☒ |
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 FOR THE TRANSITION PERIOD FROM _______ TO _______
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Virginia
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26-1379210
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|
(State or other jurisdiction
of incorporation or organization)
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(I.R.S. Employer
Identification No.)
|
|
814 East Main Street
Richmond, Virginia
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23219
|
|
(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer ☒
|
|
Accelerated filer ☐
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|
Non-accelerated filer ☐
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|
Smaller reporting company ☐
|
|
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(Do not check if a smaller
reporting company)
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Page Number
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||||
PART I. FINANCIAL INFORMATION
|
||||
Item 1.
|
||||
3
|
||||
4
|
||||
5
|
||||
6
|
||||
Item 2.
|
22 | |||
Item 3.
|
42 | |||
Item 4.
|
42 | |||
PART II. OTHER INFORMATION
|
||||
Item 1.
|
43
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|||
Item 1A.
|
Risk Factors | 44 | ||
Item 6.
|
45
|
|||
46
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September 30,
|
December 31,
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|||||||
2016
|
2015
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Investment in real estate, net of accumulated depreciation
of $526,973 and $423,057, respectively
|
$
|
4,894,216
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$
|
3,641,767
|
||||
Restricted cash-furniture, fixtures and other escrows
|
31,953
|
22,651
|
||||||
Due from third party managers, net
|
50,973
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24,743
|
||||||
Other assets, net
|
41,551
|
33,614
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||||||
Total Assets
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$
|
5,018,693
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$
|
3,722,775
|
||||
Liabilities
|
||||||||
Revolving credit facility
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$
|
302,100
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$
|
114,800
|
||||
Term loans
|
570,670
|
421,444
|
||||||
Mortgage debt
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476,405
|
461,859
|
||||||
Accounts payable and other liabilities
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133,119
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77,614
|
||||||
Total Liabilities
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1,482,294
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1,075,717
|
||||||
Shareholders’ Equity
|
||||||||
Preferred stock, authorized 30,000,000 shares; none issued
and outstanding
|
0
|
0
|
||||||
Common stock, no par value, authorized 800,000,000 shares;
issued and outstanding 223,406,001 and 174,368,340 shares, respectively
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4,461,589
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3,500,584
|
||||||
Accumulated other comprehensive loss
|
(9,991
|
)
|
(2,057
|
)
|
||||
Distributions greater than net income
|
(915,199
|
)
|
(851,469
|
)
|
||||
Total Shareholders’ Equity
|
3,536,399
|
2,647,058
|
||||||
Total Liabilities and Shareholders’ Equity
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$
|
5,018,693
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$
|
3,722,775
|
|
Three Months Ended
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Nine Months Ended
|
||||||||||||||
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September 30,
|
September 30,
|
||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Revenues:
|
||||||||||||||||
Room
|
$
|
255,269
|
$
|
221,978
|
$
|
698,759
|
$
|
628,982
|
||||||||
Other
|
21,202
|
18,577
|
59,835
|
56,299
|
||||||||||||
Total revenue
|
276,471
|
240,555
|
758,594
|
685,281
|
||||||||||||
|
||||||||||||||||
Expenses:
|
||||||||||||||||
Operating
|
69,082
|
59,024
|
187,370
|
170,781
|
||||||||||||
Hotel administrative
|
20,866
|
17,684
|
57,921
|
52,248
|
||||||||||||
Sales and marketing
|
21,329
|
18,524
|
59,244
|
53,502
|
||||||||||||
Utilities
|
10,543
|
9,505
|
25,862
|
25,222
|
||||||||||||
Repair and maintenance
|
10,478
|
9,245
|
29,167
|
27,771
|
||||||||||||
Franchise fees
|
11,834
|
10,360
|
32,212
|
29,069
|
||||||||||||
Management fees
|
9,205
|
8,491
|
26,189
|
24,081
|
||||||||||||
Property taxes, insurance and other
|
14,787
|
10,450
|
40,315
|
33,727
|
||||||||||||
Ground lease
|
2,615
|
2,496
|
7,587
|
7,504
|
||||||||||||
General and administrative
|
2,623
|
5,175
|
12,511
|
14,421
|
||||||||||||
Transaction costs
|
36,452
|
842
|
37,861
|
7,891
|
||||||||||||
Loss on impairment of depreciable real estate assets
|
5,471
|
0
|
5,471
|
0
|
||||||||||||
Depreciation
|
37,343
|
32,351
|
104,651
|
94,205
|
||||||||||||
Total expenses
|
252,628
|
184,147
|
626,361
|
540,422
|
||||||||||||
|
||||||||||||||||
Operating income
|
23,843
|
56,408
|
132,233
|
144,859
|
||||||||||||
|
||||||||||||||||
Interest and other expense, net
|
(10,156
|
)
|
(9,302
|
)
|
(28,519
|
)
|
(24,265
|
)
|
||||||||
Gain on sale of real estate
|
0
|
0
|
0
|
15,358
|
||||||||||||
|
||||||||||||||||
Income before income taxes
|
13,687
|
47,106
|
103,714
|
135,952
|
||||||||||||
|
||||||||||||||||
Income tax benefit (expense)
|
7
|
(138
|
)
|
(616
|
)
|
(872
|
)
|
|||||||||
|
||||||||||||||||
Net income
|
$
|
13,694
|
$
|
46,968
|
$
|
103,098
|
$
|
135,080
|
||||||||
|
||||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Unrealized gain (loss) on interest rate derivatives
|
4,261
|
(5,978
|
)
|
(7,934
|
)
|
(6,437
|
)
|
|||||||||
Cash flow hedge losses reclassified to earnings
|
0
|
0
|
0
|
785
|
||||||||||||
|
||||||||||||||||
Comprehensive income
|
$
|
17,955
|
$
|
40,990
|
$
|
95,164
|
$
|
129,428
|
||||||||
|
||||||||||||||||
Basic and diluted net income per common share
|
$
|
0.07
|
$
|
0.27
|
$
|
0.57
|
$
|
0.74
|
||||||||
|
||||||||||||||||
Weighted average common shares outstanding - basic and diluted
|
190,563
|
175,069
|
180,004
|
182,247
|
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2016
|
2015
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
103,098
|
$
|
135,080
|
||||
Adjustments to reconcile net income to cash provided
by operating activities:
|
||||||||
Depreciation
|
104,651
|
94,205
|
||||||
Loss on impairment of depreciable real estate assets
|
5,471
|
0
|
||||||
Gain on sale of real estate
|
0
|
(15,358
|
)
|
|||||
Other non-cash expenses, net
|
4,806
|
4,998
|
||||||
Changes in operating assets and liabilities, net of amounts
acquired or assumed with acquisitions:
|
||||||||
Increase in due from third party managers, net
|
(14,350
|
)
|
(15,520
|
)
|
||||
Increase in other assets, net
|
(1,014
|
)
|
(4,632
|
)
|
||||
Increase in accounts payable and other liabilities
|
35,309
|
6,389
|
||||||
Net cash provided by operating activities
|
237,971
|
205,162
|
||||||
Cash flows from investing activities:
|
||||||||
Cash consideration in Apple Ten merger
|
(93,590
|
)
|
0
|
|||||
Acquisition of hotel properties, net
|
(23,994
|
)
|
(213,189
|
)
|
||||
Deposits and other disbursements for potential acquisitions
|
0
|
(1,130
|
)
|
|||||
Capital improvements and development costs
|
(47,523
|
)
|
(40,054
|
)
|
||||
Decrease in capital improvement reserves
|
2,459
|
7,351
|
||||||
Net proceeds from sale of hotel properties
|
0
|
205,154
|
||||||
Net cash used in investing activities
|
(162,648
|
)
|
(41,868
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repurchases of common shares
|
(361
|
)
|
(236,718
|
)
|
||||
Repurchases of common shares to satisfy employee withholding requirements
|
(459
|
)
|
0
|
|||||
Equity issuance costs
|
(1,176
|
)
|
0
|
|||||
Distributions paid to common shareholders
|
(161,940
|
)
|
(176,814
|
)
|
||||
Net proceeds from (payments on) revolving credit facility
|
187,300
|
(16,100
|
)
|
|||||
Payments on extinguished credit facility
|
(111,100
|
)
|
0
|
|||||
Proceeds from term loans
|
150,000
|
425,000
|
||||||
Repayment of term loan
|
0
|
(100,000
|
)
|
|||||
Proceeds from mortgage debt
|
24,000
|
38,000
|
||||||
Payments of mortgage debt
|
(157,823
|
)
|
(89,547
|
)
|
||||
Financing costs
|
(3,764
|
)
|
(7,010
|
)
|
||||
Net cash used in financing activities
|
(75,323
|
)
|
(163,189
|
)
|
||||
Increase in cash and cash equivalents
|
0
|
105
|
||||||
Cash and cash equivalents, beginning of period
|
0
|
0
|
||||||
Cash and cash equivalents, end of period
|
$
|
0
|
$
|
105
|
||||
Supplemental cash flow information:
|
||||||||
Interest paid
|
$
|
30,192
|
$
|
25,230
|
||||
Supplemental disclosure of noncash investing and financing activities:
|
||||||||
Stock consideration in Apple Ten merger (see details in note 2)
|
$
|
956,086
|
$
|
0
|
||||
Accrued distribution to common shareholders
|
$
|
22,325
|
$
|
17,440
|
Purchase Price Allocation
|
||||
Assets:
|
||||
Land
|
$
|
151,200
|
||
Building and improvements
|
1,065,859
|
|||
Furniture, fixtures and equipment
|
75,445
|
|||
Franchise fees
|
2,917
|
|||
Investment in real estate
|
1,295,421
|
|||
Restricted cash, due from third party managers and other assets
|
33,579
|
|||
Total assets
|
1,329,000
|
|||
Liabilities:
|
||||
Credit facility
|
111,100
|
|||
Mortgage debt
|
151,885
|
|||
Accounts payable and other liabilities
|
16,339
|
|||
Total liabilities
|
279,324
|
|||
Fair value estimate of net assets acquired (total consideration paid)
|
$
|
1,049,676
|
2016 (October - December)
|
$
|
82
|
||
2017
|
409
|
|||
2018
|
435
|
|||
2019
|
440
|
|||
2020
|
440
|
|||
Thereafter
|
60,099
|
|||
Total
|
$
|
61,905
|
||
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Total revenue
|
$
|
325,924
|
$
|
309,835
|
$
|
949,760
|
$
|
885,015
|
||||||||
Net income
|
$
|
59,981
|
$
|
61,057
|
$
|
177,183
|
$
|
173,419
|
||||||||
Basic and diluted net income per common share
|
$
|
0.27
|
$
|
0.27
|
$
|
0.79
|
$
|
0.75
|
||||||||
Weighted average common shares outstanding - basic and diluted
|
223,403
|
223,799
|
223,399
|
230,977
|
September 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Land
|
$
|
713,559
|
$
|
561,630
|
||||
Building and Improvements
|
4,304,705
|
3,200,918
|
||||||
Furniture, Fixtures and Equipment
|
391,151
|
293,444
|
||||||
Franchise Fees
|
11,774
|
8,832
|
||||||
5,421,189
|
4,064,824
|
|||||||
Less Accumulated Depreciation
|
(526,973
|
)
|
(423,057
|
)
|
||||
Investment in Real Estate, net
|
$
|
4,894,216
|
$
|
3,641,767
|
City
|
State
|
Brand
|
Manager
|
Date Acquired
|
Rooms
|
Gross Purchase
Price (1)
|
||||||||||
Fort Lauderdale
|
FL
|
Hampton Inn
|
LBA
|
6/23/2015
|
156
|
$
|
23,000
|
|||||||||
Cypress
|
CA
|
Hampton Inn
|
Dimension
|
6/29/2015
|
110
|
19,800
|
||||||||||
Burbank
|
CA
|
SpringHill Suites
|
Marriott
|
7/13/2015
|
170
|
60,000
|
||||||||||
Burbank
|
CA
|
Courtyard
|
Huntington
|
8/11/2015
|
190
|
54,000
|
||||||||||
San Diego
|
CA
|
Courtyard
|
Huntington
|
9/1/2015
|
245
|
56,000
|
||||||||||
871
|
$
|
212,800
|
(1) At the date of purchase, the purchase price for each of these properties was funded through the Company’s revolving credit facility with availability provided primarily from the proceeds from the sale of properties discussed in Note 4. No goodwill was recorded in connection with any of the acquisitions.
|
Location
|
Brand
|
Date of Purchase Contract
|
Rooms
|
Refundable Deposits
|
Gross Purchase Price
|
|||||||||||
Birmingham, AL (a)(b)
|
Home2 Suites
|
8/28/2015
|
105
|
$
|
3
|
$
|
19,219
|
|||||||||
Birmingham, AL (a)(b)
|
Hilton Garden Inn
|
8/28/2015
|
105
|
2
|
19,219
|
|||||||||||
Fort Worth, TX (a)
|
Courtyard
|
8/28/2015
|
124
|
5
|
18,034
|
|||||||||||
334
|
$
|
10
|
$
|
56,472
|
(a) As of September 30, 2016, these hotels were under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise brands. Assuming all conditions to closing are met, the purchases of these hotels are expected to close in the first half of 2017. If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing.
|
(b) The Home2 Suites and Hilton Garden Inn hotels in Birmingham, AL are part of an adjoining two-hotel complex located on the same site.
|
As of September 30, 2016
|
As of December 31, 2015
|
|||||||||||||||||||
Maturity Date
|
Outstanding Balance
|
Interest Rate
|
Outstanding Balance
|
Interest Rate
|
||||||||||||||||
Revolving credit facility (1)
|
5/18/2019
|
$
|
302,100
|
2.08
|
%
|
(2) |
$
|
114,800
|
1.98
|
%
|
(2) | |||||||||
Term loans
|
||||||||||||||||||||
$425 million term loans
|
5/18/2020
|
425,000
|
2.84
|
%
|
(3) |
425,000
|
2.81
|
%
|
(3) | |||||||||||
$50 million term loan
|
4/8/2021
|
50,000
|
2.54
|
%
|
(4) |
0
|
-
|
|||||||||||||
$100 million term loan
|
4/8/2023
|
100,000
|
3.13
|
%
|
(4) |
0
|
-
|
|||||||||||||
Total term loans at stated value
|
575,000
|
425,000
|
||||||||||||||||||
Unamortized debt issuance costs
|
(4,330
|
)
|
(3,556
|
)
|
||||||||||||||||
Total term loans
|
570,670
|
421,444
|
||||||||||||||||||
Total revolving credit facility and term loans
|
$
|
872,770
|
$
|
536,244
|
(1) Unamortized debt issuance costs related to the revolving credit facility totaled approximately $3.1 million and $4.0 million as of September 30, 2016 and December 31, 2015, respectively, and are included in other assets, net in the Company’s consolidated balance sheets.
|
|
(2) Annual variable interest rate at the balance sheet date.
|
|
(3) Effective annual interest rate which includes the effect of interest rate swaps on $322.5 million of the outstanding loan balance, resulting in an annual fixed interest rate of approximately 3.10% on this portion of the debt, subject to adjustment based on the Company’s leverage ratio. See Note 6 for more information on the interest rate swap agreements. Remaining portion is variable rate debt.
|
|
(4) Annual fixed interest rate at the balance sheet date which includes the effect of an interest rate swap on the outstanding loan balance, subject to adjustment based on the Company’s leverage ratio. See Note 6 for more information on the interest rate swap agreements.
|
Location
|
Brand
|
Interest
Rate (1)
|
Loan Assumption or Origination Date
|
Maturity
Date
|
Principal Assumed
or Originated
|
Outstanding balance as of September 30, 2016
|
Outstanding balance as of December 31, 2015
|
|||||||||||||||
Austin, TX
|
Homewood Suites
|
5.99
|
%
|
4/14/2009
|
|
(2) |
$
|
7,556
|
$
|
0
|
$
|
6,255
|
||||||||||
Austin, TX
|
Hampton Inn
|
5.95
|
%
|
4/14/2009
|
|
(2) |
7,553
|
0
|
6,247
|
|||||||||||||
Hilton Head, SC
|
Hilton Garden Inn
|
6.29
|
%
|
3/1/2014
|
|
(2) |
5,557
|
0
|
5,226
|
|||||||||||||
Round Rock, TX
|
Hampton Inn
|
5.95
|
%
|
3/6/2009
|
|
(2) |
4,175
|
0
|
3,457
|
|||||||||||||
Highlands Ranch, CO
|
Residence Inn
|
5.94
|
%
|
3/1/2014
|
|
(2) |
10,494
|
0
|
10,118
|
|||||||||||||
Texarkana, TX
|
Hampton Inn & Suites
|
6.90
|
%
|
1/31/2011
|
|
(2) |
4,954
|
0
|
4,578
|
|||||||||||||
Bristol, VA
|
Courtyard
|
6.59
|
%
|
11/7/2008
|
|
(2) |
9,767
|
0
|
8,747
|
|||||||||||||
Oceanside, CA
|
Residence Inn
|
4.24
|
%
|
(3) |
3/1/2014
|
|
(2) |
15,662
|
0
|
15,090
|
||||||||||||
Burbank, CA
|
Residence Inn
|
4.24
|
%
|
(3) |
3/1/2014
|
|
(2) |
23,493
|
0
|
22,635
|
||||||||||||
Malvern/Philadelphia, PA
|
Courtyard
|
6.50
|
%
|
11/30/2010
|
|
(2) |
7,894
|
0
|
6,912
|
|||||||||||||
Winston-Salem, NC
|
Courtyard
|
5.94
|
%
|
3/1/2014
|
|
(2) |
7,458
|
0
|
7,220
|
|||||||||||||
Virginia Beach, VA
|
Courtyard
|
6.02
|
%
|
3/1/2014
|
|
(2) |
13,931
|
0
|
13,399
|
|||||||||||||
Virginia Beach, VA
|
Courtyard
|
6.02
|
%
|
3/1/2014
|
|
(2) |
16,813
|
0
|
16,172
|
|||||||||||||
Charlottesville, VA
|
Courtyard
|
6.02
|
%
|
3/1/2014
|
|
(2) |
14,892
|
0
|
14,323
|
|||||||||||||
Carolina Beach, NC
|
Courtyard
|
6.02
|
%
|
3/1/2014
|
|
(2) |
12,009
|
0
|
11,551
|
|||||||||||||
Savannah, GA
|
Hilton Garden Inn
|
5.87
|
%
|
3/1/2014
|
|
(4) |
4,977
|
4,563
|
4,688
|
|||||||||||||
Scottsdale, AZ
|
Hilton Garden Inn
|
6.07
|
%
|
9/1/2016
|
|
(4) |
9,668
|
9,651
|
0
|
|||||||||||||
Lewisville, TX (5)
|
Hilton Garden Inn
|
0.00
|
%
|
10/16/2008
|
12/31/2016
|
3,750
|
2,000
|
2,000
|
||||||||||||||
Greenville, SC
|
Residence Inn
|
6.03
|
%
|
3/1/2014
|
2/8/2017
|
6,012
|
5,722
|
5,810
|
||||||||||||||
Birmingham, AL
|
Homewood Suites
|
6.03
|
%
|
3/1/2014
|
2/8/2017
|
10,908
|
10,382
|
10,541
|
||||||||||||||
Jacksonville, FL
|
Homewood Suites
|
6.03
|
%
|
3/1/2014
|
2/8/2017
|
15,856
|
15,091
|
15,322
|
||||||||||||||
Irving, TX
|
Homewood Suites
|
5.83
|
%
|
12/29/2010
|
4/11/2017
|
6,052
|
5,120
|
5,260
|
||||||||||||||
Gainesville, FL
|
Homewood Suites
|
5.89
|
%
|
9/1/2016
|
5/8/2017
|
12,051
|
12,031
|
0
|
||||||||||||||
Duncanville, TX
|
Hilton Garden Inn
|
5.88
|
%
|
10/21/2008
|
5/11/2017
|
13,966
|
12,197
|
12,401
|
||||||||||||||
San Juan Capistrano, CA
|
Residence Inn
|
4.15
|
%
|
9/1/2016
|
6/1/2020
|
16,210
|
16,184
|
0
|
||||||||||||||
Colorado Springs, CO
|
Hampton Inn & Suites
|
6.25
|
%
|
9/1/2016
|
7/6/2021
|
7,923
|
7,914
|
0
|
||||||||||||||
Franklin, TN
|
Courtyard
|
6.25
|
%
|
9/1/2016
|
8/6/2021
|
14,679
|
14,662
|
0
|
||||||||||||||
Franklin, TN
|
Residence Inn
|
6.25
|
%
|
9/1/2016
|
8/6/2021
|
14,679
|
14,662
|
0
|
||||||||||||||
Grapevine, TX
|
Hilton Garden Inn
|
4.89
|
%
|
8/29/2012
|
9/1/2022
|
11,810
|
10,779
|
10,986
|
||||||||||||||
Collegeville/Philadelphia, PA
|
Courtyard
|
4.89
|
%
|
8/30/2012
|
9/1/2022
|
12,650
|
11,546
|
11,768
|
||||||||||||||
Hattiesburg, MS
|
Courtyard
|
5.00
|
%
|
3/1/2014
|
9/1/2022
|
5,732
|
5,393
|
5,495
|
||||||||||||||
Rancho Bernardo, CA
|
Courtyard
|
5.00
|
%
|
3/1/2014
|
9/1/2022
|
15,060
|
14,168
|
14,436
|
||||||||||||||
Kirkland, WA
|
Courtyard
|
5.00
|
%
|
3/1/2014
|
9/1/2022
|
12,145
|
11,425
|
11,642
|
||||||||||||||
Seattle, WA
|
Residence Inn
|
4.96
|
%
|
3/1/2014
|
9/1/2022
|
28,269
|
26,584
|
27,091
|
||||||||||||||
Anchorage, AK
|
Embassy Suites
|
4.97
|
%
|
9/13/2012
|
10/1/2022
|
23,230
|
21,272
|
21,675
|
||||||||||||||
Somerset, NJ
|
Courtyard
|
4.73
|
%
|
3/1/2014
|
10/6/2022
|
8,750
|
8,216
|
8,376
|
||||||||||||||
Tukwila, WA
|
Homewood Suites
|
4.73
|
%
|
3/1/2014
|
10/6/2022
|
9,431
|
8,854
|
9,028
|
||||||||||||||
Prattville, AL
|
Courtyard
|
4.12
|
%
|
3/1/2014
|
2/6/2023
|
6,596
|
6,167
|
6,296
|
||||||||||||||
Huntsville, AL
|
Homewood Suites
|
4.12
|
%
|
3/1/2014
|
2/6/2023
|
8,306
|
7,766
|
7,928
|
||||||||||||||
San Diego, CA
|
Residence Inn
|
3.97
|
%
|
3/1/2014
|
3/6/2023
|
18,600
|
17,374
|
17,741
|
||||||||||||||
Miami, FL
|
Homewood Suites
|
4.02
|
%
|
3/1/2014
|
4/1/2023
|
16,677
|
15,591
|
15,915
|
||||||||||||||
New Orleans, LA
|
Homewood Suites
|
4.36
|
%
|
7/17/2014
|
8/11/2024
|
27,000
|
25,738
|
26,204
|
||||||||||||||
Westford, MA
|
Residence Inn
|
4.28
|
%
|
3/18/2015
|
4/11/2025
|
10,000
|
9,684
|
9,854
|
||||||||||||||
Dallas, TX
|
Hilton
|
3.95
|
%
|
5/22/2015
|
6/1/2025
|
28,000
|
27,375
|
27,754
|
||||||||||||||
Syracuse, NY
|
Courtyard
|
4.75
|
%
|
10/16/2015
|
8/1/2024
|
(6) |
11,199
|
10,970
|
11,158
|
|||||||||||||
Syracuse, NY
|
Residence Inn
|
4.75
|
%
|
10/16/2015
|
8/1/2024
|
(6) |
11,199
|
10,970
|
11,158
|
|||||||||||||
Denver, CO
|
Hilton Garden Inn
|
4.46
|
%
|
9/1/2016
|
6/11/2025
|
34,118
|
34,055
|
0
|
||||||||||||||
Oceanside, CA
|
Courtyard
|
4.28
|
%
|
9/1/2016
|
10/1/2025
|
13,655
|
13,636
|
0
|
||||||||||||||
Omaha, NE
|
Hilton Garden Inn
|
4.28
|
%
|
9/1/2016
|
10/1/2025
|
22,682
|
22,649
|
0
|
||||||||||||||
Boise, ID
|
Hampton Inn & Suites
|
4.37
|
%
|
5/26/2016
|
6/11/2026
|
24,000
|
23,908
|
0
|
||||||||||||||
$
|
658,048
|
474,299
|
462,457
|
|||||||||||||||||||
Unamortized fair value adjustment of assumed debt
|
5,666
|
1,284
|
||||||||||||||||||||
Unamortized debt issuance costs
|
(3,560
|
)
|
(1,882
|
)
|
||||||||||||||||||
Total
|
$
|
476,405
|
$
|
461,859
|
(1) Unless otherwise noted, these rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan.
