Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 20, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-32319 | ||
Entity Registrant Name | Sunstone Hotel Investors, Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 20-1296886 | ||
Entity Address, Address Line One | 15 Enterprise, Suite 200 | ||
Entity Address, City or Town | Aliso Viejo | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92656 | ||
City Area Code | 949 | ||
Local Phone Number | 330-4000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.1 | ||
Entity Common Stock, Shares Outstanding | 203,532,888 | ||
Entity Central Index Key | 0001295810 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Irvine, California | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | SHO | ||
Security Exchange Name | NYSE | ||
Series H Cumulative Redeemable Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Series H Cumulative Redeemable Preferred Stock, $0.01 par value | ||
Trading Symbol | SHO.PRH | ||
Security Exchange Name | NYSE | ||
Series I Cumulative Redeemable Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Series I Cumulative Redeemable Preferred Stock, $0.01 par value | ||
Trading Symbol | SHO.PRI | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Investment in hotel properties, net | $ 2,585,279 | $ 2,840,928 |
Operating lease right-of-use assets, net | 12,755 | 15,025 |
Cash and cash equivalents | 426,403 | 101,223 |
Restricted Cash | 67,295 | 55,983 |
Accounts receivable, net | 31,206 | 42,092 |
Prepaid expenses and other assets, net | 26,383 | 27,566 |
Total assets | 3,149,321 | 3,082,817 |
LIABILITIES | ||
Debt, net of unamortized deferred financing costs | 814,559 | 812,681 |
Operating lease obligations, current and noncurrent | 16,735 | 19,012 |
Accounts payable and accrued expenses | 48,410 | 73,735 |
Dividends and distributions payable | 29,965 | 13,995 |
Other liabilities | 73,014 | 78,433 |
Total liabilities | 982,683 | 997,856 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, 500,000,000 shares authorized, 203,479,585 shares issued and outstanding at December 31, 2023 and 209,320,447 shares issued and outstanding at December 31, 2022 | 2,035 | 2,093 |
Additional paid in capital | 2,416,417 | 2,465,595 |
Distributions in excess of retained earnings | (533,064) | (663,977) |
Total stockholders' equity | 2,166,638 | 2,084,961 |
Total equity | 2,166,638 | 2,084,961 |
Total liabilities and stockholders' equity | 3,149,321 | 3,082,817 |
Series G Cumulative Redeemable Preferred Stock | ||
Stockholders' equity: | ||
Cumulative Redeemable Preferred Stock | 66,250 | 66,250 |
Series H Cumulative Redeemable Preferred Stock | ||
Stockholders' equity: | ||
Cumulative Redeemable Preferred Stock | 115,000 | 115,000 |
Series I Cumulative Redeemable Preferred Stock | ||
Stockholders' equity: | ||
Cumulative Redeemable Preferred Stock | $ 100,000 | $ 100,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 203,479,585 | 209,320,447 |
Common stock, shares outstanding (in shares) | 203,479,585 | 209,320,447 |
Series G Cumulative Redeemable Preferred Stock | ||
Preferred stock, Cumulative Redeemable Preferred Stock, shares issued (in shares) | 2,650,000 | 2,650,000 |
Preferred stock, Cumulative Redeemable Preferred Stock, shares outstanding (in shares) | 2,650,000 | 2,650,000 |
Preferred stock, Cumulative Redeemable Preferred Stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Series H Cumulative Redeemable Preferred Stock | ||
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent) | 6.125% | 6.125% |
Preferred stock, Cumulative Redeemable Preferred Stock, shares issued (in shares) | 4,600,000 | 4,600,000 |
Preferred stock, Cumulative Redeemable Preferred Stock, shares outstanding (in shares) | 4,600,000 | 4,600,000 |
Preferred stock, Cumulative Redeemable Preferred Stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Series I Cumulative Redeemable Preferred Stock | ||
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent) | 5.70% | 5.70% |
Preferred stock, Cumulative Redeemable Preferred Stock, shares issued (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, Cumulative Redeemable Preferred Stock, shares outstanding (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, Cumulative Redeemable Preferred Stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES | |||
Revenues | $ 986,480 | $ 912,053 | $ 509,150 |
OPERATING EXPENSES | |||
Advertising and promotion | 51,958 | 46,979 | 31,156 |
Repairs and maintenance | 38,308 | 36,801 | 33,898 |
Utilities | 27,622 | 26,357 | 20,745 |
Franchise costs | 16,876 | 15,839 | 11,354 |
Property tax, ground lease and insurance | 78,796 | 68,979 | 64,139 |
Other property-level expenses | 120,247 | 113,336 | 71,415 |
Corporate overhead | 31,412 | 35,246 | 40,269 |
Depreciation and amortization | 127,062 | 126,396 | 128,682 |
Impairment losses | 3,466 | 2,685 | |
Total operating expenses | 867,824 | 816,175 | 597,272 |
Interest and other income (loss) | 10,535 | 5,242 | (343) |
Interest expense | (51,679) | (32,005) | (30,898) |
Gain on sale of assets | 123,820 | 22,946 | 152,524 |
Gain (loss) on extinguishment of debt, net | 9,938 | (936) | (57) |
Income before income taxes | 211,270 | 91,125 | 33,104 |
Income tax provision, net | (4,562) | (359) | (109) |
Net Income | 206,708 | 90,766 | 32,995 |
(Income) loss from consolidated joint venture attributable to noncontrolling interest | (3,477) | 1,303 | |
Preferred stock dividends and redemption charges | (13,988) | (14,247) | (20,638) |
Income Attributable to Common Stockholders | $ 192,720 | $ 73,042 | $ 13,660 |
Basic and diluted per share amounts: | |||
Basic income attributable to common stockholders per common share (in dollars per share) | $ 0.93 | $ 0.34 | $ 0.06 |
Diluted income attributable to common stockholders per common share (in dollars per share) | $ 0.93 | $ 0.34 | $ 0.06 |
Basic weighted average common shares outstanding (in shares) | 205,590 | 212,613 | 216,296 |
Diluted weighted average common shares outstanding (in shares) | 205,865 | 212,653 | 216,296 |
Room | |||
REVENUES | |||
Revenues | $ 619,277 | $ 576,170 | $ 352,974 |
OPERATING EXPENSES | |||
Expenses | 158,002 | 145,285 | 98,723 |
Food and beverage | |||
REVENUES | |||
Revenues | 277,514 | 240,564 | 83,915 |
OPERATING EXPENSES | |||
Expenses | 193,820 | 174,146 | 79,807 |
Other operating | |||
REVENUES | |||
Revenues | 89,689 | 95,319 | 72,261 |
OPERATING EXPENSES | |||
Expenses | $ 23,721 | $ 23,345 | $ 14,399 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Series E Cumulative Redeemable Preferred Stock Preferred Stock | Series E Cumulative Redeemable Preferred Stock Additional Paid In Capital | Series E Cumulative Redeemable Preferred Stock Distributions in excess of retained earnings | Series E Cumulative Redeemable Preferred Stock | Series F Cumulative Redeemable Preferred Stock Preferred Stock | Series F Cumulative Redeemable Preferred Stock Additional Paid In Capital | Series F Cumulative Redeemable Preferred Stock Distributions in excess of retained earnings | Series F Cumulative Redeemable Preferred Stock | Series G Cumulative Redeemable Preferred Stock Preferred Stock | Series G Cumulative Redeemable Preferred Stock Additional Paid In Capital | Series G Cumulative Redeemable Preferred Stock Distributions in excess of retained earnings | Series G Cumulative Redeemable Preferred Stock | Series H Cumulative Redeemable Preferred Stock Preferred Stock | Series H Cumulative Redeemable Preferred Stock Additional Paid In Capital | Series H Cumulative Redeemable Preferred Stock Distributions in excess of retained earnings | Series H Cumulative Redeemable Preferred Stock | Series I Cumulative Redeemable Preferred Stock Preferred Stock | Series I Cumulative Redeemable Preferred Stock Additional Paid In Capital | Series I Cumulative Redeemable Preferred Stock Distributions in excess of retained earnings | Series I Cumulative Redeemable Preferred Stock | Preferred Stock | Common Stock | Additional Paid In Capital | Distributions in excess of retained earnings | Non-Controlling Interest in Consolidated Joint Venture | Total |
Beginning Balance at Dec. 31, 2020 | $ 190,000 | $ 2,156 | $ 2,586,108 | $ (729,620) | $ 40,735 | $ 2,089,379 | ||||||||||||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 7,600,000 | 215,593,401 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||||||
Amortization of deferred stock compensation | 13,278 | 13,278 | ||||||||||||||||||||||||
Issuance of restricted common stock, net | $ 10 | (4,887) | (4,877) | |||||||||||||||||||||||
Issuance of restricted common stock, net (in shares) | 1,062,106 | |||||||||||||||||||||||||
Forfeiture of restricted common stock | $ (2) | 2 | ||||||||||||||||||||||||
Forfeiture of restricted common stock (in shares) | (235,406) | |||||||||||||||||||||||||
Preferred stock dividends and dividends payable | $ (3,552) | $ (3,552) | $ (2,969) | $ (2,969) | $ (619) | $ (619) | $ (4,246) | $ (4,246) | $ (2,612) | $ (2,612) | ||||||||||||||||
Contribution from noncontrolling interest | 1,375 | 1,375 | ||||||||||||||||||||||||
Net proceeds from issuance of common stock | $ 29 | 37,630 | 37,659 | |||||||||||||||||||||||
Number of shares of common stock issued (in shares) | 2,913,682 | |||||||||||||||||||||||||
Net issuance of preferred stock in connection with hotel acquisition | $ 66,250 | $ (142) | 66,108 | |||||||||||||||||||||||
Net issuance of preferred stock in connection with hotel acquisition (in shares) | 2,650,000 | |||||||||||||||||||||||||
Net proceeds from issuance of preferred stock | $ 115,000 | $ (3,801) | 111,199 | $ 100,000 | $ (3,344) | 96,656 | ||||||||||||||||||||
Number of shares of preferred stock issued (in shares) | 4,600,000 | 4,000,000 | ||||||||||||||||||||||||
Redemption of preferred stock | $ (115,000) | $ 4,016 | $ (4,016) | $ (115,000) | $ (75,000) | $ 2,624 | $ (2,624) | $ (75,000) | ||||||||||||||||||
Redemption of preferred stock (in shares) | (4,600,000) | (3,000,000) | ||||||||||||||||||||||||
Net Income | 34,298 | (1,303) | 32,995 | |||||||||||||||||||||||
Ending Balance at Dec. 31, 2021 | $ 281,250 | $ 2,193 | 2,631,484 | (715,960) | 40,807 | 2,239,774 | ||||||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2021 | 11,250,000 | 219,333,783 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||||||
Amortization of deferred stock compensation | 11,372 | 11,372 | ||||||||||||||||||||||||
Issuance of restricted common stock, net | $ 3 | (3,445) | (3,442) | |||||||||||||||||||||||
Issuance of restricted common stock, net (in shares) | 266,795 | |||||||||||||||||||||||||
Forfeiture of restricted common stock (in shares) | (34,807) | |||||||||||||||||||||||||
Common stock distributions and distributions payable | (21,059) | (21,059) | ||||||||||||||||||||||||
Preferred stock dividends and dividends payable | (1,503) | (1,503) | (7,044) | (7,044) | (5,700) | (5,700) | ||||||||||||||||||||
Distribution to noncontrolling interest | (5,500) | (5,500) | ||||||||||||||||||||||||
Repurchases of outstanding common stock | $ (103) | (108,339) | (108,442) | |||||||||||||||||||||||
Repurchases of outstanding common stock (in shares) | (10,245,324) | |||||||||||||||||||||||||
Acquisition of noncontrolling interest, net | (65,477) | (38,784) | (104,261) | |||||||||||||||||||||||
Net Income | 87,289 | $ 3,477 | 90,766 | |||||||||||||||||||||||
Ending Balance at Dec. 31, 2022 | $ 281,250 | $ 2,093 | 2,465,595 | (663,977) | 2,084,961 | |||||||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2022 | 11,250,000 | 209,320,447 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||||||
Amortization of deferred stock compensation | 11,242 | 11,242 | ||||||||||||||||||||||||
Issuance of restricted common stock, net | $ 2 | (3,778) | (3,776) | |||||||||||||||||||||||
Issuance of restricted common stock, net (in shares) | 138,522 | |||||||||||||||||||||||||
Forfeiture of restricted common stock (in shares) | (8,192) | |||||||||||||||||||||||||
Common stock distributions and distributions payable | (61,807) | (61,807) | ||||||||||||||||||||||||
Preferred stock dividends and dividends payable | $ (1,244) | $ (1,244) | $ (7,044) | $ (7,044) | $ (5,700) | $ (5,700) | ||||||||||||||||||||
Repurchases of outstanding common stock | $ (60) | (56,343) | (56,403) | |||||||||||||||||||||||
Repurchases of outstanding common stock (in shares) | (5,971,192) | |||||||||||||||||||||||||
Acquisition of noncontrolling interest, net | (299) | (299) | ||||||||||||||||||||||||
Net Income | 206,708 | 206,708 | ||||||||||||||||||||||||
Ending Balance at Dec. 31, 2023 | $ 281,250 | $ 2,035 | $ 2,416,417 | $ (533,064) | $ 2,166,638 | |||||||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2023 | 11,250,000 | 203,479,585 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Common stock distributions and distributions payable, per share (in dollars per share) | $ 0.30 | $ 0.10 | |
Series E Cumulative Redeemable Preferred Stock | |||
Preferred stock dividends and dividends payable (in dollars per share) | $ 0.772222 | ||
Series F Cumulative Redeemable Preferred Stock | |||
Preferred stock dividends and dividends payable (in dollars per share) | 0.989896 | ||
Series G Cumulative Redeemable Preferred Stock | |||
Preferred stock dividends and dividends payable (in dollars per share) | 0.469437 | 0.567112 | 0.233685 |
Series H Cumulative Redeemable Preferred Stock | |||
Preferred stock dividends and dividends payable (in dollars per share) | 1.531252 | 1.531252 | 0.923004 |
Series I Cumulative Redeemable Preferred Stock | |||
Preferred stock dividends and dividends payable (in dollars per share) | $ 1.425000 | $ 1.425000 | $ 0.653125 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $ 206,708 | $ 90,766 | $ 32,995 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Bad debt expense | 372 | 964 | 323 |
Gain on sale of assets | (123,820) | (22,946) | (152,442) |
(Gain) loss on extinguishment of debt, net | (9,938) | 936 | 57 |
Noncash interest on derivatives, net | 252 | (2,194) | (3,405) |
Depreciation | 126,543 | 125,843 | 128,619 |
Amortization of franchise fees and other intangibles | 464 | 492 | 63 |
Amortization of deferred financing costs | 2,700 | 2,486 | 2,925 |
Amortization of deferred stock compensation | 10,775 | 10,891 | 12,788 |
Impairment losses | 3,466 | 2,685 | |
Gain on hurricane-related damage | (3,722) | (4,369) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 10,609 | (12,739) | (20,515) |
Prepaid expenses and other assets | (1,871) | 4,457 | (18) |
Accounts payable and other liabilities | (20,839) | 12,740 | 25,639 |
Operating lease right-of-use assets and obligations | (102) | (1,409) | (1,344) |
Net cash provided by operating activities | 198,131 | 209,384 | 28,370 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sale of assets | 364,491 | 191,291 | 183,553 |
Disposition deposit | 4,000 | ||
Acquisitions of hotel properties and other assets | (232,506) | (363,498) | |
Proceeds from property insurance | 3,722 | 4,369 | |
Renovations and additions to hotel properties and other assets | (110,131) | (128,576) | (63,663) |
Payment for interest rate derivative | (299) | (80) | |
Net cash provided by (used in) investing activities | 258,082 | (165,721) | (239,688) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Acquisition of noncontrolling interest, including transaction costs | (299) | (104,261) | |
Proceeds from preferred stock offerings | 215,000 | ||
Redemptions of preferred stock | (190,000) | ||
Proceeds from common stock offerings | 38,443 | ||
Repurchases of outstanding common stock | (56,403) | (108,442) | |
Repurchases of common stock for employee tax obligations | (3,348) | (3,351) | (4,877) |
Proceeds from credit facility | 230,000 | 110,000 | |
Payment on credit facility | (230,000) | (110,000) | |
Proceeds from notes payable | 225,000 | 243,615 | |
Payments on notes payable | (222,086) | (38,916) | (79,884) |
Payments of deferred financing costs | (2,332) | (7,404) | (397) |
Dividends and distributions paid | (59,825) | (24,824) | (13,693) |
Distribution to noncontrolling interest | (5,500) | ||
Contributions from noncontrolling interest | 1,375 | ||
Net cash used in financing activities | (119,721) | (49,174) | (42,104) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 336,492 | (5,511) | (253,422) |
Cash and cash equivalents and restricted cash, beginning of period | 157,206 | 162,717 | 416,139 |
Cash and cash equivalents and restricted cash, end of period | 493,698 | 157,206 | 162,717 |
Supplemental Disclosure of Cash Flow Information | |||
Cash and cash equivalents | 426,403 | 101,223 | 120,483 |
Restricted cash | 67,295 | 55,983 | 42,234 |
Total cash and cash equivalents and restricted cash shown on the consolidated statements of cash flows | 493,698 | 157,206 | 162,717 |
Cash paid for interest | 49,296 | 31,658 | 31,431 |
Cash paid for income taxes, net | 1,731 | 709 | 35 |
Operating cash flows used for operating leases | 5,527 | 6,760 | 6,803 |
Changes in operating lease right-of-use assets | 4,433 | 3,774 | 3,796 |
Changes in operating lease obligations | (4,535) | (5,183) | (5,140) |
Changes in operating lease right-of-use assets and lease obligations, net | (102) | (1,409) | (1,344) |
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Accrued renovations and additions to hotel properties and other assets | 9,812 | 9,567 | 8,527 |
Operating lease right-of-use asset obtained in exchange for operating lease obligation | 2,163 | 864 | |
Amortization of deferred stock compensation - construction activities | 467 | 481 | 490 |
Preferred stock redemption charges | 6,640 | ||
Dividends and distributions payable | 29,965 | 13,995 | 3,513 |
Montage Healdsburg | |||
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Issuance of preferred stock in connection with acquisition of hotel | 66,250 | ||
Hyatt Centric Chicago Magnificent Mile | |||
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Disposition deposit received in prior year in connection with sale of hotel | 4,000 | ||
Assignment of finance lease right-of-use asset in connection with sale of hotel | 44,712 | ||
Assignment of finance lease obligation in connection with sale of hotel | 15,569 | ||
Embassy Suites La Jolla | |||
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Assignment of loan in connection with disposition of hotel | 56,624 | ||
Operating lease | Hilton Garden Inn Chicago Downtown/Magnificent Mile | |||
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Assignment of operating lease right-of-use asset in connection with sale of hotel | 2,275 | ||
Assignment of operating lease obligation in connection with sale of hotel | 2,609 | ||
Preferred Stock | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Payment of stock issuance costs | (7,287) | ||
Common Stock | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Payment of stock issuance costs | $ (428) | $ (91) | $ (784) |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Description of Business | |
Organization and Description of Business | 1. Organization and Description of Business Sunstone Hotel Investors, Inc. (the “Company”) was incorporated in Maryland on June 28, 2004 in anticipation of an initial public offering of common stock, which was consummated on October 26, 2004. The Company elected to be taxed as a real estate investment trust (“REIT”) for federal income tax purposes, commencing with its taxable year ended on December 31, 2004. The Company, through its 100% controlling interest in Sunstone Hotel Partnership, LLC (the “Operating Partnership”), of which the Company is the sole managing member, and the subsidiaries of the Operating Partnership, including Sunstone Hotel TRS Lessee, Inc. (the “TRS Lessee”) and its subsidiaries, invests in hotels where it can add value through capital investment, hotel repositioning and asset management. In addition, the Company seeks to capitalize on its portfolio’s embedded value and balance sheet strength to actively recycle past investments into new growth and value creation opportunities in order to deliver strong stockholder returns and superior per share net asset value growth. As a REIT, certain tax laws limit the amount of “non-qualifying” income the Company can earn, including income derived directly from the operation of hotels. The Company leases all of its hotels to its TRS Lessee, which in turn enters into long-term management agreements with third parties to manage the operations of the Company’s hotels, in transactions that are intended to generate qualifying income. As of December 31, 2023, the Company owned 14 hotels (the “14 Hotels”) currently held for investment. The Company’s third-party managers included the following: Number of Hotels Subsidiaries of Marriott International, Inc. or Marriott Hotel Services, Inc. 6 Hyatt Hotels Corporation 2 Four Seasons Hotels Limited 1 Hilton Worldwide 1 Interstate Hotels & Resorts, Inc. 1 Montage North America, LLC 1 Sage Hospitality Group 1 Singh Hospitality, LLC 1 Total hotels owned as of December 31, 2023 14 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements as of December 31, 2023 and 2022, and for the years ended December 31, 2023, 2022 and 2021, include the accounts of the Company, the Operating Partnership, the TRS Lessee, and their controlled subsidiaries. All significant intercompany balances and transactions have been eliminated. If the Company determines that it has an interest in a variable interest entity, the Company will consolidate the entity when it is determined to be the primary beneficiary of the entity. The Company does not have any comprehensive income other than what is included in net income. If the Company has any comprehensive income in the future such that a statement of comprehensive income would be necessary, the Company will include such statement in one continuous consolidated statement of operations. As of the third quarter of 2023, the Company changed its balance sheet presentation from classified (distinguishing between short-term and long-term accounts) to unclassified (no such distinction) to conform with its REIT peers in the lodging sector and reporting entities in the REIT industry more broadly. Given the nature of the Company’s operations, the previous classified presentation did not provide additional information that was useful to derive any metric by which the Company is measured and made comparisons to similar reporting entities more challenging and less meaningful. As the Company is now presenting an unclassified balance sheet, adjustments have been made to the historical classified consolidated balance sheet at December 31, 2022 in order for it to conform with the current unclassified presentation. The Company has evaluated subsequent events through the date of issuance of these financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Cash and Cash Equivalents Cash and cash equivalents includes cash on hand and in various bank accounts plus credit card receivables and all short-term investments with an original maturity of three months or less. The Company maintains cash and cash equivalents with various financial institutions. These financial institutions are located throughout the country and the Company’s policy is designed to limit exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy. At December 31, 2023 and 2022, the Company had amounts in banks that were in excess of federally insured amounts. Restricted Cash Restricted cash primarily includes reserves for operating expenses and capital expenditures required by certain of the Company’s management, franchise and debt agreements. At times, restricted cash also includes hotel acquisition or disposition-related earnest money held in escrow reserves pending completion of the associated transaction. In addition, restricted cash as of December 31, 2023 and 2022 includes $0.2 million and $10.2 million, respectively, held in escrow related to certain current and potential employee-related obligations of one of the Company’s former hotels and $0.2 million held as collateral for certain letters of credit as of both December 31, 2023 and 2022 (see Note 13). Restricted cash as of December 31, 2022 also included $3.1 million held in escrow for the purpose of satisfying any potential employee-related obligations that should arise in connection with the termination of hotel personnel and any employment claim by hotel personnel at the Four Seasons Resort Napa Valley (see Note 13). Accounts Receivable Accounts receivable primarily represents receivables from hotel guests who occupy hotel rooms and utilize hotel services. Accounts receivable also includes, among other things, receivables from tenants who lease space in the Company’s hotels. The Company maintains an allowance for doubtful accounts sufficient to cover potential credit losses. Acquisitions of Hotel Properties and Other Entities The acquisition of a hotel property or other entity requires an analysis of the transaction to determine if it qualifies as the purchase of a business or an asset. If the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, then the transaction is an asset acquisition. Transaction costs associated with asset acquisitions are capitalized and subsequently depreciated over the life of the related asset, while the same costs associated with a business combination are expensed as incurred and included in corporate overhead on the Company’s consolidated statements of operations. Also, given the subjectivity, business combinations are provided a one-year measurement period to adjust the provisional amounts recognized if the necessary information is not available by the end of the reporting period in which the acquisition occurs; whereas asset acquisitions are not subject to a measurement period. Accounting for the acquisition of a hotel property or other entity requires either allocating the purchase price to the assets acquired and the liabilities assumed in the transaction at their respective relative fair values for an asset acquisition or recording the assets and liabilities at their estimated fair values with any excess consideration above net assets going to goodwill for a business combination. The most difficult estimations of individual fair values are those involving long-lived assets, such as property, equipment and intangible assets, together with any finance or operating lease right-of-use assets and their related obligations. When the Company acquires a hotel property or other entity, it uses all available information to make these fair value determinations, including discounted cash flow analyses, market comparable data and replacement cost data. In addition, the Company makes significant estimations regarding capitalization rates, discount rates, average daily rates, revenue growth rates and occupancy. The Company also engages independent valuation specialists to assist in the fair value determinations of the long-lived assets acquired and the liabilities assumed. The determination of fair value is subjective and is based in part on assumptions and estimates that could differ materially from actual results in future periods. Investments in Hotel Properties Investments in hotel properties, including land, buildings, furniture, fixtures and equipment (“FF&E”) and identifiable intangible assets are recorded at their respective relative fair values for an asset acquisition or at their estimated fair values for a business acquisition. Property and equipment purchased after the hotel acquisition date is recorded at cost. Replacements and improvements are capitalized, while repairs and maintenance are expensed as incurred. Upon the sale or retirement of a fixed asset, the cost and related accumulated depreciation is removed from the Company’s accounts and any resulting gain or loss is included in the consolidated statements of operations. Depreciation expense is based on the estimated life of the Company’s assets. The life of the assets is based on a number of assumptions, including the cost and timing of capital expenditures to maintain and refurbish the Company’s hotels, as well as specific market and economic conditions. Hotel properties are depreciated using the straight-line method over estimated useful lives primarily ranging from five years to forty years for buildings and improvements and three years to twelve years for FF&E. Intangible assets are amortized using the straight-line method over the shorter of their estimated useful life or over the length of the related agreement. The Company’s investment in hotel properties, net also includes initial franchise fees which are recorded at cost and amortized using the straight-line method over the terms of the franchise agreements ranging from fifteen years to twenty years . All other franchise fees that are based on the Company’s results of operations are expensed as incurred. While the Company believes its estimates are reasonable, a change in the estimated lives could affect depreciation expense and net income or the gain or loss on the sale of any of the Company’s hotels. The Company has not changed the useful lives of any of its assets during the periods discussed. Impairment losses are recorded on investments in hotel properties to be held and used by the Company whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Factors the Company considers when assessing whether impairment indicators exist include hotel disposition strategy and hold period, a significant decline in operating results not related to renovations or repositionings, significant changes in the manner in which the Company uses the asset, physical damage to the property due to unforeseen events such as natural disasters, and other market and economic conditions. Recoverability of assets that will continue to be used is measured by comparing the carrying amount of the asset to the related total future undiscounted net cash flows. If an asset’s carrying value is not recoverable through those cash flows, the asset is considered to be impaired. The impairment is measured by the difference between the asset’s carrying amount and its fair value. The Company performs a fair value assessment using valuation techniques such as discounted cash flows and comparable sale transactions in the market to estimate the fair value of the hotel and, if appropriate and available, current estimated net sales proceeds from pending offers. The Company’s judgment is required in determining the discount rate, terminal capitalization rate, the estimated growth of revenues and expenses, revenue per available room and margins, as well as specific market and economic conditions. Based on the Company’s review, no hotels were impaired in either 2023 or 2022. In 2021, the Company recognized a $2.7 million impairment loss on the Hilton New Orleans St. Charles due to Hurricane Ida-related damage at the hotel (see Notes 5 and 13). Fair value represents the amount at which an asset could be bought or sold in a current transaction between willing parties, that is, other than a forced or liquidation sale. The estimation process involved in determining if assets have been impaired and in the determination of fair value is inherently uncertain because it requires estimates of current market yields as well as future events and conditions. Such future events and conditions include economic and market conditions, as well as the availability of suitable financing. The realization of the Company’s investment in hotel properties is dependent upon future uncertain events and conditions and, accordingly, the actual timing and amounts realized by the Company may be materially different from their estimated fair values. Assets Held for Sale The Company considers a hotel and related assets held for sale if it is probable that the sale will be completed within twelve months , among other requirements. A sale is considered to be probable once the buyer completes its due diligence of the asset, there is an executed purchase and sale agreement between the Company and the buyer, the buyer waives any closing contingencies, there are no third-party approvals necessary and the Company has received a substantial non-refundable deposit. Depreciation ceases when a property is held for sale. Should an impairment loss be required for assets held for sale, the related assets are adjusted to their estimated fair values, less costs to sell. If the sale of the hotel represents a strategic shift that will have a major effect on the Company’s operations and financial results, the hotel qualifies as a discontinued operation, and operating results are removed from income from continuing operations and reported as discontinued operations. The operating results for any such assets for any prior periods presented must also be reclassified as discontinued operations. No hotels were considered held for sale as of either December 31, 2023 or 2022. Deferred Financing Costs Deferred financing costs consist of loan fees and other financing costs related to the Company’s outstanding indebtedness and credit facility commitments and are amortized to interest expense over the terms of the related debt or commitment. If a loan is refinanced or paid before its maturity, any unamortized deferred financing costs will generally be expensed unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs related to the Company’s undrawn credit facility are included on the Company’s consolidated balance sheets as an asset and are amortized ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. Deferred financing costs related to the Company’s outstanding debt are included on the Company’s consolidated balance sheets as a contra-liability (see Note 7), and subsequently amortized ratably over the term of the related debt. Interest Rate Derivatives The Company’s objective in holding interest rate derivatives is to manage its exposure to the interest rate risks related to its floating rate debt. To accomplish this objective, the Company uses interest rate caps and swaps, none of which qualifies for effective hedge accounting treatment. The Company records interest rate caps and swaps on the balance sheet at their fair value. Changes in the fair value of derivatives are recorded each period in the consolidated statements of operations. Leases The Company determines if a contract is a lease at inception. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Expense for these short-term leases is recognized on a straight-line basis over the lease term. For leases with an initial term greater than twelve months , the Company records a right-of-use (“ROU”) asset and a corresponding lease obligation. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease obligations represent the Company’s obligation to make fixed lease payments as stipulated by the lease. The Company has elected to not separate lease components from nonlease components, resulting in the Company accounting for lease and nonlease components as one single lease component. Leases are accounted for using a dual approach, classifying leases as either operating or financing based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the Company. This classification determines whether the lease expense is recognized on a straight-line basis over the term of the lease for operating leases or based on an effective interest method for finance leases. Upon the sale of the Hyatt Centric Chicago Magnificent Mile and its related finance lease in February 2022 (see Notes 4 and 9), the Company’s leases consist solely of operating leases. Lease ROU assets are recognized at the lease commencement date and include the amount of the initial operating lease obligation, any lease payments made at or before the commencement date, excluding any lease incentives received, and any initial direct costs incurred. For leases that have extension options that the Company can exercise at its discretion, management uses judgment to determine if it is reasonably certain that the Company will in fact exercise such option. If the extension option is reasonably certain to occur, the Company includes the extended term’s lease payments in the calculation of the respective lease liability. None of the Company’s leases contain any material residual value guarantees or material restrictive covenants. Lease obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) based on information available at the commencement date in determining the present value of lease payments over the lease term. The IBR is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In order to estimate the Company’s IBR, the Company first looks to its own unsecured debt offerings and adjusts the rate for both length of term and secured borrowing using available market data as well as consultations with leading national financial institutions that are active in the issuance of both secured and unsecured notes. The Company reviews its right-of-use assets for indicators of impairment. If such assets are considered to be impaired, the related assets are adjusted to their estimated fair value and an impairment loss is recognized. The impairment loss recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Based on the Company’s review, no operating lease ROU assets were impaired during 2023 and the Company recorded a $2.1 million impairment loss on the ROU asset related to the office lease at its former corporate headquarters (see Notes 5 and 9) during 2022. No operating or finance lease ROU assets were impaired during 2021. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to hotel guests, which is generally defined as the date upon which a guest occupies a room and/or utilizes the hotel’s services. Room revenue and other occupancy based fees are recognized over a guest’s stay at the previously agreed upon daily rate. Some of the Company’s hotel rooms are booked through independent internet travel intermediaries. If the guest pays the independent internet travel intermediary directly, revenue for the room is recognized by the Company at the price the Company sold the room to the independent internet travel intermediary, less any discount or commission paid. If the guest pays the Company directly, revenue for the room is recognized by the Company on a gross basis, with the related discount or commission recognized in room expense. A majority of the Company’s hotels participate in frequent guest programs sponsored by the hotel brand owners whereby the hotel allows guests to earn loyalty points during their hotel stay. The Company expenses charges associated with these programs as incurred, and recognizes revenue at the amount it will receive from the brand when a guest redeems their loyalty points by staying at one of the Company’s hotels. In addition, some contracts for rooms or food and beverage services require an advance deposit, which the Company records as deferred revenue (or a contract liability) and recognizes once the performance obligations are satisfied. Cancellation fees and attrition fees, which are charged to groups when they do not fulfill their contracted minimum number of room nights or minimum food and beverage spending requirements, are typically recognized as revenue in the period the Company determines it is probable that a significant reversal in the amount of revenue recognized will not occur, which is generally the period in which these fees are collected. Food and beverage revenue and other ancillary services revenue are generated when a customer chooses to purchase goods or services. The revenue is recognized when the goods or services are provided to the customer at the amount the Company expects to be entitled to in exchange for those goods or services. For ancillary services provided by third parties, the Company assesses whether it is the principal or the agent. If the Company is the principal, revenue is recognized based upon the gross sales price. If the Company is the agent, revenue is recognized based upon the commission earned from the third party. Additionally, the Company collects sales, use, occupancy and other similar taxes from customers at its hotels at the time of purchase, which are not included in revenue. The Company records a liability upon collection of such taxes from the customer, and relieves the liability when payments are remitted to the applicable governmental agency. Trade receivables and contract liabilities consisted of the following (in thousands): December 31, 2023 2022 Trade receivables, net (1) $ 14,431 $ 19,751 Contract liabilities (2) $ 45,432 $ 50,219 (1) Trade receivables, net are included in accounts receivable, net on the accompanying consolidated balance sheets. (2) Contract liabilities consist of advance deposits and are included in other liabilities on the accompanying consolidated balance sheets. During 2023 and 2022, the Company recognized approximately $43.7 million and $27.9 million, respectively, in revenue related to its outstanding contract liabilities. Advertising and Promotion Costs Advertising and promotion costs are expensed when incurred. Advertising and promotion costs represent the expense for advertising and reservation systems under the terms of the hotel franchise and brand management agreements and general and administrative expenses that are directly attributable to advertising and promotions. Stock Based Compensation Restricted shares and units are measured at fair value on the date of grant and amortized as compensation expense over the relevant requisite service period or derived service period. The Company has elected to account for forfeitures as they occur. Income Taxes The Company is subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income. In addition, the TRS Lessee, which leases the Company’s hotels from the Operating Partnership, is subject to federal and state income taxes. The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company reviews any uncertain tax positions and, if necessary, records the expected future tax consequences of uncertain tax positions in its consolidated financial statements. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. The Company’s management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes federal and certain states. The Company recognizes any penalties and interest related to unrecognized tax benefits in income tax expense in its consolidated statements of operations. Dividends Under current federal income tax laws related to REITs, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders. Currently, the Company pays quarterly cash dividends to both its common and preferred stockholders as declared by the Company’s board of directors. Any future common stock dividends will be determined by the Company’s board of directors after considering the Company’s long-term operating projections, expected capital requirements and risks affecting its business. The Company’s ability to pay dividends is dependent on the receipt of distributions from the Operating Partnership. Earnings Per Share The Company applies the two-class method when computing its earnings per share. Net income per share for each class of stock is calculated assuming all of the Company’s net income is distributed as dividends to each class of stock based on their contractual rights. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid), which include the Company’s time-based restricted stock awards, are considered participating securities and are included in the computation of earnings per share. Basic earnings attributable to common stockholders per common share is computed based on the weighted average number of shares of common stock outstanding during each period, including shares of the Company’s performance-based restricted stock units for which all necessary conditions have been satisfied except for the passage of time. Diluted earnings attributable to common stockholders per common share is computed based on the weighted average number of shares of common stock outstanding during each period, plus potential common shares considered outstanding during the period, as long as the inclusion of such awards is not anti-dilutive. Potential common shares consist of time-based unvested restricted stock awards and performance-based restricted stock units, using the more dilutive of either the two-class method or the treasury stock method. The Company’s performance-based restricted stock units are considered for computing diluted net income per common share as of the beginning of the period in which all necessary conditions have been satisfied and the only remaining vesting condition is a service vesting condition. The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share data): Year Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Numerator: Net income $ 206,708 $ 90,766 $ 32,995 (Income) loss from consolidated joint venture attributable to noncontrolling interest — (3,477) 1,303 Preferred stock dividends and redemption charges (13,988) (14,247) (20,638) Distributions paid to participating securities (310) (128) — Undistributed income allocated to participating securities (683) (323) (92) Numerator for basic and diluted income attributable to common stockholders $ 191,727 $ 72,591 $ 13,568 Denominator: Weighted average basic common shares outstanding 205,590 212,613 216,296 Unvested restricted stock units 275 40 — Weighted average diluted common shares outstanding 205,865 212,653 216,296 Basic income attributable to common stockholders per common share $ 0.93 $ 0.34 $ 0.06 Diluted income attributable to common stockholders per common share $ 0.93 $ 0.34 $ 0.06 In its calculation of diluted earnings per share, the Company excluded 1,032,266, 1,289,146 and 1,463,315 anti-dilutive time-based restricted stock awards for the years ended December 31, 2023, 2022 and 2021, respectively (see Note 12). The Company also had unvested performance-based restricted stock units as of December 31, 2023 and 2022 that are not considered participating securities as the awards contain forfeitable rights to dividends or dividend equivalents. The performance-based restricted stock units were granted based on either target market condition thresholds or pre-determined stock price targets. Based on the Company’s common stock performance, the Company excluded 188,004 anti-dilutive performance-based restricted stock units from its calculations of diluted earnings per share for the years ended December 31, 2023 and 2022 (see Note 12). Segment Reporting The Company considers each of its hotels to be an operating segment and allocates resources and assesses the operating performance for each hotel. Because all of the Company’s hotels have similar economic characteristics, facilities and services, the hotels have been aggregated into one single reportable segment, hotel ownership. New Accounting Standards and Accounting Changes In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 In May 2023, the Company repaid the $220.0 million loan secured by the Hilton San Diego Bayfront, which was subject to LIBOR, and the loan’s related interest rate cap derivative, which was also subject to LIBOR, was terminated (see Note 5). The Company’s adoptions of ASU 2020-04 and ASU 2022-06 in the second quarter of 2023 had no impact on the Company’s consolidated financial statements. In November 2023, the FASB issued Accounting Standards Update No. 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures Segment Reporting In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Investment in Hotel Properties
Investment in Hotel Properties | 12 Months Ended |
Dec. 31, 2023 | |
Investment in Hotel Properties | |
Investment in Hotel Properties | 3. Investment in Hotel Properties Investment in hotel properties, net consisted of the following (in thousands): December 31, 2023 2022 Land $ 614,112 $ 672,531 Buildings and improvements 2,587,278 2,793,771 Furniture, fixtures and equipment 407,861 426,189 Intangible assets 42,187 42,187 Construction in progress 61,247 71,689 Investment in hotel properties, gross 3,712,685 4,006,367 Accumulated depreciation and amortization (1,127,406) (1,165,439) Investment in hotel properties, net $ 2,585,279 $ 2,840,928 2022 Acquisitions In June 2022, the Company purchased the fee-simple interest in the 339 -room The Confidante Miami Beach, Florida for a contractual purchase price of $232.0 million. The acquisition was accounted for as an asset acquisition and was funded from available cash and with $140.0 million of proceeds received from the Company’s revolving credit facility (see Note 7). In June 2022, the Company acquired the 25.0% noncontrolling partner’s ownership interest in the Hilton San Diego Bayfront for a contractual purchase price of $102.0 million plus 25.0% of closing date working capital and cash. The Company paid a preliminary purchase price of $101.3 million on the closing date based on estimated working capital and cash amounts, with additional true-ups of $2.9 million and $0.3 million recognized in December 2022 and May 2023, respectively, based on actual working capital and cash amounts. Following the acquisition, the Company owns 100% of the hotel. The acquisition was funded from available cash and with $90.0 million of proceeds received from the Company’s revolving credit facility (see Note 7). The transaction was accounted for as an equity transaction. The acquisition date noncontrolling interest balance of $38.8 million was reclassified to additional paid in capital. In addition, the $65.8 million of excess cash paid to acquire the 25.0% noncontrolling partner’s ownership interest was classified as additional paid in capital. No gain or loss was recognized in the accompanying consolidated statements of operations related to this acquisition. Intangible Assets Intangible assets included in the Company’s investment in hotel properties, net consisted of the following (in thousands): December 31, 2023 2022 Element agreement (1) $ 18,436 $ 18,436 Airspace agreements (2) 1,947 1,947 Residential program agreements (3) 21,038 21,038 Trade names (4) 121 121 Franchise agreements (5) 126 126 In-place lease agreement (6) 519 519 42,187 42,187 Accumulated amortization (949) (432) $ 41,238 $ 41,755 Amortization expense on these intangible assets consisted of the following (in thousands): 2023 2022 2021 Residential program agreements (3) $ 411 $ 282 $ — Franchise agreements (5) 7 11 40 In-place lease agreement (6) 99 58 — Advance bookings (7) — 199 22 Below market management agreement (8) — 15 92 $ 517 $ 565 $ 154 (1) The Element agreement as of both December 31, 2023 and 2022 included the exclusive perpetual rights to certain space at The Westin Washington, DC Downtown. The Element has an indefinite useful life and is not amortized. (2) Airspace agreements as of both December 31, 2023 and 2022 consisted of dry slip agreements at the Oceans Edge Resort & Marina. The dry slips at the Oceans Edge Resort & Marina have indefinite useful lives and are not amortized. (3) Residential program agreements as of both December 31, 2023 and 2022 included $13.7 million and $7.3 million at the Montage Healdsburg and the Four Seasons Resort Napa Valley, respectively. The value of the agreements were determined based on each hotel’s purchase price allocation. The agreements relate to the hotels’ residential rental programs, whereby owners of the adjacent separately owned Montage Residences Healdsburg and Four Seasons Private Residences Napa Valley are eligible to participate in optional rental programs and have access to the hotels’ facilities. The residential program agreement at the Montage Healdsburg will be amortized over the life of the related remaining 25-year Montage Healdsburg management agreement once the hotel begins to recognize revenue related to the program in January 2024. In addition, the agreement at the Montage Healdsburg includes a social membership program under which the Company began to recognize revenue in February 2023, amortizing the agreement using the straight-line method over the life of the related remaining 25-year Montage Healdsburg management agreement. In April 2022, the Company began to recognize revenue associated with the residential program agreement at the Four Seasons Resort Napa Valley, amortizing the agreement using the straight-line method over the life of the related remaining 20-year management agreement. The amortization expense for both the Montage Healdsburg and the Four Seasons Resort Napa Valley is included in depreciation and amortization expense in the Company’s consolidated statements of operations. (4) Trade names as of both December 31, 2023 and 2022 consisted of trademarks and bottle labeling used by the Elusa Winery at the Four Seasons Resort Napa Valley. The value of the trade names were determined as part of the hotel’s purchase price allocation. The trade names have indefinite useful lives and are not amortized. (5) Franchise agreements as of both December 31, 2023 and 2022 consisted of agreements at the Hilton New Orleans St. Charles and The Bidwell Marriott Portland. Franchise agreements in 2021 also included agreements at the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile, both of which were sold in March 2022 (see Note 4). The remaining agreements are amortized using the straight-line method over the lives of the franchise agreements and will be fully amortized in October 2024 and April 2028 for The Bidwell Marriott Portland and the Hilton New Orleans St. Charles, respectively. The amortization expense for the franchise agreements is included in depreciation and amortization expense in the Company’s consolidated statements of operations. (6) The in-place lease agreement as of both December 31, 2023 and 2022 consisted of an agreement at The Confidante Miami Beach. The value of the agreement was determined as part of the hotel’s purchase price allocation. The agreement is amortized using the straight-line method over the remaining non-cancelable term of the lease and will be fully amortized in August 2027. The amortization expense for the in-place lease agreement is included in depreciation and amortization expense in the Company’s consolidated statements of operations. (7) Advance bookings consisted of advance deposits related to our acquisition of the Four Seasons Resort Napa Valley. As part of the purchase price allocation, the contractual advance hotel bookings were recorded at a discounted present value based on estimated collectability. They were amortized using the straight-line method over the periods the amounts were expected to be collected and were fully amortized in September 2022. The amortization expense for contractual advance hotel bookings is included in depreciation and amortization expense in the Company’s consolidated statements of operations. (8) The below market management agreement consisted of an agreement at the Hilton Garden Inn Chicago Downtown/Magnificent Mile. The agreement was amortized using the straight-line method over the remaining non-cancelable term until the hotel’s sale in March 2022 (see Note 4). For the next five years, amortization expense for the intangible assets noted above is expected to be as follows (in thousands): 2024 $ 1,029 2025 $ 1,028 2026 $ 1,028 2027 $ 994 2028 $ 925 |
Disposals
Disposals | 12 Months Ended |
Dec. 31, 2023 | |
Disposal, Not Including Discontinued Operations | |
Disposals | 4. Disposals Disposals – 2023 In October 2023, the Company sold the Boston Park Plaza, located in Massachusetts, for net proceeds of $364.5 million and a gain of $123.8 million. The sale did not represent a strategic shift that had a major impact on the Company’s business plan or its primary markets; therefore, the hotel disposition did not qualify as a discontinued operation. Disposals - 2022 In February 2022, the Company sold the Hyatt Centric Chicago Magnificent Mile and in March 2022, the Company sold both the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile, all three of which are located in Illinois. None of these sales represented a strategic shift that had a major impact on the Company’s business plan or its primary markets; therefore, none of the hotel dispositions qualified as a discontinued operation. The details of the sales were as follows (in thousands): Net Proceeds Net Gain Hyatt Centric Chicago Magnificent Mile $ 67,231 (1) $ 11,336 Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile 128,060 11,610 $ 195,291 $ 22,946 (1) Includes a $4.0 million disposition deposit received from the buyer of the hotel in December 2021. Disposals - 2021 In October 2021 and December 2021, the Company sold the Renaissance Westchester, located in New York, and the Embassy Suites La Jolla located in California, respectively. Neither of these sales represented a strategic shift that had a major impact on the Company’s business plan or its primary markets; therefore, neither of the hotel dispositions qualified as a discontinued operation. The details of the sales were as follows (in thousands): Net Proceeds Net Gain Renaissance Westchester $ 17,054 $ 3,733 Embassy Suites La Jolla 166,499 (1) 148,791 $ 183,553 $ 152,524 (1) Net proceeds exclude a $56.6 million mortgage assumed by the buyer of the Embassy Suites La Jolla (see Note 7). Results of Operations – Disposed Hotels The following table provides summary results of operations for the disposed hotels, which are included in net income for their respective ownership periods (in thousands): 2023 2022 2021 Total revenues $ 96,713 $ 97,915 $ 87,905 Income (loss) before income taxes (1) $ 19,231 $ 3,801 $ (44,686) Gain on sale of assets $ 123,820 $ 22,946 $ 152,524 (1) Income (loss) before income taxes does not include the gain recognized on the hotel sales. |
Fair Value Measurements and Int
Fair Value Measurements and Interest Rate Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements and Interest Rate Derivatives | |
Fair Value Measurements and Interest Rate Derivatives | 5. Fair Value Measurements and Interest Rate Derivatives Fair Value Measurements As of December 31, 2023 and 2022, the carrying amount of certain financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses were representative of their fair values due to the short-term maturity of these instruments. A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability in an orderly transaction. The hierarchy for inputs used in measuring fair value is as follows: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the asset or the liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. As of both December 31, 2023 and 2022, the Company measured its interest rate derivatives at fair value on a recurring basis. The Company estimated the fair value of its interest rate derivatives using Level 2 measurements based on quotes obtained from the counterparties, which are based upon the consideration that would be required to terminate the agreements. While the Company did not record an impairment loss in 2023, impairment losses of $3.5 million and $2.7 million were recorded by the Company in 2022 and 2021, respectively, each of which is discussed below. Former corporate headquarters In 2022, the Company determined that it could reduce its future operating expenses by relocating its corporate headquarters to decrease the amount of space the Company occupied and to secure a lower rental cost per square foot. As such, the Company executed a sublease agreement with an unaffiliated party for the remainder of the original ten-year lease term and relocated its headquarters in January 2023. Coterminous with the execution of the sublease agreement, the Company identified indicators of impairment related to its original corporate headquarters as there were significant changes in the manner in which both the tenant improvements and the ROU asset were to be used and the original lease cost was greater than the expected sublease income. To determine the impairment losses, the Company applied Level 2 measurements to estimate the fair values of the tenant improvements and ROU asset, using the income expected to be generated under the sublease agreement with the unaffiliated sublessee to prepare a discounted cash flow analysis. Hilton New Orleans St. Charles Fair Value of Debt As of December 31, 2023 and 2022, 51.2% and 42.4%, respectively, of the Company’s outstanding debt had fixed interest rates, including the effects of interest rate swap derivatives and forward starting interest rate swap derivatives. The Company uses Level 3 measurements to estimate the fair value of its debt by discounting the future cash flows of each instrument at estimated market rates. The Company’s principal balances and fair market values of its consolidated debt were as follows (in thousands): December 31, 2023 December 31, 2022 Carrying Amount (1) Fair Value (2) Carrying Amount (1) Fair Value (2) Debt $ 819,050 $ 805,212 $ 816,136 $ 809,141 (1) The principal balance of debt is presented before any unamortized deferred financing costs. (2) Due to prevailing market conditions and the current uncertain economic environment, actual interest rates could vary materially from those estimated, which would result in variances in the Company’s calculations of the fair market value of its debt. Interest Rate Derivatives The Company’s interest rate derivatives, which are not designated as effective cash flow hedges, consisted of the following (in thousands): Estimated Fair Value of Assets (Liabilities) (1) Strike / Capped Effective Maturity Notional December 31, Hedged Debt Type LIBOR Rate Index Date Date Amount 2023 2022 Hilton San Diego Bayfront Cap 6.000 % 1-Month LIBOR December 9, 2022 December 9, 2023 $ N/A $ N/A $ 60 Term Loan 1 Swap 3.675 % CME Term SOFR March 17, 2023 March 17, 2026 $ 75,000 417 N/A Term Loan 1 Swap 3.931 % CME Term SOFR September 14, 2023 September 14, 2026 $ 100,000 (401) N/A Term Loan 2 Swap 1.853 % 1-Month LIBOR January 29, 2016 January 31, 2023 $ N/A N/A 208 $ 16 $ 268 (1) In May 2023, the cap derivative was terminated in conjunction with the Company’s repayment of the loan secured by the Hilton San Diego Bayfront (see Note 7). The fair values of the cap and swap derivative assets were included in prepaid expenses and other assets, net on the accompanying consolidated balance sheets as of December 31, 2023 and 2022. The fair value of the swap derivative liability was included in other liabilities on the accompanying consolidated balance sheet as of December 31, 2023. Noncash changes in the fair values of the Company’s interest rate derivatives resulted in increases (decreases) to interest expense as follows (in thousands): 2023 2022 2021 Noncash interest on derivatives, net $ 252 $ (2,194) $ (3,405) |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Assets. | |
