Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | APPLE HOSPITALITY REIT, INC. | |
Trading Symbol | APLE | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 228,354,214 | |
Amendment Flag | false | |
Entity Central Index Key | 0001418121 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-37389 | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 26-1379210 | |
Entity Address, Address Line One | 814 East Main Street | |
Entity Address, City or Town | Richmond | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23219 | |
City Area Code | 804 | |
Local Phone Number | 344-8121 | |
Title of 12(b) Security | Common Shares, no par value | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Investment in real estate, net of accumulated depreciation and amortization of $1,266,122 and $1,235,698, respectively | $ 4,541,424 | $ 4,732,896 |
Assets held for sale | 0 | 5,316 |
Cash and cash equivalents | 39,432 | 5,556 |
Restricted cash-furniture, fixtures and other escrows | 34,446 | 28,812 |
Due from third party managers, net | 52,322 | 22,137 |
Other assets, net | 37,203 | 35,042 |
Total Assets | 4,704,827 | 4,829,759 |
Liabilities | ||
Debt, net | 1,366,621 | 1,482,571 |
Finance lease liabilities | 111,706 | 219,981 |
Accounts payable and other liabilities | 98,386 | 97,860 |
Total Liabilities | 1,576,713 | 1,800,412 |
Shareholders' Equity | ||
Preferred stock, authorized 30,000,000 shares; none issued and outstanding | 0 | 0 |
Common stock, no par value, authorized 800,000,000 shares; issued and outstanding 228,354,214 and 223,212,346 shares, respectively | 4,570,217 | 4,488,419 |
Accumulated other comprehensive loss | (24,650) | (42,802) |
Distributions greater than net income | (1,417,453) | (1,416,270) |
Total Shareholders' Equity | 3,128,114 | 3,029,347 |
Total Liabilities and Shareholders' Equity | $ 4,704,827 | $ 4,829,759 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Investment in real estate accumulated depreciation (in Dollars) | $ 1,266,122 | $ 1,235,698 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 228,354,214 | 223,212,346 |
Common stock, shares outstanding | 228,354,214 | 223,212,346 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Total revenue | $ 277,164 | $ 148,826 | $ 683,281 | $ 467,914 |
Expenses: | ||||
Total hotel operating expense | 153,953 | 93,762 | 393,103 | 310,845 |
Property taxes, insurance and other | 17,927 | 20,523 | 54,936 | 58,820 |
General and administrative | 13,261 | 6,726 | 29,815 | 22,274 |
Loss on impairment of depreciable real estate assets | 0 | 0 | 10,754 | 4,382 |
Depreciation and amortization | 44,217 | 50,171 | 139,313 | 149,590 |
Total expense | 229,358 | 171,182 | 627,921 | 545,911 |
Gain on sale of real estate | 44 | 0 | 3,664 | 8,785 |
Operating income (loss) | 47,850 | (22,356) | 59,024 | (69,212) |
Interest and other expense, net | (15,977) | (18,531) | (53,108) | (52,483) |
Income (loss) before income taxes | 31,873 | (40,887) | 5,916 | (121,695) |
Income tax expense | (114) | (61) | (309) | (265) |
Net income (loss) | 31,759 | (40,948) | 5,607 | (121,960) |
Other comprehensive income (loss): | ||||
Interest rate derivatives | 3,426 | 2,739 | 18,152 | (43,622) |
Comprehensive income (loss) | $ 35,185 | $ (38,209) | $ 23,759 | $ (165,582) |
Basic and diluted net income (loss) per common share | $ 0.14 | $ (0.18) | $ 0.02 | $ (0.55) |
Weighted average common shares outstanding - basic and diluted (in Shares) | 228,436 | 223,293 | 225,664 | 223,620 |
Room [Member] | ||||
Revenues: | ||||
Total revenue | $ 260,415 | $ 140,116 | $ 640,062 | $ 434,923 |
Food and Beverage [Member] | ||||
Revenues: | ||||
Total revenue | 6,315 | 2,235 | 14,186 | 14,386 |
Other [Member] | ||||
Revenues: | ||||
Total revenue | 10,434 | 6,475 | 29,033 | 18,605 |
Direct Operating [Member] | ||||
Expenses: | ||||
Total hotel operating expense | 61,954 | 33,124 | 153,290 | 120,860 |
Hotel Administrative [Member] | ||||
Expenses: | ||||
Total hotel operating expense | 23,126 | 16,625 | 62,408 | 54,079 |
Sales and Marketing [Member] | ||||
Expenses: | ||||
Total hotel operating expense | 23,015 | 13,728 | 58,283 | 47,517 |
Utilities [Member] | ||||
Expenses: | ||||
Total hotel operating expense | 11,410 | 9,967 | 31,322 | 25,465 |
Repair and Maintenance [Member] | ||||
Expenses: | ||||
Total hotel operating expense | 12,600 | 8,842 | 34,711 | 26,983 |
Royalty [Member] | ||||
Expenses: | ||||
Total hotel operating expense | 12,274 | 6,603 | 30,058 | 20,516 |
Management Service [Member] | ||||
Expenses: | ||||
Total hotel operating expense | $ 9,574 | $ 4,873 | $ 23,031 | $ 15,425 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Distributions Greater Than Net Income [Member] |
Balance at Dec. 31, 2019 | $ 3,291,013 | $ 4,493,763 | $ (4,698) | $ (1,198,052) |
Balance (in Shares) at Dec. 31, 2019 | 223,863 | |||
Share based compensation, net | 9,198 | $ 9,198 | ||
Share based compensation, net (in Shares) | 889 | |||
Issuance of common shares, net | (337) | $ (337) | ||
Common shares repurchased | $ (14,336) | $ (14,336) | ||
Common shares repurchased (in Shares) | (1,500) | (1,521) | ||
Interest rate derivatives | $ (43,622) | (43,622) | ||
Net income (loss) | (121,960) | (121,960) | ||
Distributions declared to shareholders | (44,952) | (44,952) | ||
Balance at Sep. 30, 2020 | 3,075,004 | $ 4,488,288 | (48,320) | (1,364,964) |
Balance (in Shares) at Sep. 30, 2020 | 223,231 | |||
Balance at Jun. 30, 2020 | 3,112,959 | $ 4,488,034 | (51,059) | (1,324,016) |
Balance (in Shares) at Jun. 30, 2020 | 223,224 | |||
Share based compensation, net | 591 | $ 591 | ||
Share based compensation, net (in Shares) | 7 | |||
Issuance of common shares, net | (337) | $ (337) | ||
Interest rate derivatives | 2,739 | 2,739 | ||
Net income (loss) | (40,948) | (40,948) | ||
Balance at Sep. 30, 2020 | 3,075,004 | $ 4,488,288 | (48,320) | (1,364,964) |
Balance (in Shares) at Sep. 30, 2020 | 223,231 | |||
Balance at Dec. 31, 2020 | 3,029,347 | $ 4,488,419 | (42,802) | (1,416,270) |
Balance (in Shares) at Dec. 31, 2020 | 223,212 | |||
Share based compensation, net | 6,762 | $ 6,762 | ||
Share based compensation, net (in Shares) | 465 | |||
Issuance of common shares, net | 75,036 | $ 75,036 | ||
Issuance of common shares, net (in Shares) | 4,677 | |||
Interest rate derivatives | 18,152 | 18,152 | ||
Net income (loss) | 5,607 | 5,607 | ||
Distributions declared to shareholders | (6,790) | (6,790) | ||
Balance at Sep. 30, 2021 | 3,128,114 | $ 4,570,217 | (24,650) | (1,417,453) |
Balance (in Shares) at Sep. 30, 2021 | 228,354 | |||
Balance at Jun. 30, 2021 | 3,094,323 | $ 4,569,332 | (28,076) | (1,446,933) |
Balance (in Shares) at Jun. 30, 2021 | 228,341 | |||
Share based compensation, net | 915 | $ 915 | ||
Share based compensation, net (in Shares) | 13 | |||
Issuance of common shares, net | (30) | $ (30) | ||
Interest rate derivatives | 3,426 | 3,426 | ||
Net income (loss) | 31,759 | 31,759 | ||
Distributions declared to shareholders | (2,279) | (2,279) | ||
Balance at Sep. 30, 2021 | $ 3,128,114 | $ 4,570,217 | $ (24,650) | $ (1,417,453) |
Balance (in Shares) at Sep. 30, 2021 | 228,354 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Stockholders Equity [Abstract] | |||
Distributions declared to shareholders | $ 0.01 | $ 0.03 | $ 0.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||||
Net income (loss) | $ 31,759 | $ (40,948) | $ 5,607 | $ (121,960) | |
Adjustments to reconcile net loss to cash provided by operating activities: | |||||
Depreciation and amortization | 44,217 | 50,171 | 139,313 | 149,590 | |
Loss on impairment of depreciable real estate assets | 0 | 0 | 10,754 | 4,382 | |
Gain on sale of real estate | (44) | 0 | (3,664) | (8,785) | |
Other non-cash expenses, net | 8,208 | 6,055 | |||
Changes in operating assets and liabilities: | |||||
Increase in due from third party managers, net | (30,383) | (3,037) | |||
Increase in other assets, net | (755) | (1,627) | |||
Increase in accounts payable and other liabilities | 17,282 | 1,581 | |||
Net cash provided by operating activities | 146,362 | 26,199 | |||
Cash flows from investing activities: | |||||
Acquisition of hotel properties, net | (197,228) | (88,687) | |||
Refunds (payments) for potential acquisitions, net | (2,645) | 585 | |||
Capital improvements | (9,138) | (44,383) | |||
Net proceeds from sale of real estate | 231,008 | 44,385 | |||
Net cash provided by (used in) investing activities | 21,997 | (88,100) | |||
Cash flows from financing activities: | |||||
Net proceeds related to issuance of common shares | 75,036 | (247) | |||
Repurchases of common shares | (14,336) | ||||
Repurchases of common shares to satisfy employee withholding requirements | (1,650) | (1,748) | |||
Distributions paid to common shareholders | (4,510) | (67,324) | |||
Net proceeds from (payments on) revolving credit facility | (105,800) | 78,800 | |||
Proceeds from term loans and senior notes | 50,000 | ||||
Proceeds from mortgage debt and other loans | 81,520 | ||||
Payments of mortgage debt and other loans | (66,349) | (41,523) | |||
Payments of finance lease settlement | (24,000) | ||||
Financing costs | (1,576) | (2,283) | |||
Net cash provided by (used in) financing activities | (128,849) | 82,859 | |||
Net change in cash, cash equivalents and restricted cash | 39,510 | 20,958 | |||
Cash, cash equivalents and restricted cash, beginning of period | 34,368 | 34,661 | $ 34,661 | ||
Cash, cash equivalents and restricted cash, end of period | 73,878 | 55,619 | 73,878 | 55,619 | 34,368 |
Supplemental cash flow information: | |||||
Interest paid | 49,735 | 46,737 | |||
Supplemental disclosure of noncash investing and financing activities: | |||||
Notes payable originated from acquisitions | 56,000 | 20,551 | |||
Accrued distribution to common shareholders | 2,279 | 2,279 | |||
Reconciliation of cash, cash equivalents and restricted cash: | |||||
Cash and cash equivalents, beginning of period | 5,556 | ||||
Restricted cash-furniture, fixtures and other escrows, beginning of period | 28,812 | 34,661 | 34,661 | ||
Cash, cash equivalents and restricted cash, beginning of period | 34,368 | 34,661 | 34,661 | ||
Cash and cash equivalents, end of period | 39,432 | 27,435 | 39,432 | 27,435 | 5,556 |
Restricted cash-furniture, fixtures and other escrows, end of period | 34,446 | 28,184 | 34,446 | 28,184 | 28,812 |
Cash, cash equivalents and restricted cash, end of period | $ 73,878 | $ 55,619 | $ 73,878 | $ 55,619 | $ 34,368 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Organization Apple Hospitality REIT, Inc., together with its wholly-owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is a self-advised REIT that invests in income-producing real estate, primarily in the lodging sector, in the United States (“U.S.”). The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision-making process of these entities, and therefore does not consolidate the entities. As of September 30, 2021, the Company owned 215 hotels with an aggregate of 28,085 rooms located in 35 states. The Company’s common shares are listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “APLE.” Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”). Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2021. Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Coronavirus COVID-19 Pandemic As a result of the coronavirus COVID-19 pandemic (“COVID-19”) and the impact it has had on travel and the broader economy throughout the U.S. since March 2020, the Company’s hotels have experienced significant declines in occupancy, which have had and are expected to continue to have a significant negative effect on the Company’s revenue and operating results. While occupancy has recovered significantly during the first nine months of 2021, there remains significant uncertainty as to when or if operations at the hotels will return to pre-pandemic levels. Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income (loss) per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. Basic and diluted net income (loss) per common share were the same for each of the periods presented. Accounting Standards Recently Adopted Reference Rate Reform In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848) the FASB issued 2021-01, Reference Rate Reform (Topic 848), Scope, which further clarified the scope of the reference rate reform optional practical expedients and exceptions outlined in Topic 848. consolidated financial statements and related disclosures as of September 30, 2021 . The provisions of these updates will generally affect the Company by allowing, among other things, the following: • Modifications of the Company’s unsecured credit facilities (as defined below) to replace the London Interbank Offered Rate (LIBOR) with a substitute index to be accounted for as a non-substantial modification and not be considered a debt extinguishment. • Changes to the floating interest rate index used in the Company’s interest rate swaps to not be considered a change to the critical terms of the hedge and therefore not requiring a dedesignation of the hedging relationship. The Company has not entered into any contract modifications yet as it directly relates to reference rate reform but anticipates having to undertake such modifications in the future as a majority of the Company’s unsecured credit facilities and interest rate swaps are indexed to LIBOR. Accounting Standards Recently Issued Accounting for Certain Equity Options In May 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (Topics 260, 470, 718 and 815) |
Investment in Real Estate