|
(2) Loans were repaid in full during the nine months ended September 30, 2016.
|
(3) The annual fixed interest rate gives effect to an interest rate swap agreement assumed by the Company with the mortgage debt.
|
(4) Loans were repaid in full on November 1, 2016.
|
(5) Unsecured loan.
|
(6) Outstanding principal balance is callable by lender or prepayable by the Company on August 1, 2019.
|
2016 (October - December)
|
$
|
49,871
|
||
2017
|
38,502
|
|||
2018
|
9,785
|
|||
2019
|
332,477
|
|||
2020
|
449,788
|
|||
Thereafter
|
470,976
|
|||
1,351,399
|
||||
Unamortized fair value adjustment of assumed debt
|
5,666
|
|||
Unamortized debt issuance costs related to term loans and mortgage debt
|
(7,890
|
)
|
||
Total
|
$
|
1,349,175
|
|
|
Fair Value (Liability)
|
|||||||||||||||||||
Hedge Type
|
Notional Amount at
September 30, 2016 |
Assumption or
Origination Date |
Maturity
Date
|
Swap Fixed
Interest Rate
|
September 30,
2016
|
December 31,
2015
|
|||||||||||||||
Non-designated hedge
|
$
|
0
|
3/1/2014
|
|
(1)
|
1.10
|
%
|
$
|
0
|
$
|
(134
|
)
|
|||||||||
Cash flow hedge (2)
|
212,500
|
5/21/2015
|
5/18/2020
|
1.58
|
%
|
(5,319
|
)
|
(1,233
|
)
|
||||||||||||
Cash flow hedge (2)
|
110,000
|
7/2/2015
|
5/18/2020
|
1.62
|
%
|
(2,910
|
)
|
(824
|
)
|
||||||||||||
Cash flow hedge (2)
|
50,000
|
4/7/2016
|
3/31/2021
|
1.09
|
%
|
(298
|
)
|
0
|
|||||||||||||
Cash flow hedge (2)
|
100,000
|
4/7/2016
|
3/31/2023
|
1.33
|
%
|
(1,464
|
)
|
0
|
|||||||||||||
Cash flow hedge
|
0
|
5/9/2016
|
|
(3)
|
1.72
|
%
|
0
|
0
|
|||||||||||||
$
|
(9,991
|
)
|
$
|
(2,191
|
)
|
(1) On June 15, 2016, the Company repaid the related mortgage note and terminated this swap agreement. As part of this termination, the Company paid the fair value of the swap, approximately $0.1 million, to satisfy the outstanding liability at the time of termination.
|
(2) In May 2015 and July 2015, the Company entered into interest rate swap agreements with a commercial bank for the same notional amounts as its $212.5 million term loan and its $110 million term loan. In April 2016, the Company entered into forward interest rate swap agreements with a commercial bank, which beginning on September 30, 2016 effectively fixes the interest rate on the $50 million term loan and $100 million term loan. See Note 5 for more information on the term loans. Each of these swaps has been designated as a cash flow hedge for accounting purposes.
|
(3) In May 2016, the Company entered into an interest rate swap agreement with a commercial bank for the same notional amount as a $24 million variable-rate mortgage loan. On August 10, 2016, the lender exercised its option to convert the loan to a fixed-rate mortgage loan at 4.37% (the same annual fixed-rate as the swapped mortgage loan prior to the conversion) and simultaneously assumed the swap at no cost or further liability to the Company. Prior to the conversion, the swap was designated as a cash flow hedge for accounting purposes and the change in fair value, which resulted in an unrealized loss totaling approximately $1.0 million during the three months ended June 30, 2016, was recorded to other comprehensive income (loss). As a result of the conversion, the outstanding liability as of June 30, 2016 totaling approximately $1.0 million was recorded to other comprehensive income (loss) as an unrealized gain during the three months ended September 30, 2016.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||||||||||
(in thousands, except statistical data)
|
2016
|
Percent of Revenue
|
2015
|
Percent of Revenue
|
Percent
Change
|
2016
|
Percent of Revenue
|
2015
|
Percent of Revenue
|
Percent
Change
|
||||||||||||||||||||||||||||||
Total revenue
|
$
|
276,471
|
100.0
|
%
|
$
|
240,555
|
100.0
|
%
|
14.9
|
%
|
$
|
758,594
|
100.0
|
%
|
$
|
685,281
|
100.0
|
%
|
10.7
|
%
|
||||||||||||||||||||
Hotel operating expense
|
153,337
|
55.5
|
%
|
132,833
|
55.2
|
%
|
15.4
|
%
|
417,965
|
55.1
|
%
|
382,674
|
55.8
|
%
|
9.2
|
%
|
||||||||||||||||||||||||
Property taxes, insurance and other expense
|
14,787
|
5.3
|
%
|
10,450
|
4.3
|
%
|
41.5
|
%
|
40,315
|
5.3
|
%
|
33,727
|
4.9
|
%
|
19.5
|
%
|
||||||||||||||||||||||||
Ground lease expense
|
2,615
|
0.9
|
%
|
2,496
|
1.0
|
%
|
4.8
|
%
|
7,587
|
1.0
|
%
|
7,504
|
1.1
|
%
|
1.1
|
%
|
||||||||||||||||||||||||
General and administrative expense
|
2,623
|
0.9
|
%
|
5,175
|
2.2
|
%
|
-49.3
|
%
|
12,511
|
1.6
|
%
|
14,421
|
2.1
|
%
|
-13.2
|
%
|
||||||||||||||||||||||||
Transaction costs
|
36,452
|
842
|
n/a
|
|
37,861
|
7,891
|
n/a
|
|
||||||||||||||||||||||||||||||||
Loss on impairment of depreciable real estate assets
|
5,471
|
-
|
n/a
|
5,471
|
-
|
n/a
|
||||||||||||||||||||||||||||||||||
Depreciation expense
|
37,343
|
32,351
|
15.4
|
%
|
104,651
|
94,205
|
11.1
|
%
|
||||||||||||||||||||||||||||||||
Interest and other expense, net
|
10,156
|
9,302
|
9.2
|
%
|
28,519
|
24,265
|
17.5
|
%
|
||||||||||||||||||||||||||||||||
Gain on sale of real estate
|
-
|
-
|
n/a
|
-
|
15,358
|
n/a
|
||||||||||||||||||||||||||||||||||
Income tax (benefit) expense
|
(7
|
)
|
138
|
n/a
|
616
|
872
|
-29.4
|
%
|
||||||||||||||||||||||||||||||||
Number of hotels owned at end of period
|
236
|
177
|
33.3
|
%
|
236
|
177
|
33.3
|
%
|
||||||||||||||||||||||||||||||||
ADR
|
$
|
136.04
|
$
|
133.18
|
2.1
|
%
|
$
|
135.88
|
$
|
130.12
|
4.4
|
%
|
||||||||||||||||||||||||||||
Occupancy
|
80.2
|
%
|
80.5
|
%
|
-0.4
|
%
|
78.9
|
%
|
78.6
|
%
|
0.4
|
%
|
||||||||||||||||||||||||||||
RevPAR
|
$
|
109.07
|
$
|
107.19
|
1.8
|
%
|
$
|
107.18
|
$
|
102.23
|
4.8
|
%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2016
|
2015
|
Percent Change
|
2016
|
2015
|
Percent Change
|
|||||||||||||||||||
ADR
|
$
|
134.75
|
$
|
132.51
|
1.7
|
%
|
$
|
134.90
|
$
|
130.78
|
3.2
|
%
|
||||||||||||
Occupancy
|
80.1
|
%
|
80.3
|
%
|
-0.2
|
%
|
78.5
|
%
|
78.7
|
%
|
-0.3
|
%
|
||||||||||||
RevPAR
|
$
|
107.97
|
$
|
106.37
|
1.5
|
%
|
$
|
105.96
|
$
|
102.86
|
3.0
|
%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2016
|
2015
|
Percent Change
|
2016
|
2015
|
Percent Change
|
|||||||||||||||||||
ADR
|
$
|
136.50
|
$
|
133.91
|
1.9
|
%
|
$
|
136.04
|
$
|
131.32
|
3.6
|
%
|
||||||||||||
Occupancy
|
80.4
|
%
|
80.6
|
%
|
-0.2
|
%
|
78.9
|
%
|
79.0
|
%
|
-0.1
|
%
|
||||||||||||
RevPAR
|
$
|
109.76
|
$
|
107.93
|
1.7
|
%
|
$
|
107.35
|
$
|
103.70
|
3.5
|
%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2016
|
2015
|
Percent Change
|
2016
|
2015
|
Percent Change
|
|||||||||||||||||||
ADR
|
$
|
129.06
|
$
|
127.78
|
1.0
|
%
|
$
|
131.17
|
$
|
128.96
|
1.7
|
%
|
||||||||||||
Occupancy
|
79.2
|
%
|
79.2
|
%
|
0.0
|
%
|
77.4
|
%
|
77.6
|
%
|
-0.3
|
%
|
||||||||||||
RevPAR
|
$
|
102.25
|
$
|
101.16
|
1.1
|
%
|
$
|
101.48
|
$
|
100.08
|
1.4
|
%
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Net income
|
$
|
13,694
|
$
|
46,968
|
$
|
103,098
|
$
|
135,080
|
||||||||
Depreciation of real estate owned
|
37,114
|
32,121
|
103,962
|
93,516
|
||||||||||||
Gain on sale of real estate
|
-
|
-
|
-
|
(15,358
|
)
|
|||||||||||
Loss on impairment of depreciable real estate assets
|
5,471
|
-
|
5,471
|
-
|
||||||||||||
Amortization of favorable and unfavorable leases, net
|
132
|
133
|
513
|
2,289
|
||||||||||||
Funds from operations
|
56,411
|
79,222
|
213,044
|
215,527
|
||||||||||||
Transaction costs
|
36,452
|
842
|
37,861
|
7,891
|
||||||||||||
Non-cash straight-line ground lease expense
|
843
|
829
|
2,479
|
2,528
|
||||||||||||
Modified funds from operations
|
$
|
93,706
|
$
|
80,893
|
$
|
253,384
|
$
|
225,946
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Net income
|
$
|
13,694
|
$
|
46,968
|
$
|
103,098
|
$
|
135,080
|
||||||||
Depreciation
|
37,343
|
32,351
|
104,651
|
94,205
|
||||||||||||
Amortization of favorable and unfavorable leases, net
|
132
|
133
|
513
|
2,289
|
||||||||||||
Interest and other expense, net
|
10,156
|
9,302
|
28,519
|
24,265
|
||||||||||||
Income tax (benefit) expense
|
(7
|
)
|
138
|
616
|
872
|
|||||||||||
EBITDA
|
61,318
|
88,892
|
237,397
|
256,711
|
||||||||||||
Transaction costs
|
36,452
|
842
|
37,861
|
7,891
|
||||||||||||
Gain on sale of real estate
|
-
|
-
|
-
|
(15,358
|
)
|
|||||||||||
Loss on impairment of depreciable real estate assets
|
5,471
|
-
|
5,471
|
-
|
||||||||||||
Non-cash straight-line ground lease expense
|
843
|
829
|
2,479
|
2,528
|
||||||||||||
Adjusted EBITDA
|
$
|
104,084
|
$
|
90,563
|
$
|
283,208
|
$
|
251,772
|
Number of Hotels and Guest Rooms by Brand
|
||||||||
Number of
|
Number of
|
|||||||
Brand
|
Hotels
|
Rooms
|
||||||
Hilton Garden Inn
|
41
|
5,703
|
||||||
Courtyard
|
39
|
5,336
|
||||||
Hampton Inn
|
36
|
4,422
|
||||||
Homewood Suites
|
34
|
3,825
|
||||||
Residence Inn
|
32
|
3,696
|
||||||
SpringHill Suites
|
17
|
2,248
|
||||||
TownePlace Suites
|
12
|
1,197
|
||||||
Fairfield Inn
|
11
|
1,300
|
||||||
Home2 Suites
|
6
|
669
|
||||||
Marriott
|
4
|
1,158
|
||||||
Embassy Suites
|
2
|
316
|
||||||
Hilton
|
1
|
224
|
||||||
Renaissance
|
1
|
205
|
||||||
Total
|
236
|
30,299
|
Number of Hotels and Guest Rooms by State
|
||||||||
Number of
|
Number of
|
|||||||
State
|
Hotels
|
Rooms
|
||||||
Alabama
|
13
|
1,224
|
||||||
Alaska
|
1
|
169
|
||||||
Arizona
|
11
|
1,434
|
||||||
Arkansas
|
4
|
408
|
||||||
California
|
27
|
3,807
|
||||||
Colorado
|
4
|
567
|
||||||
Florida
|
23
|
2,851
|
||||||
Georgia
|
6
|
596
|
||||||
Idaho
|
2
|
416
|
||||||
Illinois
|
8
|
1,420
|
||||||
Indiana
|
4
|
479
|
||||||
Iowa
|
3
|
301
|
||||||
Kansas
|
4
|
422
|
||||||
Louisiana
|
4
|
541
|
||||||
Maryland
|
2
|
233
|
||||||
Massachusetts
|
4
|
466
|
||||||
Michigan
|
1
|
148
|
||||||
Minnesota
|
2
|
244
|
||||||
Mississippi
|
2
|
168
|
||||||
Missouri
|
4
|
544
|
||||||
Nebraska
|
4
|
621
|
||||||
New Jersey
|
5
|
629
|
||||||
New York
|
4
|
550
|
||||||
North Carolina
|
12
|
1,331
|
||||||
Ohio
|
2
|
252
|
||||||
Oklahoma
|
4
|
545
|
||||||
Pennsylvania
|
3
|
391
|
||||||
South Carolina
|
5
|
538
|
||||||
Tennessee
|
12
|
1,357
|
||||||
Texas
|
34
|
4,172
|
||||||
Utah
|
2
|
257
|
||||||
Virginia
|
16
|
2,609
|
||||||
Washington
|
4
|
609
|
||||||
Total
|
236
|
30,299
|
City
|
State
|
Brand
|
Manager
|
Date Acquired or Completed
|
Rooms
|
|||||||
Anchorage
|
AK
|
Embassy Suites
|
Stonebridge
|
4/30/2010
|
169
|
|||||||
Auburn
|
AL
|
Hilton Garden Inn
|
LBA
|
3/1/2014
|
101
|
|||||||
Birmingham
|
AL
|
Courtyard
|
LBA
|
3/1/2014
|
84
|
|||||||
Birmingham
|
AL
|
Homewood Suites
|
McKibbon
|
3/1/2014
|
95
|
|||||||
Dothan
|
AL
|
Hilton Garden Inn
|
LBA
|
6/1/2009
|
104
|
|||||||
Dothan
|
AL
|
Residence Inn
|
LBA
|
3/1/2014
|
84
|
|||||||
Huntsville
|
AL
|
Hampton Inn & Suites
|
LBA
|
9/1/2016
|
98
|
|||||||
Huntsville
|
AL
|
Hilton Garden Inn
|
LBA
|
3/1/2014
|
101
|
|||||||
Huntsville
|
AL
|
Home2 Suites
|
LBA
|
9/1/2016
|
77
|
|||||||
Huntsville
|
AL
|
Homewood Suites
|
LBA
|
3/1/2014
|
107
|
|||||||
Mobile
|
AL
|
Hampton Inn & Suites
|
McKibbon
|
9/1/2016
|
101
|
|||||||
Montgomery
|
AL
|
Hilton Garden Inn
|
LBA
|
3/1/2014
|
97
|
|||||||
Montgomery
|
AL
|
Homewood Suites
|
LBA
|
3/1/2014
|
91
|
|||||||
Prattville
|
AL
|
Courtyard
|
LBA
|
3/1/2014
|
84
|
|||||||
Rogers
|
AR
|
Hampton Inn
|
Raymond
|
8/31/2010
|
122
|
|||||||
Rogers
|
AR
|
Homewood Suites
|
Raymond
|
4/30/2010
|
126
|
|||||||
Rogers
|
AR
|
Residence Inn
|
Raymond
|
3/1/2014
|
88
|
|||||||
Springdale
|
AR
|
Residence Inn
|
Pillar
|
3/1/2014
|
72
|
|||||||
Chandler
|
AZ
|
Courtyard
|
North Central
|
11/2/2010
|
150
|
|||||||
Chandler
|
AZ
|
Fairfield Inn & Suites
|
North Central
|
11/2/2010
|
110
|
|||||||
Phoenix
|
AZ
|
Courtyard
|
North Central
|
11/2/2010
|
164
|
|||||||
Phoenix
|
AZ
|
Courtyard
|
North Central
|
9/1/2016
|
127
|
|||||||
Phoenix
|
AZ
|
Hampton Inn & Suites
|
North Central
|
9/1/2016
|
125
|
|||||||
Phoenix
|
AZ
|
Homewood Suites
|
North Central
|
9/1/2016
|
134
|
|||||||
Phoenix
|
AZ
|
Residence Inn
|
North Central
|
11/2/2010
|
129
|
|||||||
Scottsdale
|
AZ
|
Hilton Garden Inn
|
North Central
|
9/1/2016
|
122
|
|||||||
Tucson
|
AZ
|
Hilton Garden Inn
|
Western
|
7/31/2008
|
125
|
|||||||
Tucson
|
AZ
|
Residence Inn
|
Western
|
3/1/2014
|
124
|
|||||||
Tucson
|
AZ
|
TownePlace Suites
|
Western
|
10/6/2011
|
124
|
|||||||
Agoura Hills
|
CA
|
Homewood Suites
|
Dimension
|
3/1/2014
|
125
|
|||||||
Burbank
|
CA
|
Courtyard
|
Huntington
|
8/11/2015
|
190
|
|||||||
Burbank
|
CA
|
Residence Inn
|
Marriott
|
3/1/2014
|
166
|
|||||||
Burbank
|
CA
|
SpringHill Suites
|
Marriott
|
7/13/2015
|
170
|
|||||||
Clovis
|
CA
|
Hampton Inn & Suites
|
Dimension
|
7/31/2009
|
86
|
|||||||
Clovis
|
CA
|
Homewood Suites
|
Dimension
|
2/2/2010
|
83
|
|||||||
Cypress
|
CA
|
Courtyard
|
Dimension
|
3/1/2014
|
180
|
|||||||
Cypress
|
CA
|
Hampton Inn
|
Dimension
|
6/29/2015
|
110
|
|||||||
Oceanside
|
CA
|
Courtyard
|
Marriott
|
9/1/2016
|
142
|
|||||||
Oceanside
|
CA
|
Residence Inn
|
Marriott
|
3/1/2014
|
125
|
|||||||
Rancho Bernardo/San Diego
|
CA
|
Courtyard
|
InnVentures
|
3/1/2014
|
210
|
|||||||
Sacramento
|
CA
|
Hilton Garden Inn
|
Dimension
|
3/1/2014
|
153
|
|||||||
San Bernardino
|
CA
|
Residence Inn
|
InnVentures
|
2/16/2011
|
95
|
|||||||
San Diego
|
CA
|
Courtyard
|
Huntington
|
9/1/2015
|
245
|
|||||||
San Diego
|
CA
|
Hampton Inn
|
Dimension
|
3/1/2014
|
177
|
|||||||
San Diego
|
CA
|
Hilton Garden Inn
|
InnVentures
|
3/1/2014
|
200
|
|||||||
San Diego
|
CA
|
Residence Inn
|
Dimension
|
3/1/2014
|
121
|
|||||||
San Jose
|
CA
|
Homewood Suites
|
Dimension
|
3/1/2014
|
140
|
|||||||
San Juan Capistrano
|
CA
|
Residence Inn
|
Marriott
|
9/1/2016
|
130
|
|||||||
Santa Ana
|
CA
|
Courtyard
|
Dimension
|
5/23/2011
|
155
|
|||||||
Santa Clarita
|
CA
|
Courtyard
|
Dimension
|
9/24/2008
|
140
|
|||||||
Santa Clarita
|
CA
|
Fairfield Inn
|
Dimension
|
10/29/2008
|
66
|
City
|
State
|
Brand
|
Manager
|
Date Acquired or Completed
|
Rooms
|
|||||||
Santa Clarita
|
CA
|
Hampton Inn
|
Dimension
|
10/29/2008
|
128
|
|||||||
Santa Clarita
|
CA
|
Residence Inn
|
Dimension
|
10/29/2008
|
90
|
|||||||
Tulare
|
CA
|
Hampton Inn & Suites
|
InnVentures
|
3/1/2014
|
86
|
|||||||
Tustin
|
CA
|
Fairfield Inn & Suites
|
Marriott
|
9/1/2016
|
145
|
|||||||
Tustin
|
CA
|
Residence Inn
|
Marriott
|
9/1/2016
|
149
|
|||||||
Colorado Springs
|
CO
|
Hampton Inn & Suites
|
Chartwell
|
9/1/2016
|
101
|
|||||||
Denver
|
CO
|
Hilton Garden Inn
|
Stonebridge
|
9/1/2016
|
221
|
|||||||
Highlands Ranch
|
CO
|
Hilton Garden Inn
|
Dimension
|
3/1/2014
|
128
|
|||||||
Highlands Ranch
|
CO
|
Residence Inn
|
Dimension
|
3/1/2014
