(State of Incorporation) | (I.R.S. Employer Identification No.) | |||||||
(Address of Principal Executive Offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☑ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company | |||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
Part I - Financial Information | Page | ||||||||||
Item 1. | Financial Statements (unaudited) | ||||||||||
Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 | |||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2021 and 2020 | |||||||||||
Condensed Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2021 and 2020 | |||||||||||
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020 | |||||||||||
Notes to the Condensed Consolidated Financial Statements | |||||||||||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | ||||||||||
Item 4. | Controls and Procedures | ||||||||||
Part II - Other Information | |||||||||||
Item 1. | Legal Proceedings | ||||||||||
Item 1A. | Risk Factors | ||||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||||||||||
Item 3. | Defaults Upon Senior Securities | ||||||||||
Item 4. | Mine Safety Disclosures | ||||||||||
Item 5. | Other Information | ||||||||||
Item 6. | Exhibits | ||||||||||
Signatures |
March 31, 2021 | December 31, 2020 | ||||||||||
Assets | (Unaudited) | (Audited) | |||||||||
Investment properties: | |||||||||||
Land | $ | $ | |||||||||
Buildings and other improvements | |||||||||||
Total | $ | $ | |||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Net investment properties | $ | $ | |||||||||
Cash and cash equivalents | |||||||||||
Restricted cash and escrows | |||||||||||
Accounts and rents receivable, net of allowance for doubtful accounts | |||||||||||
Intangible assets, net of accumulated amortization of $ | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Debt, net of loan premiums, discounts and unamortized deferred financing costs (Note 4) | $ | $ | |||||||||
Accounts payable and accrued expenses | |||||||||||
Other liabilities | |||||||||||
Total liabilities | $ | $ | |||||||||
Commitments and Contingencies (Note 11) | |||||||||||
Stockholders' equity | |||||||||||
Common stock, $ | $ | $ | |||||||||
Additional paid in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated distributions in excess of net earnings | ( | ( | |||||||||
Total Company stockholders' equity | $ | $ | |||||||||
Non-controlling interests | |||||||||||
Total equity | $ | $ | |||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Revenues: | |||||||||||
Rooms revenues | $ | $ | |||||||||
Food and beverage revenues | |||||||||||
Other revenues | |||||||||||
Total revenues | $ | $ | |||||||||
Expenses: | |||||||||||
Rooms expenses | |||||||||||
Food and beverage expenses | |||||||||||
Other direct expenses | |||||||||||
Other indirect expenses | |||||||||||
Management and franchise fees | |||||||||||
Total hotel operating expenses | $ | $ | |||||||||
Depreciation and amortization | |||||||||||
Real estate taxes, personal property taxes and insurance | |||||||||||
Ground lease expense | |||||||||||
General and administrative expenses | |||||||||||
Gain on business interruption insurance | ( | ||||||||||
Impairment and other losses | |||||||||||
Total expenses | $ | $ | |||||||||
Operating loss | $ | ( | $ | ( | |||||||
Other income | |||||||||||
Interest expense | ( | ( | |||||||||
Net loss before income taxes | $ | ( | $ | ( | |||||||
Income tax (expense) benefit | ( | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Net loss attributable to non-controlling interests (Note 1) | |||||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Basic and diluted loss per share | |||||||||||
Net loss per share available to common stockholders - basic and diluted | $ | ( | $ | ( | |||||||
Weighted-average number of common shares (basic) | |||||||||||
Weighted-average number of common shares (diluted) | |||||||||||
Comprehensive Loss: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Other comprehensive income (loss): | |||||||||||
Unrealized gain (loss) on interest rate derivative instruments | ( | ||||||||||
Reclassification adjustment for amounts recognized in net loss (interest expense) | |||||||||||
$ | ( | $ | ( | ||||||||
Comprehensive loss attributable to non-controlling interests (Note 1) | |||||||||||
Comprehensive loss attributable to the Company | $ | ( | $ | ( |
Common Stock | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional paid in capital | Accumulated other comprehensive income (loss) | Distributions in excess of retained earnings | Non-controlling interests of Operating Partnership | Total | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | |||||||||||||||||||||||||||||||||||||||
Shares redeemed to satisfy tax withholding on vested share-based compensation | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||||||||||||||||||||
Unrealized gain on interest rate derivative instruments | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Reclassification adjustment for amounts recognized in net loss | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | ( | $ | ( | $ | $ |
Balance at December 31, 2019 | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Repurchase of common shares, net | ( | ( | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Dividends, common shares / units ($ | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | |||||||||||||||||||||||||||||||||||||||
Shares redeemed to satisfy tax withholding on vested share-based compensation | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Redemption of Operating Partnership Units | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||||||||||||||||||||
Unrealized loss on interest rate derivative instruments | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Reclassification adjustment for amounts recognized in net loss | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | ( | $ | ( | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Non-cash ground rent and amortization of other intangibles | |||||||||||
Amortization of debt premiums, discounts, and financing costs | |||||||||||
Impairment and other losses | |||||||||||
Share-based compensation expense | |||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts and rents receivable | ( | ||||||||||
Other assets | ( | ( | |||||||||
Accounts payable and accrued expenses | ( | ||||||||||
Other liabilities | ( | ||||||||||
Net cash (used in) provided by operating activities | $ | ( | $ | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Performance guaranty payments | |||||||||||
Deposit received for pending disposition of hotel property | |||||||||||
Net cash used in investing activities | $ | ( | $ | ( | |||||||
Cash flows from financing activities: | |||||||||||
Principal payments of mortgage debt | ( | ( | |||||||||
Proceeds from draws on the Revolving Credit Facility | |||||||||||
Redemption of Operating Partnership Units | ( | ||||||||||
Repurchase of common shares | ( | ||||||||||
Shares redeemed to satisfy tax withholding on vested share-based compensation | ( | ( | |||||||||
Dividends and dividend equivalents | ( | ( | |||||||||
Net cash (used in) provided by financing activities | $ | ( | $ | ||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | ( | ||||||||||
Cash and cash equivalents and restricted cash, at beginning of period | |||||||||||
Cash and cash equivalents and restricted cash, at end of period | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Supplemental disclosure of cash flow information: | |||||||||||
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the amount shown in the condensed consolidated statements of cash flows: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash and cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ | $ | |||||||||
The following represent cash paid or recovered during the periods presented for the following: | |||||||||||
Cash paid for interest, net of capitalized interest | |||||||||||
Cash (recovered) paid for taxes | $ | ( | $ | ||||||||
Supplemental schedule of non-cash investing and financing activities: | |||||||||||
Accrued capital expenditures | $ | $ | |||||||||
Three Months Ended | ||||||||
Primary Markets | March 31, 2021 | |||||||
Phoenix, AZ | $ | |||||||
Orlando, FL | ||||||||
Houston, TX | ||||||||
Florida Keys | ||||||||
Denver, CO | ||||||||
Atlanta, GA | ||||||||
San Diego, CA | ||||||||
Dallas, TX | ||||||||
Savannah, GA | ||||||||
Washington, DC-MD-VA | ||||||||
Other | ||||||||
Total | $ |
Three Months Ended | ||||||||
Primary Markets | March 31, 2020 | |||||||
Orlando, FL | $ | |||||||
Phoenix, AZ | ||||||||
Houston, TX | ||||||||
Dallas, TX | ||||||||
San Francisco/San Mateo, CA | ||||||||
Atlanta, GA | ||||||||
San Diego, CA | ||||||||
Denver, CO | ||||||||
San Jose-Santa Cruz, CA | ||||||||
Austin, TX | ||||||||
Other | ||||||||
Total | $ |
Balance Outstanding as of | |||||||||||||||||||||||||||||
Rate Type | Rate(1) | Maturity Date | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Mortgage Loans | |||||||||||||||||||||||||||||
Kimpton Hotel Palomar Philadelphia | Fixed (2) | % | 1/13/2023 | $ | $ | ||||||||||||||||||||||||
Renaissance Atlanta Waverly Hotel & Convention Center | Fixed (3) | % | 8/14/2024 | ||||||||||||||||||||||||||
Andaz Napa | Fixed (4) | % | 9/13/2024 | ||||||||||||||||||||||||||
The Ritz-Carlton, Pentagon City | Fixed (5) | % | 1/31/2025 | ||||||||||||||||||||||||||
Grand Bohemian Hotel Orlando, Autograph Collection | Fixed | % | 3/1/2026 | ||||||||||||||||||||||||||
Marriott San Francisco Airport Waterfront | Fixed | % | 5/1/2027 | ||||||||||||||||||||||||||
Total Mortgage Loans | % | (6) | $ | $ | |||||||||||||||||||||||||
Corporate Credit Facilities | |||||||||||||||||||||||||||||
Corporate Credit Facility Term Loan $ | Fixed (7) | % | 8/21/2023 | $ | $ | ||||||||||||||||||||||||
Corporate Credit Facility Term Loan $ | Fixed (8) | % | 9/13/2024 | ||||||||||||||||||||||||||
Revolving Credit Facility (9) | Variable | % | 2/28/2024 | ||||||||||||||||||||||||||
Total Corporate Credit Facilities | $ | $ | |||||||||||||||||||||||||||
Senior Notes $ | Fixed | % | 8/15/2025 | $ | $ | ||||||||||||||||||||||||
Loan premiums, discounts and unamortized deferred financing costs, net (10) | ( | ( | |||||||||||||||||||||||||||
Total Debt, net of loan premiums, discounts and unamortized deferred financing costs | % | (6) | $ | $ |
As of March 31, 2021 | Weighted- average interest rate | |||||||||||||
2021 | $ | |||||||||||||
2022 | ||||||||||||||
2023 | ||||||||||||||
2024 | ||||||||||||||
2025 | ||||||||||||||
Thereafter | ||||||||||||||
Total Debt | $ | |||||||||||||
Revolving Credit Facility (matures in 2024) | ||||||||||||||
Loan premiums, discounts and unamortized deferred financing costs, net | ( | — | ||||||||||||
Debt, net of loan premiums, discounts and unamortized deferred financing costs | $ |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedged Debt | Type | Fixed Rate | Index + Spread | Effective Date | Maturity | Notional Amounts | Estimated Fair Value | Notional Amounts | Estimated Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||
$ | Swap | 1-Month LIBOR + | 1/15/2016 | 10/22/2022 | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||