Prepaid Expenses and Other Assets | 6. Prepaid Expenses and Other Assets Prepaid expenses and other assets, net consisted of the following (in thousands): December 31, 2023 2022 Prepaid expenses $ 8,123 $ 6,478 Inventory 9,185 7,922 Deferred financing costs 3,627 5,031 Property and equipment, net 3,120 3,685 (1) Interest rate derivatives 417 268 Deferred rent on straight-lined third-party tenant leases 552 2,413 Liquor licenses 930 933 Other 429 836 Total prepaid expenses and other assets, net $ 26,383 $ 27,566 (1) In 2022, the Company recorded an impairment loss of $1.4 million on the tenant improvements, net at its former corporate headquarters (see Note 5). |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosures | |
Notes Payable | 7. Notes Payable Notes payable consisted of the following (in thousands): Balance Outstanding as of December 31, 2023 December 31, December 31, Rate Type Interest Rate Maturity Date 2023 2022 Mortgage Loans Hilton San Diego Bayfront N/A (1) N/A December 9, 2023 $ — $ 220,000 JW Marriott New Orleans Fixed 4.15 % December 11, 2024 74,050 76,136 Total mortgage loans $ 74,050 $ 296,136 Unsecured Corporate Credit Facilities Term Loan 1 Fixed (2) 5.25 % July 25, 2027 $ 175,000 $ 175,000 Term Loan 2 Variable (3) 6.77 % January 25, 2028 175,000 175,000 Term Loan 3 Variable (4) 6.81 % May 1, 2025 225,000 — Total unsecured corporate credit facilities $ 575,000 $ 350,000 Unsecured Senior Notes Series A Fixed 4.69 % January 10, 2026 $ 65,000 $ 65,000 Series B Fixed 4.79 % January 10, 2028 105,000 105,000 Total unsecured senior notes $ 170,000 $ 170,000 Total debt $ 819,050 $ 816,136 Unamortized deferred financing costs (4,491) (3,455) Debt, net of unamortized deferred financing costs $ 814,559 $ 812,681 (1) The mortgage secured by the Hilton San Diego Bayfront was repaid in May 2023. The mortgage loan was subject to an interest rate cap derivative (see Note 5). The effective interest rate on the loan was 5.571% at December 31, 2022. (2) Term Loan 1 is subject to two interest rate swap derivatives (see Note 5). The variable interest rate is based on a pricing grid with a range of 1.35% to 2.20% , depending on the Company’s leverage ratios, plus SOFR and a 0.10% adjustment. In May 2023, the pricing grid was reduced by 0.02% to a range of 1.33% to 2.18% as the Company achieved the 2022 sustainability performance metric specified in the Second Amended Credit Agreement. The reduction in the pricing grid will be evaluated annually and is subject to the Company’s continued ability to satisfy its sustainability metric. The effective interest rates on the term loan were 5.25% and 5.82% at December 31, 2023 and 2022, respectively. (3) Term Loan 2 was subject to an interest rate swap derivative until the swap expired in January 2023 (see Note 5). The variable interest rate is based on a pricing grid with a range of 1.35% to 2.20% , depending on the Company’s leverage ratios, plus SOFR and a 0.10% adjustment. In May 2023, the pricing grid was reduced by 0.02% to a range of 1.33% to 2.18% as the Company achieved the 2022 sustainability performance metric specified in the Second Amended Credit Agreement. The reduction in the pricing grid will be evaluated annually and is subject to the Company’s continued ability to satisfy its sustainability metric. The effective interest rates on the term loan were 6.77% and 4.27% at December 31, 2023 and 2022, respectively. (4) Term Loan 3’s variable interest rate is based on a pricing grid with a range of 1.35% to 2.20% , depending on the Company’s leverage ratios, plus SOFR and a 0.10% adjustment. The effective interest rate on the term loan was 6.81% at December 31, 2023. Aggregate future principal maturities and amortization of notes payable at December 31, 2023, were as follows (in thousands): 2024 $ 74,050 2025 — 2026 290,000 (1) 2027 175,000 2028 280,000 Thereafter — Total $ 819,050 (1) Includes Term Loan 3 assuming the Company has exercised its one-time option to extend the maturity of the loan from May 1, 2025 to May 1, 2026 upon payment of applicable fees and the satisfaction of certain customary conditions. Notes Payable Transactions - 2023 Secured Debt Unsecured Debt . On May 1, 2023, the Company entered into a term loan agreement (“Term Loan 3”) and drew a total of $225.0 million, of which $220.0 million was used to repay the mortgage loan secured by the Hilton San Diego Bayfront. The variable interest rate is based on a pricing grid with a range of 1.35% to 2.20% , depending on the Company’s leverage ratios, plus SOFR and a 0.10% adjustment. Term Loan 3 matures on May 1, 2025 , with a one -time option to extend the loan by twelve months to May 1, 2026 upon the payment of applicable fees and the satisfaction of certain customary conditions. As of December 31, 2023, the Company had no amount outstanding on its credit facility, with $500.0 million of capacity available for borrowing under the facility. The Company’s ability to draw on the credit facility is subject to the Company’s compliance with various covenants. Notes Payable Transactions - 2022 Secured Debt . In December 2022, the Company exercised its remaining one-year option to extend the maturity of the mortgage secured by the Hilton San Diego Bayfront from December 2022 to December 2023. In accordance with the terms of the extension, the LIBOR spread increased 0.25% , from 1.05% to 1.30% . In addition, the Company purchased an interest rate cap derivative for $0.3 million that will continue to cap the loan’s underlying floating rate interest benchmark at 6.0% until December 2023 (see Note 5). Certain of the Company’s loan agreements contain cash trap provisions that may be triggered if the performance of the hotels securing the loans decline. These provisions were triggered in January 2021 for the loan secured by the JW Marriott New Orleans, and in May 2021 for the loan secured by the Hilton San Diego Bayfront. In April 2022 and October 2022, the Hilton San Diego Bayfront and the JW Marriott New Orleans, respectively, reached profitability levels that terminated the cash traps. Unsecured Debt . In February 2022, the Company used a portion of the proceeds received from the disposition of the Hyatt Centric Chicago Magnificent Mile to repay $25.0 million of its unsecured Series A Senior Notes and $10.0 million of its unsecured Series B Senior Notes, resulting in remaining balances of $65.0 million and $105.0 million, respectively, as of December 31, 2022. In conjunction with the repayments, the Company recorded a $0.2 million loss on extinguishment of debt related to the accelerated amortization of the deferred financing costs. In March 2022, the Company elected to early terminate the covenant relief period related to its unsecured debt, having satisfied the financial covenants stipulated in the 2020 and 2021 amendments to its unsecured debt agreements (together, the “Unsecured Debt Amendments” key terms of which are disclosed below) for the quarter ended December 31, 2021. The Unsecured Debt Amendments were scheduled to provide covenant relief through the end of the third quarter of 2022, with quarterly testing resuming for the period ending September 30, 2022. Following the Company’s early termination of the covenant relief period in March 2022, the original financial covenants on its unsecured debt agreements were to be phased-in over the following five quarters to ease compliance. By exiting the covenant relief period, the Company is no longer subject to the additional restrictions on debt issuance and repayment, capital investment, share repurchases and dividend distributions that were imposed as part of the Unsecured Debt Amendments. In June 2022, the Company drew a total of $230.0 million under the revolving portion of its credit facility to fund the acquisitions of The Confidante Miami Beach and the 25.0% noncontrolling interest in the Hilton San Diego Bayfront (see Note 3). In July 2022, the Company entered into a Second Amended and Restated Credit Agreement (the “Amended Credit Agreement”) which expanded its unsecured borrowing capacity and extended the maturity of the Company’s two unsecured term loans. The Amended Credit Agreement increased the balances of both Term Loan 1 and Term Loan 2 to $175.0 million each from $19.4 million and $88.9 million, respectively. In addition, the maturity dates were extended to July 2027 and January 2028 for Term Loan 1 and Term Loan 2, respectively. Under the Amended Credit Agreement, the term loans bear interest pursuant to a leverage-based pricing grid ranging from 1.35% to 2.20% over the applicable adjusted term SOFR . In conjunction with the Amended Credit Agreement, the Company recorded a $0.8 million loss on extinguishment of debt related to the accelerated amortization of the deferred financing costs. In July 2022, the Company utilized the proceeds received from the incremental borrowing on the term loans to fully repay the $230.0 million that was outstanding on its revolving credit facility. The Amended Credit Agreement continues to provide for a $500.0 million revolving credit facility, with two six-month extension options, which would result in an extended maturity of July 2027. Under the Amended Credit Agreement, the revolving credit facility bears interest pursuant to a leverage-based pricing grid ranging from 1.40% to 2.25% over the applicable adjusted term SOFR . Notes Payable Transactions - 2021 Secured Debt In December 2021, the Company exercised its second option to extend the maturity of the $220.0 million loan secured by the Hilton San Diego Bayfront from December 2021 to December 2022. In addition, the Company purchased an interest rate cap derivative for $0.1 million that continued to cap the loan’s underlying floating rate interest benchmark at 6.0% until December 2022 (see Note 5). Unsecured Debt In July 2021 and November 2021, the Company completed amendments to its unsecured debt, consisting of its revolving credit facility, term loans and senior notes (the “2021 Unsecured Debt Amendments”). The 2021 Unsecured Debt Amendments were deemed to be debt modifications and were accounted for accordingly. Under the terms of the 2021 Unsecured Debt Amendments, the Company was provided with a waiver of its required financial covenants through the third quarter of 2022, subject to the satisfaction of certain conditions, with the financial covenants then being phased-in over the following five quarters. As part of the 2021 Unsecured Debt Amendments, the Company gained the ability to annualize various income metrics used to calculate the financial covenants in order to ease compliance with the financial covenants and also gained the right, exercisable one time each with respect to its term loans, to request an extension of the applicable maturity date by twelve months upon the payment of an extension fee. In December 2021, the Company used a portion of the proceeds received from its sale of the Embassy Suites La Jolla to repay $65.6 million on its Term Loan 1 and $11.1 million on its Term Loan 2, resulting in a Term Loan 1 balance of $19.4 million and a Term Loan 2 balance of $88.9 million as of December 31, 2021. In conjunction with the repayments, the Company recorded a $0.3 million loss on extinguishment of debt related to the accelerated amortization of deferred financing costs. Deferred Financing Costs and Gain (loss) on Extinguishment of Debt, net Deferred financing costs and gain (loss) on extinguishment of debt, net were as follows (in thousands): 2023 (1) 2022 (2) 2021 (3) Payments of deferred financing costs $ 2,332 $ 7,404 $ 397 Gain (loss) on extinguishment of debt, net $ 9,938 $ (936) $ (57) (1) During 2023, the Company paid a total of $2.3 million in deferred financing costs related to Term Loan 3. In addition, the Company recognized a gain of $9.9 million associated with the assignment-in-lieu of the Hilton Times Square to the hotel’s mortgage holder in 2020, comprising $9.8 million from the relief of a majority of the potential employee-related obligations, with the funds released to the Company from escrow, and $0.1 million due to reassessments of the remaining potential employee-related obligations currently held in escrow. (2) During 2022, the Company paid a total of $7.4 million in deferred financing costs related to its Amended Credit Agreement. In addition, the Company recognized a net loss of $0.9 million, comprising losses of $0.2 million related to the accelerated amortization of deferred financing costs associated with the partial repayments of the senior notes and $0.8 million related to lender fees and the accelerated amortization of deferred financing costs associated with the Amended Credit Agreement. These losses were slightly offset by a gain of $0.1 million associated with the assignment-in-lieu of the Hilton Times Square to the hotel’s mortgage holder in 2020 due to reassessments of the potential employee-related obligations currently held in escrow. (3) During 2021, the Company paid a total of $0.4 million in deferred financing costs related to its 2021 Unsecured Debt Amendments. In addition, the Company recognized a net loss of $0.1 million, comprising a loss of $0.4 million related to the accelerated amortization of deferred financing costs associated with the assignment of the mortgage secured by the Embassy Suites La Jolla to the hotel’s buyer and the repayments of a portion of the term loans, partially offset by a gain of $0.3 million associated with the assignment-in-lieu of the Hilton Times Square to the hotel’s mortgage holder in 2020 due to reassessments of the potential employee-related obligations currently held in escrow. Interest Expense Total interest incurred and expensed on the notes payable and finance lease obligation was as follows (in thousands): 2023 2022 2021 Interest expense on debt and finance lease obligation $ 48,727 $ 31,713 $ 31,378 Noncash interest on derivatives, net 252 (2,194) (3,405) Amortization of deferred financing costs 2,700 2,486 2,925 Total interest expense $ 51,679 $ 32,005 $ 30,898 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities [Abstract] | |
Other Liabilities | 8. Other Liabilities Other liabilities consisted of the following (in thousands): December 31, 2023 2022 Advance deposits $ 45,432 $ 50,219 Property, sales and use taxes payable 6,903 7,500 Accrued interest 6,346 6,915 Deferred rent 2,711 3,981 Income taxes payable 2,860 — Interest rate derivative 401 — Management fees payable 1,321 1,584 Other 7,040 8,234 Total other liabilities $ 73,014 $ 78,433 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 9. Leases As of both December 31, 2023 and 2022, the Company had operating leases for ground, office, equipment and airspace leases with maturity dates ranging from 2024 through 2097, excluding renewal options. Including renewal options available to the Company, the lease maturity date extends to 2147. Operating leases were included on the Company’s consolidated balance sheets as follows (in thousands): December 31, 2023 2022 Right-of-use assets, net $ 12,755 $ 15,025 (1) Lease obligations $ 16,735 $ 19,012 Weighted average remaining lease term 30 years Weighted average discount rate 5.3 % (1) In 2022, the Company wrote-down its operating lease right-of-use assets, net and recorded an impairment loss of $2.1 million related to the office lease at its former corporate headquarters. (see Note 5). Lease Transactions - 2023 In January 2023, the Company relocated its corporate headquarters and recognized a $2.2 million operating lease right-of-use asset and related lease obligation. Lease Transactions - 2022 During the fourth quarter of 2022, the Company entered into a sublease agreement on its former corporate headquarters, which became effective in January 2023. Upon sale of the Hilton Garden Inn Chicago Downtown/Magnificent Mile in March 2022 (see Note 4), the Company was no longer obligated under an operating lease related to certain office and parking space at the hotel and the related $2.3 million right-of-use asset, net and $2.6 million lease obligation were removed from the Company’s consolidated balance sheet. Upon sale of the Hyatt Centric Chicago Magnificent Mile in February 2022 (see Note 4), the Company was no longer obligated under a finance lease related to the building occupied by the hotel and the related $44.7 million right-of-use asset, net and $15.6 million finance lease obligation were removed from the Company’s consolidated balance sheet. Lease Expense The components of lease expense were as follows (in thousands): 2023 2022 2021 Finance lease cost (1): Amortization of right-of-use asset $ — $ — $ 1,470 Interest on lease obligations — 117 1,404 Operating lease cost 5,427 5,367 5,457 Variable lease cost (2) 8,438 6,853 393 Sublease income (3) (1,187) — — Total lease cost $ 12,678 $ 12,337 $ 8,724 (1) Finance lease cost included expenses for the Hyatt Centric Chicago Magnificent Mile’s finance lease obligation before the hotel’s sale in February 2022 (see Note 4). (2) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds. (3) Sublease income is included in corporate overhead in the accompanying consolidated statements of operations for the year ended December 31, 2023. At December 31, 2023, future maturities of the Company’s operating lease obligations were as follows (in thousands): 2024 $ 5,783 2025 (1) 5,854 2026 1,607 2027 926 2028 599 Thereafter 1,207 Total lease payments 15,976 Less: interest (2) (2,499) Present value of lease obligations (3) $ 13,477 (1) Operating lease obligations include a ground lease that expires in 2071 and requires a reassessment of rent payments due after 2025, agreed upon by both the Company and the lessor; therefore, no amounts are included in the above table for this ground lease after 2025. (2) Calculated using the respective discount rate for each lease. (3) Operating lease obligations include the lease on the Company’s new corporate headquarters and the sublease on the Company’s former corporate headquarters, both of which were entered into during the fourth quarter of 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | 10. Income Taxes The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): December 31, 2023 2022 Deferred Tax Assets: Net operating loss carryforward $ 22,805 $ 22,383 Other reserves 1,095 561 State taxes and other 1,657 3,926 Depreciation 1,853 720 Total gross deferred tax assets 27,410 27,590 Deferred Tax Liabilities: Amortization (34) (25) Deferred revenue (22) — Other (167) (47) Total gross deferred tax liabilities (223) (72) Less: valuation allowance (27,187) (27,518) Deferred tax assets, net $ — $ — At December 31, 2023 and 2022, the net operating loss carryforwards for federal income tax purposes totaled approximately $103.8 million and $101.9 million, respectively. These losses, which begin to expire in 2031, are available to offset future income through 2043. The Company’s income tax provision, net was included in the consolidated statements of operations as follows (in thousands): 2023 2022 2021 Current: Federal $ (14) $ — $ — State (4,548) (359) (109) Current income tax provision, net (4,562) (359) (109) Deferred: Federal (123) 2,568 1,262 State (208) 654 (963) Change in valuation allowance 331 (3,222) (299) Deferred income tax provision, net — — — Income tax provision, net $ (4,562) $ (359) $ (109) The differences between the income tax (provision) benefit calculated at the statutory U.S. federal income tax rate of 21% and the actual income tax provision, net were as follows (in thousands): 2023 2022 2021 Expected federal tax expense at statutory rate $ (45,033) $ (18,406) $ (7,226) Tax impact of REIT election 40,767 20,981 8,823 Expected tax (provision) benefit of TRS (4,266) 2,575 1,597 State income tax benefit, net of federal (provision) (164) 517 (760) Change in valuation allowance 331 (3,222) (299) Other permanent items (463) (729) (647) Tax refunds and credits — 500 — Income tax provision, net $ (4,562) $ (359) $ (109) The Company’s tax years from 2020 to 2023 will remain open to examination by the federal and state authorities for three and four years, respectively. Characterization of Distributions For income tax purposes, distributions paid consist of ordinary income, capital gains, return of capital or a combination thereof. Distributions paid per share were characterized as follows (unaudited): 2023 2022 2021 Amount % Amount % Amount % Common Stock: Ordinary income (1) $ — — % $ 0.100 100 % $ — — % Capital gain 0.300 100 — — — — Return of capital — — — — — — Total $ 0.300 100 % $ 0.100 100 % $ — — % Preferred Stock — Series E Ordinary income (1) $ — — % $ — — % $ 0.772 100 % Capital gain — — — — — — Return of capital — — — — — — Total $ — — % $ — — % $ 0.772 100 % Preferred Stock — Series F Ordinary income (1) $ — — % $ — — % $ 0.990 100 % Capital gain — — — — — — Return of capital — — — — — — Total $ — — % $ — — % $ 0.990 100 % Preferred Stock — Series G Ordinary income (1) $ — — % $ 0.567 100 % $ 0.234 100 % Capital gain 0.469 100 — — — — Return of capital — — — — — — Total $ 0.469 100 % $ 0.567 100 % $ 0.234 100 % Preferred Stock — Series H Ordinary income (1) $ — — % $ 1.531 100 % $ 0.923 100 % Capital gain 1.531 100 — — — — Return of capital — — — — — — Total $ 1.531 100 % $ 1.531 100 % $ 0.923 100 % Preferred Stock — Series I Ordinary income (1) $ — — % $ 1.425 100 % $ 0.653 100 % Capital gain 1.425 100 — — — — Return of capital — — — — — — Total $ 1.425 100 % $ 1.425 100 % $ 0.653 100 % (1) Ordinary income qualifies for Section 199A treatment per the 2017 Tax Cuts and Jobs Act. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity | |
Stockholders' Equity | 11. Stockholders’ Equity Series E Cumulative Redeemable Preferred Stock In June 2021, the Company redeemed all 4,600,000 shares of its 6.95% Series E preferred stock at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date. An additional redemption charge of $4.0 million was recognized related to the original issuance costs of the Series E preferred stock, which were previously included in additional paid in capital. After the redemption date, the Company has no outstanding shares of Series E preferred stock, and all rights of the holders of such shares were terminated. Because the redemption of the Series E preferred stock was a redemption in full, trading of the Series E preferred stock on the New York Stock Exchange ceased on the June 11, 2021 redemption date. Series F Cumulative Redeemable Preferred Stock In August 2021, the Company redeemed all 3,000,000 shares of its 6.45% Series F preferred stock at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date. An additional redemption charge of $2.6 million was recognized related to the original issuance costs of the Series F preferred stock, which were previously included in additional paid in capital. After the redemption date, the Company has no outstanding shares of Series F preferred stock, and all rights of the holders of such shares were terminated. Because the redemption of the Series F preferred stock was a redemption in full, trading of the Series F preferred stock on the New York Stock Exchange ceased on the August 12, 2021 redemption date. Series G Cumulative Redeemable Preferred Stock Contemporaneous with the Company’s April 2021 purchase of the Montage Healdsburg, the Company issued 2,650,000 shares of its Series G preferred stock to the hotel’s seller as partial payment of the hotel. The Series G preferred stock, which is callable at its $25.00 redemption price plus accrued and unpaid dividends by the Company at any time, accrues dividends at an initial rate equal to the Montage Healdsburg’s annual net operating income yield on the Company’s investment in the resort. The annual dividend rate is expected to increase in 2024 to the greater of 3.0% or the rate equal to the Montage Healdsburg’s annual net operating income yield on the Company’s total investment in the resort. The Series G preferred stock is not convertible into any other security. Series H Cumulative Redeemable Preferred Stock In May 2021, the Company issued 4,600,000 shares of its 6.125% Series H preferred stock with a liquidation preference of $25.00. On or after May 24, 2026, the Series H preferred stock will be redeemable at the Company’s option, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date. Upon the occurrence of a change of control, as defined by the Articles Supplementary for Series H preferred stock, the Company may at its option redeem the Series H preferred stock for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date. If the Company chooses not to redeem the Series H preferred stock upon the occurrence of a change of control, holders of the Series H preferred stock may convert their preferred shares into shares of the Company’s common stock. Series I Cumulative Redeemable Preferred Stock In July 2021, the Company issued 4,000,000 shares of its 5.70% Series I preferred stock with a liquidation preference of $25.00. On or after July 16, 2026, the Series I preferred stock will be redeemable at the Company’s option, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date. Upon the occurrence of a change of control, as defined by the Articles Supplementary for Series I preferred stock, the Company may at its option redeem the Series I preferred stock for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date. If the Company chooses not to redeem the Series I preferred stock upon the occurrence of a change of control, holders of the Series I preferred stock may convert their preferred shares into shares of the Company’s common stock. Common Stock Stock Repurchase Program Details of the Company’s repurchases were as follows (dollars in thousands): 2023 2022 2021 Number of common shares repurchased 5,971,192 10,245,324 — Cost, including fees and commissions $ 56,403 $ 108,442 $ — Number of preferred shares repurchased (1) — — — (1) The redemptions of the Series E preferred stock and the Series F preferred stock in June 2021 and August 2021, respectively, were completed through separate authorizations by the Company’s board of directors. As of December 31, 2023, $454.7 million remains available for repurchase under the stock repurchase program. Future repurchases will depend on various factors, including the Company’s capital needs and restrictions under its various financing agreements, as well as the price of the Company’s common and preferred stock. ATM Agreements In accordance with the terms of the 2017 ATM Agreements, In March 2023, the Company terminated the 2017 ATM Agreements and entered into similar separate “At the Market” Agreements (the “2023 ATM Agreements”) with several financial institutions. In accordance with the terms of the 2023 ATM Agreements, the Company may from time to time offer and sell shares of its common stock having an aggregate offering price of up to $300.0 million. Details of the Company’s issuances of common stock under the 2023 ATM Agreements and the 2017 ATM Agreements were as follows (dollars in thousands): 2023 2022 2021 Number of shares issued — — 2,913,682 Gross proceeds $ — $ — $ 38,443 As of December 31, 2023, the Company has $300.0 million authorized for sale under the ATM Agreements. Dividends and Distributions The Company declared dividends and distributions per share on its preferred stock and common stock, respectively, as follows: 2023 2022 2021 Series E preferred stock $ — $ — $ 0.772222 Series F preferred stock $ — $ — $ 0.989896 Series G preferred stock $ 0.469437 $ 0.567112 $ 0.233685 Series H preferred stock $ 1.531252 $ 1.531252 $ 0.923004 Series I preferred stock $ 1.425000 $ 1.425000 $ 0.653125 Common stock $ 0.300000 $ 0.100000 $ — |
Incentive Award Plan
Incentive Award Plan | 12 Months Ended |
Dec. 31, 2023 | |
Incentive Award Plan | |