Investment in Real Estate | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Investment in Real Estate | 2. Investment in Real Estate The Company’s investment in real estate consisted of the following (in thousands): September 30, December 31, 2021 2020 Land $ 771,639 $ 725,512 Building and improvements 4,441,034 4,525,850 Furniture, fixtures and equipment 475,807 499,865 Finance ground lease assets 102,084 203,617 Franchise fees 16,982 13,750 5,807,546 5,968,594 Less accumulated depreciation and amortization (1,266,122 ) (1,235,698 ) Investment in real estate, net $ 4,541,424 $ 4,732,896 As of September 30, 2021, the Company owned 215 hotels with an aggregate of 28,085 rooms located in 35 states. The Company leases all of its hotels to its wholly-owned taxable REIT subsidiary (or a subsidiary thereof) under master hotel lease agreements. Hotel Acquisitions The Company acquired four hotels during the nine months ended September 30, 2021. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price, excluding transaction costs, for each hotel. All dollar amounts are in thousands. City State Brand Manager Date Acquired Rooms Gross Purchase Price Madison WI Hilton Garden Inn Raymond 2/18/2021 176 $ 49,599 Portland ME AC Hotels Crestline 8/20/2021 178 66,750 Greenville SC Hyatt Place Crestline 9/1/2021 130 30,000 Portland ME Aloft Crestline 9/10/2021 157 51,150 641 $ 197,499 During the year ended December 31, 2020, the Company acquired four hotels, including four hotels during the nine months ended September 30, 2020. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price, excluding transaction costs, for each hotel. All dollar amounts are in thousands. City State Brand Manager Date Acquired Rooms Gross Purchase Price Cape Canaveral FL Hampton LBA 4/30/2020 116 $ 24,102 Cape Canaveral FL Home2 Suites LBA 4/30/2020 108 22,602 Tempe AZ Hyatt House Crestline 8/13/2020 105 26,309 Tempe AZ Hyatt Place Crestline 8/13/2020 154 38,279 483 $ 111,292 The Company utilized $25.0 million of its available cash and entered into a one-year Seattle Land Acquisition On August 16, 2021, the Company purchased the fee interest in the land at the Seattle, Washington Residence Inn, previously held under a finance ground lease. The Company utilized $24.0 million of its available cash and entered into a one-year Hotel Purchase Contract Commitments As of September 30, 2021, the Company had outstanding contracts for the potential purchase of five hotels for a total expected purchase price of approximately $242.6 million. Of these five hotels, four are existing and the Company expects to complete the purchase of these hotels in the fourth quarter of 2021; and one hotel is under development and is currently planned to be completed and opened for business in 2023, at which time the Company expects to complete the purchase of this hotel. Although the Company is working towards acquiring these hotels, in each case there are a number of conditions to closing that have not yet been satisfied and there can be no assurance that closings on these hotels will occur under the outstanding purchase contracts. If the sellers meet all of the conditions to closing, the Company is obligated to specifically perform under these contracts. The following table summarizes the location, brand, date of purchase contract, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) deposits paid, and gross purchase price for each of the contracts outstanding at September 30, 2021. All dollar amounts are in thousands. Location Brands Date of Purchase Contract Rooms Refundable Deposits Gross Purchase Price Madison, WI (1) Embassy Suites 7/27/2021 260 $ 893 $ 78,598 Memphis, TN Hilton Garden Inn 8/27/2021 150 300 38,000 Fort Worth, TX Hilton Garden Inn 9/2/2021 157 176 29,500 Fort Worth, TX Homewood Suites 9/2/2021 112 128 21,500 Portland, OR Hampton 9/2/2021 243 446 75,000 922 $ 1,943 $ 242,598 (1) This hotel is currently under development. The table shows the expected number of rooms upon hotel completion and the expected franchise brand. Assuming all conditions to closing are met, the purchase of this hotel is expected to occur in 2023. If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As this property is under development, at this time, the seller has not met all of the conditions to closing. |
Dispositions
Dispositions | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Dispositions | 3. Dispositions Dispositions During the nine months ended September 30, 2021, the Company sold 23 hotels in four separate transactions with unrelated parties for a total combined gross sales price of approximately $234.6 million, resulting in a combined net gain on sale, after giving effect to impairment charges discussed below, of approximately $3.7 million, net of transaction costs, which is included in the Company’s consolidated statement of operations for the nine months ended September 30, 2021. The 23 hotels had a total carrying value of approximately $227.2 million at the time of sale. The following table lists the 23 hotels sold: City State Brand Date Sold Rooms Charlotte NC Homewood Suites 2/25/2021 118 Memphis TN Homewood Suites 3/16/2021 140 Overland Park KS SpringHill Suites 4/30/2021 102 Montgomery AL Hilton Garden Inn 7/22/2021 97 Montgomery AL Homewood Suites 7/22/2021 91 Rogers AR Residence Inn 7/22/2021 88 Phoenix AZ Courtyard 7/22/2021 127 Lakeland FL Courtyard 7/22/2021 78 Albany GA Fairfield 7/22/2021 87 Schaumburg IL Hilton Garden Inn 7/22/2021 166 Andover MA SpringHill Suites 7/22/2021 136 Fayetteville NC Residence Inn 7/22/2021 92 Greenville SC Residence Inn 7/22/2021 78 Jackson TN Hampton 7/22/2021 85 Johnson City TN Courtyard 7/22/2021 90 Allen TX Hampton 7/22/2021 103 Allen TX Hilton Garden Inn 7/22/2021 150 Beaumont TX Residence Inn 7/22/2021 133 Burleson/Fort Worth TX Hampton 7/22/2021 88 El Paso TX Hilton Garden Inn 7/22/2021 145 Irving TX Homewood Suites 7/22/2021 77 Richmond VA SpringHill Suites 7/22/2021 103 Vancouver WA SpringHill Suites 7/22/2021 119 Total 2,493 During the year ended December 31, 2020, the Company sold three hotels in three transactions with unrelated parties for a total combined gross sales price of approximately $55.3 million, resulting in a combined gain on sale of approximately $10.9 million, which is included in the Company’s consolidated statement of operations for the year ended December 31, 2020. The three hotels had a total carrying value of approximately $43.8 million at the time of the sale. The following table lists the three hotels sold: City State Brand Date Sold Rooms Sanford FL SpringHill Suites 1/16/2020 105 Boise ID SpringHill Suites 2/27/2020 230 Tulare CA Hampton 12/30/2020 86 Total 421 Excluding gains on sale of real estate, the Company’s consolidated statements of operations include operating loss of approximately $(6.8) million and $(6.7) million for the nine months ended September 30, 2021 and 2020, respectively, relating to the results of operations of the 26 hotels noted above (the 23 hotels sold in the first nine months of 2021 and the three hotels sold in 2020) for the period of ownership. The sale of these properties does not represent a strategic shift that has, or will have, a major effect on the Company’s operations and financial results, and therefore the operating results for the period of ownership of these properties are included in income from continuing operations for the nine months ended September 30, 2021 and 2020. A portion of the net proceeds from the sales were used to pay down borrowings on the Company’s revolving credit facility and the remaining proceeds are available for general corporate purposes, including acquisitions of hotel properties . Hotel Sale Contracts and Loss on Impairment of Depreciable Real Estate Assets During the first quarter of 2021, the Company identified 20 hotels for potential sale and, in April 2021, entered into a purchase contract with an unrelated party for the sale of the hotels for a gross sales price of $211.0 million. As a result, the Company recognized impairment losses totaling approximately $9.4 million The fair values of these properties were based on broker opinions of value using multiple methods to determine their value, including but not limited to replacement value, discounted cash flows and the income approach based on historical and forecasted operating results of the specific properties. These valuations are Level 3 inputs under the fair value hierarchy. Additionally, during the first quarter of 2021, the Company identified the Overland Park, Kansas SpringHill Suites for potential sale and, in February 2021, entered into a purchase contract with an unrelated party for the sale of the hotel for a gross sales price of to adjust the carrying value of the hotel to its estimated fair value less cost to sell, which was based on the contracted sales price, a Level 1 input under the fair value hierarchy. The Company completed the sale of the hotel in April 2021 and used the net proceeds from the sale to pay down borrowings on the Company’s revolving credit facility In June 2020, the Company entered into a |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt Summary As of September 30, 2021 and December 31, 2020, the Company’s debt consisted of the following (in thousands): September 30, 2021 December 31, 2020 Revolving credit facility $ - $ 105,800 Term loans and senior notes, net 864,705 864,225 Mortgage debt, net 501,916 512,546 Debt, net $ 1,366,621 $ 1,482,571 The aggregate amounts of principal payable under the Company’s total debt obligations as of September 30, 2021 (including the revolving credit facility, term loans, senior notes and mortgage debt), for each of the next five fiscal years and thereafter are as follows (in thousands): 2021 (October - December) $ 4,375 2022 165,831 2023 296,213 2024 338,597 2025 245,140 Thereafter 322,265 1,372,421 Unamortized fair value adjustment of assumed debt 1,070 Unamortized debt issuance costs (6,870 ) Total $ 1,366,621 The Company uses interest rate swaps to manage its interest rate risk on a portion of its variable-rate debt. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the London Inter-Bank Offered Rate for a one-month term (“one-month LIBOR”). The swaps are designed to effectively fix the interest payments on variable-rate debt instruments. See Note 5 for more information on the interest rate swap agreements. The Company’s total fixed-rate and variable-rate debt, after giving effect to its interest rate swaps in effect at September 30, 2021 and December 31, 2020 , is set forth below. All dollar amounts are in thousands. September 30, 2021 Percentage December 31, 2020 Percentage Fixed-rate debt (1) $ 1,322,421 96 % $ 1,287,219 86 % Variable-rate debt 50,000 4 % 201,351 14 % Total $ 1,372,421 $ 1,488,570 Weighted-average interest rate of debt 3.47 % 3.86 % (1) Fixed-rate debt includes the portion of variable-rate debt where the interest payments have been effectively fixed by interest rate swaps as of the respective balance sheet date. See Note 5 Credit Facilities Credit Facilities Amendments As a result of COVID-19 and the associated disruption to the Company’s operating results, the Company entered into amendments in June 2020 that suspended the testing of the Company’s existing financial maintenance covenants under the unsecured credit facilities. These amendments imposed certain restrictions regarding the Company’s investing and financing activities that were applicable during a specified waiver period, including, but not limited to, limitations on the acquisition of property, payment of distributions to shareholders, capital expenditures and use of proceeds from the sale of property or common shares of the Company, that applied during such testing suspension period. On March 1, 2021, as a result of the continued disruption from COVID-19 and the related uncertainty with respect to the Company’s future operating results, the Company entered into further amendments to each of the unsecured credit facilities (the “March 2021 amendments”) to extend the covenant waiver period for all but two of the Company’s existing financial maintenance covenants until the date that the compliance certificate was required to be delivered for the fiscal quarter ending June 30, 2022 (unless the Company elected an earlier date) (the “Extended Covenant Waiver Period”). The testing for the Minimum Fixed Charge Coverage Ratio and the Minimum Unsecured Interest Coverage Ratio was suspended until the compliance certificate was required to be delivered for the fiscal quarter ending March 31, 2022 (unless the Company elected an earlier date). In addition to the modifications and restrictions imposed during the Extended Covenant Waiver Period, the amendments modified the calculation of the existing financial covenants for the first three quarterly calculations subsequent to the end of the Extended Covenant Waiver Period to annualize calculated amounts based on the period beginning with the first fiscal quarter upon exiting the Extended Covenant Waiver Period through the most recently ended fiscal quarter. The March 2021 amendments also modified certain of the existing financial maintenance covenants to less restrictive levels upon exiting the Extended Covenant Waiver Period as follows (capitalized terms are defined in the credit agreements): ● Maximum Consolidated Leverage Ratio of 8.50 to 1.00 for the first two fiscal quarters, 8.00 to 1.00 for two fiscal quarters, 7.50 to 1.00 for one fiscal quarter and then a ratio of 6.50 to 1.00 thereafter ● Minimum Fixed Charge Coverage Ratio of 1.05 to 1.00 for the first fiscal quarter, 1.25 to 1.00 for one fiscal quarter and then a ratio of 1.50 to 1.00 thereafter ● Minimum Unsecured Interest Coverage Ratio of no less than 1.25 to 1.00 for one fiscal quarter, 1.50 to 1.00 for one fiscal quarter, 1.75 to 1.00 for one fiscal quarter and a ratio of 2.00 to 1.00 thereafter ● Maximum Unsecured Leverage Ratio of 65% for two fiscal quarters and 60% thereafter. Except as otherwise set forth in the amendments, the terms of the credit agreements remain in effect. In July 2021, the Company notified its lenders under its unsecured credit facilities that it had elected to exit the Extended Covenant Waiver Period effective on July 29, 2021 pursuant to the terms of each of its unsecured credit facilities. Upon exiting the Extended Covenant Waiver Period, the Company is no longer subject to the restrictions described above regarding its investing and financing activities that were applicable during the Extended Covenant Waiver Period, including, but not limited to, limitations on the acquisition of property, payment of distributions to shareholders, capital expenditures and use of proceeds from the sale of property or common shares of the Company. Those restrictions, including the restriction on payment of distributions to shareholders, were still in place throughout the second quarter of 2021. As of September 30, 2021, the Company met the applicable financial maintenance covenants based on the annualized results of the six months ended September 30, 2021 at the levels required for the second fiscal quarter tested upon exiting the Extended Covenant Waiver Period. The unsecured credit facilities do not provide the Company the ability to re-enter the Extended Covenant Waiver Period once it has elected to exit. $850 Million Credit Facility The Company utilizes an unsecured “$850 million credit facility” comprised of (i) a $425 million revolving credit facility with an initial maturity date of July 27, 2022 (the “Revolving Credit Facility”) and (ii) a $425 million term loan facility consisting of two term loans: a $200 million term loan with a maturity date of July 27, 2023, and a $225 million term loan with a maturity date of January 31, 2024 (the “$425 million term loan facility”). Subject to certain conditions including covenant compliance and additional fees, the $425 million revolving credit facility maturity date may be extended up to one year if certain criteria are met at the time of extension. The Company may make voluntary prepayments in whole or in part, at any time. Interest payments on the $850 million credit facility are due monthly and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.35% to 2.25%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. As of September 30, 2021, the Company had availability of $425 million under the revolving credit facility. The Company is also required to pay quarterly an unused facility fee at an annual rate of 0.20% or 0.25% on the unused portion of the $425 million revolving credit facility, based on the amount of borrowings outstanding during the quarter. $225 Million Term Loan Facility The Company has an unsecured $225 million term loan facility that is comprised of (i) a $50 million term loan with a maturity date of August 2, 2023, and (ii) a $175 million term loan with a maturity date of August 2, 2025. The credit agreement contains requirements and covenants similar to the Company’s $850 million credit facility. The Company may make voluntary prepayments in whole or in part, at any time, subject to certain conditions. Interest payments on the $225 million term loan facility are due monthly and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.35% to 2.50%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. 