable noncontrolling interests | 440 | (292) | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | (981) | 4,020 | ||||
Our unrealized gain (loss) on investment in Ashford Inc. | $ 707 | 528 | ||||
Ashford Inc. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment owned (in shares) | 195 | 195 | ||||
Share price (in dollars per share) | $ 55.53 | $ 51.90 | ||||
Ownership percentage | 7.90% | 8.10% | ||||
Total assets | $ 420,106 | $ 379,005 | ||||
Total liabilities | 144,363 | 108,726 | ||||
Series B cumulative convertible preferred stock | 201,338 | 200,847 | ||||
Redeemable noncontrolling interests | 3,810 | 3,531 | ||||
Total stockholders’ equity of Ashford Inc. | 69,968 | 65,443 | ||||
Noncontrolling interest in consolidated entities | 627 | 458 | ||||
Total equity | 70,595 | 65,901 | ||||
Total liabilities and equity | 420,106 | 379,005 | ||||
Our investment in Ashford Inc., at fair value | 10,821 | $ 10,114 | ||||
Total revenue | 63,320 | 48,168 | ||||
Total operating expenses | (60,778) | (53,204) | ||||
OPERATING INCOME (LOSS) | 2,542 | (5,036) | ||||
Equity in earnings (loss) of unconsolidated entity | (275) | 0 | ||||
Interest expense and loan amortization cost | (366) | (166) | ||||
Other income (expense) | (33) | 73 | ||||
Income tax (expense) benefit | (1,300) | (706) | ||||
NET INCOME (LOSS) | 568 | (5,835) | ||||
(Income) loss from consolidated entities attributable to noncontrolling interests | 163 | 173 | ||||
Net (income) loss attributable to redeemable noncontrolling interests | (21) | (61) | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | 710 | (5,723) | ||||
Preferred dividends | (2,791) | 0 | ||||
Amortization of preferred stock discount | (491) | 0 | ||||
Net income attributable to common stockholders | $ (2,572) | $ (5,723) | ||||
OpenKey | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 8.20% | |||||
Our investment in Ashford Inc., at fair value | $ 156 | $ 2,000 |
Indebtedness (Details) |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Jan. 22, 2019
USD ($)
hotel
|
May 23, 2018
USD ($)
loan
|
Mar. 31, 2019
USD ($)
hotel
extension
|
Jan. 15, 2019
room
|
Dec. 31, 2018
USD ($)
|
Apr. 04, 2018
room
|
|
Debt Instrument [Line Items] | ||||||
Indebtedness, gross | $ 1,054,500,000 | $ 992,586,000 | ||||
Deferred loan costs, net | (7,751,000) | (6,713,000) | ||||
Indebtedness, net | $ 1,046,749,000 | $ 985,873,000 | ||||
LIBOR rate | 2.495% | 2.503% | ||||
Number of rooms | hotel | 3,719 | |||||
Ownership percentage | 8.40% | 8.20% | ||||
Ritz-Carlton, Lake Tahoe | ||||||
Debt Instrument [Line Items] | ||||||
Number of rooms | room | 170 | |||||
Mortgages | ||||||
Debt Instrument [Line Items] | ||||||
Number of loans | loan | 2 | |||||
Repayment of debt | $ 186,800,000 | $ 357,600,000 | ||||
Line of Credit | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity | $ 15,000,000.0 | |||||
Line of Credit | Senior Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Indebtedness, gross | 0 | $ 0 | ||||
Borrowing capacity | 100,000,000.0 | |||||
Further possible expansion | $ 250,000,000.0 | |||||
Extension fee | 0.25% | |||||
Number of extension options | extension | 2 | |||||
Term of extension options | 1 year | |||||
Line of Credit | Senior Revolving Credit Facility [Member] | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | |||||
Line of Credit | Senior Revolving Credit Facility [Member] | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.50% | |||||
Line of Credit | Senior Revolving Credit Facility [Member] | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.25% | |||||
Line of Credit | Senior Revolving Credit Facility [Member] | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
Mortgages | ||||||
Debt Instrument [Line Items] | ||||||
Indebtedness, gross | $ 845,500,000 | 805,500,000 | ||||
Number of hotels used as collateral | hotel | 2 | |||||
Ownership percentage | 75.00% | |||||
Mortgages | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Mortgages | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Mortgages | Mortgage Loan 1 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.75% | |||||
Indebtedness, gross | $ 67,500,000 | 67,500,000 | ||||
Number of extension options | extension | 3 | |||||
Term of extension options | 1 year | |||||
Mortgages | Mortgage Loan 2 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.65% | |||||
Indebtedness, gross | $ 0 | 187,086,000 | ||||
Mortgages | Mortgage Loan 3 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 4.95% | |||||
Indebtedness, gross | $ 42,000,000 | 42,000,000 | ||||
Number of extension options | extension | 3 | |||||
Term of extension options | 1 year | |||||
Mortgages | Mortgage Loan 4 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | |||||
Indebtedness, gross | $ 70,000,000 | 70,000,000 | ||||
Number of extension options | extension | 3 | |||||
Term of extension options | 1 year | |||||
Mortgages | Mortgage Loan 5 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.16% | |||||
Indebtedness, gross | $ 435,000,000 | 435,000,000 | ||||
Number of extension options | extension | 5 | |||||
Term of extension options | 1 year | |||||
Term of debt | 2 years | |||||
Number of hotels used as collateral | hotel | 4 | |||||
Mortgages | Mortgage Loan 6 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.55% | |||||
Indebtedness, gross | $ 51,000,000 | 51,000,000 | ||||
Mortgages | Mortgage Loan 7 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.55% | |||||
Indebtedness, gross | $ 40,000,000 | 40,000,000 | ||||
Mortgages | Mortgage Loan 8 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.65% | |||||
Indebtedness, gross | $ 100,000,000 | 100,000,000 | ||||
Mortgages | Mortgage Loan 9 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.10% | |||||
Indebtedness, gross | $ 54,000,000 | 0 | ||||
Term of debt | 5 years | |||||
Mortgages | Mortgage Loan 10 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.70% | |||||
Indebtedness, gross | $ 195,000,000 | $ 0 | ||||
Number of extension options | extension | 5 | |||||
Term of debt | 5 years | |||||
Number of rooms | room | 266 | |||||
Annual amortization | 1.00% | |||||
Mortgages | Mortgage Loan 10 | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.65% |
Income (Loss) Per Share (Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Net income (loss) attributable to common stockholders - basic and diluted: | ||
Net income (loss) attributable to the Company | $ (981) | $ 4,020 |
Less: Dividends on preferred stock | (2,532) | (1,707) |
Undistributed net income (loss) allocated to common stockholders | (8,842) | (2,962) |
Distributed and undistributed net income (loss) - basic and diluted | $ (3,684) | $ 2,154 |
Weighted average common shares outstanding: | ||
Weighted average common shares outstanding – basic (in shares) | 32,115 | 31,680 |
Incentive fee shares (in shares) | 0 | 3 |
Weighted average common shares outstanding – diluted (in shares) | 32,115 | 31,683 |
Income (loss) per share - basic: | ||
Net income (loss) allocated to common stockholders per share (in dollars per share) | $ (0.11) | $ 0.07 |
Income (loss) per share - diluted: | ||
Net income (loss) allocated to common stockholders per share (in dollars per share) | $ (0.11) | $ 0.07 |
Performance Shares | ||
Net income (loss) attributable to common stockholders - basic and diluted: | ||
Dividends | $ (75) | $ (72) |
Restricted Stock | ||
Net income (loss) attributable to common stockholders - basic and diluted: | ||
Dividends | (96) | (87) |
Common Stock | ||
Net income (loss) attributable to common stockholders - basic and diluted: | ||
Dividends | $ (5,158) | $ (5,116) |
Income (Loss) Per Share (Antidilutive) (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Net income (loss) allocated to common stockholders is not adjusted for: | ||
Total | $ 1,438 | $ 2,158 |
Weighted average diluted shares are not adjusted for: | ||
Antidilutive securities excluded (in shares) | 11,359 | 10,758 |
Restricted Stock | ||
Net income (loss) allocated to common stockholders is not adjusted for: | ||
Income (loss) allocated to unvested shares | $ 96 | $ 87 |
Weighted average diluted shares are not adjusted for: | ||
Antidilutive securities excluded (in shares) | 87 | 49 |
Performance Shares | ||
Net income (loss) allocated to common stockholders is not adjusted for: | ||
Income (loss) allocated to unvested shares | $ 75 | $ 72 |
Weighted average diluted shares are not adjusted for: | ||
Antidilutive securities excluded (in shares) | 288 | 16 |
Operating Partnership Units | ||
Net income (loss) allocated to common stockholders is not adjusted for: | ||
Income (loss) attributable to redeemable noncontrolling interests in operating partnership | $ (440) | $ 292 |
Weighted average diluted shares are not adjusted for: | ||
Antidilutive securities excluded (in shares) | 4,342 | 4,124 |
Series B Preferred Stock | ||
Net income (loss) allocated to common stockholders is not adjusted for: | ||
Dividends on preferred stock | $ 1,707 | $ 1,707 |
Weighted average diluted shares are not adjusted for: | ||
Antidilutive securities excluded (in shares) | 6,569 | 6,569 |
Advisory Services Incentive Fee Shares | ||
Weighted average diluted shares are not adjusted for: | ||
Antidilutive securities excluded (in shares) | 73 | 0 |
Derivative Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Derivative [Line Items] | |||
Aggregate principal balance on corresponding mortgage loans (in thousands) | $ 1,054,500 | $ 992,586 | |
Interest rate caps: | |||
Derivative [Line Items] | |||
Notional amount | $ 913,000 | $ 1,292,500 | |
Interest rate caps: | Minimum | |||
Derivative [Line Items] | |||
Strike rate | 3.00% | 2.43% | |
Interest rate caps: | Maximum | |||
Derivative [Line Items] | |||
Strike rate | 7.80% | 11.61% | |
Interest rate caps: | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | $ 177,500 | $ 150,000 | |
Cost of derivative | $ 55 | $ 67 | |
Interest rate caps: | Not Designated as Hedging Instrument | Minimum | |||
Derivative [Line Items] | |||
Strike rate | 3.00% | 2.43% | |
Interest rate caps: | Not Designated as Hedging Instrument | Maximum | |||
Derivative [Line Items] | |||
Strike rate | 7.80% | 7.80% | |
Interest rate floors: | |||
Derivative [Line Items] | |||
Notional amount | $ 11,250,000 | $ 10,850,000 | |
Interest rate floors: | Minimum | |||
Derivative [Line Items] | |||
Strike rate floor | (0.25%) | (0.25%) | |
Interest rate floors: | Maximum | |||
Derivative [Line Items] | |||
Strike rate | 2.00% | 2.00% | |
Interest rate floors: | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | $ 2,000,000 | $ 0 | |
Strike rate | 1.63% | 0.00% | |
Cost of derivative | $ 75 | $ 0 | |
Credit Default Swap | |||
Derivative [Line Items] | |||
Notional amount | 50,000 | ||
Maximum exposure | 1,700 | ||
Change in market value threshold for settlement | 250 | ||
Mortgages | |||
Derivative [Line Items] | |||
Aggregate principal balance on corresponding mortgage loans (in thousands) | $ 845,500 | $ 805,500 |
Fair Value Measurements (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Significance of current credit spreads to level 3 input considerations | 10.00% | ||
LIBOR rate | 2.495% | 2.503% | |
Derivative assets | $ 815 | $ 772 | |
Derivative | 815 | ||
Investment in unconsolidated entity | 1,872 | 1,766 | |
Counterparty and Cash Collateral Netting | 980 | 130 | |
Total | 11,636 | ||
Total | 10,886 | ||
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Gain (Loss) Recognized in Income | (230) | $ 601 | |
Ashford Inc. | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in unconsolidated entity | 10,821 | 10,114 | |
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Unrealized gain (loss) on investment in Ashford Inc. | 707 | 528 | |
Investment in Affiliate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-derivative assets | 10,821 | 10,114 | |
Derivative Financial Instruments, Assets | |||
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Gain (Loss) Recognized in Income | (937) | 73 | |
Non-Derivative Assets | |||