Incentive Award Plan | 12. Incentive Award Plan In April 2022, the Company’s stockholders approved the 2022 Incentive Award Plan (the “Plan”), which replaced the Company’s prior long-term incentive plan. The Plan provides for granting discretionary awards to employees, consultants and non-employee directors. The awards may be made in the form of options, restricted stock awards, dividend equivalents, stock payments, restricted stock units, other incentive awards, LTIP units or share appreciation rights. The Company has reserved 3,750,000 common shares for issuance under the Plan, and 2,581,199 shares remain available for future issuance as of December 31, 2023. At December 31, 2023, only shares of restricted stock were issued and outstanding under the Plan. Should a stock grant be forfeited prior to its vesting, the shares covered by the stock grant are added back to the Plan and remain available for future issuance. Shares of common stock tendered or withheld to satisfy the grant or exercise price or tax withholding obligations upon the vesting of a stock grant are not added back to the Plan. Restricted shares and units are measured at fair value on the date of grant and amortized as compensation expense over the relevant requisite service period or derived service period. The Company has elected to account for forfeitures as they occur. As of December 31, 2023, the Company’s issued and outstanding awards consisted of both time-based and performance-based restricted stock grants. The Company’s amortization expense, including forfeitures related to restricted shares was as follows (in thousands): 2023 2022 2021 Amortization expense, including forfeitures $ 10,775 $ 10,891 $ 12,788 (1) Capitalized compensation cost (2) $ 467 $ 481 $ 490 (1) In 2021, the Company recognized $1.1 million in amortization of deferred stock compensation expense related to the departure of its former Chief Executive Officer. (2) The Company capitalizes compensation costs related to restricted shares granted to certain employees whose work is directly related to the Company’s capital investment in hotels. As of December 31, 2023, $10.9 million in compensation expense related to non-vested restricted stock grants remained to be recognized over a weighted-average period of 21 months . Restricted Stock Awards The Company’s restricted stock awards are time-based restricted shares that generally vest over periods ranging from three years to five years from the date of grant. The following is a summary of non-vested restricted stock grant activity: 2023 2022 2021 Weighted Weighted Weighted Average Average Average Shares Price Shares Price Shares Price Outstanding at beginning of year 1,289,146 $ 11.65 1,463,315 $ 12.15 1,336,836 $ 14.01 Granted 450,964 $ 10.58 555,501 $ 11.41 1,478,874 $ 11.55 Vested (699,652) $ 11.76 (694,863) $ 12.50 (1,116,989) $ 13.65 Forfeited (8,192) $ 11.12 (34,807) $ 11.79 (235,406) $ 11.81 Outstanding at end of year 1,032,266 $ 11.11 1,289,146 $ 11.65 1,463,315 $ 12.15 Restricted Stock Units In February 2023 and 2022, the Company granted restricted stock units that vest at the end of a three-year performance period and are subject to the achievement of a market condition based on a measure of the Company’s total shareholder return relative to the total shareholder return of the companies that comprise the FTSE Nareit Equity Lodging/Resorts Index who have a market capitalization in excess of $500 million as of the first day of the applicable performance period (the “TSR Three-Year Performance Period Shares”). The number of TSR Three-Year Performance Period Shares that may become vested ranges from zero to 200% of the number of related shares granted to the employee, based on the level of achievement of the foregoing performance measure. Additionally, in February 2022, the Company granted special awards that will vest in January 2024 after a two-year performance period which ended December 31, 2023 (the “TSR Two-Year Performance Period Shares”). The TSR Two-Year Performance Period Shares were subject to the achievement of a market condition based on a measure of the Company’s total shareholder return relative to the total shareholder return of the companies that comprise the FTSE Nareit Equity Lodging/Resorts Index who have a market capitalization in excess of $500 million as of the first day of the applicable performance period. The number of TSR Two-Year Performance Period Shares that may become vested ranges from zero to 200% of the number of related shares granted to the employee, based on the level of achievement of the foregoing performance measure. In March 2022, the Company granted special awards that are subject to the achievement of five increasing levels of the Company’s closing common stock price per share, from $13.50 to $19.50, sustained over a 20 consecutive trading day period (the “Stock Price Target Five-Year Performance Period Shares”). The Stock Price Target Five-Year Performance Period Shares will vest on the later to occur of the date on which the stock price target is achieved and the third anniversary of the grant date. The following is a summary of non-vested restricted stock unit activity: 2023 2022 2021 Weighted Weighted Weighted Average Average Average Shares Price Shares Price Shares Price Outstanding at beginning of year 612,584 $ 10.40 — $ — — $ — Granted 463,576 $ 11.07 612,584 $ 10.40 — $ — Vested — $ — — $ — — $ — Outstanding at end of year 1,076,160 $ 10.69 612,584 $ 10.40 — $ — The grant date fair value of the performance awards was determined based on a Monte Carlo simulation method with the following assumptions: Performance Award Grant Date Expected Volatility Dividend Yield (1) Risk-Free Rate Expected Term February 9, 2023 TSR Three-Year Performance Period Shares 38.0 % — 4.18 % 3 years February 10, 2022 TSR Two-Year Performance Period Shares 41.0 % — 1.56 % 2 years TSR Three-Year Performance Period Shares 41.0 % — 1.78 % 3 years March 7, 2022 Stock Price Target Five-Year Performance Period Shares 40.0 % — 1.72 % 5 years (1) Dividend equivalents are assumed to be reinvested in shares of the Company’s common stock and dividend equivalents will only be paid to the extent the award vests. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 13. Commitments and Contingencies Management Agreements Management agreements with the Company’s third-party hotel managers currently require the Company to pay between 2.0% and 3.0% of total revenue of the managed hotels to the third-party managers each month as a basic management fee. In addition to basic management fees, provided that certain operating thresholds are met, the Company may also be required to pay incentive management fees to certain of its third-party managers. Total basic management and incentive management fees were included in other property-level expenses on the Company’s consolidated statements of operations as follows (in thousands): 2023 2022 2021 Basic management fees $ 27,122 $ 24,858 $ 13,406 Incentive management fees 7,534 6,696 1,806 Total basic and incentive management fees $ 34,656 $ 31,554 $ 15,212 License and Franchise Agreements The Company has entered into license and franchise agreements related to certain of its hotels. The license and franchise agreements require the Company to, among other things, pay monthly fees that are calculated based on specified percentages of certain revenues. The license and franchise agreements generally contain specific standards for, and restrictions and limitations on, the operation and maintenance of the hotels which are established by the franchisors to maintain uniformity in the system created by each such franchisor. Such standards generally regulate the appearance of the hotel, quality and type of goods and services offered, signage and protection of trademarks. Compliance with such standards may from time to time require the Company to make significant expenditures for capital improvements. Total license and franchise fees were included in franchise costs on the Company’s consolidated statements of operations as follows (in thousands): 2023 2022 2021 Franchise assessments (1) $ 15,674 $ 14,690 $ 9,060 Franchise royalties (2) 1,202 1,149 2,294 Total franchise costs $ 16,876 $ 15,839 $ 11,354 (1) Includes advertising, reservation and frequent guest program assessments. (2) Prior to the sale of the Hyatt Centric Chicago Magnificent Mile in February 2022 (see Note 4), franchise royalties included key money received from the hotel’s franchisor, which the Company was amortizing over the term of the hotel’s franchise agreement. Renovation and Construction Commitments At December 31, 2023, the Company had various contracts outstanding with third parties in connection with the ongoing renovations of certain of its hotel properties. The remaining commitments under these contracts at December 31, 2023 totaled $64.3 million. 401(k) Savings and Retirement Plan The Company’s corporate employees may participate, subject to eligibility, in the Company’s 401(k) Savings and Retirement Plan (the “401(k) Plan”). Qualified employees are eligible to participate in the 401(k) Plan after attaining 21 years of age and after the first of the month following the completion of six calendar months of employment. Three percent of eligible employee annual base earnings are contributed by the Company as a Safe Harbor elective contribution. Safe Harbor contributions made by the Company totaled $0.2 million in each of the years 2023, 2022 and 2021, and were included in corporate overhead expense on the Company’s consolidated statements of operations. The Company is also responsible for funding various retirement plans at certain hotels operated by its management companies. Other property-level expenses on the Company’s consolidated statements of operations includes matching contributions into these various retirement plans of $1.6 million in 2023, $1.4 million in 2022 and $1.0 million in 2021. Collective Bargaining Agreements The Company is subject to exposure to collective bargaining agreements at certain hotels operated by its management companies. At December 31, 2023, approximately 28.6% of workers employed by the Company’s third-party managers were covered by such collective bargaining agreements. Concentration of Risk The concentration of the Company’s hotels in California, Florida and Hawaii exposes the Company’s business to economic and severe weather conditions, competition and real and personal property tax rates unique to these locales. As of December 31, 2023, nine of the 14 Hotels were geographically concentrated as follows: Percentage of Percentage of Total Number of Hotels Total Rooms Consolidated Revenue California 5 39 % 44 % Florida 3 19 % 17 % Hawaii 1 8 % 17 % Hurricane Ida During the third quarter of 2021, the Company’s two New Orleans hotels were impacted to varying degrees by Hurricane Ida. While both hotels remained open during the storm, they sustained wind-driven damage, rain infiltration and water damage. During 2022 and 2021, the Company incurred Hurricane Ida-related restoration expenses of $1.6 million and $2.9 million, respectively, at the Hilton New Orleans St. Charles and $0.1 million and $1.3 million, respectively, at the JW Marriott New Orleans. All restoration expenses are included in repairs and maintenance expense on the accompanying consolidated statements of operations for the years ended December 31, 2022 and 2021. In addition, in 2021, the Company wrote-off $2.7 million in assets at the Hilton New Orleans St. Charles due to Hurricane Ida-related damage, which is included in impairment losses on the accompanying consolidated statement of operations for the year ended December 31, 2021. The Company maintains customary property, casualty, environmental, flood and business interruption insurance at all of its hotels, the coverage of which is subject to certain limitations including higher deductibles in the event of a named storm. While the Company concluded that the cost to restore damages at the JW Marriott New Orleans did not exceed the hotel’s deductible, the Company recognized an advance payment of $4.4 million from its insurers in 2022 for Hurricane Ida-related property damage expenses previously incurred at the Hilton New Orleans St. Charles, which is included in interest and other income on the accompanying consolidated statement of operations for the year ended December 31, 2022. During 2022, the Company also recognized an advance payment of $1.0 million from its insurers related to its business interruption claim at the Hilton New Orleans St. Charles, which is included in other operating revenue on the accompanying consolidated statement of operations for the year ended December 31, 2022. In June 2023, the Company entered into an agreement to finalize its Hurricane Ida-related property damage claim and its business interruption claim at the Hilton New Orleans St. Charles, resulting in the receipt of $3.7 million for property damage expenses incurred and $0.5 million in business interruption proceeds, which are included in interest and other income and other operating revenue, respectively, on the accompanying consolidated statement of operations for the year ended December 31, 2023. Other In accordance with the assignment-in-lieu agreement executed in December 2020 between the Company and the mortgage holder of the Hilton Times Square, the Company was required to retain approximately $11.6 million related to certain current and potential employee-related obligations (the “potential obligation”), of which the Company was relieved of $0.2 million in 2022 and $0.8 million in 2021. In February 2023, the Company was relieved of an additional $9.8 million of the potential obligation and the funds were released from escrow to the Company, resulting in a $9.8 million gain on extinguishment of debt. In addition, the remaining potential obligation is reassessed at the end of every quarter, resulting in gains on extinguishment of debt of $0.1 million in both 2023 and 2022 and $0.3 million in 2021, which are included in gain (loss) on extinguishment of debt, net on the accompanying consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023 and 2022, restricted cash on the accompanying consolidated balance sheets included $0.2 million and $10.2 million, respectively, which will continue to be held in escrow until the potential obligation is resolved. The potential obligation balances of $0.2 million and $10.2 million are included in accounts payable and accrued expenses on the accompanying consolidated balance sheets as of December 31, 2023 and 2022, respectively. Coterminous with the Company’s acquisition of the Four Seasons Resort Napa Valley in 2021, the Company was required to deposit $3.1 million into a restricted bank account owned by the Company, but to which the hotel’s management company, Four Seasons, had sole and unrestricted access to withdraw funds for the purpose of satisfying any potential employee-related obligations that should arise in connection with potential future severance obligations, if those claims were not previously satisfied. The estimated future severance obligations total of $3.1 million was included in restricted cash on the accompanying consolidated balance sheet as of December 31, 2022. In January 2023, Four Seasons released the $3.1 million to the Company and the Company agreed to provide an unconditional guaranty to Four Seasons for the full and prompt payment of all amounts payable by the Company to Four Seasons relating to employee liability. The Company has provided customary unsecured indemnities to certain lenders, including in particular, environmental indemnities. The Company has performed due diligence on the potential environmental risks, including obtaining an independent environmental review from outside environmental consultants. These indemnities obligate the Company to reimburse the indemnified parties for damages related to certain environmental matters. There is no term or damage limitation on these indemnities; however, if an environmental matter arises, the Company could have recourse against other previous owners or a claim against its environmental insurance policies. At December 31, 2023, the Company had $0.2 million of outstanding irrevocable letters of credit to guarantee the Company’s financial obligations related to workers’ compensation insurance programs from prior policy years. The beneficiaries of these letters of credit may draw upon the letters of credit in the event of a contractual default by the Company relating to each respective obligation. No draws have been made through December 31, 2023. The letters of credit are collateralized with $0.2 million held in a restricted bank account owned by the Company, which is included in restricted cash on the accompanying consolidated balance sheets as of both December 31, 2023 and 2022. The Company is subject to various claims, lawsuits and legal proceedings, including routine litigation arising in the ordinary course of business, regarding the operation of its hotels, its managers and other Company matters. While it is not possible to ascertain the ultimate outcome of such matters, the Company believes that the aggregate identifiable amount of such liabilities, if any, in excess of amounts covered by insurance will not have a material adverse impact on its financial condition or results of operations. The outcome of claims, lawsuits and legal proceedings brought against the Company, however, is subject to significant uncertainties. |
Schedule III-Real Estate and Ac
Schedule III-Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2023 | |
Schedule III-Real Estate and Accumulated Depreciation | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure | SUNSTONE HOTEL INVESTORS, INC. SCHEDULE II I—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2023 (In thousands) Cost Capitalized Gross Amount at Initial costs Subsequent to Acquisition December 31, 2023 (1) Bldg. and Bldg. and Bldg. and Accum. Date Depr. Encmbr. Land Impr. Land Impr. Land Impr. Totals Depr. Acq./Constr. Life Four Seasons Resort Napa Valley $ — (2) $ 23,514 $ 128,645 $ — $ 8,107 $ 23,514 $ 136,752 $ 160,266 $ 7,828 12/1/2021 5 - 40 Hilton New Orleans St. Charles — (2) 3,698 53,578 — 15,985 3,698 69,563 73,261 16,584 5/1/2013 5 - 35 Hilton San Diego Bayfront — (2) — 424,992 — 32,910 — 457,902 457,902 109,357 4/15/2011 5 - 57 Hyatt Regency San Francisco — (2) 116,140 131,430 — 107,702 116,140 239,132 355,272 95,447 12/2/2013 5 - 35 JW Marriott New Orleans 74,050 — 73,420 15,147 42,282 15,147 115,702 130,849 42,098 2/15/2011 5 - 35 Marriott Boston Long Wharf — (2) 51,598 170,238 — 78,268 51,598 248,506 300,104 128,612 3/23/2007 5 - 35 Montage Healdsburg — (2) 40,326 194,589 108 5,671 40,434 200,260 240,694 16,063 4/22/2021 5 - 40 Oceans Edge Resort & Marina — (2) 92,510 74,361 2,515 7,970 95,025 82,331 177,356 15,044 7/25/2017 5 - 40 Renaissance Long Beach — (2) 10,437 37,300 — 28,153 10,437 65,453 75,890 36,518 6/23/2005 5 - 35 Renaissance Orlando at SeaWorld ® — (2) — 119,733 30,717 72,312 30,717 192,045 222,762 104,818 6/23/2005 5 - 35 The Bidwell Marriott Portland — (2) 5,341 20,705 — 27,785 5,341 48,490 53,831 23,869 8/11/2000 5 - 35 The Confidante Miami Beach — (2) 87,791 140,725 — 632 87,791 141,357 229,148 5,652 6/1/2022 3 - 40 The Westin Washington, DC Downtown — (2) 14,563 132,800 — 137,570 14,563 270,370 284,933 112,541 7/13/2005 5 - 35 Wailea Beach Resort — (2) 119,707 194,137 — 125,278 119,707 319,415 439,122 96,614 7/14/2014 5 - 40 $ 74,050 $ 565,625 $ 1,896,653 $ 48,487 $ 690,625 $ 614,112 $ 2,587,278 $ 3,201,390 $ 811,045 (1) The aggregate cost of properties for federal income tax purposes is approximately $3.6 billion (unaudited) at December 31, 2023. (2) Hotel is pledged as collateral by the Company’s credit facility. As of December 31, 2023, the Company has no outstanding indebtedness under its credit facility. The following is a reconciliation of real estate assets and accumulated depreciation (in thousands): Hotel Properties 2023 2022 2021 Reconciliation of land and buildings and improvements: Balance at the beginning of the year $ 3,466,302 $ 3,334,153 $ 3,094,962 Activity during year: Acquisitions — 229,030 387,074 Improvements 92,437 76,230 36,884 Impairment losses — — (3,264) Changes in reporting presentation (1) — — (53,068) Dispositions (357,349) (173,111) (128,435) Balance at the end of the year $ 3,201,390 $ 3,466,302 $ 3,334,153 Reconciliation of accumulated depreciation: Balance at the beginning of the year $ 835,961 $ 799,641 $ 772,289 Depreciation 96,771 95,495 96,508 Impairment losses — — (579) Changes in reporting presentation (1) — — (24,144) Dispositions (121,687) (59,175) (44,433) Balance at the end of the year $ 811,045 $ 835,961 $ 799,641 (1) Changes in reporting presentation in 2021 include the net assets for the Hyatt Centric Chicago Magnificent Mile, which the Company classified as held for sale as of December 31, 2021 due to its sale in February 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements as of December 31, 2023 and 2022, and for the years ended December 31, 2023, 2022 and 2021, include the accounts of the Company, the Operating Partnership, the TRS Lessee, and their controlled subsidiaries. All significant intercompany balances and transactions have been eliminated. If the Company determines that it has an interest in a variable interest entity, the Company will consolidate the entity when it is determined to be the primary beneficiary of the entity. The Company does not have any comprehensive income other than what is included in net income. If the Company has any comprehensive income in the future such that a statement of comprehensive income would be necessary, the Company will include such statement in one continuous consolidated statement of operations. As of the third quarter of 2023, the Company changed its balance sheet presentation from classified (distinguishing between short-term and long-term accounts) to unclassified (no such distinction) to conform with its REIT peers in the lodging sector and reporting entities in the REIT industry more broadly. Given the nature of the Company’s operations, the previous classified presentation did not provide additional information that was useful to derive any metric by which the Company is measured and made comparisons to similar reporting entities more challenging and less meaningful. As the Company is now presenting an unclassified balance sheet, adjustments have been made to the historical classified consolidated balance sheet at December 31, 2022 in order for it to conform with the current unclassified presentation. The Company has evaluated subsequent events through the date of issuance of these financial statements. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents includes cash on hand and in various bank accounts plus credit card receivables and all short-term investments with an original maturity of three months or less. The Company maintains cash and cash equivalents with various financial institutions. These financial institutions are located throughout the country and the Company’s policy is designed to limit exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy. At December 31, 2023 and 2022, the Company had amounts in banks that were in excess of federally insured amounts. |
Restricted Cash | Restricted Cash Restricted cash primarily includes reserves for operating expenses and capital expenditures required by certain of the Company’s management, franchise and debt agreements. At times, restricted cash also includes hotel acquisition or disposition-related earnest money held in escrow reserves pending completion of the associated transaction. In addition, restricted cash as of December 31, 2023 and 2022 includes $0.2 million and $10.2 million, respectively, held in escrow related to certain current and potential employee-related obligations of one of the Company’s former hotels and $0.2 million held as collateral for certain letters of credit as of both December 31, 2023 and 2022 (see Note 13). Restricted cash as of December 31, 2022 also included $3.1 million held in escrow for the purpose of satisfying any potential employee-related obligations that should arise in connection with the termination of hotel personnel and any employment claim by hotel personnel at the Four Seasons Resort Napa Valley (see Note 13). |
Accounts Receivable | Accounts Receivable Accounts receivable primarily represents receivables from hotel guests who occupy hotel rooms and utilize hotel services. Accounts receivable also includes, among other things, receivables from tenants who lease space in the Company’s hotels. The Company maintains an allowance for doubtful accounts sufficient to cover potential credit losses. |
Acquisitions of Hotel Properties and Other Entities | Acquisitions of Hotel Properties and Other Entities The acquisition of a hotel property or other entity requires an analysis of the transaction to determine if it qualifies as the purchase of a business or an asset. If the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, then the transaction is an asset acquisition. Transaction costs associated with asset acquisitions are capitalized and subsequently depreciated over the life of the related asset, while the same costs associated with a business combination are expensed as incurred and included in corporate overhead on the Company’s consolidated statements of operations. Also, given the subjectivity, business combinations are provided a one-year measurement period to adjust the provisional amounts recognized if the necessary information is not available by the end of the reporting period in which the acquisition occurs; whereas asset acquisitions are not subject to a measurement period. Accounting for the acquisition of a hotel property or other entity requires either allocating the purchase price to the assets acquired and the liabilities assumed in the transaction at their respective relative fair values for an asset acquisition or recording the assets and liabilities at their estimated fair values with any excess consideration above net assets going to goodwill for a business combination. The most difficult estimations of individual fair values are those involving long-lived assets, such as property, equipment and intangible assets, together with any finance or operating lease right-of-use assets and their related obligations. When the Company acquires a hotel property or other entity, it uses all available information to make these fair value determinations, including discounted cash flow analyses, market comparable data and replacement cost data. In addition, the Company makes significant estimations regarding capitalization rates, discount rates, average daily rates, revenue growth rates and occupancy. The Company also engages independent valuation specialists to assist in the fair value determinations of the long-lived assets acquired and the liabilities assumed. The determination of fair value is subjective and is based in part on assumptions and estimates that could differ materially from actual results in future periods. |
Investments in Hotel Properties | Investments in Hotel Properties Investments in hotel properties, including land, buildings, furniture, fixtures and equipment (“FF&E”) and identifiable intangible assets are recorded at their respective relative fair values for an asset acquisition or at their estimated fair values for a business acquisition. Property and equipment purchased after the hotel acquisition date is recorded at cost. Replacements and improvements are capitalized, while repairs and maintenance are expensed as incurred. Upon the sale or retirement of a fixed asset, the cost and related accumulated depreciation is removed from the Company’s accounts and any resulting gain or loss is included in the consolidated statements of operations. Depreciation expense is based on the estimated life of the Company’s assets. The life of the assets is based on a number of assumptions, including the cost and timing of capital expenditures to maintain and refurbish the Company’s hotels, as well as specific market and economic conditions. Hotel properties are depreciated using the straight-line method over estimated useful lives primarily ranging from five years to forty years for buildings and improvements and three years to twelve years for FF&E. Intangible assets are amortized using the straight-line method over the shorter of their estimated useful life or over the length of the related agreement. The Company’s investment in hotel properties, net also includes initial franchise fees which are recorded at cost and amortized using the straight-line method over the terms of the franchise agreements ranging from fifteen years to twenty years . All other franchise fees that are based on the Company’s results of operations are expensed as incurred. While the Company believes its estimates are reasonable, a change in the estimated lives could affect depreciation expense and net income or the gain or loss on the sale of any of the Company’s hotels. The Company has not changed the useful lives of any of its assets during the periods discussed. Impairment losses are recorded on investments in hotel properties to be held and used by the Company whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Factors the Company considers when assessing whether impairment indicators exist include hotel disposition strategy and hold period, a significant decline in operating results not related to renovations or repositionings, significant changes in the manner in which the Company uses the asset, physical damage to the property due to unforeseen events such as natural disasters, and other market and economic conditions. Recoverability of assets that will continue to be used is measured by comparing the carrying amount of the asset to the related total future undiscounted net cash flows. If an asset’s carrying value is not recoverable through those cash flows, the asset is considered to be impaired. The impairment is measured by the difference between the asset’s carrying amount and its fair value. The Company performs a fair value assessment using valuation techniques such as discounted cash flows and comparable sale transactions in the market to estimate the fair value of the hotel and, if appropriate and available, current estimated net sales proceeds from pending offers. The Company’s judgment is required in determining the discount rate, terminal capitalization rate, the estimated growth of revenues and expenses, revenue per available room and margins, as well as specific market and economic conditions. Based on the Company’s review, no hotels were impaired in either 2023 or 2022. In 2021, the Company recognized a $2.7 million impairment loss on the Hilton New Orleans St. Charles due to Hurricane Ida-related damage at the hotel (see Notes 5 and 13). Fair value represents the amount at which an asset could be bought or sold in a current transaction between willing parties, that is, other than a forced or liquidation sale. The estimation process involved in determining if assets have been impaired and in the determination of fair value is inherently uncertain because it requires estimates of current market yields as well as future events and conditions. Such future events and conditions include economic and market conditions, as well as the availability of suitable financing. The realization of the Company’s investment in hotel properties is dependent upon future uncertain events and conditions and, accordingly, the actual timing and amounts realized by the Company may be materially different from their estimated fair values. |