2017 $85 Million Term Loan Facility On July 25, 2017, the Company entered into an unsecured $85 million term loan facility with a maturity date of July 25, 2024, consisting of one term loan that was funded at closing (the “2017 $85 million term loan facility”). The credit agreement, as amended and restated in August 2018, contains requirements and covenants similar to the Company’s $850 million credit facility. The Company may make voluntary prepayments in whole or in part, at any time, subject to certain conditions. Interest payments on the 2017 $85 million term loan facility are due monthly, and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.30% to 2.10%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement, for the remainder of the term. 2019 $85 Million Term Loan Facility On December 31, 2019, the Company entered into an unsecured $85 million term loan facility with a maturity date of December 31, 2029, consisting of one term loan funded at closing (the “2019 $85 million term loan facility”). Net proceeds from the 2019 $85 million term loan facility were used to pay down borrowings on the Company’s revolving credit facility. The credit agreement contains requirements and covenants similar to the Company’s $850 million credit facility. The Company may make voluntary prepayments in whole or in part, subject to certain conditions. Interest payments on the 2019 $85 million term loan facility are due monthly and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.70% to 2.55%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. $50 Million Senior Notes Facility On March 16, 2020, the Company entered into an unsecured $50 million senior notes facility with a maturity date of March 31, 2030, consisting of senior notes totaling $50 million funded at closing (the “$50 million senior notes facility” and, collectively with the $850 million credit facility, the $225 million term loan facility, the 2017 $85 million term loan facility and the 2019 $85 million term loan facility, each as amended, the “unsecured credit facilities”). Net proceeds from the $50 million senior notes facility were available to provide funding for general corporate purposes. The note agreement contains requirements and covenants similar to the Company’s $850 million credit facility. The Company may make voluntary prepayments in whole or in part, at any time, subject to certain conditions, including make-whole provisions. Interest payments on the $50 million senior notes facility are due quarterly and the interest rate, subject to certain exceptions, ranges from an annual rate of 3.60% to 4.35% depending on the Company’s leverage ratio, as calculated under the terms of the facility. As of September 30, 2021 and December 31, 2020, the details of the Company’s unsecured credit facilities were as set forth below. All dollar amounts are in thousands. Outstanding Balance Interest Rate (1) Maturity Date September 30, 2021 December 31, 2020 Revolving credit facility (2) LIBOR + 1.40% - 2.25% 7/27/2022 (4) $ - $ 105,800 Term loans and senior notes $200 million term loan LIBOR + 1.35% - 2.20% 7/27/2023 200,000 200,000 $225 million term loan LIBOR + 1.35% - 2.20% 1/31/2024 225,000 225,000 $50 million term loan LIBOR + 1.35% - 2.20% 8/2/2023 50,000 50,000 $175 million term loan LIBOR + 1.65% - 2.50% 8/2/2025 175,000 175,000 2017 $85 million term loan LIBOR + 1.30% - 2.10% 7/25/2024 85,000 85,000 2019 $85 million term loan LIBOR + 1.70% - 2.55% 12/31/2029 85,000 85,000 $50 million senior notes 3.60% - 4.35% 3/31/2030 50,000 50,000 Term loans and senior notes at stated value 870,000 870,000 Unamortized debt issuance costs (5,295 ) (5,775 ) Term loans and senior notes, net 864,705 864,225 Credit facilities, net (2) $ 864,705 $ 970,025 Weighted-average interest rate (3) 3.07 % 3.64 % (1) Interest rates on all of the unsecured credit facilities increased to 0.15% above the highest rate shown for each loan during the Extended Covenant Waiver Period from March 1, 2021 through July 28, 2021. ( 2 ) Excludes unamortized debt issuance costs related to the revolving credit facility totaling approximately $1.4 million and $2.1 million as of September 30, 2021 December 31, 2020 ( 3 ) Interest rate represents the weighted-average effective annual interest rate at the balance sheet date which includes the effect of interest rate swaps in effect on $770.0 million and $745.0 million of the outstanding variable-rate debt as of September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 (4) Subject to certain conditions including covenant compliance and additional fees, the $425 million revolving credit facility maturity date may be extended up to one year, to July 27, 2023, if certain criteria are met at the time of extension. Mortgage Debt As of September 30, 2021, the Company had approximately $502.4 million in outstanding mortgage debt secured by 28 properties with maturity dates ranging from August 2022 to May 2038, stated interest rates ranging from 3.40% to 5.00% and effective interest rates ranging from 3.40% to 4.97%. The loans generally provide for monthly payments of principal and interest on an amortized basis and defeasance or prepayment penalties if prepaid. As a result of the effects of the COVID-19 pandemic on certain hotels, the associated lenders granted temporary deferrals of principal and interest payments during 2020, however all payments resumed as of December 31, 2020. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any fair value adjustments or debt issuance costs as of September 30, 2021 and December 31, 2020 for each of the Company’s mortgage debt obligations. All dollar amounts are in thousands. Location Brand Interest Rate (1) Loan Assumption or Origination Date Maturity Date Principal Assumed or Originated Outstanding balance as of September 30, 2021 Outstanding balance as of December 31, 2020 Cape Canaveral, FL Hampton (2 ) 4/30/2020 (3) $ 10,852 $ - $ 10,275 Cape Canaveral, FL Home2 Suites (2 ) 4/30/2020 (3) 10,852 - 10,275 Colorado Springs, CO Hampton 6.25 % 9/1/2016 (4) 7,923 - 7,317 Franklin, TN Courtyard 6.25 % 9/1/2016 (4) 14,679 - 13,563 Franklin, TN Residence Inn 6.25 % 9/1/2016 (4) 14,679 - 13,563 Seattle, WA (5) 4.00 % 8/16/2021 8/16/2022 56,000 56,000 - Grapevine, TX Hilton Garden Inn 4.89 % 8/29/2012 9/1/2022 11,810 9,167 9,434 Collegeville/Philadelphia, PA Courtyard 4.89 % 8/30/2012 9/1/2022 12,650 9,818 10,105 Hattiesburg, MS Courtyard 5.00 % 3/1/2014 9/1/2022 5,732 4,596 4,729 Kirkland, WA Courtyard 5.00 % 3/1/2014 9/1/2022 12,145 9,737 10,018 Rancho Bernardo/San Diego, CA Courtyard 5.00 % 3/1/2014 9/1/2022 15,060 12,074 12,422 Seattle, WA Residence Inn 4.96 % 3/1/2014 9/1/2022 28,269 22,638 23,294 Anchorage, AK Embassy Suites 4.97 % 9/13/2012 10/1/2022 23,230 18,139 18,660 Somerset, NJ Courtyard 4.73 % 3/1/2014 10/6/2022 8,750 6,973 7,179 Tukwila, WA Homewood Suites 4.73 % 3/1/2014 10/6/2022 9,431 7,516 7,737 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 2/6/2023 8,306 6,542 6,742 Prattville, AL Courtyard 4.12 % 3/1/2014 2/6/2023 6,596 5,195 5,354 San Diego, CA Residence Inn 3.97 % 3/1/2014 3/6/2023 18,600 14,610 15,061 Miami, FL Homewood Suites 4.02 % 3/1/2014 4/1/2023 16,677 13,136 13,537 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 22,181 22,766 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 10,000 8,393 8,605 Denver, CO Hilton Garden Inn 4.46 % 9/1/2016 6/11/2025 34,118 29,663 30,387 Oceanside, CA Courtyard 4.28 % 9/1/2016 10/1/2025 13,655 12,391 12,605 Omaha, NE Hilton Garden Inn 4.28 % 9/1/2016 10/1/2025 22,682 20,581 20,936 Boise, ID Hampton 4.37 % 5/26/2016 6/11/2026 24,000 21,799 22,146 Burbank, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,564 22,482 23,315 San Diego, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,473 22,402 23,232 San Diego, CA Hampton 3.55 % 11/3/2016 12/1/2026 18,963 16,677 17,295 Burbank, CA SpringHill Suites 3.94 % 3/9/2018 4/1/2028 28,470 26,264 27,078 Santa Ana, CA Courtyard 3.94 % 3/9/2018 4/1/2028 15,530 14,326 14,770 Richmond, VA Courtyard 3.40 % 2/12/2020 3/11/2030 14,950 14,521 14,739 Richmond, VA Residence Inn 3.40 % 2/12/2020 3/11/2030 14,950 14,521 14,739 Portland, ME Residence Inn 3.43 % 3/2/2020 4/1/2030 33,500 33,500 33,500 San Jose, CA Homewood Suites 4.22 % 12/22/2017 5/1/2038 30,000 26,579 27,392 $ 631,096 502,421 512,770 Unamortized fair value adjustment of assumed debt 1,070 1,624 Unamortized debt issuance costs (1,575 ) (1,848 ) Total $ 501,916 $ 512,546 (1) Interest rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. ( 2 ) Interest rate was variable based on one-month LIBOR plus 3.00%. As of April 12, 2021, the date the loan was fully repaid, the interest rate was 3.11%. In July 2020, the principal amount of the note was reduced by approximately $1.1 million representing a credit from the developer for shared construction savings. (3) Loan was repaid in full on April 12, 2021. (4) Loan was repaid in full on June 4, 2021. ( 5 ) On August 16, 2021, the Company acquired the fee interest in the land at the Seattle, Washington Residence Inn, previously held under a finance ground lease, for a purchase price of $80.0 million, consisting of a $24.0 million cash payment and a one-year |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments Except as described below, the carrying value of the Company’s financial instruments approximates fair value due to the short-term nature of these financial instruments. Debt The Company estimates the fair value of its debt by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity of a debt obligation with similar credit terms and credit characteristics, which are Level 3 inputs under the fair value hierarchy. Market rates take into consideration general market conditions and maturity. As of September 30, 2021, the carrying value and estimated fair value of the Company’s debt were approximately $1.4 billion and $1.3 billion, respectively. As of December 31, 2020, both the carrying value and estimated fair value of the Company’s debt were approximately $ 1.5 billion Derivative Instruments Currently, the Company uses interest rate swaps to manage its interest rate risk on variable-rate debt. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the one-month LIBOR. The swaps are designed to effectively fix the interest payments on variable-rate debt instruments. These swap instruments are recorded at fair value and, if in an asset position, are included in other assets, net, and, if in a liability position, are included in accounts payable and other liabilities in the Company’s consolidated balance sheets. The fair values of the Company’s interest rate swap agreements are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts, which is considered a Level 2 measurement under the fair value hierarchy. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The following table sets forth information for each of the Company’s interest rate swap agreements outstanding as of September 30, 2021 and December 31, 2020. All dollar amounts are in thousands. Fair Value Asset (Liability) Notional Amount at September 30, 2021 Origination Date Effective Date Maturity Date Swap Fixed Interest Rate September 30, 2021 December 31, 2020 Active interest rate swaps designated as cash flow hedges at September 30, 2021: 100,000 4/7/2016 9/30/2016 3/31/2023 1.33% $ (1,690 ) $ (2,681 ) 75,000 5/31/2017 7/31/2017 6/30/2024 1.96% (3,022 ) (4,639 ) 10,000 8/10/2017 8/10/2017 6/30/2024 2.01% (416 ) (636 ) 50,000 6/1/2018 1/31/2019 6/30/2025 2.89% (4,065 ) (5,911 ) 50,000 7/2/2019 7/5/2019 7/18/2024 1.65% (1,610 ) (2,593 ) 50,000 8/21/2019 8/23/2019 8/18/2024 1.32% (1,141 ) (2,036 ) 50,000 8/21/2019 8/23/2019 8/30/2024 1.32% (1,143 ) (2,049 ) 85,000 12/31/2019 12/31/2019 12/31/2029 1.86% (3,978 ) (8,677 ) 25,000 12/6/2018 1/31/2020 6/30/2025 2.75% (1,904 ) (2,801 ) 50,000 12/7/2018 5/18/2020 1/31/2024 2.72% (2,736 ) (3,967 ) 75,000 8/21/2019 5/18/2020 5/18/2025 1.27% (1,536 ) (3,294 ) 75,000 7/31/2020 8/18/2020 8/18/2022 0.13% (8 ) 14 75,000 8/21/2019 5/18/2021 5/18/2026 1.30% (1,401 ) (3,415 ) 770,000 (24,650 ) (42,685 ) Matured interest rate swap at September 30, 2021: $ 50,000 4/7/2016 9/30/2016 3/31/2021 1.09% - (117 ) $ (24,650 ) $ (42,802 ) The Company assesses, both at inception and on an ongoing basis, the effectiveness of its qualifying cash flow hedges. As of September 30, 2021, all of the 13 active interest rate swap agreements listed above were designated as cash flow hedges. The change in the fair value of the Company’s designated cash flow hedges is recorded to accumulated other comprehensive loss, a component of shareholders’ equity in the Company’s consolidated balance sheets. Amounts reported in accumulated other comprehensive loss will be reclassified to interest and other expense, net as interest payments are made or received on the Company’s variable-rate derivatives. The Company estimates that approximately $11.4 million of net unrealized losses included in accumulated other