$ | Swap | 1-Month LIBOR + | 1/15/2016 | 10/22/2022 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | Swap | 1-Month LIBOR + | 1/15/2016 | 10/22/2022 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | Swap | 1-Month LIBOR + | 1/15/2016 | 10/22/2022 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Debt | Swap | 1-Month LIBOR + | 1/13/2016 | 1/13/2023 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Debt | Swap | 1-Month LIBOR + | 3/1/2017 | 1/3/2022 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Debt | Swap | 1-Month LIBOR + | 3/1/2017 | 1/3/2022 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Debt | Swap | 1-Month LIBOR + | 3/1/2017 | 1/3/2022 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | Swap | 1-Month LIBOR + | 10/13/2017 | 9/13/2022 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | Swap | 1-Month LIBOR + | 10/13/2017 | 9/13/2022 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | Swap | 1-Month LIBOR + | 10/13/2017 | 9/13/2022 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | Swap | 1-Month LIBOR + | 10/13/2017 | 9/13/2022 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Debt | Swap | 1-Month LIBOR + | 6/1/2018 | 2/1/2023 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Debt | Swap | 1-Month LIBOR + | 1/17/2019 | 2/1/2023 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | ( |
Three Months Ended March 31, | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
Effect of derivative instruments: | Location in Statements of Operations and Comprehensive Loss: | |||||||||||||||||||
Gain (loss) recognized in other comprehensive loss | Unrealized gain (loss) on interest rate derivative instruments | $ | $ | ( | ||||||||||||||||
Gain reclassified from accumulated other comprehensive loss to net loss | Reclassification adjustment for amounts recognized in net loss | $ | $ | |||||||||||||||||
Total interest expense in which effects of cash flow hedges are recorded | Interest expense | $ | $ |
Fair Value Measurement Date | ||||||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Location on Condensed Consolidated Balance Sheets/Description of Instrument | Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
Recurring measurements | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Interest rate swap liabilities(1) | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
March 31, 2021 | December 31, 2020 | ||||||||||
Goodwill | $ | $ | |||||||||
Cumulative goodwill impairment losses | ( | ( | |||||||||
Carrying value of goodwill | $ | $ |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||||||||||||
Total Mortgage and Corporate Credit Facility Term Loans | $ | $ | $ | $ | ||||||||||||||||||||||
Senior Notes | ||||||||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Dividend per Share/Unit | For the Quarter Ended | Record Date | Payable Date | |||||||||||||||||
$ | March 31, 2020 | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Numerator: | |||||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | |||||||
Dividends paid on unvested share-based compensation | ( | ||||||||||
Net loss available to common stockholders | $ | ( | $ | ( | |||||||
Denominator: | |||||||||||
Weighted-average shares outstanding - Basic | |||||||||||
Effect of dilutive share-based compensation(1) | |||||||||||
Weighted-average shares outstanding - Diluted | |||||||||||
Basic and diluted loss per share: | |||||||||||
Net loss per share available to common stockholders - basic and diluted | $ | ( | $ | ( |
Grant Date | Grant Description | Time-Based Grants | Performance-Based Grants | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||||
March 2021 | 2021 Restricted Stock Units | $ |
Grant Date | Grant Description | Time-Based LTIP Units | Performance-Based Class A LTIP Units | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||||
March 2021 | 2021 LTIP Units | $ |
2015 Incentive Award Plan Restricted Stock Units | 2015 Incentive Award Plan LTIP Units(1) | Total | ||||||||||||||||||
Unvested as of December 31, 2020 | ||||||||||||||||||||
Granted | ||||||||||||||||||||
Vested(2) | ( | ( | ( | |||||||||||||||||
Forfeited | ( | ( | ||||||||||||||||||
Unvested as of March 31, 2021 | ||||||||||||||||||||
Weighted-average fair value of unvested shares/units | $ | $ | $ | |||||||||||||||||
Performance Award Grant Date | Percentage of Total Award | Grant Date Fair Value by Component (in dollars) | Volatility | Interest Rate | Dividend Yield | |||||||||||||||||||||||||||
March 1, 2021 | ||||||||||||||||||||||||||||||||
Absolute TSR Restricted Stock Units | $ | |||||||||||||||||||||||||||||||
Relative TSR Restricted Stock Units | $ | |||||||||||||||||||||||||||||||
Absolute TSR Class A LTIP Units | $ | |||||||||||||||||||||||||||||||
Relative TSR Class A LTIP Units | $ | |||||||||||||||||||||||||||||||
March 31, 2021 | ||||||||
Weighted-average remaining lease term, including reasonably certain extension options(1) | ||||||||
Weighted-average discount rate | ||||||||
ROU asset(2) | $ | |||||||
Lease liability(3) | $ | |||||||
Operating lease rent expense | $ | |||||||
Variable lease costs | ||||||||
Total rent and variable lease costs | $ |
Year Ending December 31, 2021 | ||||||||
2021 (excluding the three months ended March 31, 2021) | $ | |||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
Total undiscounted lease payments | $ | |||||||
Less imputed interest | ( | |||||||
Lease liability(1) | $ |
Total Portfolio Statistics | January 2021 | February 2021 | March 2021 | Three Months Ended March 31, 2021 | |||||||||||||||||||
Occupancy (1) | 23.1 | % | 32.4 | % | 42.7 | % | 32.7 | % | |||||||||||||||
Average Daily Rate (1) | $ | 170.41 | $ | 183.57 | $ | 202.07 | $ | 188.68 | |||||||||||||||
RevPAR (1) | $ | 39.32 | $ | 59.56 | $ | 86.19 | $ | 61.76 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | Change | |||||||||||||||||||||||||||
Number of properties at March 31 | 35 | 39 | (4) | ||||||||||||||||||||||||||
Number of rooms at March 31 | 10,011 | 11,245 | (1,234) | ||||||||||||||||||||||||||
Number of hotels open at March 31 | 34 | 15 | 19 | ||||||||||||||||||||||||||
Number of rooms in hotels open at March 31 | 9,511 | 3,296 | 6,215 | ||||||||||||||||||||||||||
Number of hotels with temporarily suspended operations at March 31 | 1 | 24 | (23) | ||||||||||||||||||||||||||
Number of rooms in hotels with temporarily suspended operations at March 31 | 600 | 7,949 | (7,349) | ||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | Change | |||||||||||||||||||||||||||
Total Portfolio Statistics: | |||||||||||||||||||||||||||||
Occupancy (1) | 32.7 | % | 55.2 | % | (2,250) bps | ||||||||||||||||||||||||
ADR (1) | $ | 188.68 | $ | 220.41 | (14.4)% | ||||||||||||||||||||||||
RevPAR (1) | $ | 61.76 | $ | 121.68 | (49.2)% | ||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Decrease | % Change | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rooms revenues | $ | 55,646 | $ | 124,515 | $ | (68,869) | (55.3) | % | |||||||||||||||
Food and beverage revenues | 21,592 | 73,729 | (52,137) | (70.7) | % | ||||||||||||||||||
Other revenues | 10,614 | 17,109 | (6,495) | (38.0) | % | ||||||||||||||||||
Total revenues | $ | 87,852 | $ | 215,353 | $ | (127,501) | (59.2) | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Decrease | % Change | ||||||||||||||||||||
Hotel operating expenses: | |||||||||||||||||||||||
Rooms expenses | $ | 15,537 | $ | 35,076 | $ | (19,539) | (55.7) | % | |||||||||||||||
Food and beverage expenses | 18,178 | 52,972 | (34,794) | (65.7) | % | ||||||||||||||||||
Other direct expenses | 3,198 | 5,392 | (2,194) | (40.7) | % | ||||||||||||||||||
Other indirect expenses | 37,327 | 70,088 | (32,761) | (46.7) | % | ||||||||||||||||||
Management and franchise fees | 2,844 | 7,330 | (4,486) | (61.2) | % | ||||||||||||||||||
Total hotel operating expenses | $ | 77,084 | $ | 170,858 | $ | (93,774) | (54.9) | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Decrease | % Change | ||||||||||||||||||||
Depreciation and amortization | $ | 33,197 | $ | 37,091 | $ | (3,894) | (10.5) | % | |||||||||||||||
Real estate taxes, personal property taxes and insurance | 10,540 | 13,675 | (3,135) | (22.9) | % | ||||||||||||||||||
Ground lease expense | 403 | 754 | (351) | (46.6) | % | ||||||||||||||||||
General and administrative expenses | 6,922 | 8,151 | (1,229) | (15.1) | % | ||||||||||||||||||
Gain on business interruption insurance | (1,116) | — | (1,116) | — | % | ||||||||||||||||||
Impairment and other losses | — | 16,368 | (16,368) | (100.0) | % | ||||||||||||||||||
Total corporate and other expenses | $ | 49,946 | $ | 76,039 | $ | (26,093) | (34.3) | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Increase / (Decrease) | % Change | ||||||||||||||||||||
Non-operating income and expenses: | |||||||||||||||||||||||
Other income | $ | 116 | $ | 127 | $ | (11) | (8.7) | % | |||||||||||||||
Interest expense | (18,750) | (13,024) | 5,726 | 44.0 | % | ||||||||||||||||||
Income tax (expense) benefit | (165) | 7,311 | (7,476) | (102.3) | % |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net cash (used in) provided by operating activities | $ | (31,160) | $ | 5,387 | |||||||
Net cash used in investing activities | (6,547) | (20,177) | |||||||||
Net cash (used in) provided by financing activities | (1,854) | 296,189 | |||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (39,561) | $ | 281,399 | |||||||
Cash and cash equivalents and restricted cash, at beginning of period | 428,786 | 194,946 | |||||||||
Cash and cash equivalents and restricted cash, at end of period | $ | 389,225 | $ | 476,345 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net loss | $ | (57,977) | $ | (37,130) | |||||||
Adjustments: | |||||||||||
Interest expense | 18,750 | 13,024 | |||||||||
Income tax expense (benefit) | 165 | (7,311) | |||||||||
Depreciation and amortization | 33,197 | 37,091 | |||||||||
EBITDA | $ | (5,865) | $ | 5,674 | |||||||
Impairment and other losses(1) | — | 16,368 | |||||||||
EBITDAre | $ | (5,865) | $ | 22,042 | |||||||
Reconciliation to Adjusted EBITDAre | |||||||||||
Depreciation and amortization related to corporate assets | $ | (100) | $ | (96) | |||||||
Amortization of share-based compensation expense(2) | 2,295 | 2,040 | |||||||||
Non-cash ground rent and straight-line rent expense | 19 | 80 | |||||||||
Other non-recurring expenses(2) | 4 | 394 | |||||||||
Adjusted EBITDAre attributable to common stock and unit holders | $ | (3,647) | $ | 24,460 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net loss | $ | (57,977) | $ | (37,130) | |||||||
Adjustments: | |||||||||||
Depreciation and amortization related to investment properties | 33,097 | 36,995 | |||||||||
Impairment of investment properties(1) | — | 16,368 | |||||||||
FFO attributable to common stock and unit holders | $ | (24,880) | $ | 16,233 | |||||||
Reconciliation to Adjusted FFO | |||||||||||
Loan related costs, net of adjustment related to non-controlling interests(2) | $ | 1,767 | $ | 623 | |||||||
Amortization of share-based compensation expense(3) | 2,295 | 2,040 | |||||||||
Non-cash ground rent and straight-line rent expense | 19 | 80 | |||||||||
Other non-recurring expenses(3) | 4 | 394 | |||||||||
Adjusted FFO attributable to common stock and unit holders | $ | (20,795) | $ | 19,370 |
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Maturing debt(1): | |||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate debt(2) | $ | 2,533 | $ | 4,620 | $ | 184,258 | $ | 263,780 | $ | 567,138 | $ | 163,593 | $ | 1,185,922 | $ | 944,787 | |||||||||||||||||||||||||||||||
Variable rate debt | — | — | 25,000 | 15,000 | — | — | 40,000 | 295,109 | |||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | — | — | — | 163,093 | — | — | 163,093 | 161,871 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 2,533 | $ | 4,620 | $ | 209,258 | $ | 441,873 | $ | 567,138 | $ | 163,593 | $ | 1,389,015 | $ | 1,401,767 | |||||||||||||||||||||||||||||||
Weighted-average interest rate on debt: | |||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate debt(2) | 4.34% | 4.21% | 4.07% | 3.88% | 6.21% | 4.59% | 5.12% | 5.43% | |||||||||||||||||||||||||||||||||||||||
Variable rate debt | — | — | 2.45% | 2.14% | — | — | 2.34% | 3.93% | |||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | — | — | — | 2.93% | — | — | 2.93% | 3.58% |
Exhibit Number | Exhibit Description | |||||||