|
117
|
|||||||
Boca Raton
|
FL
|
Hilton Garden Inn
|
White Lodging
|
9/1/2016
|
149
|
|||||||
Cape Canaveral
|
FL
|
Homewood Suites
|
LBA
|
9/1/2016
|
153
|
|||||||
Fort Lauderdale
|
FL
|
Hampton Inn
|
Vista Host
|
12/31/2008
|
109
|
|||||||
Fort Lauderdale
|
FL
|
Hampton Inn
|
LBA
|
6/23/2015
|
156
|
|||||||
Fort Lauderdale
|
FL
|
Residence Inn
|
LBA
|
9/1/2016
|
156
|
|||||||
Gainesville
|
FL
|
Hilton Garden Inn
|
McKibbon
|
9/1/2016
|
104
|
|||||||
Gainesville
|
FL
|
Homewood Suites
|
McKibbon
|
9/1/2016
|
103
|
|||||||
Jacksonville
|
FL
|
Homewood Suites
|
McKibbon
|
3/1/2014
|
119
|
|||||||
Lakeland
|
FL
|
Courtyard
|
LBA
|
3/1/2014
|
78
|
|||||||
Miami
|
FL
|
Courtyard
|
Dimension
|
3/1/2014
|
118
|
|||||||
Miami
|
FL
|
Hampton Inn & Suites
|
White Lodging
|
4/9/2010
|
121
|
|||||||
Miami
|
FL
|
Homewood Suites
|
Dimension
|
3/1/2014
|
162
|
|||||||
Orlando
|
FL
|
Fairfield Inn & Suites
|
Marriott
|
7/1/2009
|
200
|
|||||||
Orlando
|
FL
|
SpringHill Suites
|
Marriott
|
7/1/2009
|
200
|
|||||||
Panama City
|
FL
|
Hampton Inn & Suites
|
LBA
|
3/12/2009
|
95
|
|||||||
Panama City
|
FL
|
TownePlace Suites
|
LBA
|
1/19/2010
|
103
|
|||||||
Pensacola
|
FL
|
TownePlace Suites
|
McKibbon
|
9/1/2016
|
97
|
|||||||
Sanford
|
FL
|
SpringHill Suites
|
LBA
|
3/1/2014
|
105
|
|||||||
Sarasota
|
FL
|
Homewood Suites
|
Hilton
|
3/1/2014
|
100
|
|||||||
Tallahassee
|
FL
|
Fairfield Inn & Suites
|
LBA
|
9/1/2016
|
97
|
|||||||
Tallahassee
|
FL
|
Hilton Garden Inn
|
LBA
|
3/1/2014
|
85
|
|||||||
Tampa
|
FL
|
Embassy Suites
|
White Lodging
|
11/2/2010
|
147
|
|||||||
Tampa
|
FL
|
TownePlace Suites
|
McKibbon
|
3/1/2014
|
94
|
|||||||
Albany
|
GA
|
Fairfield Inn & Suites
|
LBA
|
1/14/2010
|
87
|
|||||||
Atlanta
|
GA
|
Home2 Suites
|
McKibbon
|
7/1/2016
|
128
|
|||||||
Columbus
|
GA
|
SpringHill Suites
|
LBA
|
3/1/2014
|
89
|
|||||||
Columbus
|
GA
|
TownePlace Suites
|
LBA
|
3/1/2014
|
86
|
|||||||
Macon
|
GA
|
Hilton Garden Inn
|
LBA
|
3/1/2014
|
101
|
|||||||
Savannah
|
GA
|
Hilton Garden Inn
|
Newport
|
3/1/2014
|
105
|
|||||||
Cedar Rapids
|
IA
|
Hampton Inn & Suites
|
Schulte
|
9/1/2016
|
103
|
|||||||
Cedar Rapids
|
IA
|
Homewood Suites
|
Schulte
|
9/1/2016
|
95
|
|||||||
Davenport
|
IA
|
Hampton Inn & Suites
|
Schulte
|
9/1/2016
|
103
|
|||||||
Boise
|
ID
|
Hampton Inn & Suites
|
Raymond
|
4/30/2010
|
186
|
|||||||
Boise
|
ID
|
SpringHill Suites
|
InnVentures
|
3/1/2014
|
230
|
|||||||
Des Plaines
|
IL
|
Hilton Garden Inn
|
Raymond
|
9/1/2016
|
252
|
|||||||
Hoffman Estates
|
IL
|
Hilton Garden Inn
|
White Lodging
|
9/1/2016
|
184
|
|||||||
Mettawa
|
IL
|
Hilton Garden Inn
|
White Lodging
|
11/2/2010
|
170
|
|||||||
Mettawa
|
IL
|
Residence Inn
|
White Lodging
|
11/2/2010
|
130
|
|||||||
Rosemont
|
IL
|
Hampton Inn & Suites
|
Raymond
|
9/1/2016
|
158
|
|||||||
Schaumburg
|
IL
|
Hilton Garden Inn
|
White Lodging
|
11/2/2010
|
166
|
|||||||
Skokie
|
IL
|
Hampton Inn & Suites
|
Raymond
|
9/1/2016
|
225
|
|||||||
Warrenville
|
IL
|
Hilton Garden Inn
|
White Lodging
|
11/2/2010
|
135
|
|||||||
Indianapolis
|
IN
|
SpringHill Suites
|
White Lodging
|
11/2/2010
|
130
|
|||||||
Merrillville
|
IN
|
Hilton Garden Inn
|
White Lodging
|
9/1/2016
|
124
|
City
|
State
|
Brand
|
Manager
|
Date Acquired or Completed
|
Rooms
|
|||||||
Mishawaka
|
IN
|
Residence Inn
|
White Lodging
|
11/2/2010
|
106
|
|||||||
South Bend
|
IN
|
Fairfield Inn & Suites
|
White Lodging
|
9/1/2016
|
119
|
|||||||
Overland Park
|
KS
|
Fairfield Inn & Suites
|
True North
|
3/1/2014
|
110
|
|||||||
Overland Park
|
KS
|
Residence Inn
|
True North
|
3/1/2014
|
120
|
|||||||
Overland Park
|
KS
|
SpringHill Suites
|
True North
|
3/1/2014
|
102
|
|||||||
Wichita
|
KS
|
Courtyard
|
Pillar
|
3/1/2014
|
90
|
|||||||
Baton Rouge
|
LA
|
SpringHill Suites
|
Dimension
|
9/25/2009
|
119
|
|||||||
Lafayette
|
LA
|
Hilton Garden Inn
|
LBA
|
7/30/2010
|
153
|
|||||||
Lafayette
|
LA
|
SpringHill Suites
|
LBA
|
6/23/2011
|
103
|
|||||||
New Orleans
|
LA
|
Homewood Suites
|
Dimension
|
3/1/2014
|
166
|
|||||||
Andover
|
MA
|
SpringHill Suites
|
Marriott
|
11/5/2010
|
136
|
|||||||
Marlborough
|
MA
|
Residence Inn
|
True North
|
3/1/2014
|
112
|
|||||||
Westford
|
MA
|
Hampton Inn & Suites
|
True North
|
3/1/2014
|
110
|
|||||||
Westford
|
MA
|
Residence Inn
|
True North
|
3/1/2014
|
108
|
|||||||
Annapolis
|
MD
|
Hilton Garden Inn
|
White Lodging
|
3/1/2014
|
126
|
|||||||
Silver Spring
|
MD
|
Hilton Garden Inn
|
White Lodging
|
7/30/2010
|
107
|
|||||||
Novi
|
MI
|
Hilton Garden Inn
|
White Lodging
|
11/2/2010
|
148
|
|||||||
Maple Grove
|
MN
|
Hilton Garden Inn
|
North Central
|
9/1/2016
|
120
|
|||||||
Rochester
|
MN
|
Hampton Inn & Suites
|
Raymond
|
8/3/2009
|
124
|
|||||||
Kansas City
|
MO
|
Hampton Inn
|
Raymond
|
8/31/2010
|
122
|
|||||||
Kansas City
|
MO
|
Residence Inn
|
True North
|
3/1/2014
|
106
|
|||||||
St. Louis
|
MO
|
Hampton Inn
|
Raymond
|
8/31/2010
|
190
|
|||||||
St. Louis
|
MO
|
Hampton Inn & Suites
|
Raymond
|
4/30/2010
|
126
|
|||||||
Hattiesburg
|
MS
|
Courtyard
|
LBA
|
3/1/2014
|
84
|
|||||||
Hattiesburg
|
MS
|
Residence Inn
|
LBA
|
12/11/2008
|
84
|
|||||||
Carolina Beach
|
NC
|
Courtyard
|
Crestline
|
3/1/2014
|
144
|
|||||||
Charlotte
|
NC
|
Fairfield Inn & Suites
|
Newport
|
9/1/2016
|
94
|
|||||||
Charlotte
|
NC
|
Homewood Suites
|
McKibbon
|
9/24/2008
|
112
|
|||||||
Durham
|
NC
|
Homewood Suites
|
McKibbon
|
12/4/2008
|
122
|
|||||||
Fayetteville
|
NC
|
Home2 Suites
|
LBA
|
2/3/2011
|
118
|
|||||||
Fayetteville
|
NC
|
Residence Inn
|
Pillar
|
3/1/2014
|
92
|
|||||||
Greensboro
|
NC
|
SpringHill Suites
|
Newport
|
3/1/2014
|
82
|
|||||||
Holly Springs
|
NC
|
Hampton Inn & Suites
|
LBA
|
11/30/2010
|
124
|
|||||||
Jacksonville
|
NC
|
Home2 Suites
|
LBA
|
9/1/2016
|
105
|
|||||||
Wilmington
|
NC
|
Fairfield Inn & Suites
|
Crestline
|
3/1/2014
|
122
|
|||||||
Winston-Salem
|
NC
|
Courtyard
|
McKibbon
|
3/1/2014
|
122
|
|||||||
Winston-Salem
|
NC
|
Hampton Inn & Suites
|
McKibbon
|
9/1/2016
|
94
|
|||||||
Omaha
|
NE
|
Courtyard
|
Marriott
|
3/1/2014
|
181
|
|||||||
Omaha
|
NE
|
Hampton Inn & Suites
|
White Lodging
|
9/1/2016
|
139
|
|||||||
Omaha
|
NE
|
Hilton Garden Inn
|
White Lodging
|
9/1/2016
|
178
|
|||||||
Omaha
|
NE
|
Homewood Suites
|
White Lodging
|
9/1/2016
|
123
|
|||||||
Cranford
|
NJ
|
Homewood Suites
|
Dimension
|
3/1/2014
|
108
|
|||||||
Mahwah
|
NJ
|
Homewood Suites
|
Dimension
|
3/1/2014
|
110
|
|||||||
Mount Laurel
|
NJ
|
Homewood Suites
|
Newport
|
1/11/2011
|
118
|
|||||||
Somerset
|
NJ
|
Courtyard
|
Newport
|
3/1/2014
|
162
|
|||||||
West Orange
|
NJ
|
Courtyard
|
Newport
|
1/11/2011
|
131
|
|||||||
Islip/Ronkonkoma
|
NY
|
Hilton Garden Inn
|
White Lodging
|
3/1/2014
|
165
|
|||||||
New York
|
NY
|
Renaissance
|
Highgate
|
3/1/2014
|
205
|
|||||||
Syracuse
|
NY
|
Courtyard
|
New Castle
|
10/16/2015
|
102
|
|||||||
Syracuse
|
NY
|
Residence Inn
|
New Castle
|
10/16/2015
|
78
|
|||||||
Mason
|
OH
|
Hilton Garden Inn
|
Schulte
|
9/1/2016
|
110
|
|||||||
Twinsburg
|
OH
|
Hilton Garden Inn
|
Gateway
|
10/7/2008
|
142
|
|||||||
Oklahoma City
|
OK
|
Hampton Inn & Suites
|
Raymond
|
5/28/2010
|
200
|
City
|
State
|
Brand
|
Manager
|
Date Acquired or Completed
|
Rooms
|
|||||||
Oklahoma City
|
OK
|
Hilton Garden Inn
|
Raymond
|
9/1/2016
|
155
|
|||||||
Oklahoma City
|
OK
|
Homewood Suites
|
Raymond
|
9/1/2016
|
100
|
|||||||
Oklahoma City (West)
|
OK
|
Homewood Suites
|
Chartwell
|
9/1/2016
|
90
|
|||||||
Collegeville/Philadelphia
|
PA
|
Courtyard
|
White Lodging
|
11/15/2010
|
132
|
|||||||
Malvern/Philadelphia
|
PA
|
Courtyard
|
White Lodging
|
11/30/2010
|
127
|
|||||||
Pittsburgh
|
PA
|
Hampton Inn
|
Vista Host
|
12/31/2008
|
132
|
|||||||
Charleston
|
SC
|
Home2 Suites
|
LBA
|
9/1/2016
|
122
|
|||||||
Columbia
|
SC
|
Hilton Garden Inn
|
Newport
|
3/1/2014
|
143
|
|||||||
Columbia
|
SC
|
TownePlace Suites
|
Newport
|
9/1/2016
|
91
|
|||||||
Greenville
|
SC
|
Residence Inn
|
McKibbon
|
3/1/2014
|
78
|
|||||||
Hilton Head
|
SC
|
Hilton Garden Inn
|
McKibbon
|
3/1/2014
|
104
|
|||||||
Chattanooga
|
TN
|
Homewood Suites
|
LBA
|
3/1/2014
|
76
|
|||||||
Franklin
|
TN
|
Courtyard
|
Chartwell
|
9/1/2016
|
126
|
|||||||
Franklin
|
TN
|
Residence Inn
|
Chartwell
|
9/1/2016
|
124
|
|||||||
Jackson
|
TN
|
Hampton Inn & Suites
|
Vista Host
|
12/30/2008
|
83
|
|||||||
Johnson City
|
TN
|
Courtyard
|
LBA
|
9/25/2009
|
90
|
|||||||
Knoxville
|
TN
|
Homewood Suites
|
McKibbon
|
9/1/2016
|
103
|
|||||||
Knoxville
|
TN
|
SpringHill Suites
|
McKibbon
|
9/1/2016
|
103
|
|||||||
Knoxville
|
TN
|
TownePlace Suites
|
McKibbon
|
9/1/2016
|
98
|
|||||||
Memphis
|
TN
|
Homewood Suites
|
Hilton
|
3/1/2014
|
140
|
|||||||
Nashville
|
TN
|
Hilton Garden Inn
|
Vista Host
|
9/30/2010
|
194
|
|||||||
Nashville
|
TN
|
Home2 Suites
|
Vista Host
|
5/31/2012
|
119
|
|||||||
Nashville
|
TN
|
TownePlace Suites
|
LBA
|
9/1/2016
|
101
|
|||||||
Addison
|
TX
|
SpringHill Suites
|
Marriott
|
3/1/2014
|
159
|
|||||||
Allen
|
TX
|
Hampton Inn & Suites
|
Gateway
|
9/26/2008
|
103
|
|||||||
Allen
|
TX
|
Hilton Garden Inn
|
Gateway
|
10/31/2008
|
150
|
|||||||
Arlington
|
TX
|
Hampton Inn & Suites
|
Western
|
12/1/2010
|
98
|
|||||||
Austin
|
TX
|
Courtyard
|
White Lodging
|
11/2/2010
|
145
|
|||||||
Austin
|
TX
|
Fairfield Inn & Suites
|
White Lodging
|
11/2/2010
|
150
|
|||||||
Austin
|
TX
|
Hampton Inn
|
Vista Host
|
4/14/2009
|
124
|
|||||||
Austin
|
TX
|
Hilton Garden Inn
|
White Lodging
|
11/2/2010
|
117
|
|||||||
Austin
|
TX
|
Homewood Suites
|
Vista Host
|
4/14/2009
|
97
|
|||||||
Austin/Round Rock
|
TX
|
Homewood Suites
|
Vista Host
|
9/1/2016
|
115
|
|||||||
Beaumont
|
TX
|
Residence Inn
|
Western
|
10/29/2008
|
133
|
|||||||
Burleson/Fort Worth
|
TX
|
Hampton Inn & Suites
|
LBA
|
10/7/2014
|
88
|
|||||||
Dallas
|
TX
|
Hilton
|
Hilton
|
5/17/2011
|
224
|
|||||||
Dallas
|
TX
|
Homewood Suites
|
Western
|
9/1/2016
|
130
|
|||||||
Denton
|
TX
|
Homewood Suites
|
Chartwell
|
9/1/2016
|
107
|
|||||||
Duncanville
|
TX
|
Hilton Garden Inn
|
Gateway
|
10/21/2008
|
142
|
|||||||
El Paso
|
TX
|
Hilton Garden Inn
|
Western
|
12/19/2011
|
145
|
|||||||
El Paso
|
TX
|
Homewood Suites
|
Western
|
3/1/2014
|
114
|
|||||||
Fort Worth
|
TX
|
TownePlace Suites
|
Western
|
7/19/2010
|
140
|
|||||||
Frisco
|
TX
|
Hilton Garden Inn
|
Western
|
12/31/2008
|
102
|
|||||||
Grapevine
|
TX
|
Hilton Garden Inn
|
Western
|
9/24/2010
|
110
|
|||||||
Houston
|
TX
|
Courtyard
|
LBA
|
9/1/2016
|
124
|
|||||||
Houston
|
TX
|
Marriott
|
Western
|
1/8/2010
|
206
|
|||||||
Houston
|
TX
|
Residence Inn
|
Western
|
3/1/2014
|
129
|
|||||||
Houston
|
TX
|
Residence Inn
|
Western
|
9/1/2016
|
120
|
|||||||
Irving
|
TX
|
Homewood Suites
|
Western
|
12/29/2010
|
77
|
|||||||
Lewisville
|
TX
|
Hilton Garden Inn
|
Gateway
|
10/16/2008
|
165
|
|||||||
Round Rock
|
TX
|
Hampton Inn
|
Vista Host
|
3/6/2009
|
94
|
|||||||
San Antonio
|
TX
|
TownePlace Suites
|
Western
|
3/1/2014
|
106
|
|||||||
Shenandoah
|
TX
|
Courtyard
|
LBA
|
9/1/2016
|
124
|
City
|
State
|
Brand
|
Manager
|
Date Acquired or Completed
|
Rooms
|
|||||||
Stafford
|
TX
|
Homewood Suites
|
Western
|
3/1/2014
|
78
|
|||||||
Texarkana
|
TX
|
Courtyard
|
Pillar
|
3/1/2014
|
90
|
|||||||
Texarkana
|
TX
|
Hampton Inn & Suites
|
Pillar
|
1/31/2011
|
81
|
|||||||
Texarkana
|
TX
|
TownePlace Suites
|
Pillar
|
3/1/2014
|
85
|
|||||||
Provo
|
UT
|
Residence Inn
|
Dimension
|
3/1/2014
|
114
|
|||||||
Salt Lake City
|
UT
|
SpringHill Suites
|
White Lodging
|
11/2/2010
|
143
|
|||||||
Alexandria
|
VA
|
Courtyard
|
Marriott
|
3/1/2014
|
178
|
|||||||
Alexandria
|
VA
|
SpringHill Suites
|
Marriott
|
3/28/2011
|
155
|
|||||||
Bristol
|
VA
|
Courtyard
|
LBA
|
11/7/2008
|
175
|
|||||||
Charlottesville
|
VA
|
Courtyard
|
Crestline
|
3/1/2014
|
139
|
|||||||
Chesapeake
|
VA
|
Marriott
|
Crestline
|
3/1/2014
|
226
|
|||||||
Fairfax
|
VA
|
Marriott
|
White Lodging
|
9/1/2016
|
316
|
|||||||
Harrisonburg
|
VA
|
Courtyard
|
Newport
|
3/1/2014
|
125
|
|||||||
Manassas
|
VA
|
Residence Inn
|
Crestline
|
2/16/2011
|
107
|
|||||||
Richmond
|
VA
|
Courtyard
|
White Lodging
|
12/8/2014
|
135
|
|||||||
Richmond
|
VA
|
Marriott
|
White Lodging
|
3/1/2014
|
410
|
|||||||
Richmond
|
VA
|
Residence Inn
|
White Lodging
|
12/8/2014
|
75
|
|||||||
Richmond
|
VA
|
SpringHill Suites
|
McKibbon
|
9/1/2016
|
103
|
|||||||
Suffolk
|
VA
|
Courtyard
|
Crestline
|
3/1/2014
|
92
|
|||||||
Suffolk
|
VA
|
TownePlace Suites
|
Crestline
|
3/1/2014
|
72
|
|||||||
Virginia Beach
|
VA
|
Courtyard
|
Crestline
|
3/1/2014
|
141
|
|||||||
Virginia Beach
|
VA
|
Courtyard
|
Crestline
|
3/1/2014
|
160
|
|||||||
Kirkland
|
WA
|
Courtyard
|
InnVentures
|
3/1/2014
|
150
|
|||||||
Seattle
|
WA
|
Residence Inn
|
InnVentures
|
3/1/2014
|
234
|
|||||||
Tukwila
|
WA
|
Homewood Suites
|
Dimension
|
3/1/2014
|
106
|
|||||||
Vancouver
|
WA
|
SpringHill Suites
|
InnVentures
|
3/1/2014
|
119
|
|||||||
Total
|
30,299
|
Amount of Commitments Expiring per Period
|
||||||||||||||||||||
Total
|
October 1 - December 31, 2016
|
2017-2018
|
2019-2020
|
2021 and Thereafter
|
||||||||||||||||
Property Purchase Commitments
|
$
|
56,472
|
$
|
-
|
$
|
56,472
|
$
|
-
|
$
|
-
|
||||||||||
Debt (including interest of $204.2 million)
|
1,555,610
|
60,584
|
131,463
|
844,347
|
519,216
|
|||||||||||||||
Ground Leases
|
372,994
|
1,528
|
12,661
|
13,558
|
345,247
|
|||||||||||||||
$
|
1,985,076
|
$
|
62,112
|
$
|
200,596
|
$
|
857,905
|
$
|
864,463
|
October 1 - December 31, 2016
|
2017
|
2018
|
2019
|
2020
|
Thereafter
|
Total
|
Fair Market Value
|
|||||||||||||||||||||||||
Total debt:
|
||||||||||||||||||||||||||||||||
Maturities
|
$
|
49,871
|
$
|
38,502
|
$
|
9,785
|
$
|
332,477
|
$
|
449,788
|
$
|
470,976
|
$
|
1,351,399
|
$
|
1,361,172
|
||||||||||||||||
Average interest rates
|
3.3
|
%
|
3.3
|
%
|
3.2
|
%
|
3.3
|
%
|
3.7
|
%
|
4.1
|
%
|
||||||||||||||||||||
Variable rate debt:
|
||||||||||||||||||||||||||||||||
Maturities
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
302,100
|
$
|
425,000
|
$
|
150,000
|
$
|
877,100
|
$
|
877,938
|
||||||||||||||||
Average interest rates (1)
|
2.6
|
%
|
2.6
|
%
|
2.6
|
%
|
2.7
|
%
|
2.9
|
%
|
2.9
|
%
|
||||||||||||||||||||
Fixed rate debt:
|
||||||||||||||||||||||||||||||||
Maturities
|
$
|
49,871
|
$
|
38,502
|
$
|
9,785
|
$
|
30,377
|
$
|
24,788
|
$
|
320,976
|
$
|
474,299
|
$
|
483,234
|
||||||||||||||||
Average interest rates
|
4.8
|
%
|
4.7
|
%
|
4.7
|
%
|
4.7
|
%
|
4.7
|
%
|
4.7
|
%
|
(1) The average interest rate gives effect to interest rate swaps, as applicable.