comprehensive loss at September 30, 2021 will be reclassified as an increase to interest and other expense, net within the next 12 months. The following table presents the effect of derivative instruments in cash flow hedging relationships in the Company’s consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020 (in thousands): Net Unrealized Gain Recognized in Other Comprehensive Income (Loss) Net Unrealized Loss Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest and Other Expense, net Three Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Interest rate derivatives in cash flow hedging relationships $ 478 $ 33 $ (2,948 ) $ (2,706 ) Net Unrealized Gain (Loss) Recognized in Other Comprehensive Income (Loss) Net Unrealized Loss Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest and Other Expense, net Nine Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Interest rate derivatives in cash flow hedging relationships $ 9,714 $ (48,628 ) $ (8,438 ) $ (5,006 ) |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties | 6. Related Parties The Company has, and is expected to continue to engage in, transactions with related parties. These transactions cannot be construed to be at arm’s length and the results of the Company’s operations may be different if these transactions were conducted with non-related parties. There have been no changes to the contracts and relationships discussed in the 2020 Form 10-K. Below is a summary of the significant related party relationships in effect during the nine months ended September 30, 2021 and 2020. Glade M. Knight, Executive Chairman of the Company, owns Apple Realty Group, Inc. (“ARG”), which receives support services from the Company and reimburses the Company for the cost of these services as discussed below. Mr. Knight is also currently a partner and Chief Executive Officer of Energy 11 GP, LLC and Energy Resources 12 GP, LLC, which are the respective general partners of Energy 11, L.P. and Energy Resources 12, L.P., each of which receives support services from ARG. The Company provides support services, including the use of the Company’s employees and corporate office, to ARG and is reimbursed by ARG for the cost of these services. Under this cost sharing structure, amounts reimbursed to the Company include both compensation for personnel and office related costs (including office rent, utilities, office supplies, etc.) used by ARG. The amounts reimbursed to the Company are based on the actual costs of the services and a good faith estimate of the proportionate amount of time incurred by the Company’s employees on behalf of ARG. Total reimbursed costs allocated by the Company to ARG for the nine months ended September 30, 2021 and 2020 totaled approximately $0.5 million and $0.9 million, respectively, and are recorded as a reduction to general and administrative expenses in the Company’s consolidated statements of operations. As part of the cost sharing arrangement, certain day-to-day transactions may result in amounts due to or from the Company and ARG. To efficiently manage cash disbursements, the Company or ARG may make payments for the other company. Under this cash management process, each company may advance or defer up to $1 million at any time. Each quarter, any outstanding amounts are settled between the companies. This process allows each company to minimize its cash on hand and reduces the cost for each company. The amounts outstanding at any point in time are not significant to either of the companies. As of September 30, 2021 and December 31, 2020, total amounts due from ARG for reimbursements under the cost sharing structure totaled approximately $0.2 million and $0.3 million, respectively, and are included in other assets, net in the Company’s consolidated balance sheets. The Company, through its wholly-owned subsidiary, Apple Air Holding, LLC, owns a Learjet used primarily for acquisition, asset management, renovation and investor and public relations purposes. The aircraft is also leased to affiliates of the Company based on third party rates, which leasing activity was not significant during the reporting periods. The Company also utilizes one aircraft, owned through an entity owned by the Company’s Executive Chairman, for acquisition, asset management, renovation and investor and public relations purposes, and reimburses the entity at third party rates. Total costs incurred for the use of the aircraft during the nine months ended September 30, 2021 and 2020 were less than $0.1 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity Distributions For the nine months ended September 30, 2021 and 2020, the Company paid distributions of $0.02 and $0.30 per common share for a total of $4.5 million and $67.3 million, respectively. Prior to the suspension of its distributions in March 2020 due to the impact of COVID-19 on its operating cash flows, the Company’s annual distribution rate, payable monthly, was $1.20 per common share. In March and June 2021, the Company declared quarterly distributions of $0.01 per common share, which were paid in April and July, respectively, totaling $4.5 million for the nine months ended September 30, 2021. Additionally, in September 2021, the Company declared a quarterly distribution of $0.01 per common share, totaling $2.3 million, which was recorded as a payable as of September 30, 2021 and paid on October 18, 2021. This accrued distribution was included in accounts payable and other liabilities in the Company’s consolidated balance sheet at September 30, 2021. Issuance of Shares On August 12, 2020, the Company entered into an equity distribution agreement pursuant to which the Company may sell, from time to time, up to an aggregate of $300 million of its common shares under an at-the-market offering program (the “ATM Program”). During the second quarter of 2021, the Company sold approximately 4.7 million common shares under its ATM Program at a weighted-average market sales price of approximately $16.26 per common share and received aggregate gross proceeds of approximately $76.0 million and proceeds net of offering costs, which included $0.9 million of commissions, of approximately $75.1 million. The Company used the net proceeds from the sale of these shares to pay down borrowings on its revolving credit facility and for general corporate purposes, including acquisitions of hotel properties. As of September 30, 2021, approximately $224.0 million remained available for issuance under the ATM Program. No shares were sold under the Company’s ATM Program in the third quarter of 2021. The Company plans to use future net proceeds from the sale of these shares to pay down borrowings on its revolving credit facility (if any). The Company plans to use the corresponding increased availability under the revolving credit facility for general corporate purposes which may include, among other things, acquisitions of additional properties, the repayment of other outstanding indebtedness, capital expenditures, improvement of properties in its portfolio and working capital. The Company may also use the net proceeds to acquire another REIT or other company that invests in income producing properties. Share Repurchases In May 2021, the Company’s Board of Directors approved a one-year |
Compensation Plans
Compensation Plans | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Plans | 8. Compensation Plans The Company annually establishes an incentive plan for its executive management. Under the incentive plan for 2021 (the “2021 Incentive Plan”), participants are eligible to receive incentive compensation based on the achievement of certain 2021 performance measures, consisting of operational performance metrics and shareholder return metrics (including shareholder return relative to a peer group and total shareholder return, over one-year, two-year and three-year periods). With respect to the operational performance metrics, for the period of January 1 – June 30, 2021, metrics included portfolio occupancy growth, expense management, successful negotiation of amendments to each of the Company’s unsecured credit facilities and effective allocation of capital to drive incremental returns, with no specific target or weighting assigned to each metric. Operational performance metrics for the period of July 1 – December 31, 2021, include metrics regarding top line growth, bottom line growth, capital allocation and balance sheet metrics, with no specific target or weighting assigned to each metric. The operational performance metrics account for 50% of the total target incentive compensation. The shareholder return metrics are weighted 75% for relative shareholder return metrics and 25% for total shareholder return metrics, and account for 50% of the total target incentive compensation. At September 30, 2021, the range of potential aggregate payouts under the 2021 Incentive Plan was $0 - $22.4 million. Based on performance through September 30, 2021, the Company has accrued approximately $13.0 million as a liability for potential executive incentive compensation payments under the 2021 Incentive Plan, which is included in accounts payable and other liabilities in the Company’s consolidated balance sheet as of September 30, 2021. Compensation expense recognized by the Company under the 2021 Incentive Plan is included in general and administrative expenses in the Company’s consolidated statement of operations and totaled approximately $ 7.0 million and $ 13.0 million for the three and nine months ended September 30, 2021 . Approximately 25 % of target awards under the 2021 Incentive Plan, if any, will be paid in cash, and 75 % will be issued in stock under the Company’s 2014 Omnibus Incentive Plan, approximately two-thirds of which will vest in December 2021 and one-third of which will vest in December 202 2 . Under the incentive plan for 2020 (the “2020 Incentive Plan”), the Company recorded approximately $1.5 million and $4.0 million in general and administrative expenses in its consolidated statement of operations for the three and nine months ended September 30, 2020. During the nine months ended September 30, 2020, the Company accrued expense associated with two separation agreements of approximately $1.25 million each, totaling approximately $2.5 million, in connection with the retirements of the Company’s former Executive Vice President and Chief Operating Officer and the Company’s former Executive Vice President and Chief Financial Officer which amounts were paid in October 2020. The accrued expense was included in general and administrative expenses in the Company’s consolidated statement of operations for the nine months ended September 30, 2020. Share-Based Compensation Awards The following table sets forth information pertaining to the share-based compensation issued under the 2020 Incentive Plan and the incentive plan for 2019 (the “2019 Incentive Plan”). 2020 Incentive Plan 2019 Incentive Plan Period common shares issued First Quarter 2021 First Quarter 2020 Common shares earned under each incentive plan 555,726 665,552 Common shares surrendered on issuance date to satisfy tax withholding obligations 117,647 60,616 Common shares earned and issued under each incentive plan, net of common shares surrendered on issuance date to satisfy tax withholding obligations 438,079 604,936 Closing stock price on issuance date $ 14.03 $ 13.01 Total share-based compensation earned, including the surrendered shares (in millions) $ 7.8 (1) $ 8.7 (2) Of the total common shares earned and issued, total common shares unrestricted at time of issuance 160,216 426,553 Of the total common shares earned and issued, total common shares restricted at time of issuance 277,863 178,383 Restricted common shares vesting date December 10, 2021 December 11, 2020 Common shares surrendered on vesting date to satisfy tax withholding requirements resulting from vesting of restricted common shares n/a 60,066 (1) Of the total 2020 December 31, 2020 December 31, 2020 (2) Of the total 2019 share-based compensation, approximately $1.2 million, which vested on December 11, 2020 2020 Additionally, in conjunction with the appointment of five new officers of the Company on April 1, 2020, the Company issued to the new officer group a total of approximately 200,000 restricted common shares with an aggregate grant date fair value of approximately $ 1.8 million. For each grantee, the restricted shares will vest on March 31, 2023 if the individual remains in service of the Company through the date of vesting. The expense associated with the awards will be amortized over the 3-year restriction period. For the three months ended September 30, 2021 and 2020 , the Company recognized approximately $ 0.1 million in each respective period, of share-based compensation expense related to these awards , and $ 0.4 million and $ million, respectively, for the nine months ended September 30, 2021 and 2020 . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events On October 18, 2021, the Company paid approximately $2.3 million, or $0.01 per outstanding common share, in distributions to its common shareholders. On October 28, 2021, the Company completed the purchase of the existing 150-room Hilton Garden Inn in Memphis, Tennessee for a gross purchase price of approximately $38.0 million. The Company utilized its available cash to purchase the hotel. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization | Organization Apple Hospitality REIT, Inc., together with its wholly-owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is a self-advised REIT that invests in income-producing real estate, primarily in the lodging sector, in the United States (“U.S.”). The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision-making process of these entities, and therefore does not consolidate the entities. As of September 30, 2021, the Company owned 215 hotels with an aggregate of 28,085 rooms located in 35 states. The Company’s common shares are listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “APLE.” |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”). Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2021. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Coronavirus COVID-19 Pandemic | Coronavirus COVID-19 Pandemic As a result of the coronavirus COVID-19 pandemic (“COVID-19”) and the impact it has had on travel and the broader economy throughout the U.S. since March 2020, the Company’s hotels have experienced significant declines in occupancy, which have had and are expected to continue to have a significant negative effect on the Company’s revenue and operating results. While occupancy has recovered significantly during the first nine months of 2021, there remains significant uncertainty as to when or if operations at the hotels will return to pre-pandemic levels. |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income (loss) per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. Basic and diluted net income (loss) per common share were the same for each of the periods presented. |