Articles of Restatement of Xenia Hotels & Resorts, Inc., as filed on November 10, 2015 with the Maryland Department of Assessments and Taxation (incorporated by reference to Exhibit 3.2 to the Company’s quarterly report on Form 10-Q (File No. 001-36594) filed on November 12, 2015) | ||||||||
Articles Supplementary of Xenia Hotels and Resorts, Inc., as filed on November 10, 2015 with the Maryland Department of Assessments and Taxation (incorporated by reference to Exhibit 3.1 to the Company’s quarterly report on Form 10-Q (File No. 001-36594) filed on November 12, 2015) | ||||||||
Articles Supplementary of Xenia Hotels and Resorts, Inc., as filed on March 15, 2017 with the Maryland Department of Assessments and Taxation (incorporated by reference to Exhibit 3.1 to the Company’s Periodic Report on Form 8-K (File No. 001-36594) filed on March 15, 2017) | ||||||||
Articles of Amendment of Xenia Hotels and Resorts, Inc. as filed on May 22, 2018 with the Maryland Department of Assessments and Taxation (incorporated by reference to Exhibit 3.1 to the Company’s Period Report on Form 8-K (File No. 001-36594) filed on May 23, 2018) | ||||||||
Articles Supplementary of Xenia Hotels and Resorts, Inc. as filed on May 22, 2018 with the Maryland Department of Assessments and Taxation (incorporated by reference to Exhibit 3.2 to the Company’s Period Report on Form 8-K (File No. 001-36594) filed on May 23, 2018) | ||||||||
Second Amended and Restated Bylaws of Xenia Hotels & Resorts, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on November 28, 2018) | ||||||||
First Amendment to the Second Amended and Restated Bylaws of Xenia Hotels & Resorts, Inc. dated February 19, 2020 (incorporated by reference to Exhibit 3.6 to the Company’s Annual Report on Form 10-K (File No. 001-36594) filed on February 25, 2020) | ||||||||
Indenture, dated August 18, 2020, among XHR LP, Xenia Hotels & Resorts, Inc., the subsidiary guarantors party thereto and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on August 18, 2020) | ||||||||
Form of 6.375% Senior Secured Note due 2025 (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on August 18, 2020) | ||||||||
Amendment No. 2 to Amended and Restated Revolving Credit Agreement, dated July 30, 2020, among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 4.3 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on August 18, 2020) | ||||||||
Amendment No. 3 to Term Loan Agreement, dated July 30, 2020, among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, Wells Fargo Bank, N.A., as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 4.4 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on August 18, 2020) | ||||||||
Amendment No. 4 to Term Loan Agreement, dated July 30, 2020, among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, KeyBank National Association, as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 4.5 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on August 18, 2020) | ||||||||
Amendment No. 2 to Term Loan Agreement, dated July 30, 2020, among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, PNC Bank, National Association, as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 4.6 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on August 18, 2020) | ||||||||
Amendment No. 4 to Term Loan Agreement, dated July 30, 2020, among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, KeyBank National Association, as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 4.7 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on August 18, 2020) | ||||||||
Amendment No. 3 to Amended and Restated Revolving Credit Agreement, dated October 14, 2020, among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 4.3 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on October 20, 2020 | ||||||||
Amendment No. 3 to Term Loan Agreement, dated October 14, 2020, among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, PNC Bank, National Association, as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 4.4 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on October 20, 2020) | ||||||||
Amendment No. 5 to Term Loan Agreement, dated October 14, 2020, among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, KeyBank National Association, as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 4.5 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on October 20, 2020) | ||||||||
Facility Increase Joinder to Amended and Restated Revolving Credit Agreement, dated October 14, 2020, among XHR LP, as borrower, certain subsidiaries of the Company party thereto as guarantors, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 4.6 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on October 20, 2020) | ||||||||
Amendment No. 1 to Amended and Restated Revolving Credit Agreement, dated as of June 30, 2020, by and among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders and other parties party thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on July 6, 2020) | ||||||||
Amendment No. 2 to Term Loan Agreement, dated as of June 30, 2020, by and among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, Wells Fargo Bank, N.A., as administrative agent, the lenders party thereto and other parties party thereto (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on July 6, 2020) | ||||||||
Amendment No. 3 to Term Loan Agreement, dated as of June 30, 2020, by and among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, KeyBank National Association, as administrative agent, the lenders party thereto and other parties party thereto (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on July 6, 2020) | ||||||||
Amendment No. 1 to Term Loan Agreement, dated as of June 30, 2020, by and among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, PNC Bank, National Association, as administrative agent, the lenders party thereto and other parties party thereto (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on July 6, 2020) | ||||||||
Amendment No. 3 to Term Loan Agreement, dated as of June 30, 2020, by and among XHR LP, as borrower, Company and certain subsidiaries of the Company, as guarantors, KeyBank National Association, as administrative agent, the lenders party thereto and other parties party thereto (incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K (File No. 001-36594) filed on July 6, 2020) | ||||||||
31.1* | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||
31.2* | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||
32.1* | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||||
101.INS | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Xenia Hotels & Resorts, Inc. | |||||
May 6, 2021 | |||||
/s/ MARCEL VERBAAS | |||||
Marcel Verbaas | |||||
Chairman and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
/s/ ATISH SHAH | |||||
Atish Shah | |||||
Executive Vice President, Chief Financial Officer and Treasurer | |||||
(Principal Financial Officer) | |||||
/s/ JOSEPH T. JOHNSON | |||||
Joseph T. Johnson | |||||
Senior Vice President and Chief Accounting Officer | |||||
(Principal Accounting Officer) |
/s/ MARCEL VERBAAS | ||
Marcel Verbaas | ||
Chairman and Chief Executive Officer (Principal Executive Officer) |
/s/ ATISH SHAH | ||
Atish Shah | ||
Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) |
/s/ MARCEL VERBAAS | ||
Marcel Verbaas | ||
Chairman and Chief Executive Officer (Principal Executive Officer) | ||
/s/ ATISH SHAH | ||
Atish Shah | ||
Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 3,434 | $ 3,183 |
Common stock, par value (in dollars per shares) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 113,804,074 | 113,755,513 |
Common stock, outstanding (in shares) | 113,804,074 | 113,755,513 |
Condensed Consolidated Statements of Changes in Equity (Parenthetical) |
3 Months Ended |
---|---|
Mar. 31, 2020
$ / shares
| |
Statement of Stockholders' Equity [Abstract] | |
Dividends, common shares / units (in dollars per share) | $ 0.275 |
Organization |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Xenia Hotels & Resorts, Inc. (the "Company" or "Xenia") is a Maryland corporation that primarily invests in uniquely positioned luxury and upper upscale hotels and resorts in the Top 25 lodging markets as well as key leisure destinations in the United States ("U.S."). Substantially all of the Company's assets are held by, and all the operations are conducted through, XHR LP (the "Operating Partnership"). XHR GP, Inc. is the sole general partner of XHR LP and is wholly-owned by the Company. As of March 31, 2021, the Company collectively owned 97.2% of the common limited partnership units issued by the Operating Partnership ("Operating Partnership Units"). The remaining 2.8% of the Operating Partnership Units are owned by the other limited partners comprised of certain of our current executive officers and members of our Board of Directors and includes vested and unvested long-term incentive plan ("LTIP") partnership units. LTIP partnership units may or may not vest based on the passage of time and meeting certain market-based performance objectives. Xenia operates as a real estate investment trust ("REIT"). To qualify as a REIT the Company cannot operate or manage its hotels. Therefore, the Operating Partnership and its subsidiaries lease the hotel properties to XHR Holding, Inc. and its subsidiaries (collectively with its subsidiaries, "XHR Holding"), the Company's taxable REIT subsidiary ("TRS"), which engages third-party eligible independent contractors to manage the hotels. As of March 31, 2021 and 2020, the Company owned 35 and 39 lodging properties, respectively. Impact of COVID-19 In January 2020, confirmed cases of novel coronavirus and related respiratory disease ("COVID-19") started appearing in the United States. By March 2020, COVID-19 was deemed a global pandemic by the World Health Organization. This led federal, state and local governments in the United States to impose measures intended to control its spread, including restrictions on freedom of movement and business operations such as travel bans, border closings, business closures, school closures, quarantines, shelter-in-place orders and social distancing requirements, and also to implement phased, multi-step policies governing re-opening regions of the country. The effects of the COVID-19 pandemic on the hotel industry have been significant and unprecedented with global demand for lodging drastically reduced and occupancy levels reaching historic lows. As a result of the COVID-19 pandemic, the majority of the Company's hotels and resorts temporarily suspended operations for certain periods of time during 2020. As of March 31, 2021, Hyatt Regency Portland at the Oregon Convention Center is the Company's only hotel that continues to have suspended operations. Leisure demand gradually improved during the second half of 2020, a trend that accelerated during the first quarter of 2021; however, consistent with trends throughout the U.S. lodging industry, business transient and group demand continues to be limited. We currently expect that the recovery in lodging, particularly with respect to business transient and group business, will be gradual, likely inconsistent, and may lag behind the recovery of other industries. Factors such as public health (including a significant increase in new variant strains of COVID-19 cases), availability and effectiveness of COVID-19 vaccines and therapeutics, the level of acceptance of the vaccine by the general population and the economic and geopolitical environments may impact the timing, extent and pace of such recovery. We cannot predict with certainty when business will return to normalized levels after the effects of the pandemic subside or whether hotels that have recommenced operations will be forced to shut down operations or impose additional restrictions due to a resurgence of COVID-19 cases.