|
●
|
the Company would be subject to tax (at the highest corporate rate in effect at the date of the sale) on the built-in gain on each asset of Apple Ten existing at the time of the merger if the Company were to dispose of the Apple Ten asset for up to five years following the merger;
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the Company would succeed to any earnings and profits accumulated by Apple Ten for taxable periods that it did not qualify as a REIT, and the Company would have to pay a special dividend and/or employ applicable deficiency dividend procedures (including interest payments to the IRS) to eliminate such earnings and profits (if the Company does not timely distribute those earnings and profits, the Company could fail to qualify as a REIT); and
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if Apple Ten incurred any unpaid tax liabilities prior to the merger, those tax liabilities would be transferred to the Company as a result of the merger.
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Exhibit Number
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Description of Documents
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2.7
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Agreement and Plan of Merger, dated as of April 13, 2016, among Apple REIT Ten, Inc., Apple Hospitality REIT, Inc. and 34 Consolidated, Inc. (Incorporated by reference to Exhibit 2.1 to the Company’s current report on Form 8-K (SEC File No. 001-37389) filed April 14, 2016)
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2.8
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First Amendment to Agreement and Plan of Merger, dated as of July 13, 2016, among Apple REIT Ten, Inc., Apple Hospitality REIT, Inc. and 34 Consolidated, Inc. (Incorporated by reference to Exhibit 2.1 to the Company’s current report on Form 8-K (SEC File No. 001-37389) filed July 13, 2016)
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3.1
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Amended and Restated Articles of Incorporation of the Company, as amended (Incorporated by reference to Exhibit 3.1 to the Company’s annual report on Form 10-K (SEC File No. 000-53603) filed March 6, 2015)
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3.2
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Second Amended and Restated Bylaws of the Company (Incorporated by reference to Exhibit 3.1 to the Company’s current report on Form 8-K (SEC File No. 001-37389) filed February 18, 2016)
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10.8
10.9
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Form of Restricted Stock Agreement (Incorporated by reference to Exhibit 10.1 to the Company’s current report on Form 8-K (SEC File No. 001-37389) filed February 18, 2016)
Voting Agreement, dated as of April 13, 2016, by and among Apple REIT Ten, Inc., Apple Hospitality REIT, Inc. and Glade M. Knight (Incorporated by reference to Exhibit 10.1 to the Company’s current report on Form 8-K (SEC File No. 001-37389) filed April 14, 2016)
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10.10
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Termination Agreement, dated as of April 13, 2016, by and among Apple Ten Advisors, Inc., Apple Suites Realty Group, Inc., Apple REIT Ten, Inc. and Apple Hospitality REIT, Inc. (Incorporated by reference to Exhibit 10.2 to the Company’s current report on Form 8-K (SEC File No. 001-37389) filed April 14, 2016)
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31.1
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31.2
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32.1
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101
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The following materials from Apple Hospitality REIT, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive Income, (iii) the Consolidated Statements of Cash Flows, and (iv) related notes to these financial statements, tagged as blocks of text and in detail (FILED HEREWITH)
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Apple Hospitality REIT, Inc.
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By:
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/s/ Justin G. Knight
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Date: November 7, 2016
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Justin G. Knight,
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President and
Chief Executive Officer
(Principal Executive Officer)
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By:
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/s/ Bryan Peery
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Date: November 7, 2016
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Bryan Peery,
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Chief Financial Officer
(Principal Financial and Principal Accounting Officer)
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Date: November 7, 2016
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/s/ Justin G. Knight
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Justin G. Knight
President and Chief Executive Officer
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Apple Hospitality REIT, Inc.
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Date: November 7, 2016
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/s/ Bryan Peery
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Bryan Peery
Chief Financial Officer
Apple Hospitality REIT, Inc.
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/s/ Justin G. Knight
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Justin G. Knight
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President and Chief Executive Officer
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/s/ Bryan Peery
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Bryan Peery
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Chief Financial Officer
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November 7, 2016
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Document And Entity Information - shares |
9 Months Ended | |
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Sep. 30, 2016 |
Nov. 01, 2016 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | Apple Hospitality REIT, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 223,362,926 | |
Amendment Flag | false | |
Entity Central Index Key | 0001418121 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Investment in real estate accumulated depreciation (in Dollars) | $ 526,973 | $ 423,057 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 223,406,001 | 174,368,340 |
Common stock, shares outstanding | 223,406,001 | 174,368,340 |
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Revenues: | ||||
Room | $ 255,269 | $ 221,978 | $ 698,759 | $ 628,982 |
Other | 21,202 | 18,577 | 59,835 | 56,299 |
Total revenue | 276,471 | 240,555 | 758,594 | 685,281 |
Expenses: | ||||
Operating | 69,082 | 59,024 | 187,370 | 170,781 |
Hotel administrative | 20,866 | 17,684 | 57,921 | 52,248 |
Sales and marketing | 21,329 | 18,524 | 59,244 | 53,502 |
Utilities | 10,543 | 9,505 | 25,862 | 25,222 |
Repair and maintenance | 10,478 | 9,245 | 29,167 | 27,771 |
Franchise fees | 11,834 | 10,360 | 32,212 | 29,069 |
Management fees | 9,205 | 8,491 | 26,189 | 24,081 |
Property taxes, insurance and other | 14,787 | 10,450 | 40,315 | 33,727 |
Ground lease | 2,615 | 2,496 | 7,587 | 7,504 |
General and administrative | 2,623 | 5,175 | 12,511 | 14,421 |
Transaction costs | 36,452 | 842 | 37,861 | 7,891 |
Loss on impairment of depreciable real estate assets | 5,471 | 0 | 5,471 | 0 |
Depreciation | 37,343 | 32,351 | 104,651 | 94,205 |
Total expenses | 252,628 | 184,147 | 626,361 | 540,422 |
Operating income | 23,843 | 56,408 | 132,233 | 144,859 |
Interest and other expense, net | (10,156) | (9,302) | (28,519) | (24,265) |
Gain on sale of real estate | 0 | 0 | 0 | 15,358 |
Income before income taxes | 13,687 | 47,106 | 103,714 | 135,952 |
Income tax benefit (expense) | 7 | (138) | (616) | (872) |
Net income | 13,694 | 46,968 | 103,098 | 135,080 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on interest rate derivatives | 4,261 | (5,978) | (7,934) | (6,437) |
Cash flow hedge losses reclassified to earnings | 0 | 0 | 0 | 785 |
Comprehensive income | $ 17,955 | $ 40,990 | $ 95,164 | $ 129,428 |
Basic and diluted net income per common share (in Dollars per share) | $ 0.07 | $ 0.27 | $ 0.57 | $ 0.74 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 190,563 | 175,069 | 180,004 | 182,247 |
Organization and Summary of Significant Accounting Policies |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Organization and Summary of Significant Accounting Policies Organization Apple Hospitality REIT, Inc., together with its wholly owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is a self-advised REIT that invests in income-producing real estate, primarily in the lodging sector, in the United States. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of these entities, and therefore does not consolidate the entities. As of September 30, 2016, the Company owned 236 hotels with an aggregate of 30,299 rooms located in 33 states. On May 18, 2015, the Company’s common shares were listed and began trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “APLE” (the “Listing”). In connection with the Listing, effective May 18, 2015, the Company completed a 50% reverse share split. As a result of the reverse share split, every two common shares were converted into one common share. All common shares and per share amounts for all periods presented have been adjusted to reflect the reverse share split. See Note 8 for additional information about the reverse share split. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States 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 unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its 2015 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2016. Use of Estimates The preparation of the financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Reclassifications Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported net income, shareholders’ equity or cash flows. Comprehensive Income Comprehensive income includes net income and other comprehensive income (loss), which is comprised of unrealized gains (losses) and other adjustments resulting from hedging activity. Net Income Per Common Share Basic net income per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for the three and nine months ended September 30, 2016 and 2015. As a result, basic and dilutive net income per common share were the same. Accounting Standards Recently Issued In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets as right-of-use assets and lease liabilities, as well as making targeted changes to lessor accounting. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The standard is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The standard is effective for annual and interim periods beginning after December 15, 2016 with early adoption permitted. Some provisions of the standard require a retrospective transition approach. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The standard is effective for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The standard requires a retrospective transition approach where practicable. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Merger with Apple REIT Ten, Inc. |
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Disclosure Text Block Supplement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 2. Merger with Apple REIT Ten, Inc. Effective September 1, 2016, the Company completed its previously announced merger with Apple REIT Ten, Inc. (“Apple Ten”) (the “merger”), which merger and related transaction proposals were approved by each company’s respective shareholders, as applicable, on August 31, 2016. Pursuant to the Agreement and Plan of Merger entered into on April 13, 2016, as amended on July 13, 2016 (the “Merger Agreement”), Apple Ten merged with and into 34 Consolidated, Inc., a wholly-owned subsidiary of the Company (“Acquisition Sub”), at which time the separate corporate existence of Apple Ten ceased and Acquisition Sub became the surviving corporation in the merger. Acquisition Sub was formed solely for the purpose of engaging in the merger and had not conducted any prior activities. Immediately following the effective time of the merger, the name of Acquisition Sub was changed to Apple REIT Ten, Inc. As a result of the merger, the Company acquired the business of Apple Ten, a real estate investment trust, which immediately prior to the effective time of the merger, owned 56 hotels located in 17 states with an aggregate of 7,209 rooms. Upon completion of the merger, each issued and outstanding unit of Apple Ten (consisting of a common share and related Series A preferred share) (each, an “Apple Ten unit”) was converted into the right to receive (i) 0.522 (the “unit exchange ratio”) common shares of the Company, with cash in lieu of fractional shares, and (ii) $1.00 in cash, and each issued and outstanding Series B convertible preferred share of Apple Ten was converted into the right to receive (i) a number of common shares of the Company equal to 12.11423 multiplied by the unit exchange ratio, with cash in lieu of fractional shares, and (ii) an amount in cash equal to 12.11423 multiplied by $1.00, resulting in the issuance of a total of approximately 48.7 million common shares of the Company and a total payment of approximately $93.6 million in cash, including $0.2 million for fractional shares, to Apple Ten shareholders. The cash payment was funded through borrowings on the Company’s revolving credit facility. The Company’s common shares totaling 174.7 million prior to the merger remained outstanding following the merger, resulting in approximately 223.4 million common shares outstanding upon completion of the merger. Also, as a result of the merger, the Company, through its wholly-owned subsidiary, assumed all of Apple Ten’s assets and liabilities at closing. The Company has accounted for the merger in accordance with the Accounting Standards Codification (“ASC”) 805, Business Combinations. The Company is considered the acquirer for financial reporting purposes, which requires, among other things, that the assets acquired and liabilities assumed from Apple Ten be recognized at their acquisition date fair values. For purpose of accounting for the transaction, the aggregate value of the merger consideration paid to Apple Ten shareholders was estimated to be approximately $1.0 billion, and is comprised of approximately $956.1 million for the issuance of approximately 48.7 million common shares of the Company valued at $19.62 per share, which was the closing price of the Company’s common shares on August 31, 2016 (the date that the merger was approved), and $93.6 million in cash. As more fully described in Note 5, effective September 1, 2016, upon completion of the merger, the Company assumed approximately $145.7 million in mortgage debt, prior to any fair value adjustments, secured by nine properties. The Company also assumed the outstanding balance on Apple Ten’s credit facility totaling $111.1 million, which was terminated and repaid in full on September 1, 2016 with borrowings on the Company’s revolving credit facility. All costs related to the merger are being expensed in the period they are incurred and are included in transaction costs in the Company’s consolidated statements of operations. In connection with the merger, the Company has incurred approximately $37.6 million in merger costs (including approximately $33.8 million of costs incurred to defend and reflect the proposed settlement (which remains subject to court approval) of the ongoing lawsuit related to the merger discussed in Note 10) for the nine months ended September 30, 2016. In connection with the issuance of approximately 48.7 million common shares to effect the merger, the Company incurred approximately $1.2 million in issuance costs including legal, accounting and reporting services. These costs were recorded by the Company as a reduction of shareholders’ equity. As contemplated in the Merger Agreement, in connection with the completion of the merger, the advisory and related party arrangements with respect to Apple Ten and its advisors, as described in more detail in Note 7, were terminated. As more fully described below, the Company is in the process of finalizing its valuation of the acquired assets and liabilities for the merger, which is expected to be finalized during 2016. Accordingly, the purchase price allocation adjustments are preliminary and final estimates of fair value may be significantly different from these preliminary estimates. The following table summarizes the Company’s preliminary purchase price allocation for the merger, which represents its best estimate of the fair values of the assets acquired and liabilities assumed on September 1, 2016, the effective date of the merger (in thousands):
The preliminary allocation of the purchase price requires a significant amount of judgment and was based upon valuations and other analyses described below that are currently being finalized. The Company has engaged a valuation firm to assist in the analysis. The methodologies and significant inputs and assumptions used in deriving estimates of fair value vary and are based on the nature of the tangible or intangible asset acquired or liability assumed. The fair value of land, building and improvements, furniture, fixtures and equipment, and identifiable intangible assets was developed based on the cost approach, market approach or income approach depending on available information and compared to a secondary approach when possible. The fair value of debt was estimated based on contractual future cash flows discounted using borrowing spreads and market interest rates that would be available to the Company as of the acquisition date for the issuance of debt with similar terms and remaining maturities. Significant inputs and assumptions associated with these approaches included estimates of future operating cash flows and discount rates based on an evaluation of both observable market data (categorized as Level 2 inputs under the fair value hierarchy) and unobservable inputs that reflect the Company’s own internal assumptions and calculations (categorized as Level 3 inputs under the fair value hierarchy). No goodwill was recorded in connection with the merger. In connection with the merger, the Company acquired four properties with three existing ground leases, with remaining terms of approximately 26, 46 and 84 years, excluding any option periods to extend the initial lease term. The Company has the option to extend the term of the lease with 26 years remaining beyond its initial term up to four times for 30 years each renewal period. There are no renewal options on the other leases. The three leases assumed were valued at below market rates and as a result the Company recorded intangible assets totaling approximately $10.0 million, which are included in other assets, net in the Company’s consolidated balance sheets. The value of each lease intangible is amortized over the term of the respective lease and the amortization is included in ground lease expense in the Company’s consolidated statements of operations. The ground leases are classified as operating leases, and rental expense is recognized on a straight-line basis over the remaining term of the respective lease. The aggregate amounts of the estimated minimum lease payments pertaining to all of the ground leases assumed in the merger, for the five years subsequent to September 30, 2016 and thereafter are as follows (in thousands):
The following unaudited pro forma information for the three and nine month periods ended September 30, 2016 and 2015, is presented as if the merger, effective September 1, 2016, had occurred on January 1, 2015, and is based on assumptions and estimates considered appropriate by the Company. The pro forma information is provided for illustrative purposes only and does not necessarily reflect what the operating results would have been had the merger been completed on January 1, 2015, nor is it necessarily indicative of future operating results. The pro forma information does not give effect to any cost synergies or other operating efficiencies that could result from the merger. Amounts are in thousands except per share data.
For purposes of calculating these pro forma amounts, merger transaction costs totaling approximately $36.4 million and $37.6 million for the three and nine months ended September 30, 2016, included in the Company’s consolidated statements of operations, were excluded from the pro forma amounts since these costs are attributable to the merger and related transactions and do not have an ongoing impact to the statements of operations. |
Investment in Real Estate |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Disclosure [Text Block] | 3. Investment in Real Estate The Company’s investment in real estate consisted of the following (in thousands):
As of September 30, 2016, the Company owned 236 hotels with an aggregate of 30,299 rooms located in 33 states. Effective September 1, 2016, the Company completed the merger with Apple Ten, which added 56 hotels, located in 17 states, with an aggregate of 7,209 rooms. As shown in the table setting forth the preliminary purchase price allocation for the merger in Note 2, the total real estate value of the merger was estimated to be approximately $1.3 billion. The purchase price allocation is based on preliminary measurements of fair value and is subject to change. The purchase price allocation for the merger represents the Company’s best estimate of fair value and the Company expects to finalize the valuation and complete the purchase price allocation during 2016. On July 1, 2016, the Company closed on the purchase of a newly constructed 128-room Home2 Suites hotel in Atlanta, Georgia, the same day the hotel opened for business, for a purchase price of approximately $24.6 million. The Company used borrowings under its revolving credit facility to purchase the hotel. No goodwill was recorded in connection with this acquisition. For the 57 hotels acquired during the nine months ended September 30, 2016 (including the 56 hotels acquired in the merger and one hotel acquired on July 1, 2016), the amount of revenue and operating income (excluding merger and other acquisition related transaction costs) included in the Company’s consolidated statements of operations from the date of acquisition through September 30, 2016 was approximately $25.0 million and $9.5 million, respectively. During the nine month period ended September 30, 2015, the Company acquired five hotels. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price for each hotel acquired during the nine months ended September 30, 2015. All dollar amounts are in thousands.
The Company leases all of its hotels to its wholly-owned taxable REIT subsidiary (or a subsidiary thereof) under master hotel lease agreements. As of September 30, 2016, the Company had outstanding contracts for the potential purchase of three additional hotels for a total purchase price of $56.5 million. All three hotels are under construction and are expected to be completed and opened for business in the first half of 2017, at which time closing on these hotels is expected to occur. Although the Company is working towards acquiring these three hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the location, brand, date of purchase contract, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) contract deposits paid, and gross purchase price for each of the contracts outstanding at September 30, 2016. All dollar amounts are in thousands.