Accounting Standards Recently Adopted | Accounting Standards Recently Adopted Reference Rate Reform In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848) the FASB issued 2021-01, Reference Rate Reform (Topic 848), Scope, which further clarified the scope of the reference rate reform optional practical expedients and exceptions outlined in Topic 848. consolidated financial statements and related disclosures as of September 30, 2021 . The provisions of these updates will generally affect the Company by allowing, among other things, the following: • Modifications of the Company’s unsecured credit facilities (as defined below) to replace the London Interbank Offered Rate (LIBOR) with a substitute index to be accounted for as a non-substantial modification and not be considered a debt extinguishment. • Changes to the floating interest rate index used in the Company’s interest rate swaps to not be considered a change to the critical terms of the hedge and therefore not requiring a dedesignation of the hedging relationship. The Company has not entered into any contract modifications yet as it directly relates to reference rate reform but anticipates having to undertake such modifications in the future as a majority of the Company’s unsecured credit facilities and interest rate swaps are indexed to LIBOR. Accounting Standards Recently Issued Accounting for Certain Equity Options In May 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (Topics 260, 470, 718 and 815) |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of Investment in Real Estate | The Company’s investment in real estate consisted of the following (in thousands): September 30, December 31, 2021 2020 Land $ 771,639 $ 725,512 Building and improvements 4,441,034 4,525,850 Furniture, fixtures and equipment 475,807 499,865 Finance ground lease assets 102,084 203,617 Franchise fees 16,982 13,750 5,807,546 5,968,594 Less accumulated depreciation and amortization (1,266,122 ) (1,235,698 ) Investment in real estate, net $ 4,541,424 $ 4,732,896 |
Schedule of Hotel Acquisitions | The Company acquired four hotels during the nine months ended September 30, 2021. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price, excluding transaction costs, for each hotel. All dollar amounts are in thousands. City State Brand Manager Date Acquired Rooms Gross Purchase Price Madison WI Hilton Garden Inn Raymond 2/18/2021 176 $ 49,599 Portland ME AC Hotels Crestline 8/20/2021 178 66,750 Greenville SC Hyatt Place Crestline 9/1/2021 130 30,000 Portland ME Aloft Crestline 9/10/2021 157 51,150 641 $ 197,499 During the year ended December 31, 2020, the Company acquired four hotels, including four hotels during the nine months ended September 30, 2020. The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price, excluding transaction costs, for each hotel. All dollar amounts are in thousands. City State Brand Manager Date Acquired Rooms Gross Purchase Price Cape Canaveral FL Hampton LBA 4/30/2020 116 $ 24,102 Cape Canaveral FL Home2 Suites LBA 4/30/2020 108 22,602 Tempe AZ Hyatt House Crestline 8/13/2020 105 26,309 Tempe AZ Hyatt Place Crestline 8/13/2020 154 38,279 483 $ 111,292 |
Schedule of Purchase Contract Outstanding | The following table summarizes the location, brand, date of purchase contract, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) deposits paid, and gross purchase price for each of the contracts outstanding at September 30, 2021. All dollar amounts are in thousands. Location Brands Date of Purchase Contract Rooms Refundable Deposits Gross Purchase Price Madison, WI (1) Embassy Suites 7/27/2021 260 $ 893 $ 78,598 Memphis, TN Hilton Garden Inn 8/27/2021 150 300 38,000 Fort Worth, TX Hilton Garden Inn 9/2/2021 157 176 29,500 Fort Worth, TX Homewood Suites 9/2/2021 112 128 21,500 Portland, OR Hampton 9/2/2021 243 446 75,000 922 $ 1,943 $ 242,598 (1) This hotel is currently under development. The table shows the expected number of rooms upon hotel completion and the expected franchise brand. Assuming all conditions to closing are met, the purchase of this hotel is expected to occur in 2023. If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As this property is under development, at this time, the seller has not met all of the conditions to closing. |
Dispositions (Tables)
Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
2021 Dispositions [Member] | |
Schedule of Hotels Sold | During the nine months ended September 30, 2021, the Company sold 23 hotels in four separate transactions with unrelated parties for a total combined gross sales price of approximately $234.6 million, resulting in a combined net gain on sale, after giving effect to impairment charges discussed below, of approximately $3.7 million, net of transaction costs, which is included in the Company’s consolidated statement of operations for the nine months ended September 30, 2021. The 23 hotels had a total carrying value of approximately $227.2 million at the time of sale. The following table lists the 23 hotels sold: City State Brand Date Sold Rooms Charlotte NC Homewood Suites 2/25/2021 118 Memphis TN Homewood Suites 3/16/2021 140 Overland Park KS SpringHill Suites 4/30/2021 102 Montgomery AL Hilton Garden Inn 7/22/2021 97 Montgomery AL Homewood Suites 7/22/2021 91 Rogers AR Residence Inn 7/22/2021 88 Phoenix AZ Courtyard 7/22/2021 127 Lakeland FL Courtyard 7/22/2021 78 Albany GA Fairfield 7/22/2021 87 Schaumburg IL Hilton Garden Inn 7/22/2021 166 Andover MA SpringHill Suites 7/22/2021 136 Fayetteville NC Residence Inn 7/22/2021 92 Greenville SC Residence Inn 7/22/2021 78 Jackson TN Hampton 7/22/2021 85 Johnson City TN Courtyard 7/22/2021 90 Allen TX Hampton 7/22/2021 103 Allen TX Hilton Garden Inn 7/22/2021 150 Beaumont TX Residence Inn 7/22/2021 133 Burleson/Fort Worth TX Hampton 7/22/2021 88 El Paso TX Hilton Garden Inn 7/22/2021 145 Irving TX Homewood Suites 7/22/2021 77 Richmond VA SpringHill Suites 7/22/2021 103 Vancouver WA SpringHill Suites 7/22/2021 119 Total 2,493 |
2020 Dispositions [Member] | |
Schedule of Hotels Sold | During the year ended December 31, 2020, the Company sold three hotels in three transactions with unrelated parties for a total combined gross sales price of approximately $55.3 million, resulting in a combined gain on sale of approximately $10.9 million, which is included in the Company’s consolidated statement of operations for the year ended December 31, 2020. The three hotels had a total carrying value of approximately $43.8 million at the time of the sale. The following table lists the three hotels sold: City State Brand Date Sold Rooms Sanford FL SpringHill Suites 1/16/2020 105 Boise ID SpringHill Suites 2/27/2020 230 Tulare CA Hampton 12/30/2020 86 Total 421 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Tables [Line Items] | |
Schedule of Future Minimum Debt Payments | The aggregate amounts of principal payable under the Company’s total debt obligations as of September 30, 2021 (including the revolving credit facility, term loans, senior notes and mortgage debt), for each of the next five fiscal years and thereafter are as follows (in thousands): 2021 (October - December) $ 4,375 2022 165,831 2023 296,213 2024 338,597 2025 245,140 Thereafter 322,265 1,372,421 Unamortized fair value adjustment of assumed debt 1,070 Unamortized debt issuance costs (6,870 ) Total $ 1,366,621 |
Schedule of Total Fixed-Rate and Variable Rate Debt | The Company uses interest rate swaps to manage its interest rate risk on a portion of its variable-rate debt. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the London Inter-Bank Offered Rate for a one-month term (“one-month LIBOR”). The swaps are designed to effectively fix the interest payments on variable-rate debt instruments. See Note 5 for more information on the interest rate swap agreements. The Company’s total fixed-rate and variable-rate debt, after giving effect to its interest rate swaps in effect at September 30, 2021 and December 31, 2020 , is set forth below. All dollar amounts are in thousands. September 30, 2021 Percentage December 31, 2020 Percentage Fixed-rate debt (1) $ 1,322,421 96 % $ 1,287,219 86 % Variable-rate debt 50,000 4 % 201,351 14 % Total $ 1,372,421 $ 1,488,570 Weighted-average interest rate of debt 3.47 % 3.86 % (1) Fixed-rate debt includes the portion of variable-rate debt where the interest payments have been effectively fixed by interest rate swaps as of the respective balance sheet date. See Note 5 |
Summary [Member] | |
Debt Tables [Line Items] | |
Schedule of Long-term Debt Instruments | As of September 30, 2021 and December 31, 2020, the Company’s debt consisted of the following (in thousands): September 30, 2021 December 31, 2020 Revolving credit facility $ - $ 105,800 Term loans and senior notes, net 864,705 864,225 Mortgage debt, net 501,916 512,546 Debt, net $ 1,366,621 $ 1,482,571 |
Credit Facilities [Member] | |
Debt Tables [Line Items] | |
Schedule of Long-term Debt Instruments | As of September 30, 2021 and December 31, 2020, the details of the Company’s unsecured credit facilities were as set forth below. All dollar amounts are in thousands. Outstanding Balance Interest Rate (1) Maturity Date September 30, 2021 December 31, 2020 Revolving credit facility (2) LIBOR + 1.40% - 2.25% 7/27/2022 (4) $ - $ 105,800 Term loans and senior notes $200 million term loan LIBOR + 1.35% - 2.20% 7/27/2023 200,000 200,000 $225 million term loan LIBOR + 1.35% - 2.20% 1/31/2024 225,000 225,000 $50 million term loan LIBOR + 1.35% - 2.20% 8/2/2023 50,000 50,000 $175 million term loan LIBOR + 1.65% - 2.50% 8/2/2025 175,000 175,000 2017 $85 million term loan LIBOR + 1.30% - 2.10% 7/25/2024 85,000 85,000 2019 $85 million term loan LIBOR + 1.70% - 2.55% 12/31/2029 85,000 85,000 $50 million senior notes 3.60% - 4.35% 3/31/2030 50,000 50,000 Term loans and senior notes at stated value 870,000 870,000 Unamortized debt issuance costs (5,295 ) (5,775 ) Term loans and senior notes, net 864,705 864,225 Credit facilities, net (2) $ 864,705 $ 970,025 Weighted-average interest rate (3) 3.07 % 3.64 % (1) Interest rates on all of the unsecured credit facilities increased to 0.15% above the highest rate shown for each loan during the Extended Covenant Waiver Period from March 1, 2021 through July 28, 2021. ( 2 ) Excludes unamortized debt issuance costs related to the revolving credit facility totaling approximately $1.4 million and $2.1 million as of September 30, 2021 December 31, 2020 ( 3 ) Interest rate represents the weighted-average effective annual interest rate at the balance sheet date which includes the effect of interest rate swaps in effect on $770.0 million and $745.0 million of the outstanding variable-rate debt as of September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 (4) Subject to certain conditions including covenant compliance and additional fees, the $425 million revolving credit facility maturity date may be extended up to one year, to July 27, 2023, if certain criteria are met at the time of extension. |
Mortgage Debt [Member] | |
Debt Tables [Line Items] | |
Schedule of Long-term Debt Instruments | As of September 30, 2021, the Company had approximately $502.4 million in outstanding mortgage debt secured by 28 properties with maturity dates ranging from August 2022 to May 2038, stated interest rates ranging from 3.40% to 5.00% and effective interest rates ranging from 3.40% to 4.97%. The loans generally provide for monthly payments of principal and interest on an amortized basis and defeasance or prepayment penalties if prepaid. As a result of the effects of the COVID-19 pandemic on certain hotels, the associated lenders granted temporary deferrals of principal and interest payments during 2020, however all payments resumed as of December 31, 2020. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any fair value adjustments or debt issuance costs as of September 30, 2021 and December 31, 2020 for each of the Company’s mortgage debt obligations. All dollar amounts are in thousands. Location Brand Interest Rate (1) Loan Assumption or Origination Date Maturity Date Principal Assumed or Originated Outstanding balance as of September 30, 2021 Outstanding balance as of December 31, 2020 Cape Canaveral, FL Hampton (2 ) 4/30/2020 (3) $ 10,852 $ - $ 10,275 Cape Canaveral, FL Home2 Suites (2 ) 4/30/2020 (3) 10,852 - 10,275 Colorado Springs, CO Hampton 6.25 % 9/1/2016 (4) 7,923 - 7,317 Franklin, TN Courtyard 6.25 % 9/1/2016 (4) 14,679 - 13,563 Franklin, TN Residence Inn 6.25 % 9/1/2016 (4) 14,679 - 13,563 Seattle, WA (5) 4.00 % 8/16/2021 8/16/2022 56,000 56,000 - Grapevine, TX Hilton Garden Inn 4.89 % 8/29/2012 9/1/2022 11,810 9,167 9,434 Collegeville/Philadelphia, PA Courtyard 4.89 % 8/30/2012 9/1/2022 12,650 9,818 10,105 Hattiesburg, MS Courtyard 5.00 % 3/1/2014 9/1/2022 5,732 4,596 4,729 Kirkland, WA Courtyard 5.00 % 3/1/2014 9/1/2022 12,145 9,737 10,018 Rancho Bernardo/San Diego, CA Courtyard 5.00 % 3/1/2014 9/1/2022 15,060 12,074 12,422 Seattle, WA Residence Inn 4.96 % 3/1/2014 9/1/2022 28,269 22,638 23,294 Anchorage, AK Embassy Suites 4.97 % 9/13/2012 10/1/2022 23,230 18,139 18,660 Somerset, NJ Courtyard 4.73 % 3/1/2014 10/6/2022 8,750 6,973 7,179 Tukwila, WA Homewood Suites 4.73 % 3/1/2014 10/6/2022 9,431 7,516 7,737 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 2/6/2023 8,306 6,542 6,742 Prattville, AL Courtyard 4.12 % 3/1/2014 2/6/2023 6,596 5,195 5,354 San Diego, CA Residence Inn 3.97 % 3/1/2014 3/6/2023 18,600 14,610 15,061 Miami, FL Homewood Suites 4.02 % 3/1/2014 4/1/2023 16,677 13,136 13,537 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 22,181 22,766 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 10,000 8,393 8,605 Denver, CO Hilton Garden Inn 4.46 % 9/1/2016 6/11/2025 34,118 29,663 30,387 Oceanside, CA Courtyard 4.28 % 9/1/2016 10/1/2025 13,655 12,391 12,605 Omaha, NE Hilton Garden Inn 4.28 % 9/1/2016 10/1/2025 22,682 20,581 20,936 Boise, ID Hampton 4.37 % 5/26/2016 6/11/2026 24,000 21,799 22,146 Burbank, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,564 22,482 23,315 San Diego, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,473 22,402 23,232 San Diego, CA Hampton 3.55 % 11/3/2016 