Assets Held for Sale | Assets Held for Sale The Company considers a hotel and related assets held for sale if it is probable that the sale will be completed within twelve months , among other requirements. A sale is considered to be probable once the buyer completes its due diligence of the asset, there is an executed purchase and sale agreement between the Company and the buyer, the buyer waives any closing contingencies, there are no third-party approvals necessary and the Company has received a substantial non-refundable deposit. Depreciation ceases when a property is held for sale. Should an impairment loss be required for assets held for sale, the related assets are adjusted to their estimated fair values, less costs to sell. If the sale of the hotel represents a strategic shift that will have a major effect on the Company’s operations and financial results, the hotel qualifies as a discontinued operation, and operating results are removed from income from continuing operations and reported as discontinued operations. The operating results for any such assets for any prior periods presented must also be reclassified as discontinued operations. No hotels were considered held for sale as of either December 31, 2023 or 2022. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs consist of loan fees and other financing costs related to the Company’s outstanding indebtedness and credit facility commitments and are amortized to interest expense over the terms of the related debt or commitment. If a loan is refinanced or paid before its maturity, any unamortized deferred financing costs will generally be expensed unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs related to the Company’s undrawn credit facility are included on the Company’s consolidated balance sheets as an asset and are amortized ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. Deferred financing costs related to the Company’s outstanding debt are included on the Company’s consolidated balance sheets as a contra-liability (see Note 7), and subsequently amortized ratably over the term of the related debt. |
Interest Rate Derivatives | Interest Rate Derivatives The Company’s objective in holding interest rate derivatives is to manage its exposure to the interest rate risks related to its floating rate debt. To accomplish this objective, the Company uses interest rate caps and swaps, none of which qualifies for effective hedge accounting treatment. The Company records interest rate caps and swaps on the balance sheet at their fair value. Changes in the fair value of derivatives are recorded each period in the consolidated statements of operations. |
Leases | Leases The Company determines if a contract is a lease at inception. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Expense for these short-term leases is recognized on a straight-line basis over the lease term. For leases with an initial term greater than twelve months , the Company records a right-of-use (“ROU”) asset and a corresponding lease obligation. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease obligations represent the Company’s obligation to make fixed lease payments as stipulated by the lease. The Company has elected to not separate lease components from nonlease components, resulting in the Company accounting for lease and nonlease components as one single lease component. Leases are accounted for using a dual approach, classifying leases as either operating or financing based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the Company. This classification determines whether the lease expense is recognized on a straight-line basis over the term of the lease for operating leases or based on an effective interest method for finance leases. Upon the sale of the Hyatt Centric Chicago Magnificent Mile and its related finance lease in February 2022 (see Notes 4 and 9), the Company’s leases consist solely of operating leases. Lease ROU assets are recognized at the lease commencement date and include the amount of the initial operating lease obligation, any lease payments made at or before the commencement date, excluding any lease incentives received, and any initial direct costs incurred. For leases that have extension options that the Company can exercise at its discretion, management uses judgment to determine if it is reasonably certain that the Company will in fact exercise such option. If the extension option is reasonably certain to occur, the Company includes the extended term’s lease payments in the calculation of the respective lease liability. None of the Company’s leases contain any material residual value guarantees or material restrictive covenants. Lease obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) based on information available at the commencement date in determining the present value of lease payments over the lease term. The IBR is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In order to estimate the Company’s IBR, the Company first looks to its own unsecured debt offerings and adjusts the rate for both length of term and secured borrowing using available market data as well as consultations with leading national financial institutions that are active in the issuance of both secured and unsecured notes. The Company reviews its right-of-use assets for indicators of impairment. If such assets are considered to be impaired, the related assets are adjusted to their estimated fair value and an impairment loss is recognized. The impairment loss recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Based on the Company’s review, no operating lease ROU assets were impaired during 2023 and the Company recorded a $2.1 million impairment loss on the ROU asset related to the office lease at its former corporate headquarters (see Notes 5 and 9) during 2022. No operating or finance lease ROU assets were impaired during 2021. |
Revenue Recognition | Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to hotel guests, which is generally defined as the date upon which a guest occupies a room and/or utilizes the hotel’s services. Room revenue and other occupancy based fees are recognized over a guest’s stay at the previously agreed upon daily rate. Some of the Company’s hotel rooms are booked through independent internet travel intermediaries. If the guest pays the independent internet travel intermediary directly, revenue for the room is recognized by the Company at the price the Company sold the room to the independent internet travel intermediary, less any discount or commission paid. If the guest pays the Company directly, revenue for the room is recognized by the Company on a gross basis, with the related discount or commission recognized in room expense. A majority of the Company’s hotels participate in frequent guest programs sponsored by the hotel brand owners whereby the hotel allows guests to earn loyalty points during their hotel stay. The Company expenses charges associated with these programs as incurred, and recognizes revenue at the amount it will receive from the brand when a guest redeems their loyalty points by staying at one of the Company’s hotels. In addition, some contracts for rooms or food and beverage services require an advance deposit, which the Company records as deferred revenue (or a contract liability) and recognizes once the performance obligations are satisfied. Cancellation fees and attrition fees, which are charged to groups when they do not fulfill their contracted minimum number of room nights or minimum food and beverage spending requirements, are typically recognized as revenue in the period the Company determines it is probable that a significant reversal in the amount of revenue recognized will not occur, which is generally the period in which these fees are collected. Food and beverage revenue and other ancillary services revenue are generated when a customer chooses to purchase goods or services. The revenue is recognized when the goods or services are provided to the customer at the amount the Company expects to be entitled to in exchange for those goods or services. For ancillary services provided by third parties, the Company assesses whether it is the principal or the agent. If the Company is the principal, revenue is recognized based upon the gross sales price. If the Company is the agent, revenue is recognized based upon the commission earned from the third party. Additionally, the Company collects sales, use, occupancy and other similar taxes from customers at its hotels at the time of purchase, which are not included in revenue. The Company records a liability upon collection of such taxes from the customer, and relieves the liability when payments are remitted to the applicable governmental agency. Trade receivables and contract liabilities consisted of the following (in thousands): December 31, 2023 2022 Trade receivables, net (1) $ 14,431 $ 19,751 Contract liabilities (2) $ 45,432 $ 50,219 (1) Trade receivables, net are included in accounts receivable, net on the accompanying consolidated balance sheets. (2) Contract liabilities consist of advance deposits and are included in other liabilities on the accompanying consolidated balance sheets. During 2023 and 2022, the Company recognized approximately $43.7 million and $27.9 million, respectively, in revenue related to its outstanding contract liabilities. |
Advertising and Promotion Costs | Advertising and Promotion Costs Advertising and promotion costs are expensed when incurred. Advertising and promotion costs represent the expense for advertising and reservation systems under the terms of the hotel franchise and brand management agreements and general and administrative expenses that are directly attributable to advertising and promotions. |
Stock Based Compensation | Stock Based Compensation Restricted shares and units are measured at fair value on the date of grant and amortized as compensation expense over the relevant requisite service period or derived service period. The Company has elected to account for forfeitures as they occur. |
Income Taxes | Income Taxes The Company is subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income. In addition, the TRS Lessee, which leases the Company’s hotels from the Operating Partnership, is subject to federal and state income taxes. The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company reviews any uncertain tax positions and, if necessary, records the expected future tax consequences of uncertain tax positions in its consolidated financial statements. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. The Company’s management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes federal and certain states. The Company recognizes any penalties and interest related to unrecognized tax benefits in income tax expense in its consolidated statements of operations. |
Dividends | Dividends Under current federal income tax laws related to REITs, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders. Currently, the Company pays quarterly cash dividends to both its common and preferred stockholders as declared by the Company’s board of directors. Any future common stock dividends will be determined by the Company’s board of directors after considering the Company’s long-term operating projections, expected capital requirements and risks affecting its business. The Company’s ability to pay dividends is dependent on the receipt of distributions from the Operating Partnership. |
Earnings Per Share | Earnings Per Share The Company applies the two-class method when computing its earnings per share. Net income per share for each class of stock is calculated assuming all of the Company’s net income is distributed as dividends to each class of stock based on their contractual rights. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid), which include the Company’s time-based restricted stock awards, are considered participating securities and are included in the computation of earnings per share. Basic earnings attributable to common stockholders per common share is computed based on the weighted average number of shares of common stock outstanding during each period, including shares of the Company’s performance-based restricted stock units for which all necessary conditions have been satisfied except for the passage of time. Diluted earnings attributable to common stockholders per common share is computed based on the weighted average number of shares of common stock outstanding during each period, plus potential common shares considered outstanding during the period, as long as the inclusion of such awards is not anti-dilutive. Potential common shares consist of time-based unvested restricted stock awards and performance-based restricted stock units, using the more dilutive of either the two-class method or the treasury stock method. The Company’s performance-based restricted stock units are considered for computing diluted net income per common share as of the beginning of the period in which all necessary conditions have been satisfied and the only remaining vesting condition is a service vesting condition. The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share data): Year Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Numerator: Net income $ 206,708 $ 90,766 $ 32,995 (Income) loss from consolidated joint venture attributable to noncontrolling interest — (3,477) 1,303 Preferred stock dividends and redemption charges (13,988) (14,247) (20,638) Distributions paid to participating securities (310) (128) — Undistributed income allocated to participating securities (683) (323) (92) Numerator for basic and diluted income attributable to common stockholders $ 191,727 $ 72,591 $ 13,568 Denominator: Weighted average basic common shares outstanding 205,590 212,613 216,296 Unvested restricted stock units 275 40 — Weighted average diluted common shares outstanding 205,865 212,653 216,296 Basic income attributable to common stockholders per common share $ 0.93 $ 0.34 $ 0.06 Diluted income attributable to common stockholders per common share $ 0.93 $ 0.34 $ 0.06 In its calculation of diluted earnings per share, the Company excluded 1,032,266, 1,289,146 and 1,463,315 anti-dilutive time-based restricted stock awards for the years ended December 31, 2023, 2022 and 2021, respectively (see Note 12). The Company also had unvested performance-based restricted stock units as of December 31, 2023 and 2022 that are not considered participating securities as the awards contain forfeitable rights to dividends or dividend equivalents. The performance-based restricted stock units were granted based on either target market condition thresholds or pre-determined stock price targets. Based on the Company’s common stock performance, the Company excluded 188,004 anti-dilutive performance-based restricted stock units from its calculations of diluted earnings per share for the years ended December 31, 2023 and 2022 (see Note 12). |
Segment Reporting | Segment Reporting The Company considers each of its hotels to be an operating segment and allocates resources and assesses the operating performance for each hotel. Because all of the Company’s hotels have similar economic characteristics, facilities and services, the hotels have been aggregated into one single reportable segment, hotel ownership. |
New Accounting Standards and Accounting Changes | New Accounting Standards and Accounting Changes In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 In May 2023, the Company repaid the $220.0 million loan secured by the Hilton San Diego Bayfront, which was subject to LIBOR, and the loan’s related interest rate cap derivative, which was also subject to LIBOR, was terminated (see Note 5). The Company’s adoptions of ASU 2020-04 and ASU 2022-06 in the second quarter of 2023 had no impact on the Company’s consolidated financial statements. In November 2023, the FASB issued Accounting Standards Update No. 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures Segment Reporting In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Organization and Description _2
Organization and Description of Business (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Description of Business | |
Schedule of number of hotels managed by each third-party manager | As of December 31, 2023, the Company owned 14 hotels (the “14 Hotels”) currently held for investment. The Company’s third-party managers included the following: Number of Hotels Subsidiaries of Marriott International, Inc. or Marriott Hotel Services, Inc. 6 Hyatt Hotels Corporation 2 Four Seasons Hotels Limited 1 Hilton Worldwide 1 Interstate Hotels & Resorts, Inc. 1 Montage North America, LLC 1 Sage Hospitality Group 1 Singh Hospitality, LLC 1 Total hotels owned as of December 31, 2023 14 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Schedule of contract assets and liabilities | Trade receivables and contract liabilities consisted of the following (in thousands): December 31, 2023 2022 Trade receivables, net (1) $ 14,431 $ 19,751 Contract liabilities (2) $ 45,432 $ 50,219 (1) Trade receivables, net are included in accounts receivable, net on the accompanying consolidated balance sheets. (2) Contract liabilities consist of advance deposits and are included in other liabilities on the accompanying consolidated balance sheets. |
Schedule of computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share data): Year Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Numerator: Net income $ 206,708 $ 90,766 $ 32,995 (Income) loss from consolidated joint venture attributable to noncontrolling interest — (3,477) 1,303 Preferred stock dividends and redemption charges (13,988) (14,247) (20,638) Distributions paid to participating securities (310) (128) — Undistributed income allocated to participating securities (683) (323) (92) Numerator for basic and diluted income attributable to common stockholders $ 191,727 $ 72,591 $ 13,568 Denominator: Weighted average basic common shares outstanding 205,590 212,613 216,296 Unvested restricted stock units 275 40 — Weighted average diluted common shares outstanding 205,865 212,653 216,296 Basic income attributable to common stockholders per common share $ 0.93 $ 0.34 $ 0.06 Diluted income attributable to common stockholders per common share $ 0.93 $ 0.34 $ 0.06 |
Investment in Hotel Properties
Investment in Hotel Properties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investment in Hotel Properties | |
Schedule of investment in hotel properties | Investment in hotel properties, net consisted of the following (in thousands): December 31, 2023 2022 Land $ 614,112 $ 672,531 Buildings and improvements 2,587,278 2,793,771 Furniture, fixtures and equipment 407,861 426,189 Intangible assets 42,187 42,187 Construction in progress 61,247 71,689 Investment in hotel properties, gross 3,712,685 4,006,367 Accumulated depreciation and amortization (1,127,406) (1,165,439) Investment in hotel properties, net $ 2,585,279 $ 2,840,928 |
Schedule of intangible assets included in Investment in Hotel Properties | Intangible assets included in the Company’s investment in hotel properties, net consisted of the following (in thousands): December 31, 2023 2022 Element agreement (1) $ 18,436 $ 18,436 Airspace agreements (2) 1,947 1,947 Residential program agreements (3) 21,038 21,038 Trade names (4) 121 121 Franchise agreements (5) 126 126 In-place lease agreement (6) 519 519 42,187 42,187 Accumulated amortization (949) (432) $ 41,238 $ 41,755 |
Schedule of amortization expense of intangible assets included in investment in hotel properties | Amortization expense on these intangible assets consisted of the following (in thousands): 2023 2022 2021 Residential program agreements (3) $ 411 $ 282 $ — Franchise agreements (5) 7 11 40 In-place lease agreement (6) 99 58 — Advance bookings (7) — 199 22 Below market management agreement (8) — 15 92 $ 517 $ 565 $ 154 (1) The Element agreement as of both December 31, 2023 and 2022 included the exclusive perpetual rights to certain space at The Westin Washington, DC Downtown. The Element has an indefinite useful life and is not amortized. (2) Airspace agreements as of both December 31, 2023 and 2022 consisted of dry slip agreements at the Oceans Edge Resort & Marina. The dry slips at the Oceans Edge Resort & Marina have indefinite useful lives and are not amortized. (3) Residential program agreements as of both December 31, 2023 and 2022 included $13.7 million and $7.3 million at the Montage Healdsburg and the Four Seasons Resort Napa Valley, respectively. The value of the agreements were determined based on each hotel’s purchase price allocation. The agreements relate to the hotels’ residential rental programs, whereby owners of the adjacent separately owned Montage Residences Healdsburg and Four Seasons Private Residences Napa Valley are eligible to participate in optional rental programs and have access to the hotels’ facilities. The residential program agreement at the Montage Healdsburg will be amortized over the life of the related remaining 25-year Montage Healdsburg management agreement once the hotel begins to recognize revenue related to the program in January 2024. In addition, the agreement at the Montage Healdsburg includes a social membership program under which the Company began to recognize revenue in February 2023, amortizing the agreement using the straight-line method over the life of the related remaining 25-year Montage Healdsburg management agreement. In April 2022, the Company began to recognize revenue associated with the residential program agreement at the Four Seasons Resort Napa Valley, amortizing the agreement using the straight-line method over the life of the related remaining 20-year management agreement. The amortization expense for both the Montage Healdsburg and the Four Seasons Resort Napa Valley is included in depreciation and amortization expense in the Company’s consolidated statements of operations. (4) Trade names as of both December 31, 2023 and 2022 consisted of trademarks and bottle labeling used by the Elusa Winery at the Four Seasons Resort Napa Valley. The value of the trade names were determined as part of the hotel’s purchase price allocation. The trade names have indefinite useful lives and are not amortized. (5) Franchise agreements as of both December 31, 2023 and 2022 consisted of agreements at the Hilton New Orleans St. Charles and The Bidwell Marriott Portland. Franchise agreements in 2021 also included agreements at the Embassy Suites Chicago and the Hilton Garden Inn Chicago Downtown/Magnificent Mile, both of which were sold in March 2022 (see Note 4). The remaining agreements are amortized using the straight-line method over the lives of the franchise agreements and will be fully amortized in October 2024 and April 2028 for The Bidwell Marriott Portland and the Hilton New Orleans St. Charles, respectively. The amortization expense for the franchise agreements is included in depreciation and amortization expense in the Company’s consolidated statements of operations. (6) The in-place lease agreement as of both December 31, 2023 and 2022 consisted of an agreement at The Confidante Miami Beach. The value of the agreement was determined as part of the hotel’s purchase price allocation. The agreement is amortized using the straight-line method over the remaining non-cancelable term of the lease and will be fully amortized in August 2027. The amortization expense for the in-place lease agreement is included in depreciation and amortization expense in the Company’s consolidated statements of operations. (7) Advance bookings consisted of advance deposits related to our acquisition of the Four Seasons Resort Napa Valley. As part of the purchase price allocation, the contractual advance hotel bookings were recorded at a discounted present value based on estimated collectability. They were amortized using the straight-line method over the periods the amounts were expected to be collected and were fully amortized in September 2022. The amortization expense for contractual advance hotel bookings is included in depreciation and amortization expense in the Company’s consolidated statements of operations. (8) The below market management agreement consisted of an agreement at the Hilton Garden Inn Chicago Downtown/Magnificent Mile. The agreement was amortized using the straight-line method over the remaining non-cancelable term until the hotel’s sale in March 2022 (see Note 4). |
Schedule of amortization expense for next five years | For the next five years, amortization expense for the intangible assets noted above is expected to be as follows (in thousands): 2024 $ 1,029 2025 $ 1,028 2026 $ 1,028 2027 $ 994 2028 $ 925 |
Disposals (Tables)
Disposals (Tables) - Sold, not considered a discontinued operation | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of operating results for sold entities | The following table provides summary results of operations for the disposed hotels, which are included in net income for their respective ownership periods (in thousands): 2023 2022 2021 Total revenues $ 96,713 $ 97,915 $ 87,905 Income (loss) before income taxes (1) $ 19,231 $ 3,801 $ (44,686) Gain on sale of assets $ 123,820 $ 22,946 $ 152,524 (1) Income (loss) before income taxes does not include the gain recognized on the hotel sales. |
Disposals - 2022 [Member] | |
Schedule of proceeds and gain on sale of hotels | The details of the sales were as follows (in thousands): Net Proceeds Net Gain Hyatt Centric Chicago Magnificent Mile $ 67,231 (1) $ 11,336 Embassy Suites Chicago and Hilton Garden Inn Chicago Downtown/Magnificent Mile 128,060 11,610 $ 195,291 $ 22,946 (1) Includes a $4.0 million disposition deposit received from the buyer of the hotel in December 2021. |
Disposals - 2021 [Member] | |
Schedule of proceeds and gain on sale of hotels | The details of the sales were as follows (in thousands): Net Proceeds Net Gain Renaissance Westchester $ 17,054 $ 3,733 Embassy Suites La Jolla 166,499 (1) 148,791 $ 183,553 $ 152,524 (1) Net proceeds exclude a $56.6 million mortgage assumed by the buyer of the Embassy Suites La Jolla (see Note 7). |
Fair Value Measurements and I_2
Fair Value Measurements and Interest Rate Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements and Interest Rate Derivatives | |
Schedule of principal values and estimated fair values of debt | The Company’s principal balances and fair market values of its consolidated debt were as follows (in thousands): December 31, 2023 December 31, 2022 Carrying Amount (1) Fair Value (2) Carrying Amount (1) Fair Value (2) Debt $ 819,050 $ 805,212 $ 816,136 $ 809,141 (1) The principal balance of debt is presented before any unamortized deferred financing costs. (2) Due to prevailing market conditions and the current uncertain economic environment, actual interest rates could vary materially from those estimated, which would result in variances in the Company’s calculations of the fair market value of its debt. |
Schedule of interest rate derivatives | The Company’s interest rate derivatives, which are not designated as effective cash flow hedges, consisted of the following (in thousands): Estimated Fair Value of Assets (Liabilities) (1) Strike / Capped Effective Maturity Notional December 31, Hedged Debt Type LIBOR Rate Index Date Date Amount 2023 2022 Hilton San Diego Bayfront Cap 6.000 % 1-Month LIBOR December 9, 2022 December 9, 2023 $ N/A $ N/A $ 60 Term Loan 1 Swap 3.675 % CME Term SOFR March 17, 2023 March 17, 2026 $ 75,000 417 N/A Term Loan 1 Swap 3.931 % CME Term SOFR September 14, 2023 September 14, 2026 $ 100,000 (401) N/A Term Loan 2 Swap 1.853 % 1-Month LIBOR January 29, 2016 January 31, 2023 $ N/A N/A 208 $ 16 $ 268 (1) In May 2023, the cap derivative was terminated in conjunction with the Company’s repayment of the loan secured by the Hilton San Diego Bayfront (see Note 7). The fair values of the cap and swap derivative assets were included in prepaid expenses and other assets, net on the accompanying consolidated balance sheets as of December 31, 2023 and 2022. The fair value of the swap derivative liability was included in other liabilities on the accompanying consolidated balance sheet as of December 31, 2023. |
Schedule of changes in fair value of interest rate derivatives | Noncash changes in the fair values of the Company’s interest rate derivatives resulted in increases (decreases) to interest expense as follows (in thousands): 2023 2022 2021 Noncash interest on derivatives, net $ 252 $ (2,194) $ (3,405) |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Assets. | |
Schedule of other assets | Prepaid expenses and other assets, net consisted of the following (in thousands): December 31, 2023 2022 Prepaid expenses $ 8,123 $ 6,478 Inventory 9,185 7,922 Deferred financing costs 3,627 5,031 Property and equipment, net 3,120 3,685 (1) Interest rate derivatives 417 268 Deferred rent on straight-lined third-party tenant leases 552 2,413 Liquor licenses 930 933 Other 429 836 Total prepaid expenses and other assets, net $ 26,383 $ 27,566 (1) In 2022, the Company recorded an impairment loss of $1.4 million on the tenant improvements, net at its former corporate headquarters (see Note 5). |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosures | |
Schedule of notes payable | Notes payable consisted of the following (in thousands): Balance Outstanding as of December 31, 2023 December 31, December 31, Rate Type Interest Rate Maturity Date 2023 2022 Mortgage Loans Hilton San Diego Bayfront N/A (1) N/A December 9, 2023 $ — $ 220,000 JW Marriott New Orleans Fixed 4.15 % December 11, 2024 74,050 76,136 Total mortgage loans $ 74,050 $ 296,136 Unsecured Corporate Credit Facilities Term Loan 1 Fixed (2) 5.25 % July 25, 2027 $ 175,000 $ 175,000 Term Loan 2 Variable (3) 6.77 % January 25, 2028 175,000 175,000 Term Loan 3 Variable (4) 6.81 % May 1, 2025 225,000 — Total unsecured corporate credit facilities $ 575,000 $ 350,000 Unsecured Senior Notes Series A Fixed 4.69 % January 10, 2026 $ 65,000 $ 65,000 Series B Fixed 4.79 % January 10, 2028 105,000 105,000 Total unsecured senior notes $ 170,000 $ 170,000 Total debt $ 819,050 $ 816,136 Unamortized deferred financing costs (4,491) (3,455) Debt, net of unamortized deferred financing costs $ 814,559 $ 812,681 (1) The mortgage secured by the Hilton San Diego Bayfront was repaid in May 2023. The mortgage loan was subject to an interest rate cap derivative (see Note 5). The effective interest rate on the loan was 5.571% at December 31, 2022. (2) Term Loan 1 is subject to two interest rate swap derivatives (see Note 5). The variable interest rate is based on a pricing grid with a range of 1.35% to 2.20% , depending on the Company’s leverage ratios, plus SOFR and a 0.10% adjustment. In May 2023, the pricing grid was reduced by 0.02% to a range of 1.33% to 2.18% as the Company achieved the 2022 sustainability performance metric specified in the Second Amended Credit Agreement. The reduction in the pricing grid will be evaluated annually and is subject to the Company’s continued ability to satisfy its sustainability metric. The effective interest rates on the term loan were 5.25% and 5.82% at December 31, 2023 and 2022, respectively. (3) Term Loan 2 was subject to an interest rate swap derivative until the swap expired in January 2023 (see Note 5). The variable interest rate is based on a pricing grid with a range of 1.35% to 2.20% , depending on the Company’s leverage ratios, plus SOFR and a 0.10% adjustment. In May 2023, the pricing grid was reduced by 0.02% to a range of 1.33% to 2.18% as the Company achieved the 2022 sustainability performance metric specified in the Second Amended Credit Agreement. The reduction in the pricing grid will be evaluated annually and is subject to the Company’s continued ability to satisfy its sustainability metric. The effective interest rates on the term loan were 6.77% and 4.27% at December 31, 2023 and 2022, respectively. (4) Term Loan 3’s variable interest rate is based on a pricing grid with a range of 1.35% to 2.20% , depending on the Company’s leverage ratios, plus SOFR and a 0.10% adjustment. The effective interest rate on the term loan was 6.81% at December 31, 2023. |
Schedule of aggregate future principal maturities and amortization of notes payable | Aggregate future principal maturities and amortization of notes payable at December 31, 2023, were as follows (in thousands): 2024 $ 74,050 2025 — 2026 290,000 (1) 2027 175,000 2028 280,000 Thereafter — Total $ 819,050 (1) Includes Term Loan 3 assuming the Company has exercised its one-time option to extend the maturity of the loan from May 1, 2025 to May 1, 2026 upon payment of applicable fees and the satisfaction of certain customary conditions. |
Schedule of deferred financing costs and (loss) gain on extinguishment of debt | Deferred financing costs and gain (loss) on extinguishment of debt, net were as follows (in thousands): 2023 (1) 2022 (2) 2021 (3) Payments of deferred financing costs $ 2,332 $ 7,404 $ 397 Gain (loss) on extinguishment of debt, net $ 9,938 $ (936) $ (57) (1) During 2023, the Company paid a total of $2.3 million in deferred financing costs related to Term Loan 3. In addition, the Company recognized a gain of $9.9 million associated with the assignment-in-lieu of the Hilton Times Square to the hotel’s mortgage holder in 2020, comprising $9.8 million from the relief of a majority of the potential employee-related obligations, with the funds released to the Company from escrow, and $0.1 million due to reassessments of the remaining potential employee-related obligations currently held in escrow. (2) During 2022, the Company paid a total of $7.4 million in deferred financing costs related to its Amended Credit Agreement. In addition, the Company recognized a net loss of $0.9 million, comprising losses of $0.2 million related to the accelerated amortization of deferred financing costs associated with the partial repayments of the senior notes and $0.8 million related to lender fees and the accelerated amortization of deferred financing costs associated with the Amended Credit Agreement. These losses were slightly offset by a gain of $0.1 million associated with the assignment-in-lieu of the Hilton Times Square to the hotel’s mortgage holder in 2020 due to reassessments of the potential employee-related obligations currently held in escrow. (3) During 2021, the Company paid a total of $0.4 million in deferred financing costs related to its 2021 Unsecured Debt Amendments. In addition, the Company recognized a net loss of $0.1 million, comprising a loss of $0.4 million related to the accelerated amortization of deferred financing costs associated with the assignment of the mortgage secured by the Embassy Suites La Jolla to the hotel’s buyer and the repayments of a portion of the term loans, partially offset by a gain of $0.3 million associated with the assignment-in-lieu of the Hilton Times Square to the hotel’s mortgage holder in 2020 due to reassessments of the potential employee-related obligations currently held in escrow. |
Schedule of interest expense | Total interest incurred and expensed on the notes payable and finance lease obligation was as follows (in thousands): 2023 2022 2021 Interest expense on debt and finance lease obligation $ 48,727 $ 31,713 $ 31,378 Noncash interest on derivatives, net 252 (2,194) (3,405) Amortization of deferred financing costs 2,700 2,486 2,925 Total interest expense $ 51,679 $ 32,005 $ 30,898 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities [Abstract] | |
Schedule of other liabilities | Other liabilities consisted of the following (in thousands): December 31, 2023 2022 Advance deposits $ 45,432 $ 50,219 Property, sales and use taxes payable 6,903 7,500 Accrued interest 6,346 6,915 Deferred rent 2,711 3,981 Income taxes payable 2,860 — Interest rate derivative 401 — Management fees payable 1,321 1,584 Other 7,040 8,234 Total other liabilities $ 73,014 $ 78,433 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of supplemental balance sheet information related to leases | Operating leases were included on the Company’s consolidated balance sheets as follows (in thousands): December 31, 2023 2022 Right-of-use assets, net $ 12,755 $ 15,025 (1) Lease obligations $ 16,735 $ 19,012 Weighted average remaining lease term 30 years Weighted average discount rate 5.3 % (1) In 2022, the Company wrote-down its operating lease right-of-use assets, net and recorded an impairment loss of $2.1 million related to the office lease at its former corporate headquarters. (see Note 5). |
Lease costs | Lease Expense The components of lease expense were as follows (in thousands): 2023 2022 2021 Finance lease cost (1): Amortization of right-of-use asset $ — $ — $ 1,470 Interest on lease obligations — 117 1,404 Operating lease cost 5,427 5,367 5,457 Variable lease cost (2) 8,438 6,853 393 Sublease income (3) (1,187) — — Total lease cost $ 12,678 $ 12,337 $ 8,724 (1) Finance lease cost included expenses for the Hyatt Centric Chicago Magnificent Mile’s finance lease obligation before the hotel’s sale in February 2022 (see Note 4). (2) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds. (3) Sublease income is included in corporate overhead in the accompanying consolidated statements of operations for the year ended December 31, 2023. |
Summary of Future payments on leases, Operating lease | At December 31, 2023, future maturities of the Company’s operating lease obligations were as follows (in thousands): 2024 $ 5,783 2025 (1) 5,854 2026 1,607 2027 926 2028 599 Thereafter 1,207 Total lease payments 15,976 Less: interest (2) (2,499) Present value of lease obligations (3) $ 13,477 (1) Operating lease obligations include a ground lease that expires in 2071 and requires a reassessment of rent payments due after 2025, agreed upon by both the Company and the lessor; therefore, no amounts are included in the above table for this ground lease after 2025. (2) Calculated using the respective discount rate for each lease. (3) Operating lease obligations include the lease on the Company’s new corporate headquarters and the sublease on the Company’s former corporate headquarters, both of which were entered into during the fourth quarter of 2022. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of deferred tax assets (liabilities) | The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): December 31, 2023 2022 Deferred Tax Assets: Net operating loss carryforward $ 22,805 $ 22,383 Other reserves 1,095 561 State taxes and other 1,657 3,926 Depreciation 1,853 720 Total gross deferred tax assets 27,410 27,590 Deferred Tax Liabilities: Amortization (34) (25) Deferred revenue (22) — Other (167) (47) Total gross deferred tax liabilities (223) (72) Less: valuation allowance (27,187) (27,518) Deferred tax assets, net $ — $ — |
Schedule of income tax (provision) benefit, net | The Company’s income tax provision, net was included in the consolidated statements of operations as follows (in thousands): 2023 2022 2021 Current: Federal $ (14) $ — $ — State (4,548) (359) (109) Current income tax provision, net (4,562) (359) (109) Deferred: Federal (123) 2,568 1,262 State (208) 654 (963) Change in valuation allowance 331 (3,222) (299) Deferred income tax provision, net — — — Income tax provision, net $ (4,562) $ (359) $ (109) |
Schedule of effective income tax rate reconciliation | The differences between the income tax (provision) benefit calculated at the statutory U.S. federal income tax rate of 21% and the actual income tax provision, net were as follows (in thousands): 2023 2022 2021 Expected federal tax expense at statutory rate $ (45,033) $ (18,406) $ (7,226) Tax impact of REIT election 40,767 20,981 8,823 Expected tax (provision) benefit of TRS (4,266) 2,575 1,597 State income tax benefit, net of federal (provision) (164) 517 (760) Change in valuation allowance 331 (3,222) (299) Other permanent items (463) (729) (647) Tax refunds and credits — 500 — Income tax provision, net $ (4,562) $ (359) $ (109) |
Schedule of characterization of distributions | For income tax purposes, distributions paid consist of ordinary income, capital gains, return of capital or a combination thereof. Distributions paid per share were characterized as follows (unaudited): 2023 2022 2021 Amount % Amount % Amount % Common Stock: Ordinary income (1) $ — — % $ 0.100 100 % $ — — % Capital gain 0.300 100 — — — — Return of capital — — — — — — Total $ 0.300 100 % $ 0.100 100 % $ — — % Preferred Stock — Series E Ordinary income (1) $ — — % $ — — % $ 0.772 100 % Capital gain — — — — — — Return of capital — — — — — — Total $ — — % $ — — % $ 0.772 100 % Preferred Stock — Series F Ordinary income (1) $ — — % $ — — % $ 0.990 100 % Capital gain — — — — — — Return of capital — — — — — — Total $ — — % $ — — % $ 0.990 100 % Preferred Stock — Series G Ordinary income (1) $ — — % $ 0.567 100 % $ 0.234 100 % Capital gain 0.469 100 — — — — Return of capital — — — — — — Total $ 0.469 100 % $ 0.567 100 % $ 0.234 100 % Preferred Stock — Series H Ordinary income (1) $ — — % $ 1.531 100 % $ 0.923 100 % Capital gain 1.531 100 — — — — Return of capital — — — — — — Total $ 1.531 100 % $ 1.531 100 % $ 0.923 100 % Preferred Stock — Series I Ordinary income (1) $ — — % $ 1.425 100 % $ 0.653 100 % Capital gain 1.425 100 — — — — Return of capital — — — — — — Total $ 1.425 100 % $ 1.425 100 % $ 0.653 100 % (1) Ordinary income qualifies for Section 199A treatment per the 2017 Tax Cuts and Jobs Act. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity | |
Schedule of repurchases of common and preferred stock | Details of the Company’s repurchases were as follows (dollars in thousands): 2023 2022 2021 Number of common shares repurchased 5,971,192 10,245,324 — Cost, including fees and commissions $ 56,403 $ 108,442 $ — Number of preferred shares repurchased (1) — — — (1) The redemptions of the Series E preferred stock and the Series F preferred stock in June 2021 and August 2021, respectively, were completed through separate authorizations by the Company’s board of directors. |
Schedule of At the Market common stock issuances | Details of the Company’s issuances of common stock under the 2023 ATM Agreements and the 2017 ATM Agreements were as follows (dollars in thousands): 2023 2022 2021 Number of shares issued — — 2,913,682 Gross proceeds $ — $ — $ 38,443 |
Schedule of dividends and distributions declared per share | The Company declared dividends and distributions per share on its preferred stock and common stock, respectively, as follows: 2023 2022 2021 Series E preferred stock $ — $ — $ 0.772222 Series F preferred stock $ — $ — $ 0.989896 Series G preferred stock $ 0.469437 $ 0.567112 $ 0.233685 Series H preferred stock $ 1.531252 $ 1.531252 $ 0.923004 Series I preferred stock $ 1.425000 $ 1.425000 $ 0.653125 Common stock $ 0.300000 $ 0.100000 $ — |
Incentive Award Plan (Tables)
Incentive Award Plan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of amortization expense and forfeitures related to restricted shares | As of December 31, 2023, the Company’s issued and outstanding awards consisted of both time-based and performance-based restricted stock grants. The Company’s amortization expense, including forfeitures related to restricted shares was as follows (in thousands): 2023 2022 2021 Amortization expense, including forfeitures $ 10,775 $ 10,891 $ 12,788 (1) Capitalized compensation cost (2) $ 467 $ 481 $ 490 (1) In 2021, the Company recognized $1.1 million in amortization of deferred stock compensation expense related to the departure of its former Chief Executive Officer. (2) The Company capitalizes compensation costs related to restricted shares granted to certain employees whose work is directly related to the Company’s capital investment in hotels. |
Restricted Stock [Member] | |
Schedule of non-vested restricted stock grant activity | The Company’s restricted stock awards are time-based restricted shares that generally vest over periods ranging from three years to five years from the date of grant. The following is a summary of non-vested restricted stock grant activity: 2023 2022 2021 Weighted Weighted Weighted Average Average Average Shares Price Shares Price Shares Price Outstanding at beginning of year 1,289,146 $ 11.65 1,463,315 $ 12.15 1,336,836 $ 14.01 Granted 450,964 $ 10.58 555,501 $ 11.41 1,478,874 $ 11.55 Vested (699,652) $ 11.76 (694,863) $ 12.50 (1,116,989) $ 13.65 Forfeited (8,192) $ 11.12 (34,807) $ 11.79 (235,406) $ 11.81 Outstanding at end of year 1,032,266 $ 11.11 1,289,146 $ 11.65 1,463,315 $ 12.15 |
Performance Shares [Member] | |
Schedule of non-vested restricted stock grant activity | The following is a summary of non-vested restricted stock unit activity: 2023 2022 2021 Weighted Weighted Weighted Average Average Average Shares Price Shares Price Shares Price Outstanding at beginning of year 612,584 $ 10.40 — $ — — $ — Granted 463,576 $ 11.07 612,584 $ 10.40 — $ — Vested — $ — — $ — — $ — Outstanding at end of year 1,076,160 $ 10.69 612,584 $ 10.40 — $ — |
Schedule of share based payment award performance awards valuation assumptions | The grant date fair value of the performance awards was determined based on a Monte Carlo simulation method with the following assumptions: Performance Award Grant Date Expected Volatility Dividend Yield (1) Risk-Free Rate Expected Term February 9, 2023 TSR Three-Year Performance Period Shares 38.0 % — 4.18 % 3 years February 10, 2022 TSR Two-Year Performance Period Shares 41.0 % — 1.56 % 2 years TSR Three-Year Performance Period Shares 41.0 % — 1.78 % 3 years March 7, 2022 Stock Price Target Five-Year Performance Period Shares 40.0 % — 1.72 % 5 years (1) Dividend equivalents are assumed to be reinvested in shares of the Company’s common stock and dividend equivalents will only be paid to the extent the award vests. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Schedule of basic and incentive management fees | Total basic management and incentive management fees were included in other property-level expenses on the Company’s consolidated statements of operations as follows (in thousands): 2023 2022 2021 Basic management fees $ 27,122 $ 24,858 $ 13,406 Incentive management fees 7,534 6,696 1,806 Total basic and incentive management fees $ 34,656 $ 31,554 $ 15,212 |
Schedule of license and franchise costs | Total license and franchise fees were included in franchise costs on the Company’s consolidated statements of operations as follows (in thousands): 2023 2022 2021 Franchise assessments (1) $ 15,674 $ 14,690 $ 9,060 Franchise royalties (2) 1,202 1,149 2,294 Total franchise costs $ 16,876 $ 15,839 $ 11,354 (1) Includes advertising, reservation and frequent guest program assessments. (2) Prior to the sale of the Hyatt Centric Chicago Magnificent Mile in February 2022 (see Note 4), franchise royalties included key money received from the hotel’s franchisor, which the Company was amortizing over the term of the hotel’s franchise agreement. |
Schedule of hotel geographic concentration of risk | As of December 31, 2023, nine of the 14 Hotels were geographically concentrated as follows: Percentage of Percentage of Total Number of Hotels Total Rooms Consolidated Revenue California 5 39 % 44 % Florida 3 19 % 17 % Hawaii 1 8 % 17 % |
Organization and Description _3
Organization and Description of Business (Details) | 12 Months Ended |
Dec. 31, 2023 property | |
Organization and Description of Business | |
Number of hotels held for investment | 14 |
Sunstone Hotel Partnership, LLC | |
Organization and Description of Business | |
Controlling interest owned (as a percent) | 100% |
Hotel owned by the Company | |
Organization and Description of Business | |
Number of hotels owned by the Company | 14 |
Number of hotels managed by third parties | 14 |
Hotel owned by the Company | Marriott | |
Organization and Description of Business | |
Number of hotels managed by third parties | 6 |
Hotel owned by the Company | Hyatt Corporation | |
Organization and Description of Business | |
Number of hotels managed by third parties | 2 |
Hotel owned by the Company | Four Seasons Hotels Limited | |
Organization and Description of Business | |
Number of hotels managed by third parties | 1 |
Hotel owned by the Company | Hilton Worldwide | |
Organization and Description of Business | |
Number of hotels managed by third parties | 1 |
Hotel owned by the Company | Interstate Hotels & Resorts, Inc | |
Organization and Description of Business | |
Number of hotels managed by third parties | 1 |
Hotel owned by the Company | Montage North America, LLC | |
Organization and Description of Business | |
Number of hotels managed by third parties | 1 |
Hotel owned by the Company | Sage Hospitality Group | |
Organization and Description of Business | |
Number of hotels managed by third parties | 1 |
Hotel owned by the Company | Singh Hospitality, LLC | |
Organization and Description of Business | |
Number of hotels managed by third parties | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - (Details) | 1 Months Ended | 12 Months Ended | |||
May 31, 2023 USD ($) | Dec. 31, 2023 USD ($) property segment | Dec. 31, 2022 USD ($) property segment | Dec. 31, 2021 USD ($) segment | Dec. 31, 2020 USD ($) | |
Restricted Cash | |||||
Restricted Cash | $ 67,295,000 | $ 55,983,000 | |||
Investments in Hotel Properties | |||||
Impairment losses | $ 3,466,000 | $ 2,685,000 | |||
Assets Held for Sale | |||||
Maximum time period for sale for classification of asset as held for sale | 12 months | ||||
Number of hotels and/or other assets held for sale | property | 0 | 0 | |||
Leases | |||||
Leases Initial Maximum Term Not Recorded On Balance Sheet | 12 months | ||||
Leases Initial Minimum Term Recorded Right Of Use Assets | 12 months | ||||
Operating lease impairment loss | $ 0 | $ 0 | |||
Revenue Recognition | |||||
Trade receivables, net | 14,431,000 | $ 19,751,000 | |||
Contract liabilities | 45,432,000 | 50,219,000 | |||
Deferred revenue recognized | $ 43,700,000 | $ 27,900,000 | |||
Segment Reporting | |||||
Number of operating segments | segment | 1 | 1 | 1 | ||
Financial standby letter of credit | |||||
Restricted Cash | |||||
Restricted Cash | $ 200,000 | $ 200,000 | |||
Franchise fees | Minimum | |||||
Investments in Hotel Properties | |||||
Estimated useful life | 15 years | ||||
Franchise fees | Maximum | |||||
Investments in Hotel Properties | |||||
Estimated useful life | 20 years | ||||
Buildings and improvements | Minimum | |||||
Investments in Hotel Properties | |||||
Estimated useful life for property, plant and equipment | 5 years | ||||
Buildings and improvements | Maximum | |||||
Investments in Hotel Properties | |||||
Estimated useful life for property, plant and equipment | 40 years | ||||
Furniture, fixtures and equipment | Minimum | |||||
Investments in Hotel Properties | |||||
Estimated useful life for property, plant and equipment | 3 years | ||||
Furniture, fixtures and equipment | Maximum | |||||
Investments in Hotel Properties | |||||
Estimated useful life for property, plant and equipment | 12 years | ||||
Impaired hotels | |||||
Investments in Hotel Properties | |||||
Number of hotels impaired | property | 0 | 0 | |||
Hilton New Orleans St. Charles | |||||
Investments in Hotel Properties | |||||
Impairment losses | $ 2,700,000 | ||||
Hilton San Diego Bayfront [Member] | |||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||
Repayment of mortgage debt | $ 220,000,000 | ||||
Hilton Times Square | |||||
Restricted Cash | |||||
Restricted Cash | $ 200,000 | $ 10,200,000 | $ 11,600,000 | ||
Four Seasons Resort Napa Valley | |||||
Restricted Cash | |||||
Restricted Cash | 3,100,000 | $ 3,100,000 | |||
Former corporate headquarters | |||||
Leases | |||||
Operating lease impairment loss | $ 2,100,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net Income | $ 206,708 | $ 90,766 | $ 32,995 |
(Income) loss from consolidated joint venture attributable to noncontrolling interest | (3,477) | 1,303 | |
Preferred stock dividends and redemption charges | (13,988) | (14,247) | (20,638) |
Distributions paid to participating securities | (310) | (128) | |
Undistributed income allocated to participating securities | (683) | (323) | (92) |
Numerator for basic and diluted income (loss) attributable to common stockholders | $ 191,727 | $ 72,591 | $ 13,568 |
Denominator: | |||
Weighted average basic common shares outstanding (in shares) | 205,590,000 | 212,613,000 | 216,296,000 |
Unvested restricted stock units (in shares) | 275,000 | 40,000 | |
Weighted average diluted common shares outstanding (in shares) | 205,865,000 | 212,653,000 | 216,296,000 |
Basic income attributable to common stockholders per common share (in dollars per share) | $ 0.93 | $ 0.34 | $ 0.06 |
Diluted income attributable to common stockholders per common share (in dollars per share) | $ 0.93 | $ 0.34 | $ 0.06 |
Restricted Stock [Member] | |||
Denominator: | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,032,266 | 1,289,146 | 1,463,315 |
Performance Shares [Member] | |||
Denominator: | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 188,004 | 188,004 |
Investment in Hotel Propertie_2
Investment in Hotel Properties (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Land | $ 614,112 | $ 672,531 |
Buildings and improvements | 2,587,278 | 2,793,771 |
Furniture, fixtures and equipment | 407,861 | 426,189 |
Intangible assets | 42,187 | 42,187 |
Construction in progress | 61,247 | 71,689 |
Investment in hotel properties, gross | 3,712,685 | 4,006,367 |
Accumulated depreciation and amortization | (1,127,406) | (1,165,439) |
Investment in hotel properties, net | $ 2,585,279 | $ 2,840,928 |
Investment in Hotel Propertie_3
Investment in Hotel Properties - Acquisitions (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) room | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Asset Acquisition [Line Items] | |||||
Acquisition of noncontrolling interest, including transaction costs | $ 299 | $ 104,261 | |||
Acquisition of noncontrolling interest | 299 | 104,261 | |||
Additional Paid In Capital | |||||
Asset Acquisition [Line Items] | |||||
Acquisition of noncontrolling interest | $ 299 | 65,477 | |||
Non-Controlling Interest in Consolidated Joint Venture | |||||
Asset Acquisition [Line Items] | |||||
Acquisition of noncontrolling interest | $ 38,784 | ||||
Senior unsecured revolving credit facility | |||||
Asset Acquisition [Line Items] | |||||
Proceeds from draw on revolving credit facility | $ 230,000 | ||||
The Confidante Miami Beach | Asset acquisition 2022 member | |||||
Asset Acquisition [Line Items] | |||||
Number of rooms in acquired hotel | room | 339 | ||||
Asset acquisition, consideration transferred | $ 232,000 | ||||
Proceeds from draw on revolving credit facility | $ 140,000 | ||||
Hilton San Diego Bayfront Outside Equity Interest [Member] | |||||
Asset Acquisition [Line Items] | |||||
Noncontrolling interest percentage acquired | 25% | ||||
Hilton San Diego Bayfront Outside Equity Interest [Member] | Asset acquisition 2022 member | |||||
Asset Acquisition [Line Items] | |||||
Proceeds from draw on revolving credit facility | $ 90,000 | ||||
Noncontrolling interest percentage acquired | 25% | ||||
Asset Acquisition, Price of Acquisition, Expected | $ 102,000 | ||||
Asset acquisition, consideration transferred, percentage of working capital and cash | 25% | ||||
Acquisition of noncontrolling interest, including transaction costs | $ 300 | $ 2,900 | $ 101,300 | ||
Hilton San Diego Bayfront Outside Equity Interest [Member] | Additional Paid In Capital | Asset acquisition 2022 member | |||||
Asset Acquisition [Line Items] | |||||
Acquisition of noncontrolling interest | 65,800 | ||||
Hilton San Diego Bayfront Outside Equity Interest [Member] | Non-Controlling Interest in Consolidated Joint Venture | Asset acquisition 2022 member | |||||
Asset Acquisition [Line Items] | |||||
Acquisition of noncontrolling interest | $ 38,800 | ||||
Hilton San Diego Bayfront [Member] | Hilton San Diego Bayfront [Member] | Asset acquisition 2022 member | |||||
Asset Acquisition [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 100% |
Investment in Hotel Propertie_4
Investment in Hotel Properties - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets | |||
Intangible assets | $ 42,187 | $ 42,187 | |
Amortization of Intangible Assets | 464 | 492 | $ 63 |
Intangible assets included in hotel properties | |||
Intangible Assets | |||
Intangible assets | 42,187 | 42,187 | |
Accumulated amortization | (949) | (432) | |
Intangible assets, net | 41,238 | 41,755 | |
Amortization of Intangible Assets | 517 | 565 | 154 |
The Westin Washington, DC Downtown | Intangible assets included in hotel properties | Element agreement | |||
Intangible Assets | |||
Element agreement, gross | 18,436 | 18,436 | |
Oceans Edge Resort & Marina | Intangible assets included in hotel properties | Airspace agreements | |||
Intangible Assets | |||
Airspace agreements, gross | 1,947 | 1,947 | |
Napa/Sonoma Hotels Member | Intangible assets included in hotel properties | Residential program agreements | |||
Intangible Assets | |||
Residential program agreements, gross | 21,038 | 21,038 | |
Amortization of Intangible Assets | 411 | 282 | |
Four Seasons Resort Napa Valley | Residential program agreements | |||
Intangible Assets | |||
Residential program agreements, gross | $ 7,300 | $ 7,300 | |
Estimated useful life for finite-lived intangible assets | 20 years | 20 years | |
Four Seasons Resort Napa Valley | Intangible assets included in hotel properties | Advanced bookings | |||
Intangible Assets | |||
Amortization of Intangible Assets | $ 199 | 22 | |
Four Seasons Resort Napa Valley | Intangible assets included in hotel properties | Trade names | |||
Intangible Assets | |||
Trade names, gross | $ 121 | 121 | |
Montage Healdsburg | Residential program agreements | |||
Intangible Assets | |||
Residential program agreements, gross | $ 13,700 | $ 13,700 | |
Estimated useful life for finite-lived intangible assets | 25 years | 25 years | |
Franchised Hotels Member | Intangible assets included in hotel properties | Franchise agreements | |||
Intangible Assets | |||
Franchise agreements, gross | $ 126 | $ 126 | |
Amortization of Intangible Assets | 7 | 11 | 40 |
The Confidante Miami Beach | Intangible assets included in hotel properties | In-place lease agreements | |||
Intangible Assets | |||
In-place lease agreement, gross | 519 | 519 | |
Amortization of Intangible Assets | $ 99 | 58 | |
Hilton Garden Inn Chicago Downtown/Magnificent Mile | Intangible assets included in hotel properties | Below-market management agreement | |||
Intangible Assets | |||
Amortization of Intangible Assets | $ 15 | $ 92 |
Investment in Hotel Propertie_5
Investment in Hotel Properties - Future Amortization of Intangible Assets (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Investment in Hotel Properties | |
2024 | $ 1,029 |
2025 | 1,028 |
2026 | 1,028 |
2027 | 994 |
2028 | $ 925 |
Disposals (Details)
Disposals (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2023 | Mar. 31, 2022 | Feb. 28, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Detail of Disposals | ||||||||
Proceeds from sale of assets | $ 364,491 | $ 191,291 | $ 183,553 | |||||