As there can be no assurance that all conditions to closing will be satisfied, the Company includes deposits paid for hotels under contract in other assets, net in the Company’s consolidated balance sheets, and in deposits and other disbursements for potential acquisitions in the Company’s consolidated statements of cash flows. The Company intends to use borrowings under its $540 million revolving credit facility to purchase hotels under contract if a closing occurs. During the third quarter of 2016, the Company identified two properties for potential sale (the Dallas, Texas Hilton hotel and the Chesapeake, Virginia Marriott hotel). In October 2016, the Company entered into separate contracts for the sale of these properties for a total combined gross sales price of approximately $66.3 million. The contracts are subject to a number of conditions to closing and therefore there can be no assurance that closings will occur. If the closings occur, each of these sales are expected to be completed within three to six months of September 30, 2016. At closing, the mortgage loan secured by the Dallas, Texas Hilton hotel, with an outstanding balance of approximately $27.4 million as of September 30, 2016, would be assumed by the buyer with the buyer receiving a credit for the amount assumed. The Company plans to use the net proceeds from the sale to pay down borrowings on its revolving credit facility. Due to the change in the anticipated hold period for each of these hotels, the Company reviewed the estimated undiscounted cash flows generated by each property (including its sale price, net of commissions and other selling costs) and determined that the Chesapeake, Virginia Marriott’s estimated undiscounted cash flows were less than its carrying value; therefore the Company recognized an impairment loss of approximately $5.5 million in the third quarter of 2016 to adjust the basis of this property to its estimated fair value, which was based on the contracted sale price, net of broker commissions and other estimated selling costs, a Level 1 input under the fair value hierarchy. If both closings occur, the total combined net gain resulting from these two sales is estimated to be approximately $11.4 million. The estimated net gain is calculated as the total combined sales price, net of commissions and selling costs, less the third quarter 2016 impairment loss noted above and a combined net book value totaling approximately $48.9 million as of September 30, 2016. Since the contracts for the sales of these properties had not been finalized as of September 30, 2016, the assets and liabilities related to these properties have not been classified as held for sale in the Company’s consolidated balance sheet at September 30, 2016. |
Dispositions |
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Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 4. Dispositions During the nine months ended September 30, 2015, the Company sold 19 properties in two separate transactions for a total sales price of approximately $208.5 million, resulting in a gain on sale of approximately $15.4 million, which is included in the Company’s consolidated statements of operations for the nine months ended September 30, 2015. Of the 19 hotels sold, 18 hotels were sold on February 26, 2015 for $206.4 million, resulting in a gain on sale of approximately $15.6 million and one hotel was sold on June 1, 2015 for $2.1 million, resulting in a loss of approximately $0.3 million. The proceeds from the sale transactions were used primarily to repay the outstanding balance under the Company’s revolving credit facility, with the increased availability used to fund hotel acquisitions during 2015. The Company’s consolidated statements of operations include operating income of approximately $2.0 million for the nine months ended September 30, 2015 relating to results of operations for the 19 hotels for the respective periods of ownership (the consolidated statements of operations for the three months ended September 30, 2015 did not contain any operating activity for these hotels, as they were sold prior to the beginning of the period). The sale of these properties did not represent a strategic shift that has, or would have, a major effect on the Company’s operations and financial results, and therefore the operating results for the periods of ownership of these properties are included in income from continuing operations for the nine months ended September 30, 2015. There were no dispositions during the nine month period ended September 30, 2016. |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] | 5. Debt $965 Million Credit Facility On May 18, 2015, the Company entered into an amendment and restatement of its unsecured $345 million credit facility, increasing the borrowing capacity to $965 million, reducing the annual interest rate and extending the maturity dates. The unsecured “$965 million credit facility” is comprised of (i) a $540 million revolving credit facility with an initial maturity date of May 18, 2019 (the “revolving credit facility”) and (ii) a $425 million term loan facility with a maturity date of May 18, 2020, consisting of three term loans, of which $212.5 million was funded on May 18, 2015, $110.0 million was funded on July 1, 2015, and $102.5 million was funded on August 14, 2015 (the “$425 million term loans”). Subject to certain conditions including covenant compliance and additional fees, the revolving credit facility maturity date may be extended one year and the amount of the total credit facility may be increased from $965 million to $1.25 billion. The Company may make voluntary prepayments in whole or in part, at any time. Interest payments on the $965 million credit facility are due monthly and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month LIBOR (the London Inter-Bank Offered Rate for a one-month term) plus a margin ranging from 1.50% to 2.30%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. In conjunction with the $425 million term loans, the Company entered into two interest rate swap agreements, which effectively fix the interest rate on $322.5 million of the outstanding balance at approximately 3.10%, subject to adjustment based on the Company’s leverage ratio, through maturity. See Note 6 for more information on the interest rate swap agreements. The Company is also required to pay quarterly an unused facility fee at an annual rate of 0.20% or 0.30% on the unused portion of the revolving credit facility, based on the amount of borrowings outstanding during the quarter. $150 Million Term Loan Facility On April 8, 2016, the Company entered into an unsecured $150 million term loan facility with a syndicate of commercial banks (the “$150 million term loan facility”), consisting of a term loan of up to $50 million that will mature on April 8, 2021 (the “$50 million term loan”) and a term loan of up to $100 million that will mature on April 8, 2023 (the “$100 million term loan,” and collectively with the $50 million term loan, the “$150 million term loans”). The Company initially borrowed $50 million under the $150 million term loan facility on April 8, 2016 and borrowed the remaining $100 million on September 30, 2016. The credit agreement contains requirements and covenants similar to the Company’s $965 million credit facility. The Company may make voluntary prepayments in whole or in part, at any time, subject to certain conditions. Interest payments on the $150 million term loan facility are due monthly and the interest rate is equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.45% to 2.20% for the $50 million term loan and 1.80% to 2.60% for the $100 million term loan, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. The Company also entered into two interest rate swap agreements which, beginning on September 30, 2016, effectively fix the interest rate on the $50 million term loan and $100 million term loan at 2.54% and 3.13%, respectively, subject to adjustment based on the Company’s leverage ratio, through maturity. See Note 6 for more information on the interest rate swap agreements. Proceeds from the $150 million term loan facility were used to pay down outstanding balances under the Company’s revolving credit facility with the intent to use the increased availability to repay scheduled mortgage debt maturities through the end of the first quarter of 2017. As of September 30, 2016 and December 31, 2015, the details of the Company’s revolving credit facility, $425 million term loans and $150 million term loans were as set forth below. All dollar amounts are in thousands.
The credit agreements governing the $965 million credit facility and $150 million term loan facility contain mandatory prepayment requirements, customary affirmative covenants, negative covenants and events of default. The credit agreements require that the Company comply with various covenants, which include, among others, a minimum tangible net worth, maximum debt limits, minimum interest and fixed charge coverage ratios, limits on dividend payments and share repurchases and restrictions on certain investments. The Company was in compliance with the applicable covenants at September 30, 2016. Mortgage Debt As of September 30, 2016, the Company had approximately $474.3 million in outstanding property level debt secured by 34 properties, with maturity dates ranging from November 2016 to June 2026, stated interest rates ranging from 0% to 6.25% and effective interest rates ranging from 3.80% to 6.52%. The loans generally provide for monthly payments of principal and interest on an amortized basis. The loans are generally subject to defeasance or prepayment penalties if prepaid. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any fair value adjustments or debt issuance costs as of September 30, 2016 and December 31, 2015 for each of the Company’s debt obligations. All dollar amounts are in thousands.
The aggregate amounts of principal payable under the Company’s total debt obligations (including mortgage debt, the revolving credit facility and term loans), for the five years subsequent to September 30, 2016 and thereafter are as follows (in thousands):
Upon completion of the merger on September 1, 2016, the Company assumed approximately $145.7 million in mortgage debt, prior to any fair value adjustments, secured by nine properties. This assumed mortgage debt had maturity dates ranging from February 2017 to October 2025 and stated interest rates ranging from 4.15% to 6.25%. A fair value premium adjustment totaling approximately $6.2 million was recorded upon the assumption of above market rate mortgages. The total fair value adjustment will be amortized as a reduction to interest expense over the remaining term of the respective mortgages using a method approximating the effective interest rate method. The effective interest rates on the applicable debt obligations ranged from 3.80% to 4.23% at the date of assumption. The Company incurred loan origination costs related to the assumption of the mortgage obligations totaling approximately $0.6 million. Such costs are amortized over the period to maturity of the applicable mortgage loan, as an addition to interest expense. |
Fair Value of Financial Instruments |
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Fair Value Disclosures [Text Block] | 6. Fair Value of Financial Instruments Except as described below, the carrying value of the Company’s financial instruments approximates fair value due to the short-term nature of these financial instruments. Debt The Company estimates the fair value of its debt by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity of a debt obligation with similar credit terms and credit characteristics, which are Level 3 inputs under the fair value hierarchy. Market rates take into consideration general market conditions and maturity. As of September 30, 2016, the carrying value and estimated fair value of the Company’s debt were approximately $1.3 billion and $1.4 billion, respectively. As of December 31, 2015, both the carrying value and estimated fair value of the Company’s debt were approximately $1.0 billion. Both the carrying value and estimated fair value of the Company’s debt (as discussed above) is net of unamortized debt issue costs related to term loans and mortgage debt for each specific year. Derivative Instruments Currently, the Company uses interest rate swaps to manage its interest rate risks on variable rate debt. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the one month LIBOR. The swaps are designed to effectively fix the interest payments on variable rate debt instruments. These instruments are recorded at fair value and are included in accounts payable and other liabilities in the Company’s consolidated balance sheets. The fair values of the Company’s interest rate swap agreements are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts, which is considered a Level 2 measurement under the fair value hierarchy. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The following table sets forth information for each of the Company’s interest rate swap agreements outstanding as of September 30, 2016 and December 31, 2015. All dollar amounts are in thousands.
The Company assesses, both at inception and on an ongoing basis, the effectiveness of its qualifying cash flow hedges. For swaps designated as cash flow hedges, the changes in fair value on the effective portion are recorded to accumulated other comprehensive income (loss), a component of shareholders’ equity in the Company’s consolidated balance sheets. Changes in fair value on the ineffective portion of all designated hedges are recorded to interest and other expense, net in the Company’s consolidated statements of operations. For terminated or matured swaps that were not designated as cash flow hedges (including four swaps, of which two matured or terminated in the first quarter of 2015, one terminated in the second quarter of 2015 and one terminated in the second quarter of 2016), the changes in fair value were recorded to interest and other expense, net in the Company’s consolidated statements of operations. Other than the fair value changes associated with the terminated interest rate swap for which hedge accounting was discontinued during the first half of 2015 as discussed below, fair value changes for derivatives that were not in qualifying hedge relationships for the three and nine months ended September 30, 2016 and 2015 were not material. To adjust qualifying cash flow hedges to their fair value and recognize the impact of hedge accounting, the Company recorded unrealized gains (losses) of approximately $4.3 million and $(6.0) million during the three months ended September 30, 2016 and 2015, and approximately $(7.9) million and $(6.4) million during the nine months ended September 30, 2016 and 2015, respectively, to other comprehensive income (loss). There was no ineffectiveness recorded on designated cash flow hedges during the three and nine months ended September 30, 2016 and 2015. Amounts reported in accumulated other comprehensive loss will be reclassified to interest and other expense, net as interest payments are made on the Company’s variable-rate derivatives. The Company reclassified unrealized losses of approximately $0.9 million and $0.8 million during the three months ended September 30, 2016 and 2015, and unrealized losses of approximately $2.9 million and $1.0 million during the nine months ended September 30, 2016 and 2015 from accumulated other comprehensive loss to interest and other expense, net. Approximately $3.9 million of the net unrealized losses included in accumulated other comprehensive loss at September 30, 2016 is expected to be reclassified into interest and other expense, net within the next 12 months. Also, during the nine months ended September 30, 2015, the Company reclassified $0.8 million of unrealized losses from accumulated other comprehensive loss to net income which was associated with the $100 million terminated swap agreement as discussed below. Amounts recorded to accumulated other comprehensive loss totaled approximately $10.0 million and $2.1 million as of September 30, 2016 and December 31, 2015, respectively. 2015 Terminated Interest Rate Swap In May 2015, concurrent with the Listing, the Company amended and restated its credit facility, at which time it repaid its $100 million term loan and terminated its $100 million interest rate swap, which was scheduled to mature in March 2019. At inception, this swap was designated as a cash flow hedge for accounting purposes, and from inception of the swap through March 2, 2015, the swap was a fully effective hedge, and therefore the changes in the fair value through this date were recorded in accumulated other comprehensive loss, a component of shareholders’ equity in the Company’s consolidated balance sheets, which totaled $0.8 million as of March 2, 2015. In the first quarter of 2015, the Company announced its intent to pursue a listing of its common shares on a national securities exchange and to enter into a modified credit facility and, as a result of this decision, it was determined that the cash flows being hedged were no longer probable of occurring through the maturity date of the swap. Therefore, the Company discontinued hedge accounting, and subsequent changes in fair value were recorded to interest and other expense, net in the Company’s consolidated statements of operations. The termination of the swap in May 2015 resulted in a cash settlement totaling approximately $1.1 million, the fair value at the time of settlement. As a result, the Company realized a loss of approximately $1.1 million during the nine months ended September 30, 2015 related to the swap termination, of which approximately $0.8 million previously recorded to accumulated other comprehensive loss ($0.3 million was recorded during the first quarter of 2015) was reclassified as an increase to transaction costs with the remaining amount recorded to interest and other expense, net in the Company’s consolidated statements of operations. |
Related Parties |
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Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 7. Related Parties The Company has, and is expected to continue to engage in, transactions with related parties. These transactions cannot be construed to be at arm’s length and the results of the Company’s operations may be different if these transactions were conducted with non-related parties. The Company’s independent members of the Board of Directors oversee and annually review the Company’s related party relationships (including the relationships discussed in this section) and are required to approve any significant modifications to the existing relationships, as well as any new significant related party transactions. The Board of Directors is not required to approve each individual transaction that falls under the related party relationships. However, under the direction of the Board of Directors, at least one member of the Company’s senior management team approves each related party transaction. Effective September 1, 2016, the Company completed its merger with Apple Ten, resulting in the termination of the subcontract agreement with Apple Ten Advisors, Inc. (“A10A”) and related transactions with Apple Ten discussed in the Company’s 2015 Annual Report on Form 10-K and additional related party transactions. No other new significant related party transactions occurred during the nine months ended September 30, 2016. Below is a summary of the related party relationships in effect and transactions that occurred during the nine months ended September 30, 2016 and 2015. Prior to the merger, Glade M. Knight, Executive Chairman of the Company, was Chairman and Chief Executive Officer of Apple Ten. Apple Ten’s advisors, A10A and Apple Realty Group, Inc., formerly known as Apple Suites Realty Group, Inc. (“ARG”), are wholly owned by Mr. Knight. Mr. Knight is also a partner and Chief Executive Officer of Energy 11 GP, LLC, which is the general partner of Energy 11, L.P. Justin G. Knight, the Company’s President and Chief Executive Officer, and a member of the Company’s Board of Directors, also served as President of Apple Ten prior to the merger. Merger and Related Transactions As contemplated in the Merger Agreement, in connection with the completion of the merger, the advisory and related party arrangements with respect to the Company, Apple Ten and Apple Ten’s advisors, A10A and ARG, were terminated. Pursuant to the terms of the termination agreement, dated April 13, 2013, the advisory agreement, property acquisition/disposition agreement and subcontract agreement with respect to the Company, Apple Ten, A10A and ARG, discussed below, were terminated effective immediately after the effective time of the merger on September 1, 2016, and no fees were paid as a result of the termination of these agreements. As a result, Apple Ten no longer pays the various fees that were paid to the Company under the subcontract agreement and A10A no longer subcontracts its advisory services to the Company. Additionally, effective September 1, 2016, Apple Ten no longer has any advisory contracts with A10A or ARG. Both the advisory fees and reimbursed costs received by the Company from Apple Ten were recorded as general and administrative expense by Apple Ten and reductions to general and administrative expense by the Company and, therefore, the termination of the subcontract agreement had no financial impact on the combined company after the effective time of the merger. Subsequent to the merger, the Company will continue to provide support services to ARG for activities unrelated to Apple Ten. Also, as discussed below, upon completion of the merger, Apple Ten’s 26% interest in Apple Air was acquired by the Company. As part of the merger transaction, the officers and Executive Chairman of the Company received a combined 3.1 million common shares of the Company and $6.0 million in exchange for their ownership interests in Apple Ten, including amounts assigned to others. Subcontract Agreement with A10A Prior to the Merger Prior to the merger, the Company had a subcontract agreement with A10A. Under the agreement, A10A subcontracted its obligations under its advisory agreement with Apple Ten to the Company. The Company provided to Apple Ten the advisory services contemplated under the A10A advisory agreement and received an annual fee ranging from 0.1% to 0.25% (based on Apple Ten’s operating results) of total equity proceeds received by Apple Ten, and was reimbursed by Apple Ten for the use of the Company’s employees and corporate office and other costs associated with the advisory agreement, as described below. Prior to the merger, advisory fees earned by the Company from Apple Ten for the nine months ended September 30, 2016 and 2015 totaled approximately $1.6 million and $1.9 million, and are recorded as a reduction to general and administrative expenses in the Company’s consolidated statements of operations. Support Services to Apple Ten, A10A and ARG Prior to and After the Merger Prior to the merger, the Company provided support services to Apple Ten and its advisors, A10A and ARG, which agreed to reimburse the Company for its costs in providing these services. After the merger, the Company will continue to provide support services to ARG for activities unrelated to Apple Ten. Total reimbursed costs received by the Company from these entities for the nine months ended September 30, 2016 and 2015 (including Apple Ten, A10A and ARG prior to September 1, 2016 and ARG thereafter) totaled approximately $2.3 million and $2.1 million, respectively, and are recorded as a reduction to general and administrative expenses in the Company’s consolidated statements of operations. As of September 30, 2016, total amounts due from ARG for activities unrelated to Apple Ten, and as of December 31, 2015, total amounts due from Apple Ten, A10A and ARG for reimbursements under the cost sharing structure totaled approximately $0.2 million and $0.3 million, respectively, and are included in other assets, net in the Company’s consolidated balance sheets. Under this cost sharing structure, amounts reimbursed to the Company include both compensation for personnel and office related costs (including office rent, utilities, office supplies, etc.) used by each company during these periods. The amounts reimbursed to the Company are based on a good faith estimate of the proportionate amount of time incurred by the Company’s employees on behalf of Apple Ten, A10A and ARG prior to the merger, and ARG for activities unrelated to Apple Ten after the merger. Effective September 1, 2016, as part of the cost sharing arrangement, certain day-to-day transactions may result in amounts due to or from the Company and ARG for activities unrelated to Apple Ten. To efficiently manage cash disbursements, the Company or ARG may make payments for the other company. Under the cash management process, each company may advance or defer up to $1 million at any time. Each quarter, any outstanding amounts are settled between the companies. This process allows each company to minimize its cash on hand and reduces the cost for each company. The amounts outstanding at any point in time are not significant to either of the companies. Prior to the merger, Apple Ten, A10A and ARG (for activities both related and unrelated to Apple Ten) were part of the cost sharing structure and participated in this cash management process. Apple Air Holding, LLC (“Apple Air”) The Company, through a wholly-owned subsidiary, Apple Air, owns a Learjet used primarily for acquisition, asset management, renovation and public relations purposes. Prior to the merger, Apple Air was jointly owned by the Company (74%) and Apple Ten (26%), with Apple Ten’s ownership interest accounted for as a minority interest, which as of December 31, 2015, totaled approximately $0.7 million, and was included in accounts payable and other liabilities in the Company’s consolidated balance sheet. Effective September 1, 2016, with the completion of the merger, the Company acquired Apple Ten’s 26% equity interest in Apple Air for a total allocated purchase price of approximately $0.7 million, which approximated the fair market value at the time of acquisition based on third party market comparisons, resulting in a 100% equity ownership interest in Apple Air and the elimination of Apple Ten’s minority interest. The aircraft is also leased to affiliates of the Company based on third party rates, which was not significant during the reporting periods. The Company also utilizes aircraft, owned through two entities, one of which is owned by the Company’s Executive Chairman, and the other, its President and Chief Executive Officer, for acquisition, asset management, renovation and public relations purposes, and reimburses these entities at third party rates. Total amounts incurred during the nine months ended September 30, 2016 and 2015 were approximately $0.2 million and $0.1 million, respectively, related to aircraft owned through these two entities and are included in general and administrative expenses in the Company’s consolidated statements of operations. |