12/1/2026 18,963 16,677 17,295 Burbank, CA SpringHill Suites 3.94 % 3/9/2018 4/1/2028 28,470 26,264 27,078 Santa Ana, CA Courtyard 3.94 % 3/9/2018 4/1/2028 15,530 14,326 14,770 Richmond, VA Courtyard 3.40 % 2/12/2020 3/11/2030 14,950 14,521 14,739 Richmond, VA Residence Inn 3.40 % 2/12/2020 3/11/2030 14,950 14,521 14,739 Portland, ME Residence Inn 3.43 % 3/2/2020 4/1/2030 33,500 33,500 33,500 San Jose, CA Homewood Suites 4.22 % 12/22/2017 5/1/2038 30,000 26,579 27,392 $ 631,096 502,421 512,770 Unamortized fair value adjustment of assumed debt 1,070 1,624 Unamortized debt issuance costs (1,575 ) (1,848 ) Total $ 501,916 $ 512,546 (1) Interest rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. ( 2 ) Interest rate was variable based on one-month LIBOR plus 3.00%. As of April 12, 2021, the date the loan was fully repaid, the interest rate was 3.11%. In July 2020, the principal amount of the note was reduced by approximately $1.1 million representing a credit from the developer for shared construction savings. (3) Loan was repaid in full on April 12, 2021. (4) Loan was repaid in full on June 4, 2021. ( 5 ) On August 16, 2021, the Company acquired the fee interest in the land at the Seattle, Washington Residence Inn, previously held under a finance ground lease, for a purchase price of $80.0 million, consisting of a $24.0 million cash payment and a one-year |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Interest Rate Swap Agreements | The following table sets forth information for each of the Company’s interest rate swap agreements outstanding as of September 30, 2021 and December 31, 2020. All dollar amounts are in thousands. Fair Value Asset (Liability) Notional Amount at September 30, 2021 Origination Date Effective Date Maturity Date Swap Fixed Interest Rate September 30, 2021 December 31, 2020 Active interest rate swaps designated as cash flow hedges at September 30, 2021: 100,000 4/7/2016 9/30/2016 3/31/2023 1.33% $ (1,690 ) $ (2,681 ) 75,000 5/31/2017 7/31/2017 6/30/2024 1.96% (3,022 ) (4,639 ) 10,000 8/10/2017 8/10/2017 6/30/2024 2.01% (416 ) (636 ) 50,000 6/1/2018 1/31/2019 6/30/2025 2.89% (4,065 ) (5,911 ) 50,000 7/2/2019 7/5/2019 7/18/2024 1.65% (1,610 ) (2,593 ) 50,000 8/21/2019 8/23/2019 8/18/2024 1.32% (1,141 ) (2,036 ) 50,000 8/21/2019 8/23/2019 8/30/2024 1.32% (1,143 ) (2,049 ) 85,000 12/31/2019 12/31/2019 12/31/2029 1.86% (3,978 ) (8,677 ) 25,000 12/6/2018 1/31/2020 6/30/2025 2.75% (1,904 ) (2,801 ) 50,000 12/7/2018 5/18/2020 1/31/2024 2.72% (2,736 ) (3,967 ) 75,000 8/21/2019 5/18/2020 5/18/2025 1.27% (1,536 ) (3,294 ) 75,000 7/31/2020 8/18/2020 8/18/2022 0.13% (8 ) 14 75,000 8/21/2019 5/18/2021 5/18/2026 1.30% (1,401 ) (3,415 ) 770,000 (24,650 ) (42,685 ) Matured interest rate swap at September 30, 2021: $ 50,000 4/7/2016 9/30/2016 3/31/2021 1.09% - (117 ) $ (24,650 ) $ (42,802 ) |
Derivative Instruments, Gain (Loss) Recognized | The following table presents the effect of derivative instruments in cash flow hedging relationships in the Company’s consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020 (in thousands): Net Unrealized Gain Recognized in Other Comprehensive Income (Loss) Net Unrealized Loss Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest and Other Expense, net Three Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Interest rate derivatives in cash flow hedging relationships $ 478 $ 33 $ (2,948 ) $ (2,706 ) Net Unrealized Gain (Loss) Recognized in Other Comprehensive Income (Loss) Net Unrealized Loss Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest and Other Expense, net Nine Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Interest rate derivatives in cash flow hedging relationships $ 9,714 $ (48,628 ) $ (8,438 ) $ (5,006 ) |
Compensation Plans (Tables)
Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Information Pertaining to Share-based Compensation Issued | The following table sets forth information pertaining to the share-based compensation issued under the 2020 Incentive Plan and the incentive plan for 2019 (the “2019 Incentive Plan”). 2020 Incentive Plan 2019 Incentive Plan Period common shares issued First Quarter 2021 First Quarter 2020 Common shares earned under each incentive plan 555,726 665,552 Common shares surrendered on issuance date to satisfy tax withholding obligations 117,647 60,616 Common shares earned and issued under each incentive plan, net of common shares surrendered on issuance date to satisfy tax withholding obligations 438,079 604,936 Closing stock price on issuance date $ 14.03 $ 13.01 Total share-based compensation earned, including the surrendered shares (in millions) $ 7.8 (1) $ 8.7 (2) Of the total common shares earned and issued, total common shares unrestricted at time of issuance 160,216 426,553 Of the total common shares earned and issued, total common shares restricted at time of issuance 277,863 178,383 Restricted common shares vesting date December 10, 2021 December 11, 2020 Common shares surrendered on vesting date to satisfy tax withholding requirements resulting from vesting of restricted common shares n/a 60,066 (1) Of the total 2020 December 31, 2020 December 31, 2020 (2) Of the total 2019 share-based compensation, approximately $1.2 million, which vested on December 11, 2020 2020 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021SegmentHotelRoomState | |
Accounting Policies [Abstract] | |
Number of reportable segments | Segment | 1 |
Number of hotels | Hotel | 215 |
Aggregate number of hotel rooms | Room | 28,085 |
Number of states in which hotels are located | State | 35 |
Investment In Real Estate - Sch
Investment In Real Estate - Schedule of Investment in Real Estate (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | $ 5,807,546 | $ 5,968,594 |
Less accumulated depreciation and amortization | (1,266,122) | (1,235,698) |
Investment in real estate, net | 4,541,424 | 4,732,896 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | 771,639 | 725,512 |
Building and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | 4,441,034 | 4,525,850 |
Furniture, Fixtures and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | 475,807 | 499,865 |
Finance Ground Lease Assets [Member] | ||
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | 102,084 | 203,617 |
Franchise Fees [Member] | ||
Property Plant And Equipment [Line Items] | ||
Real estate investment property, at cost | $ 16,982 | $ 13,750 |
Investment in Real Estate - Add
Investment in Real Estate - Additional Information (Details) $ in Thousands | Aug. 16, 2021USD ($) | Apr. 30, 2020USD ($) | Jul. 31, 2020USD ($) | Sep. 30, 2021USD ($)HotelRoomStateContract | Sep. 30, 2020USD ($)Hotel | Sep. 30, 2021USD ($)HotelRoomStateContract | Sep. 30, 2020USD ($)Hotel | Dec. 31, 2020USD ($)HotelRoom | Jun. 30, 2021Hotel | ||
Investment In Real Estate [Line Items] | |||||||||||
Number of hotels | Hotel | 215 | 215 | |||||||||
Aggregate number of hotel rooms | Room | 28,085 | 28,085 | |||||||||
Number of states in which hotels are located | State | 35 | 35 | |||||||||
Total revenue | $ 277,164 | $ 148,826 | $ 683,281 | $ 467,914 | |||||||
Operating income (loss) | 47,850 | $ (22,356) | 59,024 | (69,212) | |||||||
Cash payment | 197,228 | $ 88,687 | |||||||||
Finance lease liabilities | 111,706 | 111,706 | $ 219,981 | ||||||||
Residence Inn, Seattle, Washington [Member] | |||||||||||
Investment In Real Estate [Line Items] | |||||||||||
Note payable term | 1 year | ||||||||||
Note payable, frequency of periodic payment | monthly | ||||||||||
Cash payment | $ 24,000 | ||||||||||
Note payable, principal assumed or originated | 56,000 | $ 56,000 | [1] | $ 56,000 | [1] | ||||||
Purchase price | $ 80,000 | ||||||||||
Note payable, fixed annual interest rate | 4.00% | 4.00% | [1],[2] | 4.00% | [1],[2] | ||||||
Adjustment to carrying amount of acquired land for land purchase accounted for retirement of finance lease | $ 16,600 | ||||||||||
Finance lease net right-of-use asset | 94,500 | ||||||||||
Finance lease liabilities | $ 111,100 | ||||||||||
Hotel Acquisitions [Member] | |||||||||||
Investment In Real Estate [Line Items] | |||||||||||
Number of hotels | Hotel | 4 | 4 | 4 | 4 | 4 | 4 | |||||
Aggregate number of hotel rooms | Room | 641 | 641 | 483 | ||||||||
Total revenue | $ 5,800 | $ 1,500 | |||||||||
Operating income (loss) | 700 | $ (900) | |||||||||
Purchase price | $ 197,499 | $ 111,292 | |||||||||
Hotel Acquisitions [Member] | Hampton and Home2 Suites Cape Canaveral, FL [Member] | |||||||||||
Investment In Real Estate [Line Items] | |||||||||||
Payments to acquire real estate | $ 25,000 | ||||||||||
Note payable term | 1 year | ||||||||||
Note payable, face amount | $ 21,700 | ||||||||||
Note payable, frequency of periodic payment | monthly | ||||||||||
Notes payable, description of variable rate basis | one-month LIBOR | ||||||||||
Debt instrument value reduced from developer for construction savings | $ 1,100 | ||||||||||
Hotel Acquisitions [Member] | Hampton and Home2 Suites Cape Canaveral, FL [Member] | London Interbank Offered Rate (LIBOR) [Member] | Variable Interest Rate for the First Six Months of Loan [Member] | |||||||||||
Investment In Real Estate [Line Items] | |||||||||||
Margin added to reference rate | 2.00% | ||||||||||
Hotel Acquisitions [Member] | Hampton and Home2 Suites Cape Canaveral, FL [Member] | London Interbank Offered Rate (LIBOR) [Member] | Variable Interest Rate for the Last Six Months of Loan [Member] | |||||||||||
Investment In Real Estate [Line Items] | |||||||||||
Margin added to reference rate | 3.00% | ||||||||||
Hotel Purchase Contract Commitments [Member] | |||||||||||
Investment In Real Estate [Line Items] | |||||||||||
Number of hotels | Contract | 5 | 5 | |||||||||
Aggregate number of hotel rooms | Room | 922 | 922 | |||||||||
Purchase price | $ 242,598 | ||||||||||
Purchase contract gross purchase price | $ 242,600 | $ 242,600 | |||||||||
Number of hotels to be acquired | Hotel | 4 | ||||||||||
Hotel Purchase Contract Commitments [Member] | Construction in Progress | |||||||||||
Investment In Real Estate [Line Items] | |||||||||||
Number of hotels to be acquired | Hotel | 1 | ||||||||||
[1] | On August 16, 2021, the Company acquired the fee interest in the land at the Seattle, Washington Residence Inn, previously held under a finance ground lease, for a purchase price of $80.0 million, consisting of a $24.0 million cash payment and a one-year | ||||||||||
[2] | Interest rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. |
Investment in Real Estate - S_2
Investment in Real Estate - Schedule of Hotel Acquisitions (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)Room | Dec. 31, 2020USD ($)Room | |
Real Estate Properties [Line Items] | ||
Rooms | 28,085 | |
Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Rooms | 641 | 483 |
Gross Purchase Price | $ | $ 197,499 | $ 111,292 |
Hilton Garden Inn Madison, WI [Member] | Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Manager | Raymond | |
Date Acquired | Feb. 18, 2021 | |
Rooms | 176 | |
Gross Purchase Price | $ | $ 49,599 | |
AC Hotels Portland, ME [Member] | Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Manager | Crestline | |
Date Acquired | Aug. 20, 2021 | |
Rooms | 178 | |
Gross Purchase Price | $ | $ 66,750 | |
Hyatt Place Greenville, SC [Member] | Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Manager | Crestline | |
Date Acquired | Sep. 1, 2021 | |
Rooms | 130 | |
Gross Purchase Price | $ | $ 30,000 | |
Aloft Portland, ME [Member] | Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Manager | Crestline | |
Date Acquired | Sep. 10, 2021 | |
Rooms | 157 | |
Gross Purchase Price | $ | $ 51,150 | |
Hampton Cape Canaveral, FL [Member] | Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Manager | LBA | |
Date Acquired | Apr. 30, 2020 | |
Rooms | 116 | |
Gross Purchase Price | $ | $ 24,102 | |
Home2 Suites Cape Canaveral, FL [Member] | Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Manager | LBA | |
Date Acquired | Apr. 30, 2020 | |
Rooms | 108 | |
Gross Purchase Price | $ | $ 22,602 | |
Hyatt House Tempe, AZ [Member] | Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Manager | Crestline | |
Date Acquired | Aug. 13, 2020 | |
Rooms | 105 | |
Gross Purchase Price | $ | $ 26,309 | |
Hyatt Place Tempe, AZ [Member] | Hotel Acquisitions [Member] | ||
Real Estate Properties [Line Items] | ||
Manager | Crestline | |
Date Acquired | Aug. 13, 2020 | |
Rooms | 154 | |
Gross Purchase Price | $ | $ 38,279 |
Investment in Real Estate - S_3
Investment in Real Estate - Schedule of Purchase Contract Outstanding (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)Room | |
Real Estate Properties [Line Items] | |
Aggregate number of hotel rooms | Room | 28,085 |
Hotel Purchase Contract Commitments [Member] | |
Real Estate Properties [Line Items] | |
Aggregate number of hotel rooms | Room | 922 |
Refundable Deposits | $ 1,943 |
Gross Purchase Price | $ 242,598 |
Hotel Purchase Contract Commitments [Member] | Embassy Suites, Madison, WI [Member] | |
Real Estate Properties [Line Items] | |
Date of Purchase Contract | Jul. 27, 2021 |
Aggregate number of hotel rooms | Room | 260 |
Refundable Deposits | $ 893 |
Gross Purchase Price | $ 78,598 |
Hotel Purchase Contract Commitments [Member] | Hilton Garden Inn, Memphis, TN [Member] | |
Real Estate Properties [Line Items] | |
Date of Purchase Contract | Aug. 27, 2021 |
Aggregate number of hotel rooms | Room | 150 |
Refundable Deposits | $ 300 |
Gross Purchase Price | $ 38,000 |
Hotel Purchase Contract Commitments [Member] | Hilton Garden Inn, Fort Worth, TX [Member] | |
Real Estate Properties [Line Items] | |
Date of Purchase Contract | Sep. 2, 2021 |
Aggregate number of hotel rooms | Room | 157 |
Refundable Deposits | $ 176 |
Gross Purchase Price | $ 29,500 |
Hotel Purchase Contract Commitments [Member] | Homewood Suites, Fort Worth, TX [Member] | |
Real Estate Properties [Line Items] | |
Date of Purchase Contract | Sep. 2, 2021 |
Aggregate number of hotel rooms | Room | 112 |
Refundable Deposits | $ 128 |
Gross Purchase Price | $ 21,500 |
Hotel Purchase Contract Commitments [Member] | Hampton, Portland, OR [Member] | |
Real Estate Properties [Line Items] | |
Date of Purchase Contract | Sep. 2, 2021 |
Aggregate number of hotel rooms | Room | 243 |
Refundable Deposits | $ 446 |
Gross Purchase Price | $ 75,000 |
Dispositions - Additional Infor
Dispositions - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||||