Gain on sale of assets | 123,820 | 22,946 | 152,524 | |||||
Impairment losses | 3,466 | 2,685 | ||||||
Embassy Suites La Jolla Mortgage | ||||||||
Detail of Disposals | ||||||||
Assignment of loan in connection with disposition of hotel | $ 56,600 | |||||||
Sold, not considered a discontinued operation | ||||||||
Detail of Disposals | ||||||||
Gain on sale of assets | 123,820 | 22,946 | 152,524 | |||||
Total revenues | 96,713 | 97,915 | 87,905 | |||||
Income (loss) before income taxes | $ 19,231 | 3,801 | (44,686) | |||||
Sold, not considered a discontinued operation | Boston Park Plaza | ||||||||
Detail of Disposals | ||||||||
Proceeds from sale of assets | $ 364,500 | |||||||
Gain on sale of assets | $ 123,800 | |||||||
Sold, not considered a discontinued operation | Disposals - 2022 [Member] | ||||||||
Detail of Disposals | ||||||||
Proceeds from sale of assets | 195,291 | |||||||
Gain on sale of assets | $ 22,946 | |||||||
Sold, not considered a discontinued operation | Hyatt Centric Chicago Magnificent Mile | ||||||||
Detail of Disposals | ||||||||
Proceeds from sale of assets | $ 67,231 | |||||||
Gain on sale of assets | $ 11,336 | |||||||
Disposition deposit received in prior year in connection with sale of hotel | 4,000 | |||||||
Sold, not considered a discontinued operation | Chicago Two Pack | ||||||||
Detail of Disposals | ||||||||
Proceeds from sale of assets | $ 128,060 | |||||||
Gain on sale of assets | $ 11,610 | |||||||
Sold, not considered a discontinued operation | Disposals - 2021 [Member] | ||||||||
Detail of Disposals | ||||||||
Proceeds from sale of assets | 183,553 | |||||||
Gain on sale of assets | $ 152,524 | |||||||
Sold, not considered a discontinued operation | Renaissance Westchester | ||||||||
Detail of Disposals | ||||||||
Proceeds from sale of assets | $ 17,054 | |||||||
Gain on sale of assets | $ 3,733 | |||||||
Sold, not considered a discontinued operation | Embassy Suites La Jolla | ||||||||
Detail of Disposals | ||||||||
Proceeds from sale of assets | 166,499 | |||||||
Gain on sale of assets | 148,791 | |||||||
Sold, not considered a discontinued operation | Embassy Suites La Jolla | Embassy Suites La Jolla Mortgage | ||||||||
Detail of Disposals | ||||||||
Assignment of loan in connection with disposition of hotel | $ 56,600 |
Fair Value Measurements and I_3
Fair Value Measurements and Interest Rate Derivatives - Fair Value Measurements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Asset Impairment Charges | |||
Impairment losses | $ 3,466,000 | $ 2,685,000 | |
Operating lease impairment loss | $ 0 | 0 | |
Assets: | |||
Interest rate derivative assets | $ 417,000 | 268,000 | |
Former corporate headquarters | |||
Asset Impairment Charges | |||
Operating lease impairment loss | 2,100,000 | ||
Hilton New Orleans St. Charles | |||
Asset Impairment Charges | |||
Impairment losses | $ 2,700,000 | ||
Level 2 | Former corporate headquarters | |||
Asset Impairment Charges | |||
Impairment losses | 3,500,000 | ||
Level 2 | Former corporate headquarters | Property and Equipment [Member] | |||
Asset Impairment Charges | |||
Impairment losses | 1,400,000 | ||
Level 2 | Former corporate headquarters | Operating Lease Right-Of-Use Asset | |||
Asset Impairment Charges | |||
Operating lease impairment loss | $ 2,100,000 |
Fair Value Measurements and I_4
Fair Value Measurements and Interest Rate Derivatives - Fair Value of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Percentage of Debt Bearing Fixed Interest Rates | 51.20% | 42.40% |
Debt, Long-Term and Short-Term, Combined Amount | $ 819,050 | $ 816,136 |
Level 3 | ||
Fair value of debt | $ 805,212 | $ 809,141 |
Fair Value Measurements and I_5
Fair Value Measurements and Interest Rate Derivatives - Interest Rate Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest Rate Derivatives | |||
Fair values of derivative assets | $ 417 | $ 268 | |
Noncash interest on derivatives, net | 252 | $ (2,194) | $ (3,405) |
Hilton San Diego Bayfront mortgage | |||
Interest Rate Derivatives | |||
Strike rate under interest rate cap agreement | 6% | ||
Interest rate derivative agreements. | |||
Interest Rate Derivatives | |||
Fair value of interest rate derivatives, net | $ 16 | $ 268 | |
Interest Rate Cap Derivative | Not designated as hedging instrument | Hilton San Diego Bayfront mortgage | |||
Interest Rate Derivatives | |||
Strike rate under interest rate cap agreement | 6% | ||
Interest rate, description of reference rate | one-month LIBOR | one-month LIBOR | |
Interest rate derivative effective date | Dec. 09, 2022 | Dec. 09, 2022 | |
Interest rate derivative maturity date | Dec. 09, 2023 | Dec. 09, 2023 | |
Fair value of interest rate derivatives, net | $ 60 | ||
Interest Rate Swap Derivative | Not designated as hedging instrument | Term loan #2 | |||
Interest Rate Derivatives | |||
Fixed rate under interest rate swap agreement | 1.853% | ||
Interest rate, description of reference rate | one-month LIBOR | ||
Interest rate derivative effective date | Jan. 29, 2016 | ||
Interest rate derivative maturity date | Jan. 31, 2023 | ||
Fair value of interest rate derivatives, net | $ 208 | ||
Interest Rate Swap Derivative TL1 Swap1 Member | Not designated as hedging instrument | |||
Interest Rate Derivatives | |||
Fixed rate under interest rate swap agreement | 3.675% | ||
Interest rate, description of reference rate | CME Term SOFR | ||
Interest rate derivative effective date | Mar. 17, 2023 | ||
Interest rate derivative maturity date | Mar. 17, 2026 | ||
Notional amount | $ 75,000 | ||
Fair value of interest rate derivatives, net | $ 417 | ||
Interest Rate Swap Derivative TL1 Swap2 Member | Not designated as hedging instrument | Term loan #1 | |||
Interest Rate Derivatives | |||
Fixed rate under interest rate swap agreement | 3.931% | ||
Interest rate, description of reference rate | CME Term SOFR | ||
Interest rate derivative effective date | Sep. 14, 2023 | ||
Interest rate derivative maturity date | Sep. 14, 2026 | ||
Notional amount | $ 100,000 | ||
Fair value of interest rate derivatives, net | $ (401) |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Prepaid Expenses and Other Assets, Net Unclassified [Abstract] | |||
Prepaid expenses | $ 6,478 | $ 8,123 | |
Inventory | 7,922 | 9,185 | |
Deferred financing costs | 5,031 | 3,627 | |
Property and equipment, net | 3,685 | 3,120 | |
Interest rate derivative assets | 268 | 417 | |
Deferred rent on straight-lined third-party tenant leases | 2,413 | 552 | |
Liquor licenses | 933 | 930 | |
Other assets | 836 | 429 | |
Prepaid expenses and other assets, net | 27,566 | $ 26,383 | |
Impairment losses | 3,466 | $ 2,685 | |
Former corporate headquarters | Level 2 | |||
Prepaid Expenses and Other Assets, Net Unclassified [Abstract] | |||
Impairment losses | 3,500 | ||
Former corporate headquarters | Property and Equipment [Member] | Level 2 | |||
Prepaid Expenses and Other Assets, Net Unclassified [Abstract] | |||
Impairment losses | $ 1,400 |
Notes Payable (Details)
Notes Payable (Details) | 1 Months Ended | 8 Months Ended | 12 Months Ended | |||
Jul. 27, 2022 USD ($) | May 31, 2023 | Dec. 31, 2023 USD ($) item | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Notes Payable | ||||||
Debt, Long-Term and Short-Term, Combined Amount | $ 819,050,000 | $ 819,050,000 | $ 816,136,000 | |||
Unamortized deferred financing costs | (4,491,000) | (4,491,000) | (3,455,000) | |||
Debt, net of unamortized deferred financing costs | 814,559,000 | 814,559,000 | 812,681,000 | |||
Aggregate Future Principal Maturities and Amortization of Notes Payable | ||||||
2024 | 74,050,000 | 74,050,000 | ||||
2026 | 290,000,000 | 290,000,000 | ||||
2027 | 175,000,000 | 175,000,000 | ||||
2028 | 280,000,000 | $ 280,000,000 | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||
Notes Payable | ||||||
Interest rate, description of reference rate | SOFR | |||||
Mortgages [Member] | ||||||
Notes Payable | ||||||
Outstanding balance of secured debt | $ 74,050,000 | $ 74,050,000 | $ 296,136,000 | |||
Hilton San Diego Bayfront Mortgage | ||||||
Notes Payable | ||||||
Total interest rate, including effect of derivative | 5.571% | |||||
Debt maturity date | Dec. 09, 2023 | |||||
Outstanding balance of secured debt | $ 220,000,000 | |||||
JW Marriott New Orleans Mortgage | ||||||
Notes Payable | ||||||
Debt maturity date | Dec. 11, 2024 | |||||
Fixed interest rate (as a percent) | 4.15% | 4.15% | ||||
Outstanding balance of secured debt | $ 74,050,000 | $ 74,050,000 | 76,136,000 | |||
Unsecured Term Loans | ||||||
Notes Payable | ||||||
Outstanding balance of unsecured debt | $ 575,000,000 | $ 575,000,000 | $ 350,000,000 | |||
Unsecured Term Loans | Minimum | ||||||
Notes Payable | ||||||
Interest rate added to base rate (as a percent) | 1.35% | |||||
Unsecured Term Loans | Maximum | ||||||
Notes Payable | ||||||
Interest rate added to base rate (as a percent) | 2.20% | |||||
Term loan #1 | ||||||
Notes Payable | ||||||
Total interest rate, including effect of derivative | 5.25% | 5.25% | 5.82% | |||
Debt maturity date | Jul. 25, 2027 | |||||
Increase (decrease) in interest rate (as a percent) | (0.02%) | |||||
Number of interest rate swap derivative agreements | item | 2 | 2 | ||||
Outstanding balance of unsecured debt | $ 175,000,000 | $ 175,000,000 | $ 175,000,000 | $ 175,000,000 | $ 19,400,000 | |
Term loan #1 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||
Notes Payable | ||||||
Interest rate, description of reference rate | SOFR | SOFR | ||||
Interest rate added to base rate (as a percent) | 0.10% | 0.10% | ||||
Term loan #1 | Minimum | ||||||
Notes Payable | ||||||
Interest rate added to base rate (as a percent) | 1.33% | 1.35% | ||||
Term loan #1 | Maximum | ||||||
Notes Payable | ||||||
Interest rate added to base rate (as a percent) | 2.18% | 2.20% | ||||
Term loan #2 | ||||||
Notes Payable | ||||||
Debt maturity date | Jan. 25, 2028 | |||||
Increase (decrease) in interest rate (as a percent) | (0.02%) | |||||
Outstanding balance of unsecured debt | $ 175,000,000 | $ 175,000,000 | $ 175,000,000 | $ 175,000,000 | $ 88,900,000 | |
Line of Credit Facility, Interest Rate at Period End | 6.77% | 6.77% | 4.27% | |||
Term loan #2 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||
Notes Payable | ||||||
Interest rate, description of reference rate | SOFR | SOFR | ||||
Interest rate added to base rate (as a percent) | 0.10% | 0.10% | ||||
Term loan #2 | Not designated as hedging instrument | Interest Rate Swap Derivative | ||||||
Notes Payable | ||||||
Interest rate, description of reference rate | one-month LIBOR | |||||
Fixed rate under interest rate swap agreement | 1.853% | |||||
Term loan #2 | Minimum | ||||||
Notes Payable | ||||||
Interest rate added to base rate (as a percent) | 1.33% | 1.35% | ||||
Term loan #2 | Maximum | ||||||
Notes Payable | ||||||
Interest rate added to base rate (as a percent) | 2.18% | 2.20% | ||||
Term loan #3 | ||||||
Notes Payable | ||||||
Debt maturity date | May 01, 2025 | May 01, 2025 | ||||
Outstanding balance of unsecured debt | $ 225,000,000 | $ 225,000,000 | ||||
Line of Credit Facility, Interest Rate at Period End | 6.81% | 6.81% | ||||
Term loan #3 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||
Notes Payable | ||||||
Interest rate, description of reference rate | SOFR | |||||
Interest rate added to base rate (as a percent) | 0.10% | 0.10% | ||||
Term loan #3 | Minimum | ||||||
Notes Payable | ||||||
Interest rate added to base rate (as a percent) | 1.35% | 1.35% | ||||
Term loan #3 | Maximum | ||||||
Notes Payable | ||||||
Interest rate added to base rate (as a percent) | 2.20% | 2.20% | ||||
Senior Notes | ||||||
Notes Payable | ||||||
Outstanding balance of unsecured debt | $ 170,000,000 | $ 170,000,000 | $ 170,000,000 | |||
Series A Senior Notes | ||||||
Notes Payable | ||||||
Debt maturity date | Jan. 10, 2026 | |||||
Fixed interest rate (as a percent) | 4.69% | 4.69% | ||||
Outstanding balance of unsecured debt | $ 65,000,000 | $ 65,000,000 | 65,000,000 | |||
Series B Senior Notes | ||||||
Notes Payable | ||||||
Debt maturity date | Jan. 10, 2028 | |||||
Fixed interest rate (as a percent) | 4.79% | 4.79% | ||||
Outstanding balance of unsecured debt | $ 105,000,000 | $ 105,000,000 | $ 105,000,000 |
Notes Payable - 2023 Transactio
Notes Payable - 2023 Transactions (Details) | 1 Months Ended | 8 Months Ended | 12 Months Ended | ||||||
May 09, 2023 USD ($) | May 01, 2023 USD ($) | Jul. 27, 2022 USD ($) | Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2023 USD ($) item | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Secured Debt [Abstract] | |||||||||
Repayment of debt | $ 222,086,000 | $ 38,916,000 | $ 79,884,000 | ||||||
Unsecured Debt | |||||||||
Proceeds from notes payable | $ 225,000,000 | $ 243,615,000 | |||||||
Hilton San Diego Bayfront mortgage | |||||||||
Secured Debt [Abstract] | |||||||||
Repayment of debt | $ 220,000,000 | ||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 1.30% | 1.05% | |||||||
Term loan #3 | |||||||||
Unsecured Debt | |||||||||
Proceeds from notes payable | $ 225,000,000 | ||||||||
Debt maturity date | May 01, 2025 | May 01, 2025 | |||||||
Number of extension periods for unsecured debt | item | 1 | 1 | |||||||
Term of extension period for unsecured debt | 12 months | ||||||||
Credit facility expiration date after extensions | May 01, 2026 | ||||||||
Minimum | Unsecured Term Loans | |||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 1.35% | ||||||||
Minimum | Term loan #3 | |||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 1.35% | 1.35% | |||||||
Maximum | Unsecured Term Loans | |||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 2.20% | ||||||||
Maximum | Term loan #3 | |||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 2.20% | 2.20% | |||||||
Senior unsecured revolving credit facility | |||||||||
Unsecured Debt | |||||||||
Interest rate, description of reference rate | adjusted term SOFR | ||||||||
Number of extension periods for unsecured debt | 2 | ||||||||
Term of extension period for unsecured debt | 6 months | ||||||||
Outstanding indebtedness under credit facility | $ 0 | $ 0 | |||||||
Maximum borrowing capacity for unsecured revolving credit facility | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||||||
Unsecured Debt | Unsecured Term Loans | |||||||||
Unsecured Debt | |||||||||
Interest rate, description of reference rate | adjusted term SOFR | ||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||
Unsecured Debt | |||||||||
Interest rate, description of reference rate | SOFR | ||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Term loan #3 | |||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 0.10% | 0.10% | |||||||
Interest rate, description of reference rate | SOFR | ||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Senior unsecured revolving credit facility | Minimum | |||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 1.40% | ||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Senior unsecured revolving credit facility | Maximum | |||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 2.25% |
Notes Payable - 2022 Transactio
Notes Payable - 2022 Transactions (Details) | 1 Months Ended | 12 Months Ended | |||||||
Jul. 27, 2022 USD ($) loan | Dec. 31, 2022 USD ($) | Nov. 30, 2022 | Jun. 30, 2022 USD ($) | Feb. 28, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Secured Debt [Abstract] | |||||||||
Payment for interest rate derivative | $ 299,000 | $ 80,000 | |||||||
Hilton San Diego Bayfront mortgage | |||||||||
Secured Debt [Abstract] | |||||||||
Term of extension period for secured debt | 1 year | ||||||||
Debt instrument increase in spread on variable rate | 0.25% | ||||||||
Interest rate added to base rate (as a percent) | 1.30% | 1.05% | |||||||
Payment for interest rate derivative | $ 300,000 | ||||||||
Strike rate under interest rate cap agreement | 6% | 6% | |||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 1.30% | 1.05% | |||||||
Unsecured Term Loans | |||||||||
Unsecured Debt | |||||||||
Outstanding balance of unsecured debt | $ 350,000,000 | $ 575,000,000 | $ 350,000,000 | ||||||
Write-off of deferred financing costs | $ 800,000 | $ 300,000 | 800,000 | ||||||
Term loan #1 | |||||||||
Unsecured Debt | |||||||||
Payments on unsecured debt | 65,600,000 | ||||||||
Outstanding balance of unsecured debt | 175,000,000 | 175,000,000 | 19,400,000 | $ 175,000,000 | 175,000,000 | 19,400,000 | |||
Line of credit facility | |||||||||
Debt maturity date | Jul. 25, 2027 | ||||||||
Term loan #2 | |||||||||
Unsecured Debt | |||||||||
Payments on unsecured debt | 11,100,000 | ||||||||
Outstanding balance of unsecured debt | $ 175,000,000 | 175,000,000 | 88,900,000 | $ 175,000,000 | 175,000,000 | 88,900,000 | |||
Line of credit facility | |||||||||
Debt maturity date | Jan. 25, 2028 | ||||||||
Senior Notes | |||||||||
Unsecured Debt | |||||||||
Outstanding balance of unsecured debt | 170,000,000 | $ 170,000,000 | 170,000,000 | ||||||
Write-off of deferred financing costs | $ 200,000 | 200,000 | |||||||
Series A Senior Notes | |||||||||
Unsecured Debt | |||||||||
Payments on unsecured debt | 25,000,000 | ||||||||
Outstanding balance of unsecured debt | 65,000,000 | $ 65,000,000 | 65,000,000 | ||||||
Line of credit facility | |||||||||
Debt maturity date | Jan. 10, 2026 | ||||||||
Series B Senior Notes | |||||||||
Unsecured Debt | |||||||||
Payments on unsecured debt | $ 10,000,000 | ||||||||
Outstanding balance of unsecured debt | $ 105,000,000 | $ 105,000,000 | $ 105,000,000 | ||||||
Line of credit facility | |||||||||
Debt maturity date | Jan. 10, 2028 | ||||||||
Hilton San Diego Bayfront Outside Equity Interest [Member] | |||||||||
Asset Acquisition Abstract | |||||||||
Noncontrolling interest percentage acquired | 25% | ||||||||
Minimum | Unsecured Term Loans | |||||||||
Secured Debt [Abstract] | |||||||||
Interest rate added to base rate (as a percent) | 1.35% | ||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 1.35% | ||||||||
Minimum | Term loan #1 | |||||||||
Secured Debt [Abstract] | |||||||||
Interest rate added to base rate (as a percent) | 1.33% | 1.35% | |||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 1.33% | 1.35% | |||||||
Minimum | Term loan #2 | |||||||||
Secured Debt [Abstract] | |||||||||
Interest rate added to base rate (as a percent) | 1.33% | 1.35% | |||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 1.33% | 1.35% | |||||||
Maximum | Unsecured Term Loans | |||||||||
Secured Debt [Abstract] | |||||||||
Interest rate added to base rate (as a percent) | 2.20% | ||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 2.20% | ||||||||
Maximum | Term loan #1 | |||||||||
Secured Debt [Abstract] | |||||||||
Interest rate added to base rate (as a percent) | 2.18% | 2.20% | |||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 2.18% | 2.20% | |||||||
Maximum | Term loan #2 | |||||||||
Secured Debt [Abstract] | |||||||||
Interest rate added to base rate (as a percent) | 2.18% | 2.20% | |||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 2.18% | 2.20% | |||||||
Senior unsecured revolving credit facility | |||||||||
Unsecured Debt | |||||||||
Interest rate, description of reference rate | adjusted term SOFR | ||||||||
Line of credit facility | |||||||||
Proceeds from draw on revolving credit facility | $ 230,000,000 | ||||||||
Repayment of revolving credit facility | $ 230,000,000 | ||||||||
Maximum borrowing capacity for unsecured revolving credit facility | $ 500,000,000 | $ 500,000,000 | |||||||
Number of extension periods for unsecured debt | 2 | ||||||||
Term of extension period for unsecured debt | 6 months | ||||||||
Unsecured Debt | Unsecured Term Loans | |||||||||
Unsecured Debt | |||||||||
Interest rate, description of reference rate | adjusted term SOFR | ||||||||
Number of unsecured term loans | loan | 2 | ||||||||
Unsecured Debt | Term loan #1 | |||||||||
Unsecured Debt | |||||||||
Outstanding balance of unsecured debt | 19,400,000 | 19,400,000 | |||||||
Unsecured Debt | Term loan #2 | |||||||||
Unsecured Debt | |||||||||
Outstanding balance of unsecured debt | 88,900,000 | $ 88,900,000 | |||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||
Unsecured Debt | |||||||||
Interest rate, description of reference rate | SOFR | ||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Term loan #1 | |||||||||
Secured Debt [Abstract] | |||||||||
Interest rate added to base rate (as a percent) | 0.10% | 0.10% | |||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 0.10% | 0.10% | |||||||
Interest rate, description of reference rate | SOFR | SOFR | |||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Term loan #2 | |||||||||
Secured Debt [Abstract] | |||||||||
Interest rate added to base rate (as a percent) | 0.10% | 0.10% | |||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 0.10% | 0.10% | |||||||
Interest rate, description of reference rate | SOFR | SOFR | |||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Senior unsecured revolving credit facility | Minimum | |||||||||
Secured Debt [Abstract] | |||||||||
Interest rate added to base rate (as a percent) | 1.40% | ||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 1.40% | ||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Senior unsecured revolving credit facility | Maximum | |||||||||
Secured Debt [Abstract] | |||||||||
Interest rate added to base rate (as a percent) | 2.25% | ||||||||
Unsecured Debt | |||||||||
Interest rate added to base rate (as a percent) | 2.25% | ||||||||
Hilton San Diego Bayfront new interest rate cap | Hilton San Diego Bayfront mortgage | |||||||||
Secured Debt [Abstract] | |||||||||
Payment for interest rate derivative | $ 100,000 |
Notes Payable - 2021 Transactio
Notes Payable - 2021 Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jul. 27, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Debt Instruments [Line Items] | |||||||
Payment for interest rate derivative | $ 299,000 | $ 80,000 | |||||
Unsecured Debt | |||||||
Proceeds from credit facility | 230,000,000 | 110,000,000 | |||||
Payments on credit facility | 230,000,000 | 110,000,000 | |||||
Embassy Suites La Jolla Mortgage | |||||||
Debt Instruments [Line Items] | |||||||
Assignment of loan in connection with disposition of hotel | $ 56,600,000 | ||||||
Write-off of deferred financing costs | 100,000 | ||||||
Unsecured Debt | |||||||
Write-off of deferred financing costs | 100,000 | ||||||
Entity that owns the Hilton San Diego Bayfront Mortgage Payable | |||||||
Debt Instruments [Line Items] | |||||||
Outstanding balance of secured debt | 220,000,000 | $ 220,000,000 | 220,000,000 | ||||
Payment for interest rate derivative | $ 300,000 | ||||||
Unsecured Term Loans | |||||||
Debt Instruments [Line Items] | |||||||
Write-off of deferred financing costs | $ 800,000 | 300,000 | 800,000 | ||||
Unsecured Debt | |||||||
Write-off of deferred financing costs | 800,000 | 300,000 | 800,000 | ||||
Outstanding balance of unsecured debt | $ 350,000,000 | $ 350,000,000 | $ 575,000,000 | ||||
Term loan #1 | |||||||
Debt Instruments [Line Items] | |||||||
Total interest rate, including effect of derivative | 5.82% | 5.82% | 5.25% | ||||
Unsecured Debt | |||||||
Payments on unsecured debt | 65,600,000 | ||||||
Outstanding balance of unsecured debt | 175,000,000 | $ 175,000,000 | 19,400,000 | 19,400,000 | $ 175,000,000 | 19,400,000 | $ 175,000,000 |
Term loan #2 | |||||||
Unsecured Debt | |||||||
Payments on unsecured debt | 11,100,000 | ||||||
Outstanding balance of unsecured debt | $ 175,000,000 | $ 175,000,000 | 88,900,000 | 88,900,000 | $ 175,000,000 | $ 88,900,000 | $ 175,000,000 |
Senior unsecured revolving credit facility | |||||||
Unsecured Debt | |||||||
Proceeds from credit facility | $ 110,000,000 | ||||||
Payments on credit facility | 110,000,000 | ||||||
Hilton San Diego Bayfront new interest rate cap | Entity that owns the Hilton San Diego Bayfront Mortgage Payable | |||||||
Debt Instruments [Line Items] | |||||||
Payment for interest rate derivative | $ 100,000 | ||||||
Total interest rate, including effect of derivative | 6% | 6% | 6% |
Notes Payable - Deferred Financ
Notes Payable - Deferred Financing Costs, Gain/Loss on Extinguishment of Debt and Interest Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jul. 27, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Transactions | |||||||
Payments of deferred financing costs | $ 2,332 | $ 7,404 | $ 397 | ||||
Gain (loss) on extinguishment of debt, net | 9,938 | (936) | (57) | ||||
Interest Expense | |||||||
Noncash interest on derivatives, net | 252 | (2,194) | (3,405) | ||||
Amortization of deferred financing costs | 2,700 | 2,486 | 2,925 | ||||
Total interest expense | 51,679 | 32,005 | 30,898 | ||||
Loss Contingencies | |||||||
Gain on extinguishment of debt | 9,938 | (936) | (57) | ||||
Hilton Times Square | |||||||
Debt Transactions | |||||||
Gain (loss) on extinguishment of debt, net | $ 9,800 | 100 | 100 | 300 | |||
Loss Contingencies | |||||||
Loss contingency accrued balance | 200 | 10,200 | |||||
Loss contingency payment | 200 | 800 | |||||
Loss contingency increase (decrease) | (9,800) | (100) | |||||
Gain on extinguishment of debt | 9,800 | 100 | 100 | 300 | |||
Hilton Times Square | Indemnification Agreement | |||||||
Debt Transactions | |||||||
Gain (loss) on extinguishment of debt, net | 9,900 | ||||||
Loss Contingencies | |||||||
Loss contingency increase (decrease) | $ (9,800) | (100) | |||||
Gain on extinguishment of debt | 9,900 | ||||||
Notes payable. | |||||||
Interest Expense | |||||||
Interest expense on debt and finance lease obligation | 48,727 | 31,713 | 31,378 | ||||
Noncash interest on derivatives, net | 252 | (2,194) | (3,405) | ||||
Amortization of deferred financing costs | 2,700 | 2,486 | 2,925 | ||||
Total interest expense | 51,679 | 32,005 | 30,898 | ||||
Hilton Times Square Mortgage and Unsecured Debt | |||||||
Debt Transactions | |||||||
Gain (loss) on extinguishment of debt, net | (900) | ||||||
Loss Contingencies | |||||||
Gain on extinguishment of debt | (900) | ||||||
Embassy Suites La Jolla Mortgage, Term Loans and Hilton Times Square Mortgage | |||||||
Debt Transactions | |||||||
Gain (loss) on extinguishment of debt, net | (100) | ||||||
Loss Contingencies | |||||||
Gain on extinguishment of debt | (100) | ||||||
Embassy Suites La Jolla Mortgage | |||||||
Debt Transactions | |||||||
Write-off of deferred financing costs | $ 100 | ||||||
Unsecured Debt | |||||||
Debt Transactions | |||||||
Payments of deferred financing costs | 7,400 | ||||||
Unsecured Term Loans | |||||||
Debt Transactions | |||||||
Write-off of deferred financing costs | $ 800 | $ 300 | 800 | ||||
Term loan #3 | |||||||
Debt Transactions | |||||||
Payments of deferred financing costs | $ 2,300 | ||||||
Senior Notes | |||||||
Debt Transactions | |||||||
Write-off of deferred financing costs | $ 200 | $ 200 | |||||
Senior unsecured revolving credit facility | Unsecured Debt | |||||||
Debt Transactions | |||||||
Payments of deferred financing costs | 400 | ||||||
Secured debt | Embassy Suites La Jolla Mortgage | |||||||
Debt Transactions | |||||||
Write-off of deferred financing costs | 400 | ||||||
Secured debt | Hilton Times Square Mortgage | |||||||
Loss Contingencies | |||||||
Loss contingency increase (decrease) | $ (300) |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities | ||
Advance deposits | $ 45,432 | $ 50,219 |
Property, sales and use taxes payable | 6,903 | 7,500 |
Accrued interest | 6,346 | 6,915 |
Deferred rent | 2,711 | 3,981 |
Income taxes payable | 2,860 | |
Derivative Liability | 401 | |
Management fees payable | 1,321 | 1,584 |
Other | 7,040 | 8,234 |
Total other liabilities | $ 73,014 | $ 78,433 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Feb. 28, 2022 | |
Operating Leases | ||||||
Operating lease right-of-use assets, net | $ 12,755,000 | $ 15,025,000 | ||||
Operating lease obligations | $ 16,735,000 | 19,012,000 | ||||
Weighted average remaining operating lease term | 30 years | |||||
Weighted average operating lease discount rate | 5.30% | |||||
Operating lease right-of-use asset obtained in exchange for operating lease obligation | $ 2,200,000 | $ 2,163,000 | $ 864,000 | |||
Asset Impairment Charges | ||||||
Operating lease impairment loss | $ 0 | $ 0 | ||||
Hilton Garden Inn Chicago Downtown/Magnificent Mile | ||||||
Operating Leases | ||||||
Assignment of operating lease right-of-use asset in connection with sale of hotel | $ 2,300,000 | |||||
Assignment of operating lease obligation in connection with sale of hotel | $ 2,600,000 | |||||
Hyatt Centric Chicago Magnificent Mile | ||||||
Finance Lease | ||||||
Assignment of finance lease right-of-use asset in connection with sale of hotel | 44,712,000 | $ 44,700,000 | ||||
Assignment of finance lease obligation in connection with sale of hotel | 15,569,000 | $ 15,600,000 | ||||
Former corporate headquarters | ||||||
Asset Impairment Charges | ||||||
Operating lease impairment loss | 2,100,000 | |||||
Operating lease | Hilton Garden Inn Chicago Downtown/Magnificent Mile | ||||||
Operating Leases | ||||||
Assignment of operating lease right-of-use asset in connection with sale of hotel | 2,275,000 | |||||
Assignment of operating lease obligation in connection with sale of hotel | $ 2,609,000 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Cost | |||
Amortization of right-of-use asset | $ 1,470 | ||
Interest on lease obligation | $ 117 | 1,404 | |
Operating lease cost | $ 5,427 | 5,367 | 5,457 |
Variable lease cost | 8,438 | 6,853 | 393 |
Sublease income | (1,187) | ||
Total lease cost | $ 12,678 | $ 12,337 | $ 8,724 |
Leases - Future Maturities of L
Leases - Future Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Operating Leases | |
2024 | $ 5,783 |
2025 | 5,854 |
2026 | 1,607 |
2027 | 926 |
2028 | 599 |
Thereafter | 1,207 |
Total lease payments | 15,976 |
Less: interest | (2,499) |
Present value of lease obligations due in subsequent years | $ 13,477 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred tax assets | |||
Net operating loss carryforward | $ 22,805 | $ 22,383 | |
Other reserves | 1,095 | 561 | |
State taxes and other | 1,657 | 3,926 | |
Depreciation | 1,853 | 720 | |
Total gross deferred tax assets | 27,410 | 27,590 | |