|
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The unaudited interim condensed consolidated financial statements and related notes have been prepared on an accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP" or "GAAP") and in conformity with the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. The unaudited condensed consolidated financial statements include normal recurring adjustments, which management considers necessary for the fair presentation of the condensed consolidated balance sheets, condensed consolidated statements of operations and comprehensive loss, condensed consolidated statements of changes in equity and condensed consolidated statements of cash flows for the periods presented. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2020, included in the Company's Annual Report on Form 10-K filed with the SEC on March 1, 2021. Operating results for the three months ended March 31, 2021 are not necessarily indicative of actual operating results for the entire year. Basis of Presentation The condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and XHR Holding. The Company's subsidiaries generally consist of limited liability companies, limited partnerships and the TRS. The effects of all inter-company transactions have been eliminated. Reclassifications Certain prior year amounts in these condensed consolidated financial statements have been reclassified to conform to the presentation as of and for the three months ended March 31, 2021. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management's best judgment, after considering past, current and expected future economic conditions. Actual results could differ from these estimates. Risks and Uncertainties As a result of the COVID-19 pandemic, the majority of the Company's hotels and resorts temporarily suspended operations for certain periods of time during 2020. As of March 31, 2021, Hyatt Regency Portland at the Oregon Convention Center is the Company's only hotel that continues to have suspended operations. The Company's portfolio consists of luxury and upper upscale hotels and resorts, which generally offer restaurant and bar venues, large meeting facilities and event space, and amenities, including spas and golf courses, some of which may have limited operations or will not be operating during the recovery in order to comply with implemented safety measures, ongoing restrictions and to accommodate reduced levels of demand. The Company continues to monitor the evolving situation and guidance from federal, state and local governmental and public health authorities, and additional actions may be taken or required based on their recommendations and regulations in place. Under these circumstances, there may be developments that require further operations adjustments. The Company cannot predict with certainty when business levels will return to normalized levels after the effects of the pandemic subside or whether hotels that have recommenced operations will be forced to suspend operations or impose additional restrictions due to a resurgence of COVID-19 cases. The Company expects that recovery in the lodging industry, particularly with respect to business transient and group business, will lag behind the recovery of other industries and factors such as public health (including a significant increase in new variant strains of COVID-19 cases), availability and effectiveness of COVID-19 vaccines and therapeutics, the level of acceptance of the vaccine by the general population and the economic and geopolitical environments may impact the timing, extent and pace of such recovery. Additionally, the effects of the pandemic could materially and adversely affect the Company's ability to consummate acquisitions and dispositions of hotel properties in the near term as well as cause scale backs or delays in planned renovations and other projects. The Company cannot predict with certainty the full extent and duration of the effects of the COVID-19 pandemic on its business, operating margins, results of operations, cash flows, financial condition, the market price of its common stock, its ability to make distributions to its shareholders, its access to equity and credit markets or its ability to service its indebtedness. Further, we continue to monitor and evaluate the challenges associated with the evolving workforce landscape, particularly related to achieving the appropriate balance between hotel staffing levels and demand as business at our hotels increases. For the three months ended March 31, 2021, the Company had a geographical concentration of revenues generated from hotels in the Phoenix, Arizona, Orlando, Florida, and Houston, Texas markets that exceeded 10% of total revenues for the period then ended. For the three months ended March 31, 2020, the Company had a geographical concentration of revenues generated from hotels in the Orlando, Florida and Phoenix, Arizona markets that exceeded 10% of total revenues for the period then ended. To the extent that adverse changes continue in these markets, or the industry sectors that operate in these markets, our business and operating results could continue to be negatively impacted. Consolidation The Company evaluates its investments in partially owned entities to determine whether such entities may be a variable interest entity ("VIE") or voting interest entity. If the entity is a VIE, the determination of whether the Company is the primary beneficiary must be made. The primary beneficiary determination is based on a qualitative assessment as to whether the entity has (i) power to direct significant activities of the VIE and (ii) an obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. The Company will consolidate a VIE if it is deemed to be the primary beneficiary. The equity method of accounting is applied to entities in which the Company is not the primary beneficiary, or the entity is not a VIE and over which the Company does not have effective control, but can exercise influence over the entity with respect to its operations and major decisions. The Operating Partnership is a VIE. The Company's significant asset is its investment in the Operating Partnership, as described in Note 1, and consequently, substantially all of the Company's assets and liabilities represent those assets and liabilities of the Operating Partnership. Cash and Cash Equivalents The Company considers all demand deposits, money market accounts and investments in certificates of deposit and repurchase agreements purchased, and similar accounts with a maturity of three months or less, at the date of purchase, to be cash equivalents. The Company maintains its cash and cash equivalents at various financial institutions. The combined account balances at one or more institutions generally exceed the Federal Depository Insurance Corporation ("FDIC") insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes that the risk is not significant as the Company does not anticipate non-performance by the financial institutions. Restricted Cash and Escrows Restricted cash primarily relates to furniture, fixtures and equipment replacement reserves as required per the terms of the Company's management and franchise agreements, cash held in restricted escrows for real estate taxes and insurance, capital spending reserves and, at times, disposition-related holdback escrows. As a result of the material adverse impact on the results of operations attributed to the COVID-19 pandemic, the Company's third-party managers have temporarily suspended required contributions to the furniture, fixture and equipment replacement reserves. In addition, in certain cases, the Company has the ability to utilize a portion of these cash balances for hotel operating expenses. The usage of such replacement reserves may be subject to lender approval for hotels encumbered by mortgage loans or may be required to be replenished. Impairment Long-lived assets and intangibles The Company assesses the carrying values of the respective long-lived assets, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Events or circumstances that may cause a review include, but are not limited to, when (1) a hotel property experiences a significant decrease in the market price of the long-lived asset, (2) a hotel property experiences a current or projected loss from operations combined with a history of operating or cash flow losses, (3) it becomes more likely than not that a hotel property will be sold before the end of its useful life, (4) an accumulation of costs is significantly in excess of the amount originally expected for the acquisition, construction or renovation of a long-lived asset, (5) adverse changes in demand occur for lodging at a specific property due to declining national or local economic conditions and/or new hotel construction in markets where the hotel is located, (6) there is a significant adverse change in legal factors or in the business climate that could affect the value of the long-lived asset and/or (7) there is a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition. If it is determined that the carrying value is not recoverable because the undiscounted cash flows do not exceed carrying value, the Company records an impairment charge to the extent that the carrying value exceeds fair value. The COVID-19 pandemic has had, and is expected to continue to have, a material adverse impact on the lodging and hospitality industries, which management considered to be an ongoing triggering event during its impairment testing for the three months ended March 31, 2021. The Company assessed the recoverability of each of its long-lived assets and intangibles and determined that there were no impairments as a result of the pandemic as of March 31, 2021. Goodwill The excess of the cost of an acquired entity (i.e. those that met the definition of an acquired business) over the net of the fair values assigned to assets acquired (including identified intangible assets) and liabilities assumed is recorded as goodwill. Goodwill was recognized and allocated to certain of the Company's properties at the time they were acquired. The Company tests goodwill for impairment annually or more frequently if events or changes in circumstances indicate impairment. The Company has the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The optional qualitative assessment determines whether it is more likely than not that the fair value of the specific goodwill is less than its carrying amount. If it is determined that it is more likely than not that the goodwill is impaired, the Company performs a single-step analysis to identify and measure impairment. The fair value of goodwill is based on either the direct capitalization method or the discounted cash flow method. The direct capitalization method is based on a capitalization rate, which is generally observable (a Level 2 input, but at times could be unobservable, which is a Level 3 input), applied to the underlying hotel's most recent stabilized trailing twelve month net operating income at the time of the fair value analysis. The discounted cash flow method is based on estimated future cash flow projections that utilize discount rates, terminal capitalization rates, and planned capital expenditures, which are generally unobservable in the market place (Level 3 inputs). These estimates approximate the inputs the Company believes would be utilized by market participants in assessing fair value. The estimates of future cash flows are based on a number of factors, including historical operating results, estimated growth rates, known trends, and market/economic conditions. If the carrying amount of the property’s assets, including goodwill, exceeds its estimated fair value an impairment charge is recorded in an amount equal to that excess but only to the extent the value of goodwill is reduced to zero. As of March 31, 2021 and December 31, 2020, the Company had goodwill of $4.9 million associated with one property, which is included in intangible assets, net of accumulated amortization on the condensed consolidated balance sheets for the periods then ended. During the three months ended March 31, 2021, no impairment of goodwill was recorded. During the three months ended March 31, 2020, the Company determined the carrying values of goodwill related to Andaz Savannah and Bohemian Hotel Savannah Riverfront, Autograph Collection, were in excess of their fair values and therefore recorded an impairment charge of $16.4 million related to these two hotels. Refer to Note 6 for further information. Impairment estimates The use of projected future cash flows, both undiscounted and discounted, and estimated hold periods are based on assumptions that are consistent with the estimates of future expectations and the strategic plan the Company uses to manage its underlying business. These assumptions and estimates about future cash flows, including the uncertainty regarding the extent and duration of the effects of the COVID-19 pandemic on our operations, along with the capitalization and discount rates used to determine these estimates are complex and subjective. The determination of fair value and possible subsequent impairment of long-lived investment properties and/or goodwill is a significant estimate that can and does change based on the Company's continuous process of analyzing each property and reviewing assumptions about uncertain inherent factors, as well as the economic condition of the property at a particular point in time. Changes in economic and operating conditions and the Company’s ultimate investment intent that occur subsequent to the impairment analyses could impact these assumptions and result in future impairment charges of the real estate properties. Insurance Recoveries At times, the Company may be entitled to business interruption proceeds for losses occurring at certain properties; however, an insurance recovery receivable will not be recorded until a final settlement has been reached with the insurance company. Any insurance proceeds received in excess of insurance deductibles will be accounted for as gain. During the three months ended March 31, 2021, the Company recognized $1.1 million in business interruption insurance proceeds for a portion of lost revenues associated with cancellations occurring in 2020 related to the COVID-19 pandemic. These amounts are included in gain on business interruption insurance on the condensed consolidated statement of operations and comprehensive loss for the period then ended. Derivatives and Hedging Activities In the normal course of business, the Company is exposed to the effects of interest rate changes. The Company limits the risks associated with interest rate changes by following established risk management policies and procedures which may include the use of derivative instruments. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking various hedge transactions. The Company assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract and are recorded on the condensed consolidated balance sheet at fair value, with offsetting changes recorded to other comprehensive income or loss. The Company nets assets and liabilities when the right of offset exists. Ineffective portions of changes in the fair value of a cash flow hedge are recognized as interest expense. The Company incorporates credit valuation adjustments to reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Any future defaults by the Company under the terms of its hedges, including those which may arise from cross default provisions with loan agreements, could result in the Company being immediately liable for the fair market value liability of the defaulted hedges. Revenues Revenues consist of amounts derived from hotel operations, including the sale of rooms for lodging accommodations, food and beverage, and other ancillary revenue generated by hotel amenities including spa, parking, golf, resort fees and other services. Revenues are generated from various distribution channels including but not limited to direct bookings, global distribution systems and Internet travel sites. Room transaction prices are based on an individual hotel's location, room type and the bundle of services included in the reservation and are set by the hotel daily. Any discounts, including advance purchase, loyalty point redemptions or promotions are recognized at the discounted rate whereas rebates and incentives are recorded as a reduction in rooms revenues when earned. Revenues from online channels are generally recognized net of commission fees, unless the end price paid by the guest is known. Rooms revenue is recognized over the length of stay that the hotel room is occupied by the guest. Cash received from a guest prior to check-in is recorded as an advance deposit and is generally recognized as rooms revenue at the time the room reservation has become non-cancellable, upon occupancy or upon expiration of the re-booking date. Advance deposits are included in other liabilities on the condensed consolidated balance sheets. Payment of any remaining balance is typically due from the guest upon check-out. Sales, use, occupancy, and similar taxes are collected and presented on a net basis (excluded from revenues). Food and beverage transaction prices are based on the stated price for the specific food or beverage and varies depending on type, venue and hotel location. Service charges are typically a percentage of food and beverage prices and meeting space rental. Food and beverage revenue is recognized at the point in time in which the goods and/or services are rendered to the guest. Cash received in advance of an event is recorded as either a security or advance deposit. Security and advance deposits are recognized as revenue when it becomes non-cancellable or at the time the food and beverage goods and services are rendered to the guest. Payment for the remaining balance of food and beverage goods and services is due upon delivery and completion of such goods and services. Parking and audio visual fees are recognized at the time services are provided to the guest at the stated price for the service or goods. In parking and audio visual contracts in which we have control over the services provided, we are considered the principal in the agreement and recognize the related revenues gross of associated costs. If we do not have control over the services in the contract, we are considered the agent and record the related revenues net of associated costs. Resort and amenity fees, spa, golf and other ancillary amenity revenues are recognized at the point in time the goods or services have been rendered to the guest at the stated price for the service or amenity. Share-Based Compensation The Company maintains a share-based incentive plan that provides for the grant of stock options, stock awards, restricted stock units, LTIP units and other equity-based awards. Share-based compensation is measured at the estimated fair value of the award on the date of grant, adjusted for forfeitures as they occur, and recognized as an expense on a straight-line basis over the longest vesting period for each grant for the entire award. The determination of fair value of these awards is subjective and involves significant estimates and assumptions including expected volatility of the Company's share price, expected dividend yield, expected term and assumptions of whether certain of these awards will achieve performance thresholds. Share-based compensation is included in general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss and capitalized in buildings and other improvements in the condensed consolidated balance sheets for certain employees that manage property developments, renovations and capital improvements.