Apr. 30, 2021USD ($) | Feb. 28, 2021USD ($) | Sep. 30, 2021USD ($)HotelRoom | Mar. 31, 2021USD ($)Hotel | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($)RoomContract | Sep. 30, 2021USD ($)HotelRoomTransaction | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)HotelTransaction | Sep. 30, 2021USD ($)HotelRoom | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||
Number of hotels | Hotel | 215 | 215 | 215 | |||||||
Gain (Loss) on Disposition of Assets | $ 44 | $ 0 | $ 3,664 | $ 8,785 | ||||||
Loss on impairment of depreciable real estate assets | $ 0 | $ 0 | $ 10,754 | 4,382 | ||||||
Aggregate number of hotel rooms | Room | 28,085 | 28,085 | 28,085 | |||||||
Hotels Sold [Member] | ||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||
Number of hotels | Hotel | 23 | 23 | 3 | 23 | ||||||
Number of Separate Transactions | Transaction | 4 | |||||||||
Sale of Real Estate Assets, Gross Sales Price | $ 234,600 | $ 55,300 | ||||||||
Gain (Loss) on Disposition of Assets | 3,700 | 10,900 | ||||||||
Real Estate Investment, Carrying Value | $ 227,200 | 227,200 | $ 43,800 | $ 227,200 | ||||||
Number of Transactions | Transaction | 3 | |||||||||
Hotels Sold [Member] | SpringHill Suites Overland Park, KS [Member] | ||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||
Sale of Real Estate Assets, Gross Sales Price | $ 5,300 | |||||||||
Loss on impairment of depreciable real estate assets | $ 1,300 | |||||||||
Hotels Sold [Member] | Homewood Suites Memphis, TN [Member] | ||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||
Sale of Real Estate Assets, Gross Sales Price | $ 9,000 | |||||||||
Loss on impairment of depreciable real estate assets | $ 4,400 | |||||||||
Number of purchase contracts | Contract | 1 | |||||||||
Aggregate number of hotel rooms | Room | 140 | |||||||||
Hotels Sold [Member] | ||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||
Operating (loss), excluding gain (loss) on sale of real estate | $ (6,800) | $ (6,700) | ||||||||
Number of hotels | Hotel | 26 | |||||||||
Hotel Sale Contracts and Loss on Impairment of Depreciable Real Estate Assets [Member] | ||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||
Number of hotels | Hotel | 20 | |||||||||
Purchase, gross sales price | $ 211,000 | |||||||||
Loss on impairment of depreciable real estate assets | $ 9,400 |
Dispositions - Schedule of Hote
Dispositions - Schedule of Hotels Sold (Details) - Room | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Rooms | 2,493 | 421 |
Homewood Suites Charlotte, NC [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Feb. 25, 2021 | |
Rooms | 118 | |
Homewood Suites Memphis, TN [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Mar. 16, 2021 | |
Rooms | 140 | |
SpringHill Suites Overland Park, KS [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Apr. 30, 2021 | |
Rooms | 102 | |
Hilton Garden Inn Montgomery,AL [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 97 | |
Homewood Suites Montgomery, AL [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 91 | |
Residence Inn Rogers, AR [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 88 | |
Courtyard Phoenix, AZ [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 127 | |
Courtyard Lakeland, FL [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 78 | |
Fairfield Albany, GA [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 87 | |
Hilton Garden Inn Schaumburg, IL [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 166 | |
SpringHill Suites Andover, MA [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 136 | |
Residence Inn Fayetteville, NC [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 92 | |
Residence Inn Greenville, SC [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 78 | |
Hampton Jackson, TN [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 85 | |
Courtyard Johnson City, TN [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 90 | |
Hampton Allen, TX [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 103 | |
Hilton Garden Inn Allen, TX [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 150 | |
Residence Inn Beaumont, TX [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 133 | |
Hampton Burleson/FortWorth, TX [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 88 | |
Hilton Garden Inn El Paso, TX [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 145 | |
Homewood Suites Irving, TX [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 77 | |
SpringHill Suites Richmond, VA [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 103 | |
SpringHill Suites Vancouver, WA [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jul. 22, 2021 | |
Rooms | 119 | |
SpringHill Suites Sanford, FL [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Jan. 16, 2020 | |
Rooms | 105 | |
SpringHill Suites Boise, ID [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Feb. 27, 2020 | |
Rooms | 230 | |
Hampton Tulare, CA [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Date Sold | Dec. 30, 2020 | |
Rooms | 86 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Revolving credit facility | $ 105,800 | |
Term loans and senior notes, net | $ 864,705 | 864,225 |
Mortgage debt, net | 501,916 | 512,546 |
Debt, net | $ 1,366,621 | $ 1,482,571 |
Debt - Schedule of Future Minim
Debt - Schedule of Future Minimum Debt Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2021 (October - December) | $ 4,375 | |
2022 | 165,831 | |
2023 | 296,213 | |
2024 | 338,597 | |
2025 | 245,140 | |
Thereafter | 322,265 | |
Debt, gross | 1,372,421 | $ 1,488,570 |
Unamortized fair value adjustment of assumed debt | 1,070 | |
Unamortized debt issuance costs | (6,870) | |
Debt, net | $ 1,366,621 | $ 1,482,571 |
Debt - Schedule of Total Fixed-
Debt - Schedule of Total Fixed-Rate and Variable Rate Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Fixed-rate debt | [1] | $ 1,322,421 | $ 1,287,219 |
Variable-rate debt | 50,000 | 201,351 | |
Debt, gross | $ 1,372,421 | $ 1,488,570 | |
Weighted-average interest rate of debt | 3.47% | 3.86% | |
Fixed-rate debt, Percentage | [1] | 96.00% | 86.00% |
Variable-rate debt, Percentage | 4.00% | 14.00% | |
[1] | Fixed-rate debt includes the portion of variable-rate debt where the interest payments have been effectively fixed by interest rate swaps as of the respective balance sheet date. See Note 5 |
Debt - Additional Information (
Debt - Additional Information (Details) | Mar. 16, 2020USD ($) | Dec. 31, 2019USD ($)Loan | Jul. 25, 2017USD ($)Loan | Sep. 30, 2021USD ($)LoanHotel_Property | Mar. 01, 2021 | Dec. 31, 2020USD ($) |
Debt Details [Line Items] | ||||||
Outstanding debt | $ 1,372,421,000 | $ 1,488,570,000 | ||||
2017 $85 Million Unsecured Term Loan Facility [Member] | ||||||
Debt Details [Line Items] | ||||||
Number of term loans | Loan | 1 | |||||
Debt instrument, face amount | $ 85,000,000 | |||||
Debt instrument, maturity date | Jul. 25, 2024 | |||||
Debt instrument, description of variable rate basis | one-month LIBOR | |||||
2019 $85 Million Unsecured Term Loan Facility [Member] | ||||||
Debt Details [Line Items] | ||||||
Number of term loans | Loan | 1 | |||||
Debt instrument, face amount | $ 85,000,000 | |||||
Debt instrument, maturity date | Dec. 31, 2029 | |||||
Debt instrument, description of variable rate basis | one-month LIBOR | |||||
$50 Million Senior Notes [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, face amount | $ 50,000,000 | |||||
Debt instrument, maturity date | Mar. 31, 2030 | |||||
Mortgage Debt [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, maturity date, description | maturity dates ranging from August 2022 to May 2038 | |||||
Outstanding debt | $ 502,400,000 | |||||
Number of hotel properties used to secure debt | Hotel_Property | 28 | |||||
Mortgage Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.00% | |||||
Minimum [Member] | 2017 $85 Million Unsecured Term Loan Facility [Member] | LIBOR Interest Rate Margin [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.30% | |||||
Minimum [Member] | 2019 $85 Million Unsecured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.70% | |||||
Minimum [Member] | $50 Million Senior Notes [Member] | ||||||
Debt Details [Line Items] | ||||||
Note payable, fixed annual interest rate | 3.60% | |||||
Minimum [Member] | Mortgage Debt [Member] | ||||||
Debt Details [Line Items] | ||||||
Note payable, fixed annual interest rate | 3.40% | |||||
Effective interest rates | 3.40% | |||||
Maximum [Member] | 2017 $85 Million Unsecured Term Loan Facility [Member] | LIBOR Interest Rate Margin [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.10% | |||||
Maximum [Member] | 2019 $85 Million Unsecured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.55% | |||||
Maximum [Member] | $50 Million Senior Notes [Member] | ||||||
Debt Details [Line Items] | ||||||
Note payable, fixed annual interest rate | 4.35% | |||||
Maximum [Member] | Mortgage Debt [Member] | ||||||
Debt Details [Line Items] | ||||||
Note payable, fixed annual interest rate | 5.00% | |||||
Effective interest rates | 4.97% | |||||
Line of Credit [Member] | ||||||
Debt Details [Line Items] | ||||||
Loan amendment description | As a result of COVID-19 and the associated disruption to the Company’s operating results, the Company entered into amendments in June 2020 that suspended the testing of the Company’s existing financial maintenance covenants under the unsecured credit facilities. These amendments imposed certain restrictions regarding the Company’s investing and financing activities that were applicable during a specified waiver period, including, but not limited to, limitations on the acquisition of property, payment of distributions to shareholders, capital expenditures and use of proceeds from the sale of property or common shares of the Company, that applied during such testing suspension period. On March 1, 2021, as a result of the continued disruption from COVID-19 and the related uncertainty with respect to the Company’s future operating results, the Company entered into further amendments to each of the unsecured credit facilities (the “March 2021 amendments”) to extend the covenant waiver period for all but two of the Company’s existing financial maintenance covenants until the date that the compliance certificate was required to be delivered for the fiscal quarter ending June 30, 2022 (unless the Company elected an earlier date) (the “Extended Covenant Waiver Period”). The testing for the Minimum Fixed Charge Coverage Ratio and the Minimum Unsecured Interest Coverage Ratio was suspended until the compliance certificate was required to be delivered for the fiscal quarter ending March 31, 2022 (unless the Company elected an earlier date). | |||||
Unsecured Credit Facility | ||||||
Debt Details [Line Items] | ||||||
Maximum consolidated leverage ratio for first two fiscal quarters | 8.50 | |||||
Maximum consolidated leverage ratio for third and fourth fiscal quarters | 8 | |||||
Maximum consolidated leverage ratio for fifth fiscal quarters | 7.50 | |||||
Maximum consolidated leverage ratio thereafter | 6.50 | |||||
Minimum fixed charge coverage ratio for fiscal quarter one | 1.05 | |||||
Minimum fixed charge coverage ratio for fiscal quarter two | 1.25 | |||||
Minimum fixed charge coverage ratio for fiscal quarter thereafter | 1.50 | |||||
Minimum unsecured interest coverage ratio for fiscal quarter one | 1.25 | |||||
Minimum unsecured interest coverage ratio for fiscal quarter two | 1.50 | |||||
Minimum unsecured interest coverage ratio for fiscal quarter three | 1.75 | |||||
Minimum unsecured interest coverage ratio for fiscal quarter thereafter | 2 | |||||
Percentage of maximum unsecured leverage ratio for two fiscal quarter | 65.00% | |||||
Percentage of maximum unsecured leverage ratio for thereafter | 60.00% | |||||
$850 Million Unsecured Credit Facility [Member] | ||||||
Debt Details [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 850,000,000 | |||||
Debt instrument, description of variable rate basis | one-month LIBOR | |||||
$850 Million Unsecured Credit Facility [Member] | $425 Million Unsecured Revolving Credit Facility [Member] | ||||||
Debt Details [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 425,000,000 | |||||
Line of credit facility, expiration date | Jul. 27, 2022 | |||||
Debt instrument, maturity date, description | maturity date may be extended up to one year | |||||
Debt instrument extended maturity date term | 1 year | |||||
Line of credit facility, remaining borrowing capacity | $ 425,000,000 | |||||
$850 Million Unsecured Credit Facility [Member] | Million 425 Unsecured Term Loan Facility [Member] | ||||||
Debt Details [Line Items] | ||||||
Term loan facility, maximum borrowing capacity | $ 425,000,000 | |||||
Number of term loans | Loan | 2 | |||||
$850 Million Unsecured Credit Facility [Member] | Million 425 Unsecured Term Loan Facility [Member] | $200 Million Unsecured Term Loan [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, face amount | $ 200,000,000 | |||||
Debt instrument, maturity date | Jul. 27, 2023 | |||||
$850 Million Unsecured Credit Facility [Member] | Million 425 Unsecured Term Loan Facility [Member] | $225 Million Unsecured Term Loan [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, face amount | $ 225,000,000 | |||||
Debt instrument, maturity date | Jan. 31, 2024 | |||||
$850 Million Unsecured Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.35% | |||||
$850 Million Unsecured Credit Facility [Member] | Minimum [Member] | $425 Million Unsecured Revolving Credit Facility [Member] | ||||||
Debt Details [Line Items] | ||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.20% | |||||
$850 Million Unsecured Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||
$850 Million Unsecured Credit Facility [Member] | Maximum [Member] | $425 Million Unsecured Revolving Credit Facility [Member] | ||||||
Debt Details [Line Items] | ||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |||||
$225 Million Unsecured Term Loan Facility [Member] | ||||||
Debt Details [Line Items] | ||||||
Term loan facility, maximum borrowing capacity | $ 225,000,000 | |||||
Debt instrument, description of variable rate basis | one-month LIBOR | |||||
$225 Million Unsecured Term Loan Facility [Member] | $50 Million Unsecured Term Loan [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, face amount | $ 50,000,000 | |||||
Debt instrument, maturity date | Aug. 2, 2023 | |||||
$225 Million Unsecured Term Loan Facility [Member] | $175 Million Unsecured Term Loan [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, face amount | $ 175,000,000 | |||||
Debt instrument, maturity date | Aug. 2, 2025 | |||||
$225 Million Unsecured Term Loan Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.35% | |||||
