Transactions with Related Parties

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Transactions with Related Parties

15. TRANSACTIONS WITH RELATED PARTIES

We are managed by our Manager pursuant to a management agreement, the current term of which expires on December 19, 2016, and will be automatically renewed for a one-year term each anniversary thereafter unless earlier terminated.

As of March 31, 2016, our consolidated balance sheet included $13.7 million of accrued management and incentive fees payable to our Manager. During the three months ended March 31, 2016, we paid $14.4 million, of management and incentive fees to our Manager, compared to $6.3 million during the same period of 2015. In addition, during the three months ended March 31, 2016, we reimbursed our Manager for $320,000 of expenses incurred on our behalf compared to $139,000 during the same period of 2015. As of March 31, 2016, our consolidated balance sheet includes $44,000 of preferred distributions payable by CT Legacy Partners to an affiliate of our Manager, compared to $83,000 as of December 31, 2015. During the three months ended March 31, 2016, CT Legacy Partners made aggregate preferred distributions of $224,000 to such affiliate, compared to $452,000 during the same period of 2015.

During the years ended December 31, 2015, 2014, and 2013, we issued 334,758, 337,941, and 339,431 shares of restricted class A common stock to our Manager under the 2013 Manager Plan, which had a grant date fair value of $9.3 million, $9.4 million, and $8.5 million, respectively. We did not issue any shares of restricted class A common stock to our Manager during the three months ended March 31, 2016. The shares of restricted class A common stock vest ratably in quarterly installments over three years from the date of issuance. During the three months ended March 31, 2016 and 2015, we recorded non-cash expense related to these shares of $2.1 million and $1.4 million, respectively. Refer to Note 13 for further discussion of our restricted class A common stock.

On May 8, 2015, a joint venture of CT Legacy Partners, certain affiliates of our Manager, and other non-affiliated parties, which we refer to as the Three-Pack JV, sold a hotel portfolio it owned to an investment vehicle managed by an affiliate of our Manager. We consented to the sale of the hotel portfolio by the Three-Pack JV, which will result in the ultimate liquidation of the Three-Pack JV and distribution of net sale proceeds to CT Legacy Partners in respect of its investment therein. An aggregate of $40.1 million of net sales proceeds has been received to date by CT Legacy Partners, of which $2.4 million was received during the three months ended March 31, 2016. As a result of the sale transaction, employees of our Manager, including certain of our executive officers, received incentive compensation payments totaling $2.7 million under the CT Legacy Partners Management Incentive Awards Plan, of which $2.5 million was paid during 2015, and the remaining $162,000 was paid during the three months ended March 31, 2016. All of the income from the sale of the hotel portfolio and related compensation expense was recorded during 2015. See Note 11 for further discussion of the CT Legacy Partners Management Incentive Awards Plan.

During the three months ended March 31, 2016 and 2015, we incurred $90,000 and $75,000, respectively, of expenses for various administrative and capital market data services to third-party service providers that are affiliates of our Manager.