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Revenues | Revenues The following represents total revenue disaggregated by primary geographical markets (as defined by STR, Inc. ("STR")) for the three months ended March 31, 2021 and 2020 (in thousands):
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt as of March 31, 2021 and December 31, 2020 consisted of the following (dollar amounts in thousands):
(1)The rates shown represent the annual interest rates as of March 31, 2021. The variable index for mortgage loans is one-month LIBOR and the variable index for the corporate credit facilities reflects a 25 basis point LIBOR floor which is applicable for the value of all corporate credit facilities not subject to an interest rate hedge. (2)The Company entered into interest rate swap agreements to fix the interest rate of the variable rate mortgage loans for the entire term of the loan. (3)A variable interest loan for which the interest rate has been fixed on $90 million of the balance through January 2022, after which the rate reverts to variable. (4)A variable interest loan for which the interest rate has been fixed on $51 million of the balance through January 2022, after which the rate reverts to variable. (5)A variable interest loan for which the interest rate has been fixed through January 2023. (6)Represents the weighted-average interest rate as of March 31, 2021. (7)A variable interest loan for which LIBOR has been fixed for $125 million of the balance through October 2022. The spread to LIBOR may vary, as it is determined by the Company's leverage ratio. The applicable interest rate has been set to the highest level of grid-based pricing during the Covenant Waiver Period. (8)A variable interest loan for which LIBOR has been fixed through September 2022. The spread to LIBOR may vary, as it is determined by the Company's leverage ratio. The applicable interest rate has been set to the highest level of grid-based pricing during the Covenant Waiver Period. (9)Commitments under the revolving credit facility total $523 million through February 2022, after which the total commitments will decrease to $450 million through maturity in February 2024. (10)Includes loan premiums, discounts and deferred financing costs, net of accumulated amortization. Mortgage Loans Of the total outstanding debt at March 31, 2021, none of the mortgage loans were recourse to the Company. As of March 31, 2021, the Company was not in compliance with its debt covenants for four of its mortgage loans, which did not result in events of default but allow the respective lenders the option to initiate a cash sweep until covenant compliance is achieved for a period of time specified in the respective loan agreements. The cash sweeps permit the lenders to pull excess cash generated by the property into a separate bank account that they control, which may be used to reduce the outstanding loan balances. The Company anticipates that it will fail additional covenants on certain mortgage loans within the next 12 months which would result in covenant violations and the need to request waivers or modifications from its lenders. If the Company is unable to obtain waivers or modifications it would be required to pay down the loans by an amount which would result in its compliance with the applicable covenants. The mortgage loan agreements, as amended, require contributions to be made to furniture, fixtures and equipment replacement reserves, however, this requirement has been temporarily eliminated and the Company currently has the ability to utilize existing furniture, fixtures and equipment replacement reserve funds for operating expenses, subject to certain restrictions and a requirement to replenish any funds used. In addition, certain quarterly financial covenants have been waived for a period of time specified in the respective amended loan agreements and certain financial covenants will be adjusted following the waiver periods. Corporate Credit Facilities Certain financial covenants related to the amended corporate credit facilities have been suspended through year end 2021 and, once quarterly testing resumes, certain financial covenants have been modified through the first quarter in 2023 (the "covenant waiver period"). In addition, the amended corporate credit facilities have certain restrictions and covenants which are applicable during the covenant waiver period, including (i) mandatory prepayment requirements, (ii) the addition of certain subsidiaries as guarantors, and (iii) negative covenants restricting certain acquisitions, investments, capital expenditures, ground leases, and distributions. A minimum liquidity covenant also applies during the covenant waiver period and for two fiscal quarters thereafter. As of March 31, 2021, there was $163.1 million outstanding on the revolving credit facility. During the three months ended March 31, 2021, the Company incurred unused commitment fees of approximately $0.3 million and interest expense of $1.2 million. During the three months ended March 31, 2020, the Company incurred unused commitment fees of approximately $0.2 million and interest expense of $1.5 million. Senior Notes The Operating Partnership issued $500 million of Senior Notes during the year ended December 31, 2020. The Senior Notes contain customary covenants that will limit the Operating Partnership's ability and, in certain circumstances, the ability of its subsidiaries, to borrow money, create liens on assets, make distributions and pay dividends on or redeem or repurchase stock, make certain types of investments, sell stock in certain subsidiaries, enter into agreements that restrict dividends or other payments from subsidiaries, enter into transactions with affiliates, issue guarantees of indebtedness, and sell assets or merge with other companies. These limitations are subject to a number of important exceptions and qualifications set forth in the indenture. In addition, the indenture will require the Operating Partnership to maintain total unencumbered assets as of each fiscal quarter of at least 150% of total unsecured indebtedness, in each case calculated on a consolidated basis. Debt Outstanding Total debt outstanding as of March 31, 2021 and December 31, 2020 was $1,389 million and $1,390 million, respectively, and had a weighted-average interest rate of 4.78% per annum. The following table shows scheduled principal payments and debt maturities for the next five years and thereafter (in thousands):
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives The Company primarily uses interest rate swaps as part of its interest rate risk management strategy for variable rate debt. As of March 31, 2021, all interest rate swaps were designated as cash flow hedges and involve the receipt of variable rate payments from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Unrealized gains and losses of hedging instruments are reported in other comprehensive income or loss on the condensed consolidated statements of operations and comprehensive loss. Amounts reported in accumulated other comprehensive loss related to currently outstanding derivatives are recognized as an adjustment to income or loss through interest expense as interest payments are made on the Company’s variable rate debt. Derivative instruments held by the Company with the right of offset in a net liability position were included in other liabilities on the condensed consolidated balance sheets. The following table summarizes the terms of the derivative financial instruments held by the Company as of March 31, 2021 and December 31, 2020, respectively (in thousands):
The table below details the location in the condensed consolidated financial statements of the gains and losses recognized on derivative financial instruments designated as cash flow hedges for the three months ended March 31, 2021 and 2020 (in thousands):
The Company expects approximately $9.2 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense in the next 12 months.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company defines fair value based on the price that would be received upon sale of an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: •Level 1 - Quoted prices for identical assets or liabilities in active markets that the entity has the ability to access. •Level 2 - Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. •Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company has estimated the fair value of its financial and non-financial instruments using available market information and valuation methodologies it believes to be appropriate for these purposes. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of amounts that would be realized upon disposition. For assets and liabilities measured at fair value on a recurring basis, quantitative disclosure of their fair values are included in the condensed consolidated balance sheets as of as of March 31, 2021 and December 31, 2020 (in thousands):
(1)Interest rate swap fair values are netted as applicable per the terms of the respective master netting agreements. Recurring Measurements The fair value of each derivative instrument is based on a discounted cash flow analysis of the expected cash flows under each arrangement. This analysis reflects the contractual terms of the derivative instrument, including the period to maturity, and utilizes observable market-based inputs, including interest rate curves and implied volatilities, which are classified within Level 2 of the fair value hierarchy. The Company also incorporates credit value adjustments to appropriately reflect each parties’ nonperformance risk in the fair value measurement, which utilizes Level 3 inputs such as estimates of current credit spreads. However, the Company has assessed that the credit valuation adjustments are not significant to the overall valuation of the derivatives and, as a result, its derivative valuations in their entirety are classified within Level 2 of the fair value hierarchy. Non-Recurring Measurements Goodwill The below table shows the goodwill balances as of March 31, 2021 and December 31, 2020 (in thousands):
As a result of the existing market weakness due to new supply in Savannah, Georgia and the material adverse impact the COVID-19 pandemic had on the lodging industry and on our portfolio, the Company performed a single-step analysis to identify and measure impairment for three of our hotels with goodwill, including Andaz Napa, Andaz Savannah and Bohemian Hotel Savannah Riverfront, Autograph Collection as of March 31, 2020. Management determined the fair value of the hotels and related goodwill using Level 3 assumptions, which included discounted cash flows based on projected operating income, timing and amount of planned capital expenditures, a terminal capitalization rate, and an applied discount rate. Based on the fair value determinations made by management, the Company identified goodwill impairments of $6.1 million related to Andaz Savannah and $10.3 million related to Bohemian Hotel Savannah Riverfront, Autograph Collection, which is recorded in impairment and other losses for the three months ended March 31, 2020. Financial Instruments Not Measured at Fair Value The table below represents the fair value of financial instruments presented at carrying values in the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 (in thousands):
The Company estimated the fair value of its mortgages payable using a weighted-average effective interest rate of 4.88% and 4.80% per annum as of March 31, 2021 and December 31, 2020, respectively. The assumptions reflect the terms currently available to borrowers with credit profiles similar to the Company's. The Company has determined that its debt instrument valuations are classified in Level 2 of the fair value hierarchy.
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Income Taxes |
3 Months Ended |
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Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company estimated the TRS income tax expense for the three months ended March 31, 2021 using an estimated federal and state combined effective tax rate of 2.45% and recognized an income tax expense of $0.2 million. The income tax expense for the three months ended March 31, 2021 was primarily attributed to state taxes levied on gross receipts. The Company estimated the TRS income tax benefit for the three months ended March 31, 2020 using an estimated federal and state combined effective tax rate of 10.10% and recognized an income tax benefit of $7.3 million. The income tax benefit for three months ended March 31, 2020 was primarily attributed to the net operating loss opportunity allowed for under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") signed into U.S. law in March 2020.
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Stockholders' Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders' Equity Common Stock The Company maintains an "At-the-Market" ("ATM") program pursuant to an Equity Distribution Agreement ("ATM Agreement") with Wells Fargo Securities, LLC, Robert W. Baird & Co. Incorporated, Jefferies LLC, KeyBanc Capital Markets Inc., and Raymond James & Associates, Inc. In accordance with the terms of the ATM Agreement, the Company may from time to time offer and sell shares of its common stock having an aggregate offering price of up to $200 million. No shares were sold under the ATM Agreement during the three months ended March 31, 2021 and 2020. As of March 31, 2021, the Company had $62.6 million available for sale under the ATM Agreement. The terms of the amended corporate credit facilities impose restrictions on the use of proceeds raised from equity issuances. The Board of Directors has authorized a stock repurchase program pursuant to which the Company is authorized to purchase up to $175 million of the Company’s outstanding common stock in the open market, in privately negotiated transactions or otherwise, including pursuant to Rule 10b5-1 plans (the "Repurchase Program"). The Repurchase Program does not have an expiration date. This Repurchase Program may be suspended or discontinued at any time and does not obligate the Company to acquire any particular amount of shares. No shares were purchased as part of the Repurchase Program during the three months ended March 31, 2021. During the three months ended March 31, 2020, 165,516 shares were repurchased under the Repurchase Program, at a weighted-average price of $13.68 per share for an aggregate purchase price of $2.3 million. As of March 31, 2021, the Company had approximately $94.7 million remaining under its share repurchase authorization. We are prohibited under the terms of the amended corporate credit facilities from making repurchases of our common stock until we achieve compliance with applicable debt covenants and our covenant waiver period ends. Distributions The Company has suspended its quarterly dividend in order to preserve liquidity and did not declare any dividends during the three months ended March 31, 2021. Our ability to make distributions is currently limited by the provisions of our amended corporate credit facilities. The Company will evaluate if and when to resume paying dividends in the future based on business and economic conditions and the requirement to distribute 90% of REIT taxable income to remain qualified as a REIT. The Company declared the following dividend during the three months ended March 31, 2020:
Non-Controlling Interest of Common Units in Operating Partnership No LTIP Units were redeemed during the three months ended March 31, 2021. During the three months ended March 31, 2020, 1,305,759 vested LTIP Units were converted into common limited partnership units in the Operating Partnership ("Common Units") on a one-for-one basis and subsequently all 1,305,759 Common Units were tendered to the Operating Partnership for redemption. At the Company's election, 848,742 Common Units were redeemed for common stock and 457,017 Common Units were redeemed for cash totaling $8.6 million. As of March 31, 2021, the Operating Partnership had 3,291,627 LTIP Units outstanding, representing a 2.8% partnership interest held by the limited partners. Of the 3,291,627 LTIP Units outstanding at March 31, 2021, 1,086,179 units had vested and had yet to be converted or redeemed. Only vested LTIP Units may be converted to common units of the Operating Partnership, which in turn can be tendered for redemption per the terms of the LTIP Unit award agreements.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per common share is calculated by dividing net income or loss available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income or loss available to common stockholders by the weighted-average number of common shares outstanding during the period plus any shares that could potentially be outstanding during the period. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation. Unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Accordingly, distributed and undistributed earnings attributable to unvested share-based compensation (participating securities) have been excluded, as applicable, from net income or loss available to common stockholders used in the basic and diluted earnings per share calculations. Income or loss allocated to non-controlling interests in the Operating Partnership has been excluded from the numerator and Operating Partnership Units and LTIP Units in the Operating Partnership have been omitted from the denominator for the purpose of computing diluted earnings per share since including these amounts in the numerator and denominator would have no impact. The following table reconciles net loss attributable to common stockholders to basic and diluted earnings per share (in thousands, except share and per share data):
(1)During the three months ended March 31, 2021 and 2020, the Company excluded 546,124 and 327,475 anti-dilutive shares from its calculation of diluted earnings per share, respectively.