Deferred tax liabilities | |||
Amortization | (34) | (25) | |
Deferred revenue | (22) | ||
Other | (167) | (47) | |
Total gross deferred tax liabilities | (223) | (72) | |
Valuation allowance | (27,187) | (27,518) | |
Deferred tax assets, net | |||
Net operating loss carryforwards for federal income tax purposes | 103,800 | 101,900 | |
Current income tax provision, net: | |||
Federal | (14) | ||
State and Local tax | (4,548) | (359) | $ (109) |
Current income tax provision, net | (4,562) | (359) | (109) |
Deferred income tax provision, net: | |||
Federal | (123) | 2,568 | 1,262 |
State | (208) | 654 | (963) |
Change in valuation allowance | 331 | (3,222) | (299) |
Income tax provision, net | $ (4,562) | $ (359) | $ (109) |
Corporate tax rate (as a percent) | 21% | 21% | 21% |
Effective Income Tax Rate Reconciliation, Amount | |||
Expected federal tax expense at statutory rate | $ (45,033) | $ (18,406) | $ (7,226) |
Tax impact of REIT election | 40,767 | 20,981 | 8,823 |
Expected tax (provision) benefit of TRS | (4,266) | 2,575 | 1,597 |
State income tax benefit, net of federal (provision) | (164) | 517 | (760) |
Change in valuation allowance | 331 | (3,222) | (299) |
Other permanent items | (463) | (729) | (647) |
Tax refunds and credits | 500 | ||
Income tax provision, net | (4,562) | $ (359) | $ (109) |
Income tax accrued | $ 2,860 |
Income Taxes - Characterization
Income Taxes - Characterization of Distributions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Common Stock | |||
Income Taxes | |||
Ordinary income (in dollars per share) | $ 0.100 | ||
Capital gain (in dollars per share) | $ 0.300 | ||
Total (in dollars per share) | $ 0.300 | $ 0.100 | |
Ordinary income (as a percent) | 100% | ||
Capital gain (as a percent) | 100% | ||
Total (as a percent) | 100% | 100% | |
Series E Cumulative Redeemable Preferred Stock | |||
Income Taxes | |||
Ordinary income (in dollars per share) | $ 0.772 | ||
Total (in dollars per share) | $ 0.772 | ||
Ordinary income (as a percent) | 100% | ||
Total (as a percent) | 100% | ||
Series F Cumulative Redeemable Preferred Stock | |||
Income Taxes | |||
Ordinary income (in dollars per share) | $ 0.990 | ||
Total (in dollars per share) | $ 0.990 | ||
Ordinary income (as a percent) | 100% | ||
Total (as a percent) | 100% | ||
Series G Cumulative Redeemable Preferred Stock | |||
Income Taxes | |||
Ordinary income (in dollars per share) | $ 0.567 | $ 0.234 | |
Capital gain (in dollars per share) | $ 0.469 | ||
Total (in dollars per share) | $ 0.469 | $ 0.567 | $ 0.234 |
Ordinary income (as a percent) | 100% | 100% | |
Capital gain (as a percent) | 100% | ||
Total (as a percent) | 100% | 100% | 100% |
Series H Cumulative Redeemable Preferred Stock | |||
Income Taxes | |||
Ordinary income (in dollars per share) | $ 1.531 | $ 0.923 | |
Capital gain (in dollars per share) | $ 1.531 | ||
Total (in dollars per share) | $ 1.531 | $ 1.531 | $ 0.923 |
Ordinary income (as a percent) | 100% | 100% | |
Capital gain (as a percent) | 100% | ||
Total (as a percent) | 100% | 100% | 100% |
Series I Cumulative Redeemable Preferred Stock | |||
Income Taxes | |||
Ordinary income (in dollars per share) | $ 1.425 | $ 0.653 | |
Capital gain (in dollars per share) | $ 1.425 | ||
Total (in dollars per share) | $ 1.425 | $ 1.425 | $ 0.653 |
Ordinary income (as a percent) | 100% | 100% | |
Capital gain (as a percent) | 100% | ||
Total (as a percent) | 100% | 100% | 100% |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Aug. 12, 2021 | Jun. 11, 2021 | Jul. 31, 2021 | May 31, 2021 | Apr. 30, 2021 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' equity | |||||||||
Preferred stock redemption charges | $ 6,640 | ||||||||
Series E Cumulative Redeemable Preferred Stock | |||||||||
Stockholders' equity | |||||||||
Redemption of preferred stock (in shares) | 4,600,000 | ||||||||
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent) | 6.95% | ||||||||
Redemption price (in dollars per share) | $ 25 | ||||||||
Preferred stock redemption charges | $ 4,000 | ||||||||
Preferred stock, Cumulative Redeemable Preferred Stock, shares outstanding (in shares) | 0 | ||||||||
Series F Cumulative Redeemable Preferred Stock | |||||||||
Stockholders' equity | |||||||||
Redemption of preferred stock (in shares) | 3,000,000 | ||||||||
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent) | 6.45% | ||||||||
Redemption price (in dollars per share) | $ 25 | ||||||||
Preferred stock redemption charges | $ 2,600 | ||||||||
Preferred stock, Cumulative Redeemable Preferred Stock, shares outstanding (in shares) | 0 | ||||||||
Series G Cumulative Redeemable Preferred Stock | |||||||||
Stockholders' equity | |||||||||
Preferred stock, Cumulative Redeemable Preferred Stock, shares outstanding (in shares) | 2,650,000 | 2,650,000 | |||||||
Liquidation preference (in dollars per share) | $ 25 | $ 25 | |||||||
Series G Cumulative Redeemable Preferred Stock | Montage Healdsburg | |||||||||
Stockholders' equity | |||||||||
Redemption price (in dollars per share) | $ 25 | ||||||||
Number of shares of preferred stock issued (in shares) | 2,650,000 | ||||||||
Series G Cumulative Redeemable Preferred Stock | Maximum | Montage Healdsburg | |||||||||
Stockholders' equity | |||||||||
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent) | 3% | ||||||||
Series H Cumulative Redeemable Preferred Stock | |||||||||
Stockholders' equity | |||||||||
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent) | 6.125% | 6.125% | 6.125% | ||||||
Redemption price (in dollars per share) | $ 25 | ||||||||
Preferred stock, Cumulative Redeemable Preferred Stock, shares outstanding (in shares) | 4,600,000 | 4,600,000 | |||||||
Number of shares of preferred stock issued (in shares) | 4,600,000 | ||||||||
Liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | ||||||
Series I Cumulative Redeemable Preferred Stock | |||||||||
Stockholders' equity | |||||||||
Preferred stock, Cumulative Redeemable Preferred Stock, dividend rate (as a percent) | 5.70% | 5.70% | 5.70% | ||||||
Redemption price (in dollars per share) | $ 25 | ||||||||
Preferred stock, Cumulative Redeemable Preferred Stock, shares outstanding (in shares) | 4,000,000 | 4,000,000 | |||||||
Number of shares of preferred stock issued (in shares) | 4,000,000 | ||||||||
Liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | ||||||
Preferred Stock | Series E Cumulative Redeemable Preferred Stock | |||||||||
Stockholders' equity | |||||||||
Redemption of preferred stock (in shares) | (4,600,000) | ||||||||
Preferred Stock | Series F Cumulative Redeemable Preferred Stock | |||||||||
Stockholders' equity | |||||||||
Redemption of preferred stock (in shares) | (3,000,000) | ||||||||
Preferred Stock | Series H Cumulative Redeemable Preferred Stock | |||||||||
Stockholders' equity | |||||||||
Number of shares of preferred stock issued (in shares) | 4,600,000 | ||||||||
Preferred Stock | Series I Cumulative Redeemable Preferred Stock | |||||||||
Stockholders' equity | |||||||||
Number of shares of preferred stock issued (in shares) | 4,000,000 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Feb. 28, 2023 | Feb. 28, 2021 | Feb. 28, 2017 | |
Stockholders' equity | |||||||
Proceeds from common stock offerings | $ 38,443 | ||||||
Share Repurchase Program | |||||||
Stockholders' equity | |||||||
Repurchase Program, remaining authorized capacity | $ 454,700 | ||||||
At The Market | |||||||
Stockholders' equity | |||||||
ATM Program, number of shares sold or issued (in shares) | 2,913,682 | ||||||
Proceeds from common stock offerings | $ 38,443 | ||||||
ATM Program, remaining amount authorized for issuance | $ 300,000 | ||||||
Maximum | Share Repurchase Program | |||||||
Stockholders' equity | |||||||
Stock Repurchase Program, maximum amount authorized for repurchase | $ 500,000 | $ 500,000 | |||||
Maximum | At The Market | |||||||
Stockholders' equity | |||||||
ATM Program, maximum amount authorized for issuance | $ 300,000 | $ 300,000 | $ 300,000 | ||||
Common Stock | Share Repurchase Program | |||||||
Stockholders' equity | |||||||
Repurchase Program, number of shares repurchased (in shares) | 5,971,192 | 10,245,324 | |||||
Repurchase Program, value of shares repurchased | $ 56,403 | $ 108,442 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Dividends | |||
Common stock dividends declared (in dollars per share) | $ 0.30 | $ 0.10 | |
Series E Cumulative Redeemable Preferred Stock | |||
Dividends | |||
Preferred stock dividends and dividends payable (in dollars per share) | $ 0.772222 | ||
Series F Cumulative Redeemable Preferred Stock | |||
Dividends | |||
Preferred stock dividends and dividends payable (in dollars per share) | 0.989896 | ||
Series G Cumulative Redeemable Preferred Stock | |||
Dividends | |||
Preferred stock dividends and dividends payable (in dollars per share) | 0.469437 | 0.567112 | 0.233685 |
Series H Cumulative Redeemable Preferred Stock | |||
Dividends | |||
Preferred stock dividends and dividends payable (in dollars per share) | 1.531252 | 1.531252 | 0.923004 |
Series I Cumulative Redeemable Preferred Stock | |||
Dividends | |||
Preferred stock dividends and dividends payable (in dollars per share) | 1.425000 | 1.425000 | $ 0.653125 |
Common Stock | |||
Dividends | |||
Common stock dividends declared (in dollars per share) | $ 0.300000 | $ 0.100000 |
Incentive Award Plan (Details)
Incentive Award Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Compensation Expense and Forfeitures | ||||
Capitalized compensation cost | $ 467 | $ 481 | $ 490 | |
Restricted Shares and Performance awards | ||||
Incentive Award Plan | ||||
Number of common shares reserved for issuance under the Incentive Award Plan (in shares) | 3,750,000 | 3,750,000 | ||
Number of shares available for future issuance (in shares) | 2,581,199 | 2,581,199 | ||
Compensation Expense and Forfeitures | ||||
Amortization expense, including forfeitures | $ 10,775 | 10,891 | 12,788 | |
Capitalized compensation cost | 467 | $ 481 | 490 | |
Compensation cost to be recognized related to non-vested restricted stock grants | $ 10,900 | $ 10,900 | ||
Weighted average period over which compensation cost will be recognized | 21 months | |||
Restricted Shares and Performance awards | Former Chief Executive Officer | ||||
Compensation Expense and Forfeitures | ||||
Amortization expense, including forfeitures | $ 1,100 |
Incentive Award Plan Restricted
Incentive Award Plan Restricted Stock Awards (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Non-Vested Stock Grants, Number of Shares | |||
Outstanding at the beginning of the period (in shares) | 1,289,146 | 1,463,315 | 1,336,836 |
Granted (in shares) | 450,964 | 555,501 | 1,478,874 |
Vested (in shares) | (699,652) | (694,863) | (1,116,989) |
Forfeited (in shares) | (8,192) | (34,807) | (235,406) |
Outstanding at the end of the period (in shares) | 1,032,266 | 1,289,146 | 1,463,315 |
Non-Vested Stock Grants, Weighted Average Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 11.65 | $ 12.15 | $ 14.01 |
Granted (in dollars per share) | 10.58 | 11.41 | 11.55 |
Vested (in dollars per share) | 11.76 | 12.50 | 13.65 |
Forfeited (in dollars per share) | 11.12 | 11.79 | 11.81 |
Outstanding at the end of the period (in dollars per share) | $ 11.11 | $ 11.65 | $ 12.15 |
Minimum | |||
Incentive Award Plan | |||
Vesting period | 3 years | ||
Maximum | |||
Incentive Award Plan | |||
Vesting period | 5 years |
Incentive Award Plan Restrict_2
Incentive Award Plan Restricted Stock Units (Details) - Performance Shares [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Feb. 09, 2023 | Mar. 07, 2022 | Feb. 10, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Non-Vested Stock Grants, Number of Shares | |||||
Outstanding at the beginning of the period (in shares) | 612,584 | ||||
Granted (in shares) | 463,576 | 612,584 | |||
Outstanding at the end of the period (in shares) | 1,076,160 | 612,584 | |||
Non-Vested Stock Grants, Weighted Average Price | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 10.40 | ||||
Granted (in dollars per share) | 11.07 | $ 10.40 | |||
Outstanding at the end of the period (in dollars per share) | $ 10.69 | $ 10.40 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Method Used | Monte Carlo simulation method | Monte Carlo simulation method | |||
Total Relative Shareholder Return Two Year Vest | |||||
Incentive Award Plan | |||||
Vesting period | 2 years | 2 years | |||
FTSE Nareit Lodging Resort Index Market Capitalization Minimum | $ 500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 41% | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.56% | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 2 years | ||||
Total Relative Shareholder Return Two Year Vest | Minimum | |||||
Incentive Award Plan | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 0% | 0% | |||
Total Relative Shareholder Return Two Year Vest | Maximum | |||||
Incentive Award Plan | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 200% | 200% | |||
Total Relative Shareholder Return Three Year Vest | |||||
Incentive Award Plan | |||||
Vesting period | 3 years | 3 years | |||
FTSE Nareit Lodging Resort Index Market Capitalization Minimum | $ 500 | $ 500 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 38% | 41% | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 4.18% | 1.78% | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 3 years | 3 years | |||
Total Relative Shareholder Return Three Year Vest | Minimum | |||||
Incentive Award Plan | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 0% | 0% | |||
Total Relative Shareholder Return Three Year Vest | Maximum | |||||
Incentive Award Plan | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 200% | 200% | |||
Stock Price Targets Five Year Vest | |||||
Incentive Award Plan | |||||
Number of stock price targets | 5 | 5 | |||
Number Of Consecutive Trading Day Period | 20 | 20 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 40% | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.72% | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 5 years | ||||
Period after the grant date for vesting (in years) | 3 years | 3 years | |||
Stock Price Targets Five Year Vest | Minimum | |||||
Incentive Award Plan | |||||
Share based compensation average closing sales price per share (in dollars per share) | $ 13.50 | $ 13.50 | |||
Stock Price Targets Five Year Vest | Maximum | |||||
Incentive Award Plan | |||||
Share based compensation average closing sales price per share (in dollars per share) | $ 19.50 | $ 19.50 |
Commitments and Contingencies -
Commitments and Contingencies - Management Fees, Franchise Costs and Renovation Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic and incentive management fees incurred | |||
Other property-level expenses | $ 120,247 | $ 113,336 | $ 71,415 |
License and Franchise Agreements | |||
Franchise assessments | 15,674 | 14,690 | 9,060 |
Franchise royalties | 1,202 | 1,149 | 2,294 |
Franchise costs | 16,876 | 15,839 | 11,354 |
Basic management fees | |||
Basic and incentive management fees incurred | |||
Other property-level expenses | 27,122 | 24,858 | 13,406 |
Incentive management fees | |||
Basic and incentive management fees incurred | |||
Other property-level expenses | 7,534 | 6,696 | 1,806 |
Total basic and incentive management fees | |||
Basic and incentive management fees incurred | |||
Other property-level expenses | $ 34,656 | $ 31,554 | $ 15,212 |
Minimum | |||
Management Agreements | |||
Basic management fees (as a percent) | 2% | ||
Maximum | |||
Management Agreements | |||
Basic management fees (as a percent) | 3% | ||
Renovation and Construction Commitments | |||
Renovation and Construction Commitments | |||
Remaining construction commitments | $ 64,300 |
Commitments and Contingencies_2
Commitments and Contingencies - Other Commitments and Concentration of Risk (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2023 USD ($) property | Jun. 30, 2023 USD ($) | Feb. 28, 2023 USD ($) | Jan. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) property | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Concentration of Risk | ||||||||
Number of hotels held for investment | property | 14 | 14 | ||||||
Loss Contingencies | ||||||||
Proceeds from property insurance | $ 3,722 | $ 4,369 | ||||||
Impairment losses | 3,466 | $ 2,685 | ||||||
Restricted Cash | $ 67,295 | 67,295 | 55,983 | |||||
Gain on extinguishment of debt | $ 9,938 | (936) | (57) | |||||
Term of unsecured environmental indemnities | 0 years | |||||||
Damage limitation of unsecured environmental indemnities | $ 0 | |||||||
Payments on credit facility | $ 230,000 | $ 110,000 | ||||||
Safe Harbor Plan | ||||||||
401(k) Savings and Hotel Retirement Plans | ||||||||
Age required for participating in 401(k) plan | 21 years | 21 years | 21 years | |||||
Employment period required for participating in 401(k) plan | 6 months | 6 months | 6 months | |||||
Percentage of eligible employee annual base earnings contributed by the company (as a percent) | 3% | 3% | 3% | |||||
Contributions to retirement plans | $ 200 | $ 200 | $ 200 | |||||
Retirement plans | ||||||||
401(k) Savings and Hotel Retirement Plans | ||||||||
Contributions to retirement plans | 1,600 | 1,400 | 1,000 | |||||
Hilton New Orleans St. Charles | ||||||||
Loss Contingencies | ||||||||
Impairment losses | 2,700 | |||||||
Hilton Times Square | ||||||||
Loss Contingencies | ||||||||
Loss contingency accrued balance | 200 | 200 | 10,200 | |||||
Loss contingency payment | 200 | 800 | ||||||
Loss contingency increase (decrease) | $ (9,800) | (100) | ||||||
Restricted Cash | $ 200 | 200 | 10,200 | $ 11,600 | ||||
Gain on extinguishment of debt | 9,800 | $ 100 | 100 | 300 | ||||
Four Seasons Resort Napa Valley | ||||||||
Loss Contingencies | ||||||||
Loss contingency accrued balance | 3,100 | 3,100 | ||||||
Loss contingency increase (decrease) | $ (3,100) | |||||||
Restricted Cash | 3,100 | 3,100 | ||||||
Geographic Concentration Risk [Member] | ||||||||
Concentration of Risk | ||||||||
Number of hotels held for investment | property | 9 | 9 | ||||||
Workforce Subject to Collective Bargaining Arrangements | Collective Bargaining Agreements | ||||||||
Concentration of Risk | ||||||||
Concentration risk (as a percent) | 28.60% | |||||||
Number of rooms | Geographic Concentration Risk [Member] | California | ||||||||
Concentration of Risk | ||||||||
Concentration risk (as a percent) | 39% | |||||||
Number of rooms | Geographic Concentration Risk [Member] | Florida | ||||||||
Concentration of Risk | ||||||||
Concentration risk (as a percent) | 19% | |||||||
Number of rooms | Geographic Concentration Risk [Member] | Hawaii | ||||||||
Concentration of Risk | ||||||||
Concentration risk (as a percent) | 8% | |||||||
Revenue generated by hotels | Geographic Concentration Risk [Member] | California | ||||||||
Concentration of Risk | ||||||||
Concentration risk (as a percent) | 44% | |||||||
Revenue generated by hotels | Geographic Concentration Risk [Member] | Florida | ||||||||
Concentration of Risk | ||||||||
Concentration risk (as a percent) | 17% | |||||||
Revenue generated by hotels | Geographic Concentration Risk [Member] | Hawaii | ||||||||
Concentration of Risk | ||||||||
Concentration risk (as a percent) | 17% | |||||||
Financial standby letter of credit | ||||||||
Loss Contingencies | ||||||||
Restricted Cash | $ 200 | $ 200 | 200 | |||||
Workers' compensation insurance programs | ||||||||
Loss Contingencies | ||||||||
Outstanding irrevocable letters of credit | $ 200 | 200 | ||||||
Payments on credit facility | 0 | |||||||
Indemnification Agreement | Hilton Times Square | ||||||||
Loss Contingencies | ||||||||
Loss contingency increase (decrease) | $ (9,800) | (100) | ||||||
Gain on extinguishment of debt | $ 9,900 | |||||||
Hurricane | Hilton New Orleans St. Charles | ||||||||
Loss Contingencies | ||||||||
Hurricane-related restoration expenses | 1,600 | 2,900 | ||||||
Impairment losses | 2,700 | |||||||
Hurricane | JW Marriott New Orleans | ||||||||
Loss Contingencies | ||||||||
Hurricane-related restoration expenses | 100 | $ 1,300 | ||||||
Hurricane | Insurance Claims [Member] | Hilton New Orleans St. Charles | ||||||||
Loss Contingencies | ||||||||
Proceeds from property insurance | $ 3,700 | 4,400 | ||||||
Gain on business interruption insurance recovery | $ 500 | $ 1,000 | ||||||
Hotel owned by the Company | ||||||||
Concentration of Risk | ||||||||
Number of hotels owned by the Company | property | 14 | 14 | ||||||
Hotel owned by the Company | Geographic Concentration Risk [Member] | California | ||||||||
Concentration of Risk | ||||||||
Number of hotels owned by the Company | property | 5 | 5 | ||||||
Hotel owned by the Company | Geographic Concentration Risk [Member] | Florida | ||||||||
Concentration of Risk | ||||||||
Number of hotels owned by the Company | property | 3 | 3 | ||||||
Hotel owned by the Company | Geographic Concentration Risk [Member] | Hawaii | ||||||||
Concentration of Risk | ||||||||
Number of hotels owned by the Company | property | 1 | 1 | ||||||
Other operating | Hurricane | Insurance Claims [Member] | Hilton New Orleans St. Charles | ||||||||
Loss Contingencies | ||||||||
Gain on Business Interruption Insurance Recovery, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues |
Schedule III-Real Estate and _2
Schedule III-Real Estate and Accumulated Depreciation (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Gross Amount at year end | |
Aggregate cost of properties for federal income tax purposes | $ 3,600,000 |
Hotel properties | |
Real Estate and Accumulated Depreciation | |
Encmbr | 74,050 |
Initial costs | |
Land | 565,625 |
Bldg. and Impr | 1,896,653 |
Cost Capitalized Subsequent to Acquisition | |
Land | 48,487 |
Bldg. and Impr | 690,625 |
Gross Amount at year end | |
Land | 614,112 |
Bldg. and Impr | 2,587,278 |
Totals | 3,201,390 |
Accum. Depr. | $ 811,045 |
Four Seasons Resort Napa Valley | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
Four Seasons Resort Napa Valley | Maximum | |
Gross Amount at year end | |
Depr. Life | 40 years |
Four Seasons Resort Napa Valley | Hotel properties | |
Initial costs | |
Land | $ 23,514 |
Bldg. and Impr | 128,645 |
Cost Capitalized Subsequent to Acquisition | |
Bldg. and Impr | 8,107 |
Gross Amount at year end | |
Land | 23,514 |
Bldg. and Impr | 136,752 |
Totals | 160,266 |
Accum. Depr. | $ 7,828 |
Date Acquired | Dec. 01, 2021 |
Hilton New Orleans St. Charles | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
Hilton New Orleans St. Charles | Maximum | |
Gross Amount at year end | |
Depr. Life | 35 years |
Hilton New Orleans St. Charles | Hotel properties | |
Initial costs | |
Land | $ 3,698 |
Bldg. and Impr | 53,578 |
Cost Capitalized Subsequent to Acquisition | |
Bldg. and Impr | 15,985 |
Gross Amount at year end | |
Land | 3,698 |
Bldg. and Impr | 69,563 |
Totals | 73,261 |
Accum. Depr. | $ 16,584 |
Date Acquired | May 01, 2013 |
Hilton San Diego Bayfront [Member] | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
Hilton San Diego Bayfront [Member] | Maximum | |
Gross Amount at year end | |
Depr. Life | 57 years |
Hilton San Diego Bayfront [Member] | Hotel properties | |
Initial costs | |
Bldg. and Impr | $ 424,992 |
Cost Capitalized Subsequent to Acquisition | |
Bldg. and Impr | 32,910 |
Gross Amount at year end | |
Bldg. and Impr | 457,902 |
Totals | 457,902 |
Accum. Depr. | $ 109,357 |
Date Acquired | Apr. 15, 2011 |
Hyatt Regency San Francisco | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
Hyatt Regency San Francisco | Maximum | |
Gross Amount at year end | |
Depr. Life | 35 years |
Hyatt Regency San Francisco | Hotel properties | |
Initial costs | |
Land | $ 116,140 |
Bldg. and Impr | 131,430 |
Cost Capitalized Subsequent to Acquisition | |
Bldg. and Impr | 107,702 |
Gross Amount at year end | |
Land | 116,140 |
Bldg. and Impr | 239,132 |
Totals | 355,272 |
Accum. Depr. | $ 95,447 |
Date Acquired | Dec. 02, 2013 |
JW Marriott New Orleans | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
JW Marriott New Orleans | Maximum | |
Gross Amount at year end | |
Depr. Life | 35 years |
JW Marriott New Orleans | Hotel properties | |
Real Estate and Accumulated Depreciation | |
Encmbr | $ 74,050 |
Initial costs | |
Bldg. and Impr | 73,420 |
Cost Capitalized Subsequent to Acquisition | |
Land | 15,147 |
Bldg. and Impr | 42,282 |
Gross Amount at year end | |
Land | 15,147 |
Bldg. and Impr | 115,702 |
Totals | 130,849 |
Accum. Depr. | $ 42,098 |
Date Acquired | Feb. 15, 2011 |
Marriott Boston Long Wharf | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
Marriott Boston Long Wharf | Maximum | |
Gross Amount at year end | |
Depr. Life | 35 years |
Marriott Boston Long Wharf | Hotel properties | |
Initial costs | |
Land | $ 51,598 |
Bldg. and Impr | 170,238 |
Cost Capitalized Subsequent to Acquisition | |
Bldg. and Impr | 78,268 |
Gross Amount at year end | |
Land | 51,598 |
Bldg. and Impr | 248,506 |
Totals | 300,104 |
Accum. Depr. | $ 128,612 |
Date Acquired | Mar. 23, 2007 |
Montage Healdsburg | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
Montage Healdsburg | Maximum | |
Gross Amount at year end | |
Depr. Life | 40 years |
Montage Healdsburg | Hotel properties | |
Initial costs | |
Land | $ 40,326 |
Bldg. and Impr | 194,589 |
Cost Capitalized Subsequent to Acquisition | |
Land | 108 |
Bldg. and Impr | 5,671 |
Gross Amount at year end | |
Land | 40,434 |
Bldg. and Impr | 200,260 |
Totals | 240,694 |
Accum. Depr. | $ 16,063 |
Date Acquired | Apr. 22, 2021 |
Oceans Edge Resort & Marina | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
Oceans Edge Resort & Marina | Maximum | |
Gross Amount at year end | |
Depr. Life | 40 years |
Oceans Edge Resort & Marina | Hotel properties | |
Initial costs | |
Land | $ 92,510 |
Bldg. and Impr | 74,361 |
Cost Capitalized Subsequent to Acquisition | |
Land | 2,515 |
Bldg. and Impr | 7,970 |
Gross Amount at year end | |
Land | 95,025 |
Bldg. and Impr | 82,331 |
Totals | 177,356 |
Accum. Depr. | $ 15,044 |
Date Acquired | Jul. 25, 2017 |
Renaissance Long Beach | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
Renaissance Long Beach | Maximum | |
Gross Amount at year end | |
Depr. Life | 35 years |
Renaissance Long Beach | Hotel properties | |
Initial costs | |
Land | $ 10,437 |
Bldg. and Impr | 37,300 |
Cost Capitalized Subsequent to Acquisition | |
Bldg. and Impr | 28,153 |
Gross Amount at year end | |
Land | 10,437 |
Bldg. and Impr | 65,453 |
Totals | 75,890 |
Accum. Depr. | $ 36,518 |
Date Acquired | Jun. 23, 2005 |
Renaissance Orlando at SeaWorld | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
Renaissance Orlando at SeaWorld | Maximum | |
Gross Amount at year end | |
Depr. Life | 35 years |
Renaissance Orlando at SeaWorld | Hotel properties | |
Initial costs | |
Bldg. and Impr | $ 119,733 |
Cost Capitalized Subsequent to Acquisition | |
Land | 30,717 |
Bldg. and Impr | 72,312 |
Gross Amount at year end | |
Land | 30,717 |
Bldg. and Impr | 192,045 |
Totals | 222,762 |
Accum. Depr. | $ 104,818 |
Date Acquired | Jun. 23, 2005 |
The Bidwell Marriott Portland | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
The Bidwell Marriott Portland | Maximum | |
Gross Amount at year end | |
Depr. Life | 35 years |
The Bidwell Marriott Portland | Hotel properties | |
Initial costs | |
Land | $ 5,341 |
Bldg. and Impr | 20,705 |
Cost Capitalized Subsequent to Acquisition | |
Bldg. and Impr | 27,785 |
Gross Amount at year end | |
Land | 5,341 |
Bldg. and Impr | 48,490 |
Totals | 53,831 |
Accum. Depr. | $ 23,869 |
Date Acquired | Aug. 11, 2000 |
The Confidante Miami Beach | Minimum | |
Gross Amount at year end | |
Depr. Life | 3 years |
The Confidante Miami Beach | Maximum | |
Gross Amount at year end | |
Depr. Life | 40 years |
The Confidante Miami Beach | Hotel properties | |
Initial costs | |
Land | $ 87,791 |
Bldg. and Impr | 140,725 |
Cost Capitalized Subsequent to Acquisition | |
Bldg. and Impr | 632 |
Gross Amount at year end | |
Land | 87,791 |
Bldg. and Impr | 141,357 |
Totals | 229,148 |
Accum. Depr. | $ 5,652 |
Date Acquired | Jun. 01, 2022 |
The Westin Washington, DC Downtown | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
The Westin Washington, DC Downtown | Maximum | |
Gross Amount at year end | |
Depr. Life | 35 years |
The Westin Washington, DC Downtown | Hotel properties | |
Initial costs | |
Land | $ 14,563 |
Bldg. and Impr | 132,800 |
Cost Capitalized Subsequent to Acquisition | |
Bldg. and Impr | 137,570 |
Gross Amount at year end | |
Land | 14,563 |
Bldg. and Impr | 270,370 |
Totals | 284,933 |
Accum. Depr. | $ 112,541 |
Date Acquired | Jul. 13, 2005 |
Wailea Beach Resort | Minimum | |
Gross Amount at year end | |
Depr. Life | 5 years |
Wailea Beach Resort | Maximum | |
Gross Amount at year end | |
Depr. Life | 40 years |
Wailea Beach Resort | Hotel properties | |
Initial costs | |
Land | $ 119,707 |
Bldg. and Impr | 194,137 |
Cost Capitalized Subsequent to Acquisition | |
Bldg. and Impr | 125,278 |
Gross Amount at year end | |
Land | 119,707 |
Bldg. and Impr | 319,415 |
Totals | 439,122 |
Accum. Depr. | $ 96,614 |
Date Acquired | Jul. 14, 2014 |
Senior corporate credit facility | |
Gross Amount at year end | |
Outstanding indebtedness under credit facility | $ 0 |
Schedule III-Reconciliation of
Schedule III-Reconciliation of Carrying Amounts and Accumulated Depreciation (Details) - Hotel properties [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of land and buildings and improvements | |||
Balance at the beginning of the year | $ 3,466,302 | $ 3,334,153 | $ 3,094,962 |
Acquisitions | 229,030 | 387,074 | |
Improvements | 92,437 | 76,230 | 36,884 |
Impairment losses | (3,264) | ||
Changes in reporting presentation | (53,068) | ||
Dispositions | (357,349) | (173,111) | (128,435) |
Balance at the end of the year | 3,201,390 | 3,466,302 | 3,334,153 |
Reconciliation of accumulated depreciation | |||
Balance at the beginning of the year | 835,961 | 799,641 | 772,289 |
Depreciation | 96,771 | 95,495 | 96,508 |
Impairment losses | (579) | ||
Changes in reporting presentation | (24,144) | ||
Retirement | (121,687) | (59,175) | (44,433) |
Balance at the end of the year | $ 811,045 | $ 835,961 | $ 799,641 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |