XML 23 R9.htm IDEA: XBRL DOCUMENT v3.4.0.3
Revenue Recognition
3 Months Ended
Mar. 31, 2016
Revenue Recognition  
Revenue Recognition

Note 3.  Revenue Recognition

 

We report hotel operating revenues for managed hotels in our condensed consolidated statements of comprehensive income. We generally recognize hotel operating revenues, consisting primarily of room and food and beverage sales, when goods and services are provided.

 

We recognize rental income from operating leases on a straight line basis over the term of the lease agreements except for one lease in which there is uncertainty regarding the collection of scheduled future rent increases.  Rental income includes $3,752 and $545 for the three months ended March 31, 2016 and 2015, respectively, of adjustments necessary to record scheduled rent increases under certain of our leases, the deferred rent obligations under our leases with TravelCenters of America LLC, or TA, and the estimated future payments to us by TA for the cost of removing underground storage tanks on a straight line basis.  See Note 10 for further information regarding our TA leases.  Due from related persons includes $32,766 and $29,122 and other assets, includes $1,949 and $1,841 of straight line rent receivables at March 31, 2016 and December 31, 2015, respectively.

 

We determine percentage rent due to us under our leases annually and recognize it when all contingencies have been met and the rent is earned. We had deferred estimated percentage rent of $260 and $1,240 for the three months ended March 31, 2016 and 2015, respectively. 

 

We own all the FF&E reserve escrows for our hotels. We report deposits by our third party tenants into the escrow accounts as FF&E reserve income.  We do not report the amounts which are escrowed as FF&E reserves for our managed hotels as FF&E reserve income.