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Share-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation 2015 Incentive Award Plan Restricted Stock Unit Grants The Compensation Committee of the Board of Directors approved the following grants of restricted stock units to certain Company employees:
Each award of time-based Restricted Stock Units will vest as follows, subject to continued employment with the Company or its affiliates through each applicable vesting date: 33% on the first anniversary of the vesting commencement date, 33% on the second anniversary of the vesting commencement date, and 34% on the third anniversary of the vesting commencement date. The performance-based Restricted Stock Units are designated twenty-five (25%) as absolute total stockholder return ("TSR") units (the "Absolute TSR Share Units") and seventy-five (75%) as relative TSR share units (the "Relative TSR Share Units"). The Absolute TSR Share Units vest based on achievement of varying levels of the Company's TSR over the three-year performance period. The Relative TSR Share Units vest based on the ranking of the Company's TSR as compared to a defined peer group over the three-year performance period. Vesting of performance-based Restricted Stock Units is also subject to continued employment with the Company or its affiliates through the applicable vesting date. LTIP Unit Grants The Compensation Committee of the Board of Directors approved the issuance of the following awards under the 2015 Incentive Award Plan:
Each award of time-based LTIP Units will vest as follows, subject to continued employment with the Company or its affiliates through each applicable vesting date: 33% on the first anniversary of the vesting commencement date, 33% on the second anniversary of the vesting commencement date, and 34% on the third anniversary of the vesting commencement date. A portion of each award of Class A LTIP Units are designated as a number of "base units". The base units are designated twenty-five (25%) as absolute TSR base units, and vest based on achievement of varying levels of the Company's TSR over the three-year performance period. The other seventy-five percent (75%) of the base units are designated as relative TSR base units and vest based on the ranking of the Company's TSR as compared to a defined peer group over the three-year performance period. Vesting of Class A LTIP Units is also subject to continued employment with the Company or its affiliates through the vesting date. LTIP Units (other than unvested Class A LTIP Units), whether vested or unvested, receive the same quarterly per-unit distributions as common units in the Operating Partnership, which equal the per-share distributions on the common stock of the Company. Class A LTIP Units that have not vested receive a quarterly per-unit distribution equal to 10% of the distribution paid on common units in the Operating Partnership. The following is a summary of the unvested incentive awards under the 2015 Incentive Award Plan as of March 31, 2021:
(1) Includes time-based LTIP Units and performance-based Class A LTIP Units. (2) During the three months ended March 31, 2021, 18,993 shares of common stock were withheld by the Company upon the settlement of the applicable award in order to satisfy minimum federal and state tax withholding requirements with respect to Restricted Stock Units granted under the 2015 Incentive Award Plan. The grant date fair values of the time-based Restricted Stock Units and time-based LTIP Units are determined based on the closing price of the Company’s common stock on the grant date and compensation expense is recognized on a straight-line basis over the vesting period. The grant date fair values of performance-based awards are determined based on a Monte Carlo simulation method with the following assumptions and compensation expense is recognized on a straight-line basis over the performance period:
The absolute and relative total stockholder returns are market conditions as defined by Accounting Standard Codification ("ASC") 718, Compensation - Stock Compensation. Market conditions include provisions wherein the vesting condition is met through the achievement of a specific value of the Company’s common stock, which is total stockholder return in this case. Market conditions differ from other performance awards under ASC 718 in that the probability of attaining the condition (and thus vesting of the units or shares) is reflected in the initial grant date fair value of the award. Accordingly, it is not appropriate to reconsider the probability of vesting in the award subsequent to the initial measurement of the award, nor is it appropriate to reverse any of the expense if the condition is not met. As such, once the expense for these awards is measured, the expense must be recognized over the vesting period regardless of whether the target is met, or at what level the target is met. Expense may only be reversed if the holder of the instrument forfeits the award as a result of the holder's termination of service to the Company prior to vesting. For the three months ended March 31, 2021, the Company recognized approximately $2.3 million of share-based compensation expense (net of forfeitures) related to Restricted Stock Units and LTIP Units provided to certain of its executive officers and other members of management. In addition, for the three months ended March 31, 2021, the Company capitalized approximately $0.4 million related to Restricted Stock Units provided to certain members of management who oversee development and capital projects on behalf of the Company. As of March 31, 2021, there was $20.4 million of total unrecognized compensation costs related to unvested Restricted Stock Units, Class A LTIP Units and Time-Based LTIP Units issued under the 2015 Incentive Award Plan, which are expected to be recognized over a remaining weighted-average period of 2.1 additional years. For the three months ended March 31, 2020, the Company recognized approximately $2.0 million of share-based compensation expense (net of forfeitures) related to Restricted Stock Units and LTIP Units provided to certain of its executive officers and other members of management. In addition, for the three months ended March 31, 2020, the Company capitalized approximately $0.3 million related to Restricted Stock Units provided to certain members of management who oversee development and capital projects on behalf of the Company. In addition, share-based compensation for the three months ended March 31, 2020 included $0.4 million of accelerated share-based compensation associated with reductions in corporate personnel as a result of the impact of the COVID-19 pandemic.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Leases The Company is a lessee to long-term ground, parking, and its corporate office leases, which are accounted for as operating leases. The following is a summary of the Company's leases as of and for the three months ended March 31, 2021 (dollar amounts in thousands):
(1)The weighted-average remaining lease term including all available extension options is approximately 59 years. (2)The ROU asset is included in on the condensed consolidated balance sheet as of March 31, 2021. (3)The lease liability is included in on the condensed consolidated balance sheet as of March 31, 2021. The following table shows the remaining lease payments, which includes reasonably certain extension options, for the next five years and thereafter reconciled to the lease liability as of March 31, 2021 (in thousands):
(1)The lease liability is included in other liabilities on the condensed consolidated balance sheet as of March 31, 2021. Management and Franchise Agreements In order to maintain its qualification as a REIT, the Company cannot directly or indirectly operate any of its hotels. The Company leases each hotel to TRS lessees, which in turn engage property managers to manage the hotels. Each hotel is operated pursuant to a hotel management agreement with an independent third-party hotel management company. Pursuant to the hotel management agreements, the management company controls the day-to-day operation of each hotel, and the Company is granted limited approval rights with respect to certain of the management company’s actions. The hotel management agreements typically contain a two-tiered fee structure, wherein the management company receives a base management fee and, if certain financial thresholds are met or exceeded, an incentive management fee. Many hotel management agreements also require the maintenance of a capital reserve fund based on a percentage of hotel revenues to be used for capital expenditures to maintain the quality of the hotels. As a result of the material adverse impact on the results of operations attributed to the COVID-19 pandemic, the Company's third-party managers have temporarily suspended required contributions to the furniture, fixture and equipment replacement reserves. Additionally, in certain cases, the Company has the ability to utilize a portion of these cash balances for hotel operating expenses. Usage of such replacement reserves may be subject to lender approval for hotels encumbered by mortgage loans and may be required to be replenished. Management agreements for brand-managed hotels have terms generally ranging from 20 to 30 years and allow for one or more renewal periods at the option of the hotel manager. Assuming all renewal periods are exercised, the average remaining term is 26 years. Management agreements for franchised hotels generally contain initial terms between 10 and 15 years with an average remaining initial term of approximately three years. The Company is generally limited in its ability to sell, lease or otherwise transfer hotels unless the transferee assumes the related hotel management agreement. However, most agreements include owner rights to terminate the agreements on the basis of the manager’s failure to meet certain performance-based metrics. Typically, these criteria are subject to the manager’s ability to ‘cure’ and avoid termination by payment to the Company of specified deficiency amounts (or, in some instances, waiver of the right to receive specified future management fees). Franchise agreements contain initial terms of 15 to 20 years, with an average remaining initial term of approximately eight years. The franchise agreements require royalty fees based on a percentage of gross rooms revenue and, for certain hotels, an additional fee based on a percentage of gross food and beverage revenue. In addition, franchise agreements require fees for marketing, reservation or other program fees based on a percentage of gross rooms revenue. Many franchise agreements also require the maintenance of a capital reserve fund based on a percentage of hotel revenues to be used for capital expenditures to maintain the quality of the hotels. The Company incurred management and franchise expenses of $2.8 million and $7.3 million for the three months ended March 31, 2021 and 2020, respectively, which are included on the condensed consolidated statements of operations and comprehensive loss for the periods then ended. Reserve Requirements Certain franchise and management agreements require the Company to reserve funds relating to replacements and renewals of the hotels' furniture, fixtures and equipment. As of March 31, 2021 and December 31, 2020, the Company had a balance of $24.5 million and $25.9 million, respectively, in reserves for such future improvements. This amount is included in restricted cash and escrows on the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020. The Company's third-party managers have temporarily suspended required contributions to the furniture, fixture and equipment replacement reserves. Additionally, in certain cases, the Company has the ability to utilize a portion of these cash balances for hotel operating expenses. Usage of such replacement reserves may be subject to lender approval for hotels encumbered by mortgage loans or may be required to be replenished. As of March 31, 2021, the Company had used $13.5 million of the furniture, fixture and equipment replacement reserves for working capital purposes, all of which is subject to replenishment requirements. Renovation and Construction Commitments As of March 31, 2021, the Company had various contracts outstanding with third-parties in connection with the renovation of certain of its hotel properties. The remaining commitments under these contracts as of March 31, 2021 totaled $2.9 million. Legal The Company is subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. While the resolution of these matters cannot be predicted with certainty, management believes, based on currently available information, that the final outcome of such matters will not have a material adverse effect on the financial condition of the Company.
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Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The unaudited interim condensed consolidated financial statements and related notes have been prepared on an accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP" or "GAAP") and in conformity with the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. The unaudited condensed consolidated financial statements include normal recurring adjustments, which management considers necessary for the fair presentation of the condensed consolidated balance sheets, condensed consolidated statements of operations and comprehensive loss, condensed consolidated statements of changes in equity and condensed consolidated statements of cash flows for the periods presented. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2020, included in the Company's Annual Report on Form 10-K filed with the SEC on March 1, 2021. Operating results for the three months ended March 31, 2021 are not necessarily indicative of actual operating results for the entire year. |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and XHR Holding. The Company's subsidiaries generally consist of limited liability companies, limited partnerships and the TRS. The effects of all inter-company transactions have been eliminated.
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Reclassifications | ReclassificationsCertain prior year amounts in these condensed consolidated financial statements have been reclassified to conform to the presentation as of and for the three months ended March 31, 2021. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management's best judgment, after considering past, current and expected future economic conditions. Actual results could differ from these estimates.
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Risks and Uncertainties | Risks and Uncertainties As a result of the COVID-19 pandemic, the majority of the Company's hotels and resorts temporarily suspended operations for certain periods of time during 2020. As of March 31, 2021, Hyatt Regency Portland at the Oregon Convention Center is the Company's only hotel that continues to have suspended operations. The Company's portfolio consists of luxury and upper upscale hotels and resorts, which generally offer restaurant and bar venues, large meeting facilities and event space, and amenities, including spas and golf courses, some of which may have limited operations or will not be operating during the recovery in order to comply with implemented safety measures, ongoing restrictions and to accommodate reduced levels of demand. The Company continues to monitor the evolving situation and guidance from federal, state and local governmental and public health authorities, and additional actions may be taken or required based on their recommendations and regulations in place. Under these circumstances, there may be developments that require further operations adjustments. The Company cannot predict with certainty when business levels will return to normalized levels after the effects of the pandemic subside or whether hotels that have recommenced operations will be forced to suspend operations or impose additional restrictions due to a resurgence of COVID-19 cases. The Company expects that recovery in the lodging industry, particularly with respect to business transient and group business, will lag behind the recovery of other industries and factors such as public health (including a significant increase in new variant strains of COVID-19 cases), availability and effectiveness of COVID-19 vaccines and therapeutics, the level of acceptance of the vaccine by the general population and the economic and geopolitical environments may impact the timing, extent and pace of such recovery. Additionally, the effects of the pandemic could materially and adversely affect the Company's ability to consummate acquisitions and dispositions of hotel properties in the near term as well as cause scale backs or delays in planned renovations and other projects. The Company cannot predict with certainty the full extent and duration of the effects of the COVID-19 pandemic on its business, operating margins, results of operations, cash flows, financial condition, the market price of its common stock, its ability to make distributions to its shareholders, its access to equity and credit markets or its ability to service its indebtedness. Further, we continue to monitor and evaluate the challenges associated with the evolving workforce landscape, particularly related to achieving the appropriate balance between hotel staffing levels and demand as business at our hotels increases.