Shareholders' Equity |
9 Months Ended |
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Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 8. Shareholders’ Equity Distributions For the three months ended September 30, 2016 and 2015, the Company paid distributions of $0.30 per common share for a total of $57.2 million and $52.6 million, respectively. For the nine months ended September 30, 2016 and 2015, the Company paid distributions of $0.90 and $0.97 per common share for a total of $161.9 million and $176.8 million, respectively. Additionally, in September 2016, the Company declared a monthly distribution of $0.10 per common share, totaling $22.3 million, which was recorded as a payable as of September 30, 2016 and paid in October 2016. As of December 31, 2015, a monthly distribution of $0.10 per common share, totaling $17.4 million, was recorded as a payable and paid in January 2016. These accrued distributions were included in accounts payable and other liabilities in the Company’s consolidated balance sheets. The Company’s current annual distribution rate, payable monthly, is $1.20 per common share. On April 23, 2015, the Company’s Board of Directors, in anticipation of the Listing, reduced the annual distribution rate from $1.36 per common share to the current annual distribution rate, effective with the June 2015 distribution. Reverse Share Split In connection with the Listing, effective May 18, 2015, the Company completed a 50% reverse share split. As a result of the reverse share split, every two common shares were converted into one common share, reducing the number of issued and outstanding common shares from 372.2 million to 186.1 million on the effective date. The common shares have the same respective voting rights, preferences and relative, participating, optional or other rights, and qualifications, limitations or restrictions as set forth in the amended and restated articles of incorporation in effect immediately prior to the effective date of the reverse share split. All common shares and per share amounts for all periods presented have been adjusted to reflect the reverse share split. Issuance of Common Shares and Stock Options On September 1, 2016, in connection with the completion of the merger, as described in Note 2, the Company issued a total of 48.7 million common shares to Apple Ten shareholders. Based on the $19.62 per share closing price of the Company’s common shares on August 31, 2016 (the date the merger was approved), the total estimated value of the common shares issued by the Company in the merger was approximately $956.1 million. In connection with the issuance of these shares, the Company incurred approximately $1.2 million in issuance costs including legal, accounting and reporting services. These costs were recorded by the Company as a reduction of shareholders’ equity. Additionally, pursuant to the terms of the Merger Agreement, all of Apple Ten’s outstanding stock options were exchanged for stock options to acquire a total of 203,041 common shares of the Company at an exercise price of $19.17 per share. Share Repurchases In connection with the Listing, the Board of Directors approved a modified “Dutch Auction” tender offer to purchase up to $200 million in value of the Company’s common shares (the “Tender Offer”), which commenced on May 18, 2015 and expired on June 22, 2015. Upon expiration, the Company accepted for purchase approximately 10.5 million of its common shares, at a purchase price of $19.00 per common share, for an aggregate purchase price of approximately $200 million, excluding fees and expenses related to the Tender Offer. The total common shares accepted for purchase represented approximately 97% of the common shares properly tendered and not properly withdrawn at the purchase price of $19.00 per common share. Payment for shares accepted for purchase occurred on June 24, 2015, and the shares purchased were retired. The Company incurred approximately $0.6 million in costs related to the Tender Offer which were recorded as a reduction to shareholders’ equity in the Company’s consolidated balance sheets. The Company funded the Tender Offer and all related costs primarily from borrowings under its $965 million credit facility. During 2015, the Company’s Board of Directors authorized a share repurchase program of up to $500 million through July 7, 2016. Effective July 8, 2015, as part of the implementation of the program, the Company established a written trading plan (“2015 Plan”) that provided for share repurchases in open market transactions that was intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. To be able to more effectively respond to market conditions, the Company terminated the 2015 Plan in January 2016. From implementation through the termination of the 2015 Plan, the Company purchased approximately 1.3 million of its common shares under the 2015 Plan, at a weighted-average market purchase price of approximately $17.62 per common share, for an aggregate purchase price of approximately $22.4 million, including the purchase of approximately 20,000 of its common shares in January 2016, at a weighted-average market purchase price of approximately $18.10 per common share for an aggregate purchase price of approximately $0.4 million and approximately 1.2 million of its common shares in the third quarter of 2015 at a weighted-average market purchase price of approximately $17.59 per common share for an aggregate purchase price of approximately $21.2 million. In June 2016, the Board of Directors approved a one-year extension of the share repurchase program authorizing share repurchases up to an aggregate of $475 million. The program may be suspended or terminated at any time by the Company. If not terminated earlier, the program will end in July 2017. Effective September 2, 2016, as part of the implementation of this program, the Company established a written trading plan (“2016 Plan”) that provides for share repurchases up to an aggregate of $400 million in open market transactions that is intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The timing of share repurchases and the number of common shares to be repurchased under the 2016 Plan will depend upon prevailing market conditions, regulatory requirements and other factors. The 2016 Plan does not obligate the Company to repurchase any specific number of shares and may be suspended at any time at its discretion. The Company had not repurchased any common shares under the 2016 Plan as of September 30, 2016. Repurchases under the 2015 Plan have been funded, and the Company intends to fund repurchases under the 2016 Plan, with availability under its revolving credit facility. During the nine months ended September 30, 2015, the Company redeemed approximately 0.8 million common shares at a price of $18.40 per common share, or a total of approximately $14.9 million under its previous share redemption program that was terminated following the April 2015 redemption. |
Compensation Plans |
9 Months Ended |
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Sep. 30, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 9. Compensation Plans In May 2014, the Board of Directors adopted the Company’s 2014 Omnibus Incentive Plan (the “Omnibus Plan”), and in May 2015, the Company’s shareholders approved the Omnibus Plan. The Omnibus Plan permits the grant of awards of stock options, stock appreciation rights, restricted stock, stock units, unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards, and cash bonus awards to any employee, officer, or director of the Company or an affiliate of the Company, a consultant or adviser currently providing services to the Company or an affiliate of the Company, or any other person whose participation in the Omnibus Plan is determined by the Compensation Committee of the Board of Directors to be in the best interests of the Company. The maximum number of the Company’s common shares available for issuance under the Omnibus Plan is 10 million. In February 2016, the Compensation Committee of the Board of Directors (“Compensation Committee”) approved an executive incentive plan (“2016 Incentive Plan”), effective January 1, 2016, and established incentive goals for 2016. Under the 2016 Incentive Plan, participants are eligible to receive a bonus based on the achievement of certain 2016 performance measures, consisting of operational performance metrics (including targeted Modified Funds from Operations per share, Comparable Hotels revenue per available room growth and Adjusted Hotel EBITDA Margin growth) and shareholder return metrics (including shareholder return relative to a peer group and total shareholder return). The components of the operational performance metrics and shareholder return metrics are equally weighted and the two metrics each account for 50% of the total target incentive compensation. The range of potential aggregate payouts under the 2016 Incentive Plan is $0 - $15 million. Based on performance through September 30, 2016, the Company has accrued approximately $2.8 million as a liability for potential executive bonus payments under the 2016 Incentive Plan, which is included in accounts payable and other liabilities in the Company’s consolidated balance sheet as of September 30, 2016 and in general and administrative expense in the Company’s consolidated statement of operations for the nine months ended September 30, 2016. As a result of lower anticipated 2016 performance, during the three months ended September 30, 2016, the Company reduced the previously recorded accrual by approximately $0.8 million, resulting in a reduction to general and administrative expense for the period. Approximately 25% of awards under the 2016 Incentive Plan, if any, will be paid in cash, and 75% will be issued in stock under the Omnibus Plan, two-thirds of which would vest at the end of 2016 and one-third of which would vest at the end of 2017. During 2015, a comparable executive incentive plan was approved by the Compensation Committee (“2015 Incentive Plan”) that was effective January 1, 2015, and the Company recorded approximately $2.6 million and $5.8 million in general and administrative expense in the Company’s consolidated statements of operations for the three and nine months ended September 30, 2015. Share Based Compensation Awards During the first quarter of 2016, the Company issued 304,345 common shares earned under the 2015 Incentive Plan (net of shares surrendered to satisfy tax withholding obligations) at $19.87 per share, or approximately $6.0 million in share based compensation. Of the total shares issued, 146,279 shares were unrestricted at the time of issuance, and the remaining 158,066 restricted shares will vest on December 31, 2016. Of the total 2015 share based compensation, approximately $4.5 million was recorded as a liability as of December 31, 2015, which was included in accounts payable and other liabilities in the Company’s consolidated balance sheets and the remaining $1.6 million, which is subject to vesting on December 31, 2016, will be recognized as compensation expense proportionately throughout 2016. For the three and nine months ended September 30, 2016, the Company recognized approximately $0.4 million and $1.2 million, respectively, of share based compensation expense related to the unvested restricted share awards. |
Legal Proceedings |
9 Months Ended |
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Sep. 30, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Legal Matters and Contingencies [Text Block] | 10. Legal Proceedings Moses, et al. v. Apple Hospitality REIT, Inc., et al. As previously reported in the 2015 Form 10-K, on April 22, 2014, Plaintiff Susan Moses, purportedly a shareholder of Apple REIT Seven, Inc. (“Apple Seven”) and Apple REIT Eight, Inc. (“Apple Eight”), now part of the Company, filed a class action against the Company and several individual directors on behalf of all then-existing shareholders and former shareholders of Apple Seven and Apple Eight, now part of the Company, who purchased additional shares under the Apple REITs’ Dividend Reinvestment Plans (“DRIP”) between July 17, 2007 and February 12, 2014 (Susan Moses, et al. v. Apple Hospitality REIT, Inc., et al., 14-CV-3131 (DLI)(SMG)). On March 9, 2015, the Court entered a Memorandum and Order dismissing all claims. On April 6, 2015, Plaintiff filed a Second Amended Class Action Complaint asserting a breach of contract claim. Defendants moved to dismiss the Second Amended Complaint on April 29, 2015 and briefing on the motion was completed on May 27, 2015. On September 30, 2016, the Court denied defendants’ Motion to Dismiss the breach of contract claim and dismissed the claim for breach of an implied covenant of good faith and fair dealing. Defendants filed their Answer on October 14, 2016 and an initial conference is scheduled for February 7, 2017. The Company believes that Plaintiff’s claims are without merit and intends to defend this case vigorously. At this time, the Company cannot reasonably predict the outcome of these proceedings or provide a reasonable estimate of the possible loss or range of loss due to these proceedings, if any. Quinn v. Knight, et al. On July 19, 2016, a purported shareholder of Apple Ten, now part of the Company, commenced a derivative action in the United States District Court for the Eastern District of Virginia, captioned and numbered Quinn v. Knight, et al, Case No. 3:16-cv-610 (the "Complaint"). The Complaint names as defendants the members of Apple Ten's board of directors (the "Directors"), certain officers of Apple Ten and the Company (collectively, the "Officers"), the Company and, as a nominal defendant, Apple Ten. The Complaint makes various allegations against the Directors, the Officers and the Company, including that (i) the Directors breached their fiduciary duties of loyalty and good faith in approving the merger by, among other things, a conflicted process that favored certain insiders and including materially false, incomplete and misleading statements in the definitive joint proxy statement/prospectus in connection with the merger and (ii) the Company and the Officers aided and abetted those alleged breaches of fiduciary duty. The Complaint sought to enjoin the shareholder vote on the merger, and currently seeks damages, rescission, costs and attorney's fees. On July 22, 2016, plaintiff filed a motion for expedited proceedings. On August 5, 2016, the Court scheduled a hearing for August 26, 2016 on the plaintiff's motion to enjoin the shareholder vote on the merger. Plaintiff's motion for preliminary injunction was denied following the hearing on August 26, 2016 and the shareholder vote on the merger occurred as originally scheduled on August 31, 2016. On November 2, 2016, the parties reached an agreement in principle to settle the litigation for $32 million, which settlement remains subject to final court approval. The Company has included the settlement amount in accounts payable and other liabilities in its consolidated balance sheet as of September 30, 2016 and in transaction costs in the Company’s consolidated statements of operations. The Company anticipates that, should the settlement be completed, approximately $10 million to $15 million of the settlement amount would be funded from insurance proceeds and other parties to the settlement. Since specific amounts have not been agreed to at this time these anticipated amounts have not been recognized in the Company’s financial statements. |
Subsequent Events |
9 Months Ended |
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Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 11. Subsequent Events In October 2016, the Company paid approximately $22.3 million, or $0.10 per outstanding common share, in distributions to its common shareholders. In October 2016, the Company declared a regular monthly cash distribution of $0.10 per common share for the month of November 2016. The distribution is payable on November 15, 2016. In October 2016, the Company entered into separate contracts for the sale of two properties (the Dallas, Texas Hilton hotel and the Chesapeake, Virginia Marriott hotel) for a total gross sales price of approximately $66.3 million. See Note 3 for more information on these contracts. In October 2016, the Company entered into a contract for the potential purchase of a hotel to be constructed in Phoenix, Arizona, for a gross purchase price of $44.1 million. The hotel is planned to be a Hampton Inn & Suites which is expected to contain 210 guest rooms. Although the Company is working towards acquiring this hotel, there are many conditions to closing that have not yet been satisfied, and there can be no assurance that a closing on this hotel will occur. In November 2016, the Company entered into a $70.0 million secured mortgage loan agreement with a commercial lender, jointly secured by three properties. The mortgage loan has an annual fixed interest rate of 3.55% and a maturity date of December 1, 2026. At closing, the Company used the proceeds from this mortgage to reduce the borrowings on its revolving credit facility and to pay loan origination costs. |
Accounting Policies, by Policy (Policies) |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Organization Apple Hospitality REIT, Inc., together with its wholly owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is a self-advised REIT that invests in income-producing real estate, primarily in the lodging sector, in the United States. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of these entities, and therefore does not consolidate the entities. As of September 30, 2016, the Company owned 236 hotels with an aggregate of 30,299 rooms located in 33 states. On May 18, 2015, the Company’s common shares were listed and began trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “APLE” (the “Listing”). In connection with the Listing, effective May 18, 2015, the Company completed a 50% reverse share split. As a result of the reverse share split, every two common shares were converted into one common share. All common shares and per share amounts for all periods presented have been adjusted to reflect the reverse share split. See Note 8 for additional information about the reverse share split.
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Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States 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 unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its 2015 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2016.
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Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
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Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported net income, shareholders’ equity or cash flows.
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Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Comprehensive income includes net income and other comprehensive income (loss), which is comprised of unrealized gains (losses) and other adjustments resulting from hedging activity.
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Earnings Per Share, Policy [Policy Text Block] | Net Income Per Common Share Basic net income per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for the three and nine months ended September 30, 2016 and 2015. As a result, basic and dilutive net income per common share were the same.
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New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Standards Recently Issued In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets as right-of-use assets and lease liabilities, as well as making targeted changes to lessor accounting. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The standard is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The standard is effective for annual and interim periods beginning after December 15, 2016 with early adoption permitted. Some provisions of the standard require a retrospective transition approach. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The standard is effective for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The standard requires a retrospective transition approach where practicable. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.
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Merger with Apple REIT Ten, Inc. (Tables) |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the Company’s preliminary purchase price allocation for the merger, which represents its best estimate of the fair values of the assets acquired and liabilities assumed on September 1, 2016, the effective date of the merger (in thousands):
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Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The aggregate amounts of the estimated minimum lease payments pertaining to all of the ground leases assumed in the merger, for the five years subsequent to September 30, 2016 and thereafter are as follows (in thousands):
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Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma information for the three and nine month periods ended September 30, 2016 and 2015, is presented as if the merger, effective September 1, 2016, had occurred on January 1, 2015, and is based on assumptions and estimates considered appropriate by the Company. The pro forma information is provided for illustrative purposes only and does not necessarily reflect what the operating results would have been had the merger been completed on January 1, 2015, nor is it necessarily
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Investment in Real Estate (Tables) |
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Property, Plant and Equipment [Table Text Block] | The Company’s investment in real estate consisted of the following (in thousands):
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Schedule of Business Acquisitions, by Acquisition [Table Text Block] | During the nine month period ended September 30, 2015, the Company acquired five hotels. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price for each hotel acquired during the nine months ended September 30, 2015. All dollar amounts are in thousands.
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Schedule of Outstanding Contracts for Potential Purchase of Hotels [Table Text Block] | As of September 30, 2016, the Company had outstanding contracts for the potential purchase of three additional hotels for a total purchase price of $56.5 million. All three hotels are under construction and are expected to be completed and opened for business in the first half of 2017, at which time closing on these hotels is expected to occur. Although the Company is working towards acquiring these three hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the location, brand, date of purchase contract, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) contract deposits paid, and gross purchase price for each of the contracts outstanding at September 30, 2016. All dollar amounts are in thousands.
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | As of September 30, 2016 and December 31, 2015, the details of the Company’s revolving credit facility, $425 million term loans and $150 million term loans were as set forth below. All dollar amounts are in thousands.
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Schedule of Debt [Table Text Block] | As of September 30, 2016, the Company had approximately $474.3 million in outstanding property level debt secured by 34 properties, with maturity dates ranging from November 2016 to June 2026, stated interest rates ranging from 0% to 6.25% and effective interest rates ranging from 3.80% to 6.52%. The loans generally provide for monthly payments of principal and interest on an amortized basis. The loans are generally subject to defeasance or prepayment penalties if prepaid. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any fair value adjustments or debt issuance costs as of September 30, 2016 and December 31, 2015 for each of the Company’s debt obligations. All dollar amounts are in thousands.
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Schedule of Maturities of Long-term Debt [Table Text Block] | The aggregate amounts of principal payable under the Company’s total debt obligations (including mortgage debt, the revolving credit facility and term loans), for the five years subsequent to September 30, 2016 and thereafter are as follows (in thousands):
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Fair Value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives [Table Text Block] | The following table sets forth information for each of the Company’s interest rate swap agreements outstanding as of September 30, 2016 and December 31, 2015. All dollar amounts are in thousands.
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Organization and Summary of Significant Accounting Policies (Details) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
May 18, 2015 |
Sep. 30, 2016
shares
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Sep. 30, 2015
shares
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Sep. 30, 2016
shares
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Sep. 30, 2015
shares
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Accounting Policies [Abstract] | |||||
Number of Reportable Segments | 1 | ||||
Number of Hotels | 236 | 236 | |||
Aggregate Number of Hotel Rooms | 30,299 | 30,299 | |||
Number of States in which Hotels are Located | 33 | 33 | |||
Reverse Stock Split Ratio of Common Stock | 0.50 | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment (in Shares) | 0 | 0 | 0 | 0 |
Merger with Apple REIT Ten, Inc. (Details) - Schedule of Business Acquisition Purchase Price Allocation - Apple Ten Merger [Member] $ in Thousands |
Sep. 01, 2016
USD ($)
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Assets: | |
Land | $ 151,200 |
Building and improvements | 1,065,859 |
Furniture, fixtures and equipment | 75,445 |
Franchise fees | 2,917 |
Investment in real estate | 1,295,421 |
Restricted cash, due from third party managers and other assets | 33,579 |
Total assets | 1,329,000 |
Liabilities: | |
Credit facility | 111,100 |
Mortgage debt | 151,885 |
Accounts payable and other liabilities | 16,339 |
Total liabilities | 279,324 |
Fair value estimate of net assets acquired (total consideration paid) | $ 1,049,676 |
Merger with Apple REIT Ten, Inc. (Details) - Schedule of Future Minimum Lease Payments - Ground Leases Assumed [Member] - Apple Ten Merger [Member] $ in Thousands |
Sep. 30, 2016
USD ($)
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---|---|
Merger with Apple REIT Ten, Inc. (Details) - Schedule of Future Minimum Lease Payments [Line Items] | |
2016 (October - December) | $ 82 |
2017 | 409 |
2018 | 435 |
2019 | 440 |
2020 | 440 |
Thereafter | 60,099 |
Total | $ 61,905 |
Merger with Apple REIT Ten, Inc. (Details) - Business Acquisition, Pro Forma Information - Apple Ten Merger [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Merger with Apple REIT Ten, Inc. (Details) - Business Acquisition, Pro Forma Information [Line Items] | ||||
Total revenue | $ 325,924 | $ 309,835 | $ 949,760 | $ 885,015 |
Net income | $ 59,981 | $ 61,057 | $ 177,183 | $ 173,419 |
Basic and diluted net income per common share (in Dollars per share) | $ 0.27 | $ 0.27 | $ 0.79 | $ 0.75 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 223,403 | 223,799 | 223,399 | 230,977 |
Investment in Real Estate (Details) - Investment in Real Estate - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Investment in Real Estate [Abstract] | ||
Land | $ 713,559 | $ 561,630 |
Building and Improvements | 4,304,705 | 3,200,918 |
Furniture, Fixtures and Equipment | 391,151 | 293,444 |
Franchise Fees | 11,774 | 8,832 |
5,421,189 | 4,064,824 | |
Less Accumulated Depreciation | (526,973) | (423,057) |
Investment in Real Estate, net | $ 4,894,216 | $ 3,641,767 |
Investment in Real Estate (Details) - Hotel Acquisitions $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2015
USD ($)
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Sep. 30, 2016 |
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Business Acquisition [Line Items] | |||||
Rooms | 30,299 | ||||
Total [Member] | |||||
Business Acquisition [Line Items] | |||||
Rooms | 871 | ||||
Gross Purchase Price | [1] | $ 212,800 | |||
Hampton Inn Fort Lauderdale, FL [Member] | |||||
Business Acquisition [Line Items] | |||||
State | FL | ||||
Brand | Hampton Inn | ||||
Manager | LBA | ||||
Date Acquired | Jun. 23, 2015 | ||||
Rooms | 156 | ||||
Gross Purchase Price | [1] | $ 23,000 | |||
Hampton Inn Cypress, CA [Member] | |||||
Business Acquisition [Line Items] | |||||
State | CA | ||||
Brand | Hampton Inn | ||||
Manager | Dimension | ||||
Date Acquired | Jun. 29, 2015 | ||||
Rooms | 110 | ||||
Gross Purchase Price | [1] | $ 19,800 | |||
SpringHill Suites Burbank, CA [Member] | |||||
Business Acquisition [Line Items] | |||||
State | CA | ||||
Brand | SpringHill Suites | ||||
Manager | Marriott | ||||
Date Acquired | Jul. 13, 2015 | ||||
Rooms | 170 | ||||
Gross Purchase Price | [1] | $ 60,000 | |||
Courtyard Burbank, CA [Member] | |||||
Business Acquisition [Line Items] | |||||
State | CA | ||||
Brand | Courtyard | ||||
Manager | Huntington | ||||
Date Acquired | Aug. 11, 2015 | ||||
Rooms | 190 | ||||
Gross Purchase Price | [1] | $ 54,000 | |||
Courtyard San Diego, CA [Member] | |||||
Business Acquisition [Line Items] | |||||
State | CA | ||||
Brand | Courtyard | ||||
Manager | Huntington | ||||
Date Acquired | Sep. 01, 2015 | ||||
Rooms | 245 | ||||
Gross Purchase Price | [1] | $ 56,000 | |||
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Dispositions (Details) $ in Thousands |
2 Months Ended | 3 Months Ended | 9 Months Ended | |||
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Jun. 01, 2015
USD ($)
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Feb. 26, 2015
USD ($)
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Sep. 30, 2016
USD ($)
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Sep. 30, 2015
USD ($)
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Sep. 30, 2016
USD ($)
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Sep. 30, 2015
USD ($)
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Dispositions (Details) [Line Items] | ||||||
Gain (Loss) on Disposition of Assets | $ 0 | $ 0 | $ 0 | $ 15,358 | ||
Operating Income (Loss) | $ 23,843 | $ 56,408 | $ 132,233 | $ 144,859 | ||
Hotels Sold [Member] | ||||||
Dispositions (Details) [Line Items] | ||||||
Number of Properties Disposed During Period | 1 | 18 | 0 | 19 | ||
Number of Real Estate Transactions | 2 | |||||
Sale of Real Estate Assets, Gross Sales Price | $ 2,100 | $ 206,400 | $ 208,500 | |||
Gain (Loss) on Disposition of Assets | $ (300) | $ 15,600 | 15,400 | |||
Operating Income (Loss) | $ 2,000 |
Debt (Details) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 01, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
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Sep. 30, 2015
USD ($)
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Dec. 31, 2015
USD ($)
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Mar. 03, 2014
USD ($)
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Debt (Details) [Line Items] | |||||
Proceeds from Issuance of Unsecured Debt (in Dollars) | $ 150,000 | $ 425,000 | |||
Debt Issuance Costs, Net (in Dollars) | 7,890 | ||||
Long-term Debt, Gross (in Dollars) | $ 1,351,399 | ||||
$965 Million Unsecured Credit Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Date of Amended and Restated Credit Facility | May 18, 2015 | ||||
Credit Facility, Amendment and Restatement Description | the Company entered into an amendment and restatement of its unsecured $345 million credit facility, increasing the borrowing capacity to $965 million, reducing the annual interest rate and extending the maturity dates | ||||
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | $ 965,000 | ||||
Line of Credit Facility, Borrowing Capacity, Description | the amount of the total credit facility may be increased from $965 million to $1.25 billion | ||||
Original $345 Million Unsecured Credit Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | $ 345,000 | ||||
$965 Million Unsecured Credit Facility and $150 Million Unsecured Term Loan Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Line of Credit Facility, Covenant Terms | the $965 million credit facility and $150 million term loan facility contain mandatory prepayment requirements, customary affirmative covenants, negative covenants and events of default. The credit agreements require that the Company comply with various covenants, which include, among others, a minimum tangible net worth, maximum debt limits, minimum interest and fixed charge coverage ratios, limits on dividend payments and share repurchases and restrictions on certain investments. The Company was in compliance with the applicable covenants at September 30, 2016. | ||||
London Interbank Offered Rate (LIBOR) [Member] | $965 Million Unsecured Credit Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | ||||
$150 Million Unsecured Term Loan Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Term Loan Facility, Maximum Borrowing Capacity (in Dollars) | $ 150,000 | ||||
Debt Instrument, Description | The Company initially borrowed $50 million under the $150 million term loan facility on April 8, 2016 and borrowed the remaining $100 million on September 30, 2016. | ||||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | ||||
Loans with Interest Rates Effectively Fixed by Interest Rate Swaps Effective September 30, 2016 [Member] | $150 Million Unsecured Term Loan Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Number of Interest Rate Derivatives Held | 2 | ||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | $965 Million Unsecured Credit Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | $965 Million Unsecured Credit Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.30% | ||||
$540 Million Unsecured Revolving Credit Facility [Member] | $965 Million Unsecured Credit Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | $ 540,000 | ||||
Line of Credit Facility, Expiration Date | May 18, 2019 | ||||
Debt Instrument, Maturity Date, Description | maturity date may be extended one year | ||||
Debt Issuance Costs, Net (in Dollars) | $ 3,100 | $ 4,000 | |||
$540 Million Unsecured Revolving Credit Facility [Member] | Minimum [Member] | $965 Million Unsecured Credit Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||||
$540 Million Unsecured Revolving Credit Facility [Member] | Maximum [Member] | $965 Million Unsecured Credit Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||||
$425 Million Term Loans [Member] | $965 Million Unsecured Credit Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Term Loan Facility, Maximum Borrowing Capacity (in Dollars) | $ 425,000 | ||||
Debt Instrument, Maturity Date | May 18, 2020 | ||||
Debt Instrument, Description | consisting of three term loans, of which $212.5 million was funded on May 18, 2015, $110.0 million was funded on July 1, 2015, and $102.5 million was funded on August 14, 2015 (the “$425 million term loans”) | ||||
Number of Term Loans | 3 | ||||
$425 Million Term Loans [Member] | $965 Million Unsecured Credit Facility [Member] | $212.5 Million Term Loan Funded May 18, 2015 [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Face Amount (in Dollars) | $ 212,500 | ||||
$425 Million Term Loans [Member] | $965 Million Unsecured Credit Facility [Member] | $110.0 Million Term Loan Funded July 1, 2015 [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Face Amount (in Dollars) | 110,000 | ||||
$425 Million Term Loans [Member] | $965 Million Unsecured Credit Facility [Member] | $102.5 Million Term Loan Funded August 14, 2015 [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Face Amount (in Dollars) | $ 102,500 | ||||
$425 Million Term Loans [Member] | Loans With Interest Rates Effectively Fixed By Interest Rate Swaps [Member] | $965 Million Unsecured Credit Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Number of Interest Rate Derivatives Held | 2 | ||||
Derivative, Notional Amount (in Dollars) | $ 322,500 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.10% | ||||
$50 Million Term Loan [Member] | $150 Million Unsecured Term Loan Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Maturity Date | Apr. 08, 2021 | ||||
Debt Instrument, Face Amount (in Dollars) | $ 50,000 | ||||
$50 Million Term Loan [Member] | Loans with Interest Rates Effectively Fixed by Interest Rate Swaps Effective September 30, 2016 [Member] | $150 Million Unsecured Term Loan Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Derivative, Notional Amount (in Dollars) | $ 50,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 2.54% | ||||
$50 Million Term Loan [Member] | Minimum [Member] | $150 Million Unsecured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.45% | ||||
$50 Million Term Loan [Member] | Maximum [Member] | $150 Million Unsecured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.20% | ||||
$100 Million Term Loan [Member] | $150 Million Unsecured Term Loan Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Maturity Date | Apr. 08, 2023 | ||||
Debt Instrument, Face Amount (in Dollars) | $ 100,000 | ||||
$100 Million Term Loan [Member] | Loans with Interest Rates Effectively Fixed by Interest Rate Swaps Effective September 30, 2016 [Member] | $150 Million Unsecured Term Loan Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Derivative, Notional Amount (in Dollars) | $ 100,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.13% | ||||
$100 Million Term Loan [Member] | Minimum [Member] | $150 Million Unsecured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.80% | ||||
$100 Million Term Loan [Member] | Maximum [Member] | $150 Million Unsecured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.60% | ||||
Amount Borrowed on April 8, 2016 [Member] | $150 Million Unsecured Term Loan Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Proceeds from Issuance of Unsecured Debt (in Dollars) | $ 50,000 | ||||
Amount Borrowed on September 30, 2016 [Member] | $150 Million Unsecured Term Loan Facility [Member] | |||||
Debt (Details) [Line Items] | |||||
Proceeds from Issuance of Unsecured Debt (in Dollars) | $ 100,000 | ||||
Mortgage Debt [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Maturity Date, Description | maturity dates ranging from November 2016 to June 2026 | ||||
Long-term Debt, Gross (in Dollars) | $ 474,300 | ||||
Number of Hotel Properties Used to Secure Debt | 34 | ||||
Mortgage Debt [Member] | Minimum [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 3.80% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | ||||
Mortgage Debt [Member] | Maximum [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 6.52% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | ||||
Assumed Mortgage Debt [Member] | Apple Ten Merger [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Maturity Date, Description | maturity dates ranging from February 2017 to October 2025 | ||||
Number of Hotel Properties Used to Secure Debt | 9 | ||||
Noncash or Part Noncash Acquisition, Debt Assumed (in Dollars) | $ 145,700 | ||||
Liabilities, Fair Value Adjustment (in Dollars) | 6,200 | ||||
Debt Issuance Costs, Gross (in Dollars) | $ 600 | ||||
Assumed Mortgage Debt [Member] | Minimum [Member] | Apple Ten Merger [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 3.80% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | ||||
Assumed Mortgage Debt [Member] | Maximum [Member] | Apple Ten Merger [Member] | |||||
Debt (Details) [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 4.23% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% |
Debt (Details) - Revolving Credit Facility and Term Loans - USD ($) $ in Thousands |
9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
||||||||||
Debt Instrument [Line Items] | |||||||||||
Revolving credit facility outstanding balance | $ 302,100 | $ 114,800 | |||||||||
Outstanding balance | 1,351,399 | ||||||||||
Unamortized debt issuance costs | (7,890) | ||||||||||
Total term loans | 570,670 | 421,444 | |||||||||
Debt carrying value | $ 1,349,175 | 1,000,000 | |||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | May 18, 2019 | ||||||||||
Revolving credit facility outstanding balance | [1] | $ 302,100 | $ 114,800 | ||||||||
Interest rate | [2] | 2.08% | 1.98% | ||||||||
$425 Million Term Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | May 18, 2020 | ||||||||||
Interest rate | [3] | 2.84% | 2.81% | ||||||||
Outstanding balance | $ 425,000 | $ 425,000 | |||||||||
$50 Million Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Apr. 08, 2021 | ||||||||||
Interest rate | [4] | 2.54% | |||||||||
Outstanding balance | $ 50,000 | 0 | |||||||||
$100 Million Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maturity date | Apr. 08, 2023 | ||||||||||
Interest rate | [4] | 3.13% | |||||||||
Outstanding balance | $ 100,000 | 0 | |||||||||
Total Term Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding balance | 575,000 | 425,000 | |||||||||
Unamortized debt issuance costs | (4,330) | (3,556) | |||||||||
Total term loans | 570,670 | 421,444 | |||||||||
Total Revolving Credit Facility and Term Loans [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt carrying value | $ 872,770 | $ 536,244 | |||||||||
|
Debt (Details) - Mortgage Note Debt - USD ($) $ in Thousands |
9 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Outstanding Balance | $ 1,351,399 | |||||||||||||||
Unamortized fair value adjustment of assumed debt | 5,666 | |||||||||||||||
Unamortized debt issuance costs | (7,890) | |||||||||||||||
Total | 476,405 | $ 461,859 | ||||||||||||||
Total [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Principal Assumed or Originated | 658,048 | |||||||||||||||
Outstanding Balance | 474,299 | 462,457 | ||||||||||||||
Unamortized fair value adjustment of assumed debt | 5,666 | 1,284 | ||||||||||||||
Unamortized debt issuance costs | (3,560) | (1,882) | ||||||||||||||
Total | $ 476,405 | 461,859 | ||||||||||||||
Homewood Suites Austin, TX [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Homewood Suites | |||||||||||||||
Interest Rate | [1] | 5.99% | ||||||||||||||
Loan Assumption or Origination Date | Apr. 14, 2009 | |||||||||||||||
Principal Assumed or Originated | $ 7,556 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 6,255 | |||||||||||||
Hampton Inn Austin, TX [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hampton Inn | |||||||||||||||
Interest Rate | [1] | 5.95% | ||||||||||||||
Loan Assumption or Origination Date | Apr. 14, 2009 | |||||||||||||||
Principal Assumed or Originated | $ 7,553 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 6,247 | |||||||||||||
Hilton Garden Inn Hilton Head, SC [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hilton Garden Inn | |||||||||||||||
Interest Rate | [1] | 6.29% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Principal Assumed or Originated | $ 5,557 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 5,226 | |||||||||||||
Hampton Inn Round Rock, TX [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hampton Inn | |||||||||||||||
Interest Rate | [1] | 5.95% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 06, 2009 | |||||||||||||||
Principal Assumed or Originated | $ 4,175 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 3,457 | |||||||||||||
Residence Inn Highlands Ranch, CO [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Residence Inn | |||||||||||||||
Interest Rate | [1] | 5.94% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Principal Assumed or Originated | $ 10,494 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 10,118 | |||||||||||||
Hampton Inn & Suites Texarkana, TX [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hampton Inn & Suites | |||||||||||||||
Interest Rate | [1] | 6.90% | ||||||||||||||
Loan Assumption or Origination Date | Jan. 31, 2011 | |||||||||||||||
Principal Assumed or Originated | $ 4,954 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 4,578 | |||||||||||||
Courtyard Bristol, VA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 6.59% | ||||||||||||||
Loan Assumption or Origination Date | Nov. 07, 2008 | |||||||||||||||
Principal Assumed or Originated | $ 9,767 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 8,747 | |||||||||||||
Residence Inn Oceanside, CA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Residence Inn | |||||||||||||||
Interest Rate | [1],[3] | 4.24% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Principal Assumed or Originated | $ 15,662 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 15,090 | |||||||||||||
Residence Inn Burbank, CA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Residence Inn | |||||||||||||||
Interest Rate | [1],[3] | 4.24% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Principal Assumed or Originated | $ 23,493 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 22,635 | |||||||||||||
Courtyard Malvern/Philadelphia, PA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 6.50% | ||||||||||||||
Loan Assumption or Origination Date | Nov. 30, 2010 | |||||||||||||||
Principal Assumed or Originated | $ 7,894 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 6,912 | |||||||||||||
Courtyard Winston-Salem, NC [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 5.94% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Principal Assumed or Originated | $ 7,458 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 7,220 | |||||||||||||
Courtyard Virginia Beach, VA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 6.02% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Principal Assumed or Originated | $ 13,931 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 13,399 | |||||||||||||
Courtyard Virginia Beach, VA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 6.02% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Principal Assumed or Originated | $ 16,813 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 16,172 | |||||||||||||
Courtyard Charlottesville, VA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 6.02% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Principal Assumed or Originated | $ 14,892 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 14,323 | |||||||||||||
Courtyard Carolina Beach, NC [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 6.02% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Principal Assumed or Originated | $ 12,009 | |||||||||||||||
Outstanding Balance | $ 0 | [2] | 11,551 | |||||||||||||
Hilton Garden Inn Savannah, GA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hilton Garden Inn | |||||||||||||||
Interest Rate | [1] | 5.87% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Principal Assumed or Originated | $ 4,977 | |||||||||||||||
Outstanding Balance | $ 4,563 | [4] | 4,688 | |||||||||||||
Hilton Garden Inn Scottsdale, AZ [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hilton Garden Inn | |||||||||||||||
Interest Rate | [1] | 6.07% | ||||||||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | |||||||||||||||
Principal Assumed or Originated | $ 9,668 | |||||||||||||||
Outstanding Balance | $ 9,651 | [4] | 0 | |||||||||||||
Hilton Garden Inn Lewisville, TX [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hilton Garden Inn | |||||||||||||||
Interest Rate | [1],[5] | 0.00% | ||||||||||||||
Loan Assumption or Origination Date | Oct. 16, 2008 | |||||||||||||||
Maturity Date | Dec. 31, 2016 | |||||||||||||||
Principal Assumed or Originated | $ 3,750 | |||||||||||||||
Outstanding Balance | $ 2,000 | 2,000 | ||||||||||||||
Residence Inn Greenville, SC [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Residence Inn | |||||||||||||||
Interest Rate | [1] | 6.03% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Feb. 08, 2017 | |||||||||||||||
Principal Assumed or Originated | $ 6,012 | |||||||||||||||
Outstanding Balance | $ 5,722 | 5,810 | ||||||||||||||
Homewood Suites Birmingham, AL [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Homewood Suites | |||||||||||||||
Interest Rate | [1] | 6.03% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Feb. 08, 2017 | |||||||||||||||
Principal Assumed or Originated | $ 10,908 | |||||||||||||||
Outstanding Balance | $ 10,382 | 10,541 | ||||||||||||||
Homewood Suites Jacksonville, FL [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Homewood Suites | |||||||||||||||
Interest Rate | [1] | 6.03% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Feb. 08, 2017 | |||||||||||||||
Principal Assumed or Originated | $ 15,856 | |||||||||||||||
Outstanding Balance | $ 15,091 | 15,322 | ||||||||||||||
Homewood Suites Irving, TX [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Homewood Suites | |||||||||||||||
Interest Rate | [1] | 5.83% | ||||||||||||||
Loan Assumption or Origination Date | Dec. 29, 2010 | |||||||||||||||
Maturity Date | Apr. 11, 2017 | |||||||||||||||
Principal Assumed or Originated | $ 6,052 | |||||||||||||||
Outstanding Balance | $ 5,120 | 5,260 | ||||||||||||||
Homewood Suites Gainesville, FL [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Homewood Suites | |||||||||||||||
Interest Rate | [1] | 5.89% | ||||||||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | |||||||||||||||
Maturity Date | May 08, 2017 | |||||||||||||||
Principal Assumed or Originated | $ 12,051 | |||||||||||||||
Outstanding Balance | $ 12,031 | 0 | ||||||||||||||
Hilton Garden Inn Duncanville, TX [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hilton Garden Inn | |||||||||||||||
Interest Rate | [1] | 5.88% | ||||||||||||||
Loan Assumption or Origination Date | Oct. 21, 2008 | |||||||||||||||
Maturity Date | May 11, 2017 | |||||||||||||||
Principal Assumed or Originated | $ 13,966 | |||||||||||||||
Outstanding Balance | $ 12,197 | 12,401 | ||||||||||||||
Residence Inn San Juan Capistrano, CA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Residence Inn | |||||||||||||||
Interest Rate | [1] | 4.15% | ||||||||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | |||||||||||||||
Maturity Date | Jun. 01, 2020 | |||||||||||||||
Principal Assumed or Originated | $ 16,210 | |||||||||||||||
Outstanding Balance | $ 16,184 | 0 | ||||||||||||||
Hampton Inn & Suites Colorado Springs, CO [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hampton Inn & Suites | |||||||||||||||
Interest Rate | [1] | 6.25% | ||||||||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | |||||||||||||||
Maturity Date | Jul. 06, 2021 | |||||||||||||||
Principal Assumed or Originated | $ 7,923 | |||||||||||||||
Outstanding Balance | $ 7,914 | 0 | ||||||||||||||
Courtyard Franklin, TN [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 6.25% | ||||||||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | |||||||||||||||
Maturity Date | Aug. 06, 2021 | |||||||||||||||
Principal Assumed or Originated | $ 14,679 | |||||||||||||||
Outstanding Balance | $ 14,662 | 0 | ||||||||||||||
Residence Inn Franklin, TN [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Residence Inn | |||||||||||||||
Interest Rate | [1] | 6.25% | ||||||||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | |||||||||||||||
Maturity Date | Aug. 06, 2021 | |||||||||||||||
Principal Assumed or Originated | $ 14,679 | |||||||||||||||
Outstanding Balance | $ 14,662 | 0 | ||||||||||||||
Hilton Garden Inn Grapevine, TX [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hilton Garden Inn | |||||||||||||||
Interest Rate | [1] | 4.89% | ||||||||||||||
Loan Assumption or Origination Date | Aug. 29, 2012 | |||||||||||||||
Maturity Date | Sep. 01, 2022 | |||||||||||||||
Principal Assumed or Originated | $ 11,810 | |||||||||||||||
Outstanding Balance | $ 10,779 | 10,986 | ||||||||||||||
Courtyard Collegeville/Philadelphia, PA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 4.89% | ||||||||||||||
Loan Assumption or Origination Date | Aug. 30, 2012 | |||||||||||||||
Maturity Date | Sep. 01, 2022 | |||||||||||||||
Principal Assumed or Originated | $ 12,650 | |||||||||||||||
Outstanding Balance | $ 11,546 | 11,768 | ||||||||||||||
Courtyard Hattiesburg, MS [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 5.00% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Sep. 01, 2022 | |||||||||||||||
Principal Assumed or Originated | $ 5,732 | |||||||||||||||
Outstanding Balance | $ 5,393 | 5,495 | ||||||||||||||
Courtyard Rancho Bernardo, CA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 5.00% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Sep. 01, 2022 | |||||||||||||||
Principal Assumed or Originated | $ 15,060 | |||||||||||||||
Outstanding Balance | $ 14,168 | 14,436 | ||||||||||||||
Courtyard Kirkland, WA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 5.00% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Sep. 01, 2022 | |||||||||||||||
Principal Assumed or Originated | $ 12,145 | |||||||||||||||
Outstanding Balance | $ 11,425 | 11,642 | ||||||||||||||
Residence Inn Seattle, WA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Residence Inn | |||||||||||||||
Interest Rate | [1] | 4.96% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Sep. 01, 2022 | |||||||||||||||
Principal Assumed or Originated | $ 28,269 | |||||||||||||||
Outstanding Balance | $ 26,584 | 27,091 | ||||||||||||||
Embassy Suites Anchorage, AK [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Embassy Suites | |||||||||||||||
Interest Rate | [1] | 4.97% | ||||||||||||||
Loan Assumption or Origination Date | Sep. 13, 2012 | |||||||||||||||
Maturity Date | Oct. 01, 2022 | |||||||||||||||
Principal Assumed or Originated | $ 23,230 | |||||||||||||||
Outstanding Balance | $ 21,272 | 21,675 | ||||||||||||||
Courtyard Somerset, NJ [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 4.73% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Oct. 06, 2022 | |||||||||||||||
Principal Assumed or Originated | $ 8,750 | |||||||||||||||
Outstanding Balance | $ 8,216 | 8,376 | ||||||||||||||
Homewood Suites Tukwila, WA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Homewood Suites | |||||||||||||||
Interest Rate | [1] | 4.73% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Oct. 06, 2022 | |||||||||||||||
Principal Assumed or Originated | $ 9,431 | |||||||||||||||
Outstanding Balance | $ 8,854 | 9,028 | ||||||||||||||
Courtyard Prattville, AL [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 4.12% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Feb. 06, 2023 | |||||||||||||||
Principal Assumed or Originated | $ 6,596 | |||||||||||||||
Outstanding Balance | $ 6,167 | 6,296 | ||||||||||||||
Homewood Suites Huntsville, AL [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Homewood Suites | |||||||||||||||
Interest Rate | [1] | 4.12% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Feb. 06, 2023 | |||||||||||||||
Principal Assumed or Originated | $ 8,306 | |||||||||||||||
Outstanding Balance | $ 7,766 | 7,928 | ||||||||||||||
Residence Inn San Diego, CA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Residence Inn | |||||||||||||||
Interest Rate | [1] | 3.97% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Mar. 06, 2023 | |||||||||||||||
Principal Assumed or Originated | $ 18,600 | |||||||||||||||
Outstanding Balance | $ 17,374 | 17,741 | ||||||||||||||
Homewood Suites Miami, FL [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Homewood Suites | |||||||||||||||
Interest Rate | [1] | 4.02% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 01, 2014 | |||||||||||||||
Maturity Date | Apr. 01, 2023 | |||||||||||||||
Principal Assumed or Originated | $ 16,677 | |||||||||||||||
Outstanding Balance | $ 15,591 | 15,915 | ||||||||||||||
Homewood Suites New Orleans, LA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Homewood Suites | |||||||||||||||
Interest Rate | [1] | 4.36% | ||||||||||||||
Loan Assumption or Origination Date | Jul. 17, 2014 | |||||||||||||||
Maturity Date | Aug. 11, 2024 | |||||||||||||||
Principal Assumed or Originated | $ 27,000 | |||||||||||||||
Outstanding Balance | $ 25,738 | 26,204 | ||||||||||||||
Residence Inn Westford, MA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Residence Inn | |||||||||||||||
Interest Rate | [1] | 4.28% | ||||||||||||||
Loan Assumption or Origination Date | Mar. 18, 2015 | |||||||||||||||
Maturity Date | Apr. 11, 2025 | |||||||||||||||
Principal Assumed or Originated | $ 10,000 | |||||||||||||||
Outstanding Balance | $ 9,684 | 9,854 | ||||||||||||||
Hilton Dallas, TX [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hilton | |||||||||||||||
Interest Rate | [1] | 3.95% | ||||||||||||||
Loan Assumption or Origination Date | May 22, 2015 | |||||||||||||||
Maturity Date | Jun. 01, 2025 | |||||||||||||||
Principal Assumed or Originated | $ 28,000 | |||||||||||||||
Outstanding Balance | $ 27,375 | 27,754 | ||||||||||||||
Courtyard Syracuse, NY [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 4.75% | ||||||||||||||
Loan Assumption or Origination Date | Oct. 16, 2015 | |||||||||||||||
Maturity Date | [6] | Aug. 01, 2024 | ||||||||||||||
Principal Assumed or Originated | $ 11,199 | |||||||||||||||
Outstanding Balance | $ 10,970 | 11,158 | ||||||||||||||
Residence Inn Syracuse, NY [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Residence Inn | |||||||||||||||
Interest Rate | [1] | 4.75% | ||||||||||||||
Loan Assumption or Origination Date | Oct. 16, 2015 | |||||||||||||||
Maturity Date | [6] | Aug. 01, 2024 | ||||||||||||||
Principal Assumed or Originated | $ 11,199 | |||||||||||||||
Outstanding Balance | $ 10,970 | 11,158 | ||||||||||||||
Hilton Garden Inn Denver, CO [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hilton Garden Inn | |||||||||||||||
Interest Rate | [1] | 4.46% | ||||||||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | |||||||||||||||
Maturity Date | Jun. 11, 2025 | |||||||||||||||
Principal Assumed or Originated | $ 34,118 | |||||||||||||||
Outstanding Balance | $ 34,055 | 0 | ||||||||||||||
Courtyard Oceanside, CA [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Courtyard | |||||||||||||||
Interest Rate | [1] | 4.28% | ||||||||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | |||||||||||||||
Maturity Date | Oct. 01, 2025 | |||||||||||||||
Principal Assumed or Originated | $ 13,655 | |||||||||||||||
Outstanding Balance | $ 13,636 | 0 | ||||||||||||||
Hilton Garden Inn Omaha, NE [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hilton Garden Inn | |||||||||||||||
Interest Rate | [1] | 4.28% | ||||||||||||||
Loan Assumption or Origination Date | Sep. 01, 2016 | |||||||||||||||
Maturity Date | Oct. 01, 2025 | |||||||||||||||
Principal Assumed or Originated | $ 22,682 | |||||||||||||||
Outstanding Balance | $ 22,649 | 0 | ||||||||||||||
Hampton Inn & Suites Boise, ID [Member] | ||||||||||||||||
Debt (Details) - Mortgage Note Debt [Line Items] | ||||||||||||||||
Brand | Hampton Inn & Suites | |||||||||||||||
Interest Rate | [1] | 4.37% | ||||||||||||||
Loan Assumption or Origination Date | May 26, 2016 | |||||||||||||||
Maturity Date | Jun. 11, 2026 | |||||||||||||||
Principal Assumed or Originated | $ 24,000 | |||||||||||||||
Outstanding Balance | $ 23,908 | $ 0 | ||||||||||||||
|
Debt (Details) - Future Minimum Debt Payments - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Future Minimum Debt Payments [Abstract] | ||
2016 (October - December) | $ 49,871 | |
2017 | 38,502 | |
2018 | 9,785 | |
2019 | 332,477 | |
2020 | 449,788 | |
Thereafter | 470,976 | |
1,351,399 | ||
Unamortized fair value adjustment of assumed debt | 5,666 | |
Unamortized debt issuance costs related to term loans and mortgage debt | (7,890) | |
Total | $ 1,349,175 | $ 1,000,000 |
Fair Value of Financial Instruments (Details) |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015 |
Mar. 31, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
Mar. 02, 2015
USD ($)
|
Dec. 31, 2014 |
|
Fair Value of Financial Instruments (Details) [Line Items] | ||||||||||
Long-term Debt | $ 1,349,175,000 | $ 1,349,175,000 | $ 1,000,000,000 | |||||||
Long-term Debt, Fair Value | 1,400,000,000 | $ 1,400,000,000 | 1,000,000,000 | |||||||
Derivative, Description of Terms | Company pays a fixed rate of interest and receives a floating rate of interest equal to the one month LIBOR | |||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 4,261,000 | $ (5,978,000) | $ (7,934,000) | $ (6,437,000) | ||||||
Amount of losses reclassified from accumulated other comprehensive loss into interest expense | 900,000 | 800,000 | 2,900,000 | 1,000,000 | ||||||
Net unrealized losses in accumulated other comprehensive loss expected to be reclassified into interest expense within the next 12 months | 3,900,000 | 3,900,000 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (9,991,000) | (9,991,000) | $ (2,057,000) | |||||||
Repayments of Unsecured Debt | 0 | 100,000,000 | ||||||||
Repayment of $100 Million Unsecured Term Loan and Termination of Interest Rate Swap May 2015 [Member] | From Inception through March 2, 2015 Designated as a Cash Flow Hedge and from March 3, 2015 through Termination Date No Longer Designated as a Cash Flow Hedge [Member] | ||||||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||||||
Interest Rate Swap Termination, Cash Settlement | 1,100,000 | |||||||||
Derivative, Notional Amount | 100,000,000 | 100,000,000 | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (300,000) | |||||||||
Amount of losses reclassified from accumulated other comprehensive loss into net income | 800,000 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (800,000) | |||||||||
Repayments of Unsecured Debt | 100,000,000 | |||||||||
Realized Gain (Loss) on Derivative | (1,100,000) | |||||||||
Not Designated as Hedging Instrument [Member] | ||||||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||||||
Interest Rate Swap Termination, Cash Settlement | $ 100,000 | |||||||||
Number of Interest Rate Derivatives Held | 4 | |||||||||
Number of Interest Rate Derivatives Matured or Terminated | 1 | 1 | 2 | |||||||
Designated as Hedging Instrument [Member] | ||||||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | $ 0 | $ 0 | $ 0 | ||||||
Designated as Hedging Instrument [Member] | $212.5 Million Term Loan Interest Rate Swap [Member] | ||||||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||||||
Derivative Inception Date | May 2015 | |||||||||
Derivative, Notional Amount | 212,500,000 | $ 212,500,000 | ||||||||
Designated as Hedging Instrument [Member] | $110.0 Million Term Loan Interest Rate Swap [Member] | ||||||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||||||
Derivative Inception Date | July 2015 | |||||||||
Derivative, Notional Amount | 110,000,000 | $ 110,000,000 | ||||||||
Designated as Hedging Instrument [Member] | $50.0 Million Term Loan Interest Rate Swap [Member] | ||||||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||||||
Derivative Inception Date | April 2016 | |||||||||
Derivative, Notional Amount | 50,000,000 | $ 50,000,000 | ||||||||
Designated as Hedging Instrument [Member] | $100.0 Million Term Loan Interest Rate Swap [Member] | ||||||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||||||
Derivative Inception Date | April 2016 | |||||||||
Derivative, Notional Amount | 100,000,000 | $ 100,000,000 | ||||||||
Designated as Hedging Instrument [Member] | Conversion of Loan to Fixed Rate Mortgage and Assignment of Swap to Lender at no Cost [Member] | $24.0 Million Mortgage Loan Interest Rate Swap [Member] | ||||||||||
Fair Value of Financial Instruments (Details) [Line Items] | ||||||||||
Derivative Inception Date | May 2016 | |||||||||
Derivative, Notional Amount | $ 24,000,000 | $ 24,000,000 | ||||||||
Debt Conversion, Date | Aug. 10, 2016 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.37% | 4.37% | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 1,000,000 | $ (1,000,000) |
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements - USD ($) $ in Thousands |
9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
||||||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Fair value (liability) | $ (9,991) | $ (2,191) | |||||||
Not Designated as Hedging Instrument [Member] | Interest Rate Swap #1 [Member] | |||||||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Notional amount | [1] | $ 0 | |||||||
Assumption or Origination Date | Mar. 01, 2014 | ||||||||
Swap fixed interest rate | 1.10% | ||||||||
Fair value (liability) | $ 0 | (134) | |||||||
Designated as Hedging Instrument [Member] | Interest Rate Swap #2 [Member] | |||||||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Notional amount | [2] | $ 212,500 | |||||||
Assumption or Origination Date | May 21, 2015 | ||||||||
Maturity date | May 18, 2020 | ||||||||
Swap fixed interest rate | 1.58% | ||||||||
Fair value (liability) | $ (5,319) | (1,233) | |||||||
Designated as Hedging Instrument [Member] | Interest Rate Swap #3 [Member] | |||||||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Notional amount | [2] | $ 110,000 | |||||||
Assumption or Origination Date | Jul. 02, 2015 | ||||||||
Maturity date | May 18, 2020 | ||||||||
Swap fixed interest rate | 1.62% | ||||||||
Fair value (liability) | $ (2,910) | (824) | |||||||
Designated as Hedging Instrument [Member] | Interest Rate Swap #4 [Member] | |||||||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Notional amount | [2] | $ 50,000 | |||||||
Assumption or Origination Date | Apr. 07, 2016 | ||||||||
Maturity date | Mar. 31, 2021 | ||||||||
Swap fixed interest rate | 1.09% | ||||||||
Fair value (liability) | $ (298) | 0 | |||||||
Designated as Hedging Instrument [Member] | Interest Rate Swap #5 [Member] | |||||||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Notional amount | [2] | $ 100,000 | |||||||
Assumption or Origination Date | Apr. 07, 2016 | ||||||||
Maturity date | Mar. 31, 2023 | ||||||||
Swap fixed interest rate | 1.33% | ||||||||
Fair value (liability) | $ (1,464) | 0 | |||||||
Designated as Hedging Instrument [Member] | Interest Rate Swap #6 [Member] | |||||||||
Fair Value of Financial Instruments (Details) - Schedule of Interest Rate Swap Agreements [Line Items] | |||||||||
Notional amount | [3] | $ 0 | |||||||
Assumption or Origination Date | May 09, 2016 | ||||||||
Swap fixed interest rate | 1.72% | ||||||||
Fair value (liability) | $ 0 | $ 0 | |||||||
|
Related Parties (Details) - USD ($) shares in Millions, $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Sep. 01, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Related Parties (Details) [Line Items] | ||||
Related Party Transaction, Description of Transaction | To efficiently manage cash disbursements, the Company or ARG may make payments for the other company. Under the cash management process, each company may advance or defer up to $1 million at any time. Each quarter, any outstanding amounts are settled between the companies. This process allows each company to minimize its cash on hand and reduces the cost for each company. The amounts outstanding at any point in time are not significant to either of the companies. Prior to the merger, Apple Ten, A10A and ARG (for activities both related and unrelated to Apple Ten) were part of the cost sharing structure and participated in this cash management process. | |||
Reimbursement Received From Related Parties For Their Proportionate Share of Staffing and Office Related Costs Provided by Apple Hospitality [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ (2.3) | $ (2.1) | ||
Due from Related Parties | $ 0.2 | $ 0.3 | ||
Apple Air Holding, LLC [Member] | Prior to Apple Ten Merger and Related Transactions Completed on September 1, 2016 [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 74.00% | |||
Apple Air Holding, LLC [Member] | Purchase of Apple Ten Equity Interest in Apple Ten Merger [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 0.7 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 26.00% | |||
Apple Air Holding, LLC [Member] | Upon Completion of Apple Ten Merger and Related Transactions on September 1, 2016 [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% | |||
Aircraft Owned by Executive Officers [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Aircraft Rental Expense | $ 0.2 | 0.1 | ||
Apple Ten Merger [Member] | Officers and Executive Chairman [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Business Combination, Common Shares Issued to Related Party (in Shares) | 3.1 | |||
Business Combination, Total Cash Paid to Related Party as Partial Consideration | $ 6.0 | |||
Prior to Apple Ten Merger and Related Transactions Completed on September 1, 2016 [Member] | Apple Ten [Member] | Subcontract Agreement between Apple Hospitality and Apple Ten Advisors, Inc. [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Management Advisory Fee Received From Related Party, Percent | 0.1% to 0.25% | |||
Advisory Fees Earned by Apple Hospitality [Member] | Apple Ten [Member] | Subcontract Agreement between Apple Hospitality and Apple Ten Advisors, Inc. [Member] | Prior to Apple Ten Merger and Related Transactions Completed on September 1, 2016 [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ (1.6) | $ (1.9) | ||
Apple Ten's Minority Interest [Member] | Apple Air Holding, LLC [Member] | Prior to Apple Ten Merger and Related Transactions Completed on September 1, 2016 [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 26.00% | |||
Other Noncontrolling Interests | $ 0.7 |
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | 16 Months Ended | ||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 01, 2016
USD ($)
$ / shares
shares
|
May 18, 2015
shares
|
Jan. 31, 2016
USD ($)
$ / shares
shares
|
Sep. 30, 2016
USD ($)
$ / shares
shares
|
Sep. 30, 2015
USD ($)
$ / shares
shares
|
May 31, 2015
$ / shares
|
Jan. 31, 2016
USD ($)
$ / shares
shares
|
Sep. 30, 2016
USD ($)
$ / shares
shares
|
Sep. 30, 2015
USD ($)
$ / shares
shares
|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
Sep. 30, 2016
USD ($)
$ / shares
shares
|
|
Shareholders' Equity (Details) [Line Items] | |||||||||||
Payments of Ordinary Dividends, Common Stock | $ 161,940 | $ 176,814 | |||||||||
Dividends Payable | $ 22,325 | $ 17,440 | $ 22,325 | 17,440 | $ 22,325 | ||||||
Reverse Stock Split Ratio of Common Stock | 0.50 | ||||||||||
Common Stock, Shares, Outstanding (in Shares) | shares | 223,406,001 | 223,406,001 | 174,368,340 | 223,406,001 | |||||||
Common Stock, Shares, Issued (in Shares) | shares | 223,406,001 | 223,406,001 | 174,368,340 | 223,406,001 | |||||||
Payments of Stock Issuance Costs | $ 1,176 | $ 0 | |||||||||
Common Shares Prior to Reverse Share Split [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Common Stock, Shares, Outstanding (in Shares) | shares | 372,200,000 | ||||||||||
Common Stock, Shares, Issued (in Shares) | shares | 372,200,000 | ||||||||||
Common Shares After Reverse Share Split [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Common Stock, Shares, Outstanding (in Shares) | shares | 186,100,000 | ||||||||||
Common Stock, Shares, Issued (in Shares) | shares | 186,100,000 | ||||||||||
Distributions [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $ / shares | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.97 | |||||||
Payments of Ordinary Dividends, Common Stock | $ 57,200 | $ 52,600 | $ 161,900 | $ 176,800 | |||||||
Dividends Payable, Amount Per Share (in Dollars per share) | $ / shares | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | |||||||
Dividends Payable | $ 22,300 | $ 22,300 | $ 17,400 | $ 22,300 | |||||||
Annual Distribution [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Annual Distribution rate (in Dollars per share) | $ / shares | $ 1.36 | $ 1.20 | |||||||||
Tender Offer [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Stock Repurchase Program, Authorized Amount | $ 200,000 | ||||||||||
Stock Repurchase Program Commencement Date | May 18, 2015 | ||||||||||
Stock Repurchase Program Expiration Date | Jun. 22, 2015 | ||||||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | shares | 10,500,000 | ||||||||||
Stock Repurchased During Period, Price Per Share (in Dollars per share) | $ / shares | $ 19.00 | ||||||||||
Stock Repurchased and Retired During Period, Value | $ 200,000 | ||||||||||
Percent of Common Shares Properly Tendered | 97.00% | ||||||||||
Stock Repurchase, Costs Incurred | $ 600 | ||||||||||
Share Repurchase Program [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Stock Repurchase Program, Authorized Amount | $ 500,000 | 475,000 | $ 500,000 | $ 475,000 | $ 475,000 | ||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | shares | 20,000 | 1,200,000 | 1,300,000 | ||||||||
Stock Repurchased and Retired During Period, Value | $ 400 | $ 21,200 | $ 22,400 | ||||||||
Stock Repurchased During Period, Weighted Average Market Purchase Price Per Share (in Dollars per share) | $ / shares | $ 18.10 | $ 17.59 | $ 17.62 | ||||||||
Share Repurchase Program, Extension Description | In June 2016, the Board of Directors approved a one-year extension of the share repurchase program authorizing share repurchases up to an aggregate of $475 million. | ||||||||||
Share Repurchase Program End Date | July 2017 | ||||||||||
Stock Repurchase Program, Trading Plan Authorized, Amount | $ 400,000 | $ 400,000 | $ 400,000 | ||||||||
Terminated Share Redemption Program [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | shares | 800,000 | ||||||||||
Stock Repurchased During Period, Price Per Share (in Dollars per share) | $ / shares | $ 18.40 | ||||||||||
Stock Repurchased and Retired During Period, Value | $ 14,900 | ||||||||||
Share Redemption Program, Termination Date | April 2015 | ||||||||||
Apple Ten Merger [Member] | |||||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | shares | 48,700,000 | ||||||||||
Business Acquisition, Share Price (in Dollars per share) | $ / shares | $ 19.62 | ||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 956,100 | ||||||||||
Payments of Stock Issuance Costs | $ 1,200 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 203,041 | ||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 19.17 |
Compensation Plans (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Mar. 31, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
2014 Omnibus Incentive Plan [Member] | ||||||
Compensation Plans (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 10,000,000 | 10,000,000 | ||||
2016 Executive Incentive Plan [Member] | ||||||
Compensation Plans (Details) [Line Items] | ||||||
Compensation Arrangement by Cash and Share-based Payment Award, Component Description | The components of the operational performance metrics and shareholder return metrics are equally weighted and the two metrics each account for 50% of the total target incentive compensation. | |||||
Labor and Related Expense | $ (800,000) | $ 2,800,000 | ||||
Accrued Bonuses, Current | 2,800,000 | $ 2,800,000 | ||||
Increase (Decrease) in Employee Related Liabilities | (800,000) | |||||
Portion of Awards Paid in Cash | 25.00% | |||||
Portion of Awards Issued in Equity | 75.00% | |||||
2015 Executive Incentive Plan [Member] | ||||||
Compensation Plans (Details) [Line Items] | ||||||
Labor and Related Expense | $ 2,600,000 | $ 5,800,000 | ||||
2015 Executive Incentive Plan [Member] | Share Based Compensation [Member] | Total Common Shares Earned [Member] | ||||||
Compensation Plans (Details) [Line Items] | ||||||
Accrued Bonuses, Current | $ 4,500,000 | |||||
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | 304,345 | |||||
Shares Issued, Price Per Share (in Dollars per share) | $ 19.87 | |||||
Stock Issued During Period, Value, Share-based Compensation, Gross | $ 6,000,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,600,000 | |||||
2015 Executive Incentive Plan [Member] | Share Based Compensation [Member] | Unrestricted Shares at Time of Issuance [Member] | Total Common Shares Earned [Member] | ||||||
Compensation Plans (Details) [Line Items] | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | 146,279 | |||||
2015 Executive Incentive Plan [Member] | Share Based Compensation [Member] | Restricted Shares Vesting on December 31, 2016 [Member] | Total Common Shares Earned [Member] | ||||||
Compensation Plans (Details) [Line Items] | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | 158,066 | |||||
Allocated Share-based Compensation Expense | $ 400,000 | $ 1,200,000 | ||||
Equity Awards Vesting at End of 2016 [Member] | 2016 Executive Incentive Plan [Member] | ||||||
Compensation Plans (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Portion | two-thirds | |||||
Equity Awards Vesting at End of 2017 [Member] | 2016 Executive Incentive Plan [Member] | ||||||
Compensation Plans (Details) [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Portion | one-third | |||||
Minimum [Member] | 2016 Executive Incentive Plan [Member] | Potential Aggregate Payout [Member] | ||||||
Compensation Plans (Details) [Line Items] | ||||||
Labor and Related Expense | $ 0 | |||||
Maximum [Member] | 2016 Executive Incentive Plan [Member] | Potential Aggregate Payout [Member] | ||||||
Compensation Plans (Details) [Line Items] | ||||||
Labor and Related Expense | $ 15,000,000 |
Legal Proceedings (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Nov. 02, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Legal Proceedings (Details) [Line Items] | |||||
Transaction Costs | $ 36,452 | $ 842 | $ 37,861 | $ 7,891 | |
Agreement in Principle to Settle the Lawsuit Related to the Apple Ten Merger on November 2, 2016 (Which Remains Subject to Court Approval) [Member] | |||||
Legal Proceedings (Details) [Line Items] | |||||
Estimated Litigation Liability | $ 32,000 | 32,000 | |||
Transaction Costs | $ 32,000 | ||||
Subsequent Event [Member] | Agreement in Principle to Settle the Lawsuit Related to the Apple Ten Merger on November 2, 2016 (Which Remains Subject to Court Approval) [Member] | |||||
Legal Proceedings (Details) [Line Items] | |||||
Litigation Settlement, Amount | $ (32,000) | ||||
Minimum [Member] | Subsequent Event [Member] | Agreement in Principle to Settle the Lawsuit Related to the Apple Ten Merger on November 2, 2016 (Which Remains Subject to Court Approval) [Member] | |||||
Legal Proceedings (Details) [Line Items] | |||||
Anticipated Settlement Amount Funded from Insurance Proceeds and Other Parties to the Settlement | 10,000 | ||||
Maximum [Member] | Subsequent Event [Member] | Agreement in Principle to Settle the Lawsuit Related to the Apple Ten Merger on November 2, 2016 (Which Remains Subject to Court Approval) [Member] | |||||
Legal Proceedings (Details) [Line Items] | |||||
Anticipated Settlement Amount Funded from Insurance Proceeds and Other Parties to the Settlement | $ 15,000 |
Subsequent Events (Details) $ / shares in Units, $ in Thousands |
1 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 03, 2016
USD ($)
|
Oct. 31, 2016
USD ($)
$ / shares
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
|
Subsequent Events (Details) [Line Items] | ||||
Payments of Ordinary Dividends, Common Stock | $ 161,940 | $ 176,814 | ||
Number of Hotels | 236 | |||
Aggregate Number of Hotel Rooms | 30,299 | |||
Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Payments of Ordinary Dividends, Common Stock | $ 22,300 | |||
Common Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 0.10 | |||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.10 | |||
Dividends Payable, Date to be Paid | Nov. 15, 2016 | |||
Secured Debt [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 70,000 | |||
Number of Hotel Properties Used to Secure Debt | 3 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | |||
Debt Instrument, Maturity Date | Dec. 01, 2026 | |||
Hilton Dallas, TX and Marriott Chesapeake, VA [Member] | Execution of Two Sales Contracts in October 2016 [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Number of Hotels | 2 | |||
Sale of Real Estate Assets, Gross Sales Price | $ 66,300 | |||
Hampton Inn & Suites Phoenix, AZ [Member] | Potential Purchase of Additional Hotels Under Contract [Member] | Hotels to be Constructed [Member] | Subsequent Event [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Business Acquisition, Gross Purchase Price | $ 44,100 | |||
Aggregate Number of Hotel Rooms | 210 |
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