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Gain (Loss) Recognized in Income | (230) | 601 | |
Derivative | |||
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Gain (Loss) Recognized in Income | (872) | 73 | |
Interest rate floors: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 179 | 149 | |
Counterparty and Cash Collateral Netting | 96 | 73 | |
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Gain (Loss) Recognized in Income | (3) | (27) | |
Interest rate floors: | Other Income (Expense) | |||
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Gain (Loss) Recognized in Income | (65) | 0 | |
Interest rate floors: | Derivative Financial Instruments, Assets | |||
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Gain (Loss) Recognized in Income | (68) | (27) | |
Interest rate caps: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 4 | 20 | |
Counterparty and Cash Collateral Netting | 0 | 0 | |
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Gain (Loss) Recognized in Income | (71) | (5) | |
Interest rate caps: | Derivative Financial Instruments, Assets | |||
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Gain (Loss) Recognized in Income | (71) | (5) | |
Credit Default Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 632 | ||
Counterparty and Cash Collateral Netting | 884 | ||
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Gain (Loss) Recognized in Income | (798) | 105 | |
Credit Default Swap | Derivative Financial Instruments, Assets | |||
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||
Gain (Loss) Recognized in Income | (798) | 105 | |
Derivative cost | 63 | $ 63 | |
Future | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 603 | ||
Counterparty and Cash Collateral Netting | 57 | ||
Quoted Market Prices (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | ||
Derivative | 0 | ||
Total | 10,821 | ||
Total | 10,114 | ||
Quoted Market Prices (Level 1) | Investment in Affiliate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-derivative assets | 10,821 | 10,114 | |
Quoted Market Prices (Level 1) | Interest rate floors: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Quoted Market Prices (Level 1) | Interest rate caps: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Quoted Market Prices (Level 1) | Credit Default Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | ||
Quoted Market Prices (Level 1) | Future | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | ||
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 642 | ||
Derivative | (165) | ||
Total | (165) | ||
Total | 642 | ||
Significant Other Observable Inputs (Level 2) | Investment in Affiliate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-derivative assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Interest rate floors: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 83 | 76 | |
Significant Other Observable Inputs (Level 2) | Interest rate caps: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 4 | 20 | |
Significant Other Observable Inputs (Level 2) | Credit Default Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | (252) | ||
Significant Other Observable Inputs (Level 2) | Future | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 546 | ||
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | ||
Derivative | 0 | ||
Total | 0 | ||
Total | 0 | ||
Significant Unobservable Inputs (Level 3) | Investment in Affiliate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-derivative assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Interest rate floors: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Interest rate caps: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Credit Default Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | $ 0 | ||
Significant Unobservable Inputs (Level 3) | Future | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | $ 0 | ||
LIBOR | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Forward interest rate | 0.02001 |
Summary of Fair Value of Financial Instruments (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Financial assets and liabilities measured at fair value: | ||||
Investment in unconsolidated entity | $ 1,872 | $ 1,766 | ||
Derivative assets | 815 | 772 | ||
Derivative assets, Estimated fair value | 815 | 772 | ||
Financial assets not measured at fair value: | ||||
Cash and cash equivalents, Carrying value | 73,802 | 182,578 | $ 95,223 | $ 137,522 |
Cash and cash equivalents, Estimated fair value | 73,802 | 182,578 | ||
Restricted cash, Carrying value | 86,309 | 75,910 | $ 63,385 | $ 47,820 |
Restricted cash, Estimated fair value | 86,309 | 75,910 | ||
Accounts receivable, Carrying value | 23,314 | 12,739 | ||
Accounts receivable, Estimated fair value | 23,314 | 12,739 | ||
Due from related party, net, Carrying value | 350 | 0 | ||
Due from related party, net, Estimated fair value | 350 | 0 | ||
Due from third-party hotel managers, Carrying value | 14,402 | 4,927 | ||
Due from third-party hotel managers, Estimated fair value | 14,402 | 4,927 | ||
Financial liabilities not measured at fair value: | ||||
Indebtedness, Carrying value | 1,054,500 | 992,586 | ||
Accounts payable and accrued expenses, Carrying value | 76,777 | 64,116 | ||
Accounts payable and accrued expenses, Estimated fair value | 76,777 | 64,116 | ||
Dividends and distributions payable, Carrying value | 9,174 | 8,514 | ||
Dividends and distributions payable, Estimated fair value | 9,174 | 8,514 | ||
Due to affiliate, net, Carrying Value | 5,114 | 4,001 | ||
Due to related party, net, Carrying value | 0 | 224 | ||
Due to related party, net, Estimated fair value | 0 | 224 | ||
Due to third-party hotel managers, Carrying value | 2,415 | 1,633 | ||
Due to third-party hotel managers, Estimated fair value | 2,415 | 1,633 | ||
Minimum | ||||
Financial liabilities not measured at fair value: | ||||
Indebtedness, Estimated fair value | 992,738 | 936,904 | ||
Maximum | ||||
Financial liabilities not measured at fair value: | ||||
Indebtedness, Estimated fair value | 1,097,239 | 1,035,526 | ||
Ashford Inc. | ||||
Financial liabilities not measured at fair value: | ||||
Due to Affiliate, Fair Value Disclosure | 5,114 | 4,001 | ||
Ashford Inc. | ||||
Financial assets and liabilities measured at fair value: | ||||
Investment in unconsolidated entity | $ 10,821 | $ 10,114 |
Summary of Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maximum maturity term of financial assets | 90 days | |
Indebtedness, Carrying value | $ 1,054,500 | $ 992,586 |
Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total indebtedness fair value variance from carrying value (as a percent) | 94.10% | 94.40% |
Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total indebtedness fair value variance from carrying value (as a percent) | 104.10% | 104.30% |
Redeemable Noncontrolling Interests in Operating Partnership (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Noncontrolling Interest [Line Items] | |||
Redeemable noncontrolling interests in Braemar OP | $ 51,010 | $ 44,885 | |
Adjustments to redeemable noncontrolling interests | $ (7,935) | ||
Ownership percentage of operating partnership | 25.00% | 25.00% | |
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | $ 440 | $ (292) | |
Aggregate distributions to holders of common units, LTIP units and performance LTIP units | 778 | 822 | |
Braemar OP | |||
Noncontrolling Interest [Line Items] | |||
Adjustments to redeemable noncontrolling interests | $ 7,958 | 23 | |
Ownership percentage of operating partnership | 11.12% | 11.22% | |
Advisory services | |||
Noncontrolling Interest [Line Items] | |||
Equity-based compensation expense | $ 550 | 144 | |
Performance Long Term Incentive Plan Units | |||
Noncontrolling Interest [Line Items] | |||
Other than options (in shares) | 552 | ||
Units which have not reached full economic parity with the common units (in shares) | 60 | ||
Compensation not yet recognized | $ 1,900 | ||
Period for recognition | 2 years 9 months 18 days | ||
Weighted period of recognition | 1 year 4 months 24 days | ||
Performance Long Term Incentive Plan Units | Advisory services | |||
Noncontrolling Interest [Line Items] | |||
Equity-based compensation expense | $ 257 | 8 | |
Performance Long Term Incentive Plan Units | Minimum | |||
Noncontrolling Interest [Line Items] | |||
Award performance target | 0.00% | ||
Performance Long Term Incentive Plan Units | Maximum | |||
Noncontrolling Interest [Line Items] | |||
Award performance target | 200.00% | ||
Long Term Incentive Plan Units | |||
Noncontrolling Interest [Line Items] | |||
Award vesting period | 3 years | ||
Other than options (in shares) | 2,000 | ||
Units which have not reached full economic parity with the common units (in shares) | 86 | ||
Compensation not yet recognized | $ 2,600 | ||
Period for recognition | 2 years 10 months 24 days | ||
Weighted period of recognition | 1 year 10 months 24 days | ||
Long Term Incentive Plan Units | Advisory services | |||
Noncontrolling Interest [Line Items] | |||
Equity-based compensation expense | $ 293 | $ 136 | |
Operating Partnership Units | |||
Noncontrolling Interest [Line Items] | |||
Common units redeemed (in shares) | 110 | 0 | |
Redemption/conversion of operating partnership units | $ 1,434 | $ 0 |
Equity and Stock-Based Compensation (Details) |
3 Months Ended | 53 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2019
USD ($)
hotel
$ / shares
shares
|
Mar. 31, 2018
USD ($)
shares
|
Mar. 31, 2019
USD ($)
hotel
$ / shares
shares
|
Dec. 31, 2018
USD ($)
hotel
$ / shares
|
Dec. 11, 2017
USD ($)
|
Dec. 05, 2017
USD ($)
$ / shares
|
|
Class of Stock [Line Items] | ||||||
Dividends declared - common stock | $ 5,329,000 | $ 5,275,000 | ||||
Dividends declared – preferred stock | $ 825,000 | 0 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Value of stock repurchased during period | $ 202,000 | 74,000 | ||||
At-the-market equity distribution program, authorized amount | $ 50,000,000 | |||||
At-the-market equity distribution program, shares sold (in shares) | shares | 0 | 0 | ||||
Noncontrolling interest in a consolidated entity | 25.00% | 25.00% | 25.00% | |||
Number of hotel properties with JV interests | hotel | 2 | 2 | 2 | |||
Noncontrolling interest in consolidated entities | $ (5,292,000) | $ (5,292,000) | $ (5,391,000) | |||
(Income) loss attributable to noncontrolling interests in consolidated entities | $ (99,000) | $ 42,000 | ||||
Stock Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Share repurchase program authorized amount | $ 50,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||
Shares of stock repurchased during period (in shares) | shares | 0 | 0 | 4,300,000 | |||
Value of stock repurchased during period | $ 63,200,000 | |||||
Advisory services | ||||||
Class of Stock [Line Items] | ||||||
Equity-based compensation expense | $ 550,000 | $ 144,000 | ||||
Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Award service period | 3 years | |||||
Compensation not yet recognized | $ 6,100,000 | 6,100,000 | ||||
Period for recognition | 2 years 9 months 18 days | |||||
Weighted period of recognition | 2 years 1 month 6 days | |||||
Performance Shares | Advisory services | ||||||
Class of Stock [Line Items] | ||||||
Equity-based compensation expense | $ 410,000 | 1,577,000 | ||||
Performance Shares | Executive Officer | ||||||
Class of Stock [Line Items] | ||||||
Equity-based compensation expense | 1,600,000 | |||||
Restricted Stock | ||||||
Class of Stock [Line Items] | ||||||
Equity-based compensation expense | 568,000 | 872,000 | ||||
Compensation not yet recognized | $ 6,400,000 | $ 6,400,000 | ||||
Period for recognition | 2 years 10 months 24 days | |||||
Weighted period of recognition | 2 years 4 months 24 days | |||||
Restricted Stock | Advisory services | ||||||
Class of Stock [Line Items] | ||||||
Equity-based compensation expense | $ 510,000 | 825,000 | ||||
Restricted Stock | Management fees | ||||||
Class of Stock [Line Items] | ||||||
Equity-based compensation expense | 39,000 | 47,000 | ||||
Restricted Stock | Corporate General and Administrative Expense | ||||||
Class of Stock [Line Items] | ||||||
Equity-based compensation expense | 19,000 | $ 0 | ||||
Restricted Stock | Executive Officer | ||||||
Class of Stock [Line Items] | ||||||
Equity-based compensation expense | $ 640,000 | |||||
Minimum | Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Award performance target | 0.00% | |||||
Maximum | Performance Shares | ||||||
Class of Stock [Line Items] | ||||||
Award performance target | 200.00% | |||||
Series D Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Dividends declared – preferred stock | $ 825,000 | |||||
Annual preferred stock dividend (in dollars per share) | $ / shares | $ 2.0625 |
5.5% Series B Cumulative Convertible Preferred Stock (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 07, 2017 |
Mar. 31, 2019
USD ($)
day
$ / shares
shares
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2018
shares
|
|
Class of Stock [Line Items] | ||||
Series B Convertible Preferred Stock | $ | $ 2,532 | $ 1,707 | ||
Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividend rate | 5.50% | 5.50% | ||
Initial conversion price (in dollars per share) | $ 18.90 | |||
Preferred stock conversion rate | 1.3228 | |||
Consecutive trading days | day | 45 | |||
Days ending prior to notice of conversion | 3 days | |||
Redemption price (in dollars per share) | $ 25.00 | |||
Liquidation preference per share (in dollars per share) | $ 25.00 | |||
Redemption percent of liquidation preference | 103.00% | |||
Series B preferred stock, shares outstanding (in shares) | shares | 4,965,850 | 4,965,850 | ||
Annual preferred stock dividend (in dollars per share) | $ 1.375 | |||
Series B Convertible Preferred Stock | $ | $ 1,707 | |||
Series B Preferred Stock | Minimum | ||||
Class of Stock [Line Items] | ||||
Percent of conversion price | 110.00% |
Commitments and Contingencies - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Restricted Cash | Minimum | |
Commitments and Contingencies [Line Items] | |
Replacement reserve escrow as percentage of property revenue | 4.00% |
Restricted Cash | Maximum | |
Commitments and Contingencies [Line Items] | |
Replacement reserve escrow as percentage of property revenue | 5.00% |
Management fees | Minimum | |
Commitments and Contingencies [Line Items] | |
Property management fee, percent | 2.00% |
Management fees | Maximum | |
Commitments and Contingencies [Line Items] | |
Property management fee, percent | 7.00% |
Management fees | Minimum | |
Commitments and Contingencies [Line Items] | |
Monthly property management fee | $ 14,000 |
Property management fee, percent | 3.00% |
Segment Reporting (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Related Party Transactions (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jan. 15, 2019
USD ($)
|
Mar. 31, 2019
USD ($)
hotel
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Related Party Transaction [Line Items] | |||||
Term of agreement | 3 years | ||||
Base fee, net asset fee adjustment | 0.70% | 0.70% | |||
Minimum base fee | 90.00% | ||||
Advisory services fee | $ 6,024 | $ 5,244 | |||
Due to Ashford Inc. | $ 5,114 | $ 4,001 | |||
Number of hotel properties managed by related party | hotel | 3 | ||||
Number of hotels | hotel | 13 | ||||
Maximum Project Management Fee As Percentage Of Project Cost | 4.00% | ||||
Advisory Agreement, Architecture Fees | 6.50% | ||||
Advisory Agreement, Construction Management Fees | 10.00% | ||||
Advisory Agreement, Interior Design Fees | 6.00% | ||||
Advisory Agreement, FF&E Purchasing Fees | 8.00% | ||||
Advisory Agreement, FF&E Purchasing Fees, Freight and Tax Threshold | $ 2,000 | ||||
Advisory Agreement, FF&E Purchasing Fees, with Freight and Tax Threshold | 6.00% | ||||
Advisory Agreement, FF&E Purchasing Fees, with Freight and Tax Threshold in Excess | $ 2,000 | ||||
Advisory services | |||||
Related Party Transaction [Line Items] | |||||
Equity-based compensation expense | $ 550 | 144 | |||
Restricted Stock | |||||
Related Party Transaction [Line Items] | |||||
Equity-based compensation expense | 568 | 872 | |||
Compensation not yet recognized | $ 6,400 | ||||
Period for recognition | 2 years 10 months 24 days | ||||
Restricted Stock | Advisory services | |||||
Related Party Transaction [Line Items] | |||||
Equity-based compensation expense | $ 510 | 825 | |||
Restricted Stock | Management fees | |||||
Related Party Transaction [Line Items] | |||||
Equity-based compensation expense | 39 | 47 | |||
Ashford Inc. | |||||
Related Party Transaction [Line Items] | |||||
Key money consideration | $ 2,000 | ||||
Remington Lodging | |||||
Related Party Transaction [Line Items] | |||||
Property management fees, including incentive property management fees | 409 | 438 | |||
Market service and project management fees | 0 | 1,369 | |||
Corporate general and administrative expenses | 87 | 82 | |||
Total | 496 | 1,889 | |||
Remington Lodging | Restricted Stock | |||||
Related Party Transaction [Line Items] | |||||
Compensation not yet recognized | $ 461 | ||||
Period for recognition | 2 years 10 months 24 days | ||||
OpenKey | Mobile key app | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | $ 5 | 8 | |||
Due to Ashford Inc. | 12 | 13 | |||
Pure Wellness | Hypoallergenic premium rooms | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 29 | 9 | |||
Due to Ashford Inc. | 17 | 30 | |||
Pure Wellness | Hypoallergenic premium rooms | Investments in Hotel Properties, Net | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 17 | ||||
Pure Wellness | Hypoallergenic premium rooms | Other Hotel Expenses | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 12 | ||||
RED Leisure | Watersports activities and travel/transportation services | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 180 | 180 | |||
Premier | Project management services | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 3,553 | ||||
Due to Ashford Inc. | 2,071 | 1,657 | |||
Premier | Project management services | Investments in Hotel Properties, Net | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 3,441 | ||||
Premier | Project management services | Advisory services | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 112 | ||||
Lismore Capital | Mortgage placement services | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 275 | ||||
Ashford LLC | |||||
Related Party Transaction [Line Items] | |||||
ERFP Agreement, Commitment | $ 50,000 | ||||
ERFP Agreement, Commitment with Increase | $ 100,000 | ||||
ERFP Agreement, Percent of Property Acquisition Price | 10.00% | ||||
ERFP Agreement, Funding Term | 2 years | ||||
ERFP Agreement, Initial Term | 2 years | ||||
ERFP Agreement, Renewal Term | 1 year | ||||
ERFP Agreement, Notice Term | 60 days | ||||
ERFP Agreement, Amount Due | $ 10,300 | ||||
Ashford LLC | Insurance claims services | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 30 | 38 | |||
Due to Ashford Inc. | 30 | 37 | |||
Ashford LLC | Advisory services | |||||
Related Party Transaction [Line Items] | |||||
Due to Ashford Inc. | 2,940 | 2,264 | |||
Ashford LLC | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Advisory services fee | 6,024 | 5,244 | |||
Ashford LLC | Affiliated Entity | Base advisory fee | |||||
Related Party Transaction [Line Items] | |||||
Advisory services fee | 2,660 | 2,107 | |||
Ashford LLC | Affiliated Entity | Reimbursable expenses | |||||
Related Party Transaction [Line Items] | |||||
Advisory services fee | 580 | 420 | |||
Ashford LLC | Affiliated Entity | Equity-based compensation | |||||
Related Party Transaction [Line Items] | |||||
Advisory services fee | 1,470 | 2,547 | |||
Ashford LLC | Affiliated Entity | Incentive fee | |||||
Related Party Transaction [Line Items] | |||||
Advisory services fee | 1,314 | $ 170 | |||
J&S | Audio visual services | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 79 | ||||
Due to Ashford Inc. | $ 44 | $ 0 |
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