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Consolidation | Consolidation The Company evaluates its investments in partially owned entities to determine whether such entities may be a variable interest entity ("VIE") or voting interest entity. If the entity is a VIE, the determination of whether the Company is the primary beneficiary must be made. The primary beneficiary determination is based on a qualitative assessment as to whether the entity has (i) power to direct significant activities of the VIE and (ii) an obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. The Company will consolidate a VIE if it is deemed to be the primary beneficiary. The equity method of accounting is applied to entities in which the Company is not the primary beneficiary, or the entity is not a VIE and over which the Company does not have effective control, but can exercise influence over the entity with respect to its operations and major decisions. The Operating Partnership is a VIE. The Company's significant asset is its investment in the Operating Partnership, as described in Note 1, and consequently, substantially all of the Company's assets and liabilities represent those assets and liabilities of the Operating Partnership.
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Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all demand deposits, money market accounts and investments in certificates of deposit and repurchase agreements purchased, and similar accounts with a maturity of three months or less, at the date of purchase, to be cash equivalents. The Company maintains its cash and cash equivalents at various financial institutions. The combined account balances at one or more institutions generally exceed the Federal Depository Insurance Corporation ("FDIC") insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes that the risk is not significant as the Company does not anticipate non-performance by the financial institutions.
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Restricted Cash and Escrows | Restricted Cash and Escrows Restricted cash primarily relates to furniture, fixtures and equipment replacement reserves as required per the terms of the Company's management and franchise agreements, cash held in restricted escrows for real estate taxes and insurance, capital spending reserves and, at times, disposition-related holdback escrows. As a result of the material adverse impact on the results of operations attributed to the COVID-19 pandemic, the Company's third-party managers have temporarily suspended required contributions to the furniture, fixture and equipment replacement reserves. In addition, in certain cases, the Company has the ability to utilize a portion of these cash balances for hotel operating expenses. The usage of such replacement reserves may be subject to lender approval for hotels encumbered by mortgage loans or may be required to be replenished.
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Long-lived Assets and Intangibles - Impairment | Long-lived assets and intangibles The Company assesses the carrying values of the respective long-lived assets, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Events or circumstances that may cause a review include, but are not limited to, when (1) a hotel property experiences a significant decrease in the market price of the long-lived asset, (2) a hotel property experiences a current or projected loss from operations combined with a history of operating or cash flow losses, (3) it becomes more likely than not that a hotel property will be sold before the end of its useful life, (4) an accumulation of costs is significantly in excess of the amount originally expected for the acquisition, construction or renovation of a long-lived asset, (5) adverse changes in demand occur for lodging at a specific property due to declining national or local economic conditions and/or new hotel construction in markets where the hotel is located, (6) there is a significant adverse change in legal factors or in the business climate that could affect the value of the long-lived asset and/or (7) there is a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition. If it is determined that the carrying value is not recoverable because the undiscounted cash flows do not exceed carrying value, the Company records an impairment charge to the extent that the carrying value exceeds fair value. The COVID-19 pandemic has had, and is expected to continue to have, a material adverse impact on the lodging and hospitality industries, which management considered to be an ongoing triggering event during its impairment testing for the three months ended March 31, 2021. The Company assessed the recoverability of each of its long-lived assets and intangibles and determined that there were no impairments as a result of the pandemic as of March 31, 2021. Impairment estimates The use of projected future cash flows, both undiscounted and discounted, and estimated hold periods are based on assumptions that are consistent with the estimates of future expectations and the strategic plan the Company uses to manage its underlying business. These assumptions and estimates about future cash flows, including the uncertainty regarding the extent and duration of the effects of the COVID-19 pandemic on our operations, along with the capitalization and discount rates used to determine these estimates are complex and subjective. The determination of fair value and possible subsequent impairment of long-lived investment properties and/or goodwill is a significant estimate that can and does change based on the Company's continuous process of analyzing each property and reviewing assumptions about uncertain inherent factors, as well as the economic condition of the property at a particular point in time. Changes in economic and operating conditions and the Company’s ultimate investment intent that occur subsequent to the impairment analyses could impact these assumptions and result in future impairment charges of the real estate properties.
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Goodwill | Goodwill The excess of the cost of an acquired entity (i.e. those that met the definition of an acquired business) over the net of the fair values assigned to assets acquired (including identified intangible assets) and liabilities assumed is recorded as goodwill. Goodwill was recognized and allocated to certain of the Company's properties at the time they were acquired. The Company tests goodwill for impairment annually or more frequently if events or changes in circumstances indicate impairment. The Company has the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The optional qualitative assessment determines whether it is more likely than not that the fair value of the specific goodwill is less than its carrying amount. If it is determined that it is more likely than not that the goodwill is impaired, the Company performs a single-step analysis to identify and measure impairment. The fair value of goodwill is based on either the direct capitalization method or the discounted cash flow method. The direct capitalization method is based on a capitalization rate, which is generally observable (a Level 2 input, but at times could be unobservable, which is a Level 3 input), applied to the underlying hotel's most recent stabilized trailing twelve month net operating income at the time of the fair value analysis. The discounted cash flow method is based on estimated future cash flow projections that utilize discount rates, terminal capitalization rates, and planned capital expenditures, which are generally unobservable in the market place (Level 3 inputs). These estimates approximate the inputs the Company believes would be utilized by market participants in assessing fair value. The estimates of future cash flows are based on a number of factors, including historical operating results, estimated growth rates, known trends, and market/economic conditions. If the carrying amount of the property’s assets, including goodwill, exceeds its estimated fair value an impairment charge is recorded in an amount equal to that excess but only to the extent the value of goodwill is reduced to zero.
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Insurance Recoveries | Insurance Recoveries At times, the Company may be entitled to business interruption proceeds for losses occurring at certain properties; however, an insurance recovery receivable will not be recorded until a final settlement has been reached with the insurance company. Any insurance proceeds received in excess of insurance deductibles will be accounted for as gain. During the three months ended March 31, 2021, the Company recognized $1.1 million in business interruption insurance proceeds for a portion of lost revenues associated with cancellations occurring in 2020 related to the COVID-19 pandemic. These amounts are included in gain on business interruption insurance on the condensed consolidated statement of operations and comprehensive loss for the period then ended.
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Derivatives and Hedging Activities | Derivatives and Hedging Activities In the normal course of business, the Company is exposed to the effects of interest rate changes. The Company limits the risks associated with interest rate changes by following established risk management policies and procedures which may include the use of derivative instruments. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking various hedge transactions. The Company assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract and are recorded on the condensed consolidated balance sheet at fair value, with offsetting changes recorded to other comprehensive income or loss. The Company nets assets and liabilities when the right of offset exists. Ineffective portions of changes in the fair value of a cash flow hedge are recognized as interest expense. The Company incorporates credit valuation adjustments to reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Any future defaults by the Company under the terms of its hedges, including those which may arise from cross default provisions with loan agreements, could result in the Company being immediately liable for the fair market value liability of the defaulted hedges.
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Revenues | Revenues Revenues consist of amounts derived from hotel operations, including the sale of rooms for lodging accommodations, food and beverage, and other ancillary revenue generated by hotel amenities including spa, parking, golf, resort fees and other services. Revenues are generated from various distribution channels including but not limited to direct bookings, global distribution systems and Internet travel sites. Room transaction prices are based on an individual hotel's location, room type and the bundle of services included in the reservation and are set by the hotel daily. Any discounts, including advance purchase, loyalty point redemptions or promotions are recognized at the discounted rate whereas rebates and incentives are recorded as a reduction in rooms revenues when earned. Revenues from online channels are generally recognized net of commission fees, unless the end price paid by the guest is known. Rooms revenue is recognized over the length of stay that the hotel room is occupied by the guest. Cash received from a guest prior to check-in is recorded as an advance deposit and is generally recognized as rooms revenue at the time the room reservation has become non-cancellable, upon occupancy or upon expiration of the re-booking date. Advance deposits are included in other liabilities on the condensed consolidated balance sheets. Payment of any remaining balance is typically due from the guest upon check-out. Sales, use, occupancy, and similar taxes are collected and presented on a net basis (excluded from revenues). Food and beverage transaction prices are based on the stated price for the specific food or beverage and varies depending on type, venue and hotel location. Service charges are typically a percentage of food and beverage prices and meeting space rental. Food and beverage revenue is recognized at the point in time in which the goods and/or services are rendered to the guest. Cash received in advance of an event is recorded as either a security or advance deposit. Security and advance deposits are recognized as revenue when it becomes non-cancellable or at the time the food and beverage goods and services are rendered to the guest. Payment for the remaining balance of food and beverage goods and services is due upon delivery and completion of such goods and services. Parking and audio visual fees are recognized at the time services are provided to the guest at the stated price for the service or goods. In parking and audio visual contracts in which we have control over the services provided, we are considered the principal in the agreement and recognize the related revenues gross of associated costs. If we do not have control over the services in the contract, we are considered the agent and record the related revenues net of associated costs. Resort and amenity fees, spa, golf and other ancillary amenity revenues are recognized at the point in time the goods or services have been rendered to the guest at the stated price for the service or amenity.
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Share-Based Compensation | Share-Based Compensation The Company maintains a share-based incentive plan that provides for the grant of stock options, stock awards, restricted stock units, LTIP units and other equity-based awards. Share-based compensation is measured at the estimated fair value of the award on the date of grant, adjusted for forfeitures as they occur, and recognized as an expense on a straight-line basis over the longest vesting period for each grant for the entire award. The determination of fair value of these awards is subjective and involves significant estimates and assumptions including expected volatility of the Company's share price, expected dividend yield, expected term and assumptions of whether certain of these awards will achieve performance thresholds. Share-based compensation is included in general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss and capitalized in buildings and other improvements in the condensed consolidated balance sheets for certain employees that manage property developments, renovations and capital improvements.
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Revenues (Tables) |
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Schedule of Disaggregation of Revenue by Primary Geographical Markets | The following represents total revenue disaggregated by primary geographical markets (as defined by STR, Inc. ("STR")) for the three months ended March 31, 2021 and 2020 (in thousands):
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Debt (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Instruments | Debt as of March 31, 2021 and December 31, 2020 consisted of the following (dollar amounts in thousands):
(1)The rates shown represent the annual interest rates as of March 31, 2021. The variable index for mortgage loans is one-month LIBOR and the variable index for the corporate credit facilities reflects a 25 basis point LIBOR floor which is applicable for the value of all corporate credit facilities not subject to an interest rate hedge. (2)The Company entered into interest rate swap agreements to fix the interest rate of the variable rate mortgage loans for the entire term of the loan. (3)A variable interest loan for which the interest rate has been fixed on $90 million of the balance through January 2022, after which the rate reverts to variable. (4)A variable interest loan for which the interest rate has been fixed on $51 million of the balance through January 2022, after which the rate reverts to variable. (5)A variable interest loan for which the interest rate has been fixed through January 2023. (6)Represents the weighted-average interest rate as of March 31, 2021. (7)A variable interest loan for which LIBOR has been fixed for $125 million of the balance through October 2022. The spread to LIBOR may vary, as it is determined by the Company's leverage ratio. The applicable interest rate has been set to the highest level of grid-based pricing during the Covenant Waiver Period. (8)A variable interest loan for which LIBOR has been fixed through September 2022. The spread to LIBOR may vary, as it is determined by the Company's leverage ratio. The applicable interest rate has been set to the highest level of grid-based pricing during the Covenant Waiver Period. (9)Commitments under the revolving credit facility total $523 million through February 2022, after which the total commitments will decrease to $450 million through maturity in February 2024. (10)Includes loan premiums, discounts and deferred financing costs, net of accumulated amortization.
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Schedule of Principal Payments and Debt Maturities | The following table shows scheduled principal payments and debt maturities for the next five years and thereafter (in thousands):
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Derivatives (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Terms of the Derivative Financial Instruments | The following table summarizes the terms of the derivative financial instruments held by the Company as of March 31, 2021 and December 31, 2020, respectively (in thousands):
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Schedule of Gain (Loss) Recognized on Derivative Financial Instruments | The table below details the location in the condensed consolidated financial statements of the gains and losses recognized on derivative financial instruments designated as cash flow hedges for the three months ended March 31, 2021 and 2020 (in thousands):
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Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets and Liabilities Measured on Recurring and Nonrecurring Basis | For assets and liabilities measured at fair value on a recurring basis, quantitative disclosure of their fair values are included in the condensed consolidated balance sheets as of as of March 31, 2021 and December 31, 2020 (in thousands):
(1)Interest rate swap fair values are netted as applicable per the terms of the respective master netting agreements.
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Schedule of Goodwill Balance and Related Activity | The below table shows the goodwill balances as of March 31, 2021 and December 31, 2020 (in thousands):
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Schedule of Fair Value of Financial Instruments | The table below represents the fair value of financial instruments presented at carrying values in the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 (in thousands):
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Stockholders' Equity (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends Declared | The Company declared the following dividend during the three months ended March 31, 2020:
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles net loss attributable to common stockholders to basic and diluted earnings per share (in thousands, except share and per share data):
(1)During the three months ended March 31, 2021 and 2020, the Company excluded 546,124 and 327,475 anti-dilutive shares from its calculation of diluted earnings per share, respectively.
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Share-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Units | The Compensation Committee of the Board of Directors approved the following grants of restricted stock units to certain Company employees:
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Schedule of Incentive Plan Awards | The Compensation Committee of the Board of Directors approved the issuance of the following awards under the 2015 Incentive Award Plan:
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Schedule of Unvested Incentive Awards | The following is a summary of the unvested incentive awards under the 2015 Incentive Award Plan as of March 31, 2021:
(1) Includes time-based LTIP Units and performance-based Class A LTIP Units. (2) During the three months ended March 31, 2021, 18,993 shares of common stock were withheld by the Company upon the settlement of the applicable award in order to satisfy minimum federal and state tax withholding requirements with respect to Restricted Stock Units granted under the 2015 Incentive Award Plan.
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Schedule of Assumptions for Performance Awards | The grant date fair values of performance-based awards are determined based on a Monte Carlo simulation method with the following assumptions and compensation expense is recognized on a straight-line basis over the performance period:
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Commitments and Contingencies (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Leases | The following is a summary of the Company's leases as of and for the three months ended March 31, 2021 (dollar amounts in thousands):
(1)The weighted-average remaining lease term including all available extension options is approximately 59 years. (2)The ROU asset is included in on the condensed consolidated balance sheet as of March 31, 2021. (3)The lease liability is included in on the condensed consolidated balance sheet as of March 31, 2021.
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Schedule of Remaining Lease Payments | The following table shows the remaining lease payments, which includes reasonably certain extension options, for the next five years and thereafter reconciled to the lease liability as of March 31, 2021 (in thousands):
|
Organization (Details) |
Mar. 31, 2021
property
market
|
Mar. 31, 2020
property
|
---|---|---|
Organization [Line Items] | ||
Number of top lodging markets for investing activity | market | 25 | |
Number of hotels operated | property | 35 | 39 |
XHR LP (Operating Partnership) | ||
Organization [Line Items] | ||
Ownership by Company (percent) | 97.20% | |
Ownership by noncontrolling owners (percent) | 2.80% |
Summary of Significant Accounting Policies - Risks and Uncertainties (Details) - Revenue - Geographic concentration risk - Minimum |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Orlando, FL | ||
Concentration Risk [Line Items] | ||
Concentration risk (percent) | 10.00% | 10.00% |
Phoenix, AZ | ||
Concentration Risk [Line Items] | ||
Concentration risk (percent) | 10.00% | 10.00% |
Houston, TX | ||
Concentration Risk [Line Items] | ||
Concentration risk (percent) | 10.00% |
Summary of Significant Accounting Policies - Narrative (Details) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2020
USD ($)
property
|
Dec. 31, 2020
USD ($)
|
|
Accounting Policies [Abstract] | |||
Impairment of long-lived assets | $ 0 | ||
Impairment of intangibles | 0 | ||
Goodwill | 4,850,000 | $ 4,850,000 | |
Goodwill impairment charge | 0 | $ 16,400,000 | |
Number of properties with goodwill impairment | property | 2 | ||
Business Interruption Loss [Line Items] | |||
Gain on business interruption insurance | 1,116,000 | $ 0 | |
COVID-19 pandemic | |||
Business Interruption Loss [Line Items] | |||
Gain on business interruption insurance | $ 1,100,000 |
Debt - Scheduled Principal Payments and Debt Maturities (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Principal payments and debt maturities | ||
2021 | $ 2,533 | |
2022 | 4,620 | |
2023 | 209,258 | |
2024 | 278,780 | |
2025 | 567,138 | |
Thereafter | 163,593 | |
Total Debt | 1,225,922 | |
Revolving Credit Facility | 163,093 | |
Loan premiums, discounts and unamortized deferred financing costs, net | (14,977) | $ (15,892) |
Debt, net of loan discounts and unamortized deferred financing costs | $ 1,374,038 | $ 1,374,480 |
Weighted- average interest rate | ||
2021 (percent) | 4.34% | |
2022 (percent) | 4.21% | |
2023 (percent) | 3.87% | |
2024 (percent) | 3.79% | |
2025 (percent) | 6.21% | |
Thereafter (percent) | 4.59% | |
Total Mortgages, Corporate Credit Facilities and Senior Secured Notes (percent) | 5.03% | |
Revolving Credit Facility (percent) | 2.93% | |
Debt, net of loan discounts and unamortized deferred financing costs (percent) | 4.78% | 4.78% |
Derivatives - Recognized Gain (Loss) on Cash Flow Hedges (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Unrealized gain (loss) on interest rate derivative instruments | $ 104 | $ (17,120) |
Reclassification adjustment for amounts recognized in net loss | 2,330 | 409 |
Interest expense | $ 18,750 | $ 13,024 |
Derivatives - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Expected reclassification from accumulated OCI to interest expense in next twelve months | $ 9.2 |
Estimate of time for reclassification | 12 months |
Fair Value Measurements - Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Recurring - Interest Rate Swap - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Level 2 | ||
Liabilities | ||
Interest rate swap liabilities | $ (12,684) | $ (15,119) |
Level 3 | ||
Liabilities | ||
Interest rate swap liabilities | $ 0 | $ 0 |
Fair Value Measurements - Goodwill (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Goodwill Balance | ||
Goodwill | $ 34,352 | $ 34,352 |
Cumulative goodwill impairment losses | (29,502) | (29,502) |
Carrying value of goodwill | $ 4,850 | $ 4,850 |
Fair Value Measurements - Financial Instruments Presented at Carrying Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Mortgage and Corporate Credit Facility Term Loans | $ 725,922 | $ 727,279 |
Senior Notes | 500,000 | 500,000 |
Revolving Credit Facility | 163,093 | 163,093 |
Total | 1,389,015 | 1,390,372 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Mortgage and Corporate Credit Facility Term Loans | 705,198 | 706,453 |
Senior Notes | 534,698 | 539,901 |
Revolving Credit Facility | 161,871 | 161,339 |
Total | $ 1,401,767 | $ 1,407,693 |
Fair Value Measurements - Narrative (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2020
USD ($)
property
|
Dec. 31, 2020 |
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Number of hotels in goodwill analysis | property | 3 | ||
Goodwill impairment charge | $ 0.0 | $ 16.4 | |
Level 2 | Measurement Input, Discount Rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Weighted average effective interest rate (percent) | 0.0488 | 0.0480 | |
Andaz Savannah | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill impairment charge | 6.1 | ||
Bohemian Hotel Savannah Riverfront, Autograph Collection | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill impairment charge | $ 10.3 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Estimated federal and state combined effective rate (percent) | 2.45% | 10.10% |
Income tax (expense) benefit | $ (165) | $ 7,311 |
Stockholders' Equity - Common Stock (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Class of Stock [Line Items] | ||
Aggregate offering price of common stock authorized under ATM agreement | $ 200,000,000 | |
Number of shares issued (in shares) | 0 | 0 |
Aggregate offering price of common stock currently available under ATM agreements | $ 62,600,000 | |
Shares repurchased (in shares) | 0 | 165,516 |
Shares repurchased, weighted average price (in dollars per share) | $ 13.68 | |
Aggregate purchase price | $ 0 | $ 2,264,000 |
Repurchase Program | ||
Class of Stock [Line Items] | ||
Stock repurchase program authorized amount | 175,000,000 | |
Remaining share repurchase authorization | $ 94,700,000 |
Stockholders' Equity - Distributions (Details) |
3 Months Ended |
---|---|
Mar. 31, 2020
$ / shares
| |
Equity [Abstract] | |
Dividends per Share/Unit (in dollars per share) | $ 0.275 |
Record Date | Mar. 31, 2020 |
Payable Date | Apr. 15, 2020 |
Stockholders' Equity - Non-controlling Interest of Common Units in Operating Partnership (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Feb. 29, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Class of Stock [Line Items] | |||
Common limited partnership units redeemed for cash (in shares) | 457,017 | ||
Cash paid for redemption of common limited partnership units | $ 0 | $ 8,623 | |
XHR LP (Operating Partnership) | |||
Class of Stock [Line Items] | |||
Ownership by noncontrolling owners (percent) | 2.80% | ||
Number of vested units (in shares) | 1,086,179 | ||
LTIP Units | |||
Class of Stock [Line Items] | |||
LTIP Units converted into common limited partnership units (in shares) | 1,305,759 | 0 | 1,305,759 |
Number of units outstanding, vested and nonvested (in shares) | 3,291,627 | ||
Common stock | |||
Class of Stock [Line Items] | |||
Shares issued for conversion of common limited partnership units | 848,742 | 848,742 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Numerator: | ||
Net loss attributable to common stockholders | $ (56,351) | $ (36,138) |
Dividends paid on unvested share-based compensation | 0 | (150) |
Net loss available to common stockholders | $ (56,351) | $ (36,288) |
Denominator: | ||
Weighted average shares outstanding - Basic (in shares) | 113,780,388 | 112,984,868 |
Effect of dilutive share-based compensation (in shares) | 0 | 0 |
Weighted average shares outstanding - Diluted (in shares) | 113,780,388 | 112,984,868 |
Basic and diluted loss per share: | ||
Net loss per share available to common stockholders - basic (in dollars per share) | $ (0.50) | $ (0.32) |
Net loss per share available to common stockholders - diluted (in dollars per share) | $ (0.50) | $ (0.32) |
Anti-dilutive shares excluded from calculation of diluted earnings per share | 546,124 | 327,475 |
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation costs | $ 20.4 | |
Unrecognized compensation costs period for recognition | 2 years 1 month 6 days | |
Accelerated share-based compensation | $ 0.4 | |
Executive officers and management | Restricted Stock Units and LTIP Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 2.3 | 2.0 |
Management | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation capitalized amount | $ 0.4 | $ 0.3 |
Commitments and Contingencies - Leases (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Leases | |
Weighted- average remaining lease term, including reasonably certain extension options | 24 years |
Weighted-average discount rate (percent) | 5.79% |
ROU asset | $ 22,364 |
Lease liability | 23,752 |
Operating lease rent expense | 392 |
Variable lease costs | 764 |
Total rent and variable lease costs | $ 1,156 |
Weighted average remaining lease term including available extension options | 59 years |
ROU asset, consolidated balance sheet line item | Other assets |
Lease liability, consolidated balance sheet line item | Other liabilities |
Commitments and Contingencies - Remaining Lease Payments (Details) $ in Thousands |
Mar. 31, 2021
USD ($)
|
---|---|
Remaining Lease Payments | |
2021 (excluding the three months ended March 31, 2021) | $ 1,695 |
2022 | 2,273 |
2023 | 2,287 |
2024 | 2,302 |
2025 | 2,317 |
Thereafter | 34,926 |
Total undiscounted lease payments | 45,800 |
Less imputed interest | (22,048) |
Lease liability | $ 23,752 |
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