$225 Million Unsecured Term Loan Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Details [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.50% |
Debt - Schedule of Unsecured Cr
Debt - Schedule of Unsecured Credit Facilities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 1,372,421 | $ 1,488,570 | |
Revolving credit facility outstanding balance | 105,800 | ||
Unamortized debt issuance costs | (6,870) | ||
Term loans and senior notes, net | 864,705 | 864,225 | |
Credit facilities, net | $ 1,366,621 | $ 1,482,571 | |
Weighted-average interest rate | 3.47% | 3.86% | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | [1],[2] | LIBOR + 1.40% - 2.25% | |
Maturity Date | [1],[3] | Jul. 27, 2022 | |
Revolving credit facility outstanding balance | [1] | $ 105,800 | |
Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [1],[2] | 1.40% | |
Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [1],[2] | 2.25% | |
$200 Million Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | [2] | LIBOR + 1.35% - 2.20% | |
Maturity Date | Jul. 27, 2023 | ||
Outstanding Balance | $ 200,000 | 200,000 | |
$200 Million Term Loan [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 1.35% | |
$200 Million Term Loan [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 2.20% | |
$225 Million Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | [2] | LIBOR + 1.35% - 2.20% | |
Maturity Date | Jan. 31, 2024 | ||
Outstanding Balance | $ 225,000 | 225,000 | |
$225 Million Term Loan [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 1.35% | |
$225 Million Term Loan [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 2.20% | |
$50 Million Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | [2] | LIBOR + 1.35% - 2.20% | |
Maturity Date | Aug. 2, 2023 | ||
Outstanding Balance | $ 50,000 | 50,000 | |
$50 Million Term Loan [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 1.35% | |
$50 Million Term Loan [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 2.20% | |
$175 Million term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | [2] | LIBOR + 1.65% - 2.50% | |
Maturity Date | Aug. 2, 2025 | ||
Outstanding Balance | $ 175,000 | 175,000 | |
$175 Million term Loan [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 1.65% | |
$175 Million term Loan [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 2.50% | |
2017 $85 Million Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | [2] | LIBOR + 1.30% - 2.10% | |
Maturity Date | Jul. 25, 2024 | ||
Outstanding Balance | $ 85,000 | 85,000 | |
2017 $85 Million Term Loan [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 1.30% | |
2017 $85 Million Term Loan [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 2.10% | |
2019 $85 Million Unsecured Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | [2] | LIBOR + 1.70% - 2.55% | |
Maturity Date | Dec. 31, 2029 | ||
Outstanding Balance | $ 85,000 | 85,000 | |
2019 $85 Million Unsecured Term Loan Facility [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 1.70% | |
2019 $85 Million Unsecured Term Loan Facility [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | [2] | 2.55% | |
$50 Million Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate, Description | [2] | 3.60% - 4.35% | |
Maturity Date | Mar. 31, 2030 | ||
Outstanding Balance | $ 50,000 | 50,000 | |
$50 Million Senior Notes [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.60% | ||
$50 Million Senior Notes [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.35% | ||
Term Loans and Senior Loans, Net [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 870,000 | 870,000 | |
Unamortized debt issuance costs | (5,295) | (5,775) | |
Term loans and senior notes, net | 864,705 | 864,225 | |
Credit Facilities, Net [Member] | |||
Debt Instrument [Line Items] | |||
Credit facilities, net | [1] | $ 864,705 | $ 970,025 |
Weighted-average interest rate | [4] | 3.07% | 3.64% |
[1] | Excludes unamortized debt issuance costs related to the revolving credit facility totaling approximately $1.4 million and $2.1 million as of September 30, 2021 December 31, 2020 | ||
[2] | Interest rates on all of the unsecured credit facilities increased to 0.15% above the highest rate shown for each loan during the Extended Covenant Waiver Period from March 1, 2021 through July 28, 2021. | ||
[3] | Subject to certain conditions including covenant compliance and additional fees, the $425 million revolving credit facility maturity date may be extended up to one year, to July 27, 2023, if certain criteria are met at the time of extension. | ||
[4] | Interest rate represents the weighted-average effective annual interest rate at the balance sheet date which includes the effect of interest rate swaps in effect on $770.0 million and $745.0 million of the outstanding variable-rate debt as of September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 |
Debt - Schedule of Unsecured _2
Debt - Schedule of Unsecured Credit Facilities (Parentheticals) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Details [Line Items] | ||
Debt issuance costs, net | $ 6,870,000 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Details [Line Items] | ||
Debt Instrument, Basis of Variable Rate | 0.08% | 0.14% |
Outstanding Variable-Rate Debt Effectively Fixed By Interest Rate Swaps [Member] | ||
Debt Details [Line Items] | ||
Derivative, notional amount | $ 770,000,000 | $ 745,000,000 |
Unsecured Credit Facility | ||
Debt Details [Line Items] | ||
Interest rate increase above highest rate | 0.15% | |
Revolving Credit Facilities [Member] | ||
Debt Details [Line Items] | ||
Debt issuance costs, net | $ 1,400,000 | $ 2,100,000 |
Line of credit facility, maximum borrowing capacity | $ 425,000,000 | |
Debt instrument, maturity date, description | maturity date may be extended up to one year | |
Debt instrument extended maturity date term | 1 year | |
Debt instrument extended maturity date | Jul. 27, 2023 |
Debt - Schedule of Mortgage Deb
Debt - Schedule of Mortgage Debt Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2021 | Aug. 16, 2021 | Dec. 31, 2020 | |||
Debt Instrument [Line Items] | |||||
Outstanding Balance | $ 1,372,421 | $ 1,488,570 | |||
Unamortized fair value adjustment of assumed debt | 1,070 | ||||
Unamortized debt issuance costs | (6,870) | ||||
Total | $ 501,916 | 512,546 | |||
Hampton Cape Canaveral, FL [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan Assumption or Origination Date | [1],[2] | Apr. 30, 2020 | |||
Note payable, principal assumed or originated | [1],[2] | $ 10,852 | |||
Outstanding Balance | [1],[2] | 10,275 | |||
Home2 Suites Cape Canaveral, FL [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan Assumption or Origination Date | [1],[2] | Apr. 30, 2020 | |||
Note payable, principal assumed or originated | [1],[2] | $ 10,852 | |||
Outstanding Balance | [1],[2] | 10,275 | |||
Hampton Colorado Springs, CO [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3],[4] | 6.25% | |||
Loan Assumption or Origination Date | [4] | Sep. 1, 2016 | |||
Note payable, principal assumed or originated | [4] | $ 7,923 | |||
Outstanding Balance | [4] | 7,317 | |||
Courtyard Franklin, TN [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3],[4] | 6.25% | |||
Loan Assumption or Origination Date | [4] | Sep. 1, 2016 | |||
Note payable, principal assumed or originated | [4] | $ 14,679 | |||
Outstanding Balance | [4] | 13,563 | |||
Residence Inn Franklin, TN [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3],[4] | 6.25% | |||
Loan Assumption or Origination Date | [4] | Sep. 1, 2016 | |||
Note payable, principal assumed or originated | [4] | $ 14,679 | |||
Outstanding Balance | [4] | 13,563 | |||
Residence Inn, Seattle, Washington [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 4.00% | [3],[5] | 4.00% | ||
Loan Assumption or Origination Date | [5] | Aug. 16, 2021 | |||
Maturity Date | [5] | Aug. 16, 2022 | |||
Note payable, principal assumed or originated | $ 56,000 | [5] | $ 56,000 | ||
Outstanding Balance | [5] | $ 56,000 | |||
Hilton Garden Inn Grapevine, TX [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.89% | |||
Loan Assumption or Origination Date | Aug. 29, 2012 | ||||
Maturity Date | Sep. 1, 2022 | ||||
Note payable, principal assumed or originated | $ 11,810 | ||||
Outstanding Balance | $ 9,167 | 9,434 | |||
Courtyard Collegeville/Philadelphia, PA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.89% | |||
Loan Assumption or Origination Date | Aug. 30, 2012 | ||||
Maturity Date | Sep. 1, 2022 | ||||
Note payable, principal assumed or originated | $ 12,650 | ||||
Outstanding Balance | $ 9,818 | 10,105 | |||
Courtyard Hattiesburg, MS [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 5.00% | |||
Loan Assumption or Origination Date | Mar. 1, 2014 | ||||
Maturity Date | Sep. 1, 2022 | ||||
Note payable, principal assumed or originated | $ 5,732 | ||||
Outstanding Balance | $ 4,596 | 4,729 | |||
Courtyard Kirkland W A | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 5.00% | |||
Loan Assumption or Origination Date | Mar. 1, 2014 | ||||
Maturity Date | Sep. 1, 2022 | ||||
Note payable, principal assumed or originated | $ 12,145 | ||||
Outstanding Balance | $ 9,737 | 10,018 | |||
Courtyard Rancho Bernardo / San Diego, CA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 5.00% | |||
Loan Assumption or Origination Date | Mar. 1, 2014 | ||||
Maturity Date | Sep. 1, 2022 | ||||
Note payable, principal assumed or originated | $ 15,060 | ||||
Outstanding Balance | $ 12,074 | 12,422 | |||
Residence Inn Seattle, WA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.96% | |||
Loan Assumption or Origination Date | Mar. 1, 2014 | ||||
Maturity Date | Sep. 1, 2022 | ||||
Note payable, principal assumed or originated | $ 28,269 | ||||
Outstanding Balance | $ 22,638 | 23,294 | |||
Embassy Suites Anchorage, AK [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.97% | |||
Loan Assumption or Origination Date | Sep. 13, 2012 | ||||
Maturity Date | Oct. 1, 2022 | ||||
Note payable, principal assumed or originated | $ 23,230 | ||||
Outstanding Balance | $ 18,139 | 18,660 | |||
Courtyard Somerset, NJ [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.73% | |||
Loan Assumption or Origination Date | Mar. 1, 2014 | ||||
Maturity Date | Oct. 6, 2022 | ||||
Note payable, principal assumed or originated | $ 8,750 | ||||
Outstanding Balance | $ 6,973 | 7,179 | |||
Homewood Suites Tukwila, WA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.73% | |||
Loan Assumption or Origination Date | Mar. 1, 2014 | ||||
Maturity Date | Oct. 6, 2022 | ||||
Note payable, principal assumed or originated | $ 9,431 | ||||
Outstanding Balance | $ 7,516 | 7,737 | |||
Homewood Suites Huntsville, AL [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.12% | |||
Loan Assumption or Origination Date | Mar. 1, 2014 | ||||
Maturity Date | Feb. 6, 2023 | ||||
Note payable, principal assumed or originated | $ 8,306 | ||||
Outstanding Balance | $ 6,542 | 6,742 | |||
Courtyard Prattville, AL [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.12% | |||
Loan Assumption or Origination Date | Mar. 1, 2014 | ||||
Maturity Date | Feb. 6, 2023 | ||||
Note payable, principal assumed or originated | $ 6,596 | ||||
Outstanding Balance | $ 5,195 | 5,354 | |||
Residence Inn San Diego, CA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 3.97% | |||
Loan Assumption or Origination Date | Mar. 1, 2014 | ||||
Maturity Date | Mar. 6, 2023 | ||||
Note payable, principal assumed or originated | $ 18,600 | ||||
Outstanding Balance | $ 14,610 | 15,061 | |||
Homewood Suites Miami, FL [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.02% | |||
Loan Assumption or Origination Date | Mar. 1, 2014 | ||||
Maturity Date | Apr. 1, 2023 | ||||
Note payable, principal assumed or originated | $ 16,677 | ||||
Outstanding Balance | $ 13,136 | 13,537 | |||
Homewood Suites New Orleans, LA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.36% | |||
Loan Assumption or Origination Date | Jul. 17, 2014 | ||||
Maturity Date | Aug. 11, 2024 | ||||
Note payable, principal assumed or originated | $ 27,000 | ||||
Outstanding Balance | $ 22,181 | 22,766 | |||
Residence Inn Westford, MA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.28% | |||
Loan Assumption or Origination Date | Mar. 18, 2015 | ||||
Maturity Date | Apr. 11, 2025 | ||||
Note payable, principal assumed or originated | $ 10,000 | ||||
Outstanding Balance | $ 8,393 | 8,605 | |||
Hilton Garden Inn Denver, CO [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.46% | |||
Loan Assumption or Origination Date | Sep. 1, 2016 | ||||
Maturity Date | Jun. 11, 2025 | ||||
Note payable, principal assumed or originated | $ 34,118 | ||||
Outstanding Balance | $ 29,663 | 30,387 | |||
Courtyard Oceanside, CA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.28% | |||
Loan Assumption or Origination Date | Sep. 1, 2016 | ||||
Maturity Date | Oct. 1, 2025 | ||||
Note payable, principal assumed or originated | $ 13,655 | ||||
Outstanding Balance | $ 12,391 | 12,605 | |||
Hilton Garden Inn Omaha, NE [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.28% | |||
Loan Assumption or Origination Date | Sep. 1, 2016 | ||||
Maturity Date | Oct. 1, 2025 | ||||
Note payable, principal assumed or originated | $ 22,682 | ||||
Outstanding Balance | $ 20,581 | 20,936 | |||
Hampton Boise, ID [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.37% | |||
Loan Assumption or Origination Date | May 26, 2016 | ||||
Maturity Date | Jun. 11, 2026 | ||||
Note payable, principal assumed or originated | $ 24,000 | ||||
Outstanding Balance | $ 21,799 | 22,146 | |||
Courtyard Burbank, CA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 3.55% | |||
Loan Assumption or Origination Date | Nov. 3, 2016 | ||||
Maturity Date | Dec. 1, 2026 | ||||
Note payable, principal assumed or originated | $ 25,564 | ||||
Outstanding Balance | $ 22,482 | 23,315 | |||
Courtyard San Diego, CA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 3.55% | |||
Loan Assumption or Origination Date | Nov. 3, 2016 | ||||
Maturity Date | Dec. 1, 2026 | ||||
Note payable, principal assumed or originated | $ 25,473 | ||||
Outstanding Balance | $ 22,402 | 23,232 | |||
Hampton San Diego, CA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 3.55% | |||
Loan Assumption or Origination Date | Nov. 3, 2016 | ||||
Maturity Date | Dec. 1, 2026 | ||||
Note payable, principal assumed or originated | $ 18,963 | ||||
Outstanding Balance | $ 16,677 | 17,295 | |||
SpringHill Suites Burbank, CA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 3.94% | |||
Loan Assumption or Origination Date | Mar. 9, 2018 | ||||
Maturity Date | Apr. 1, 2028 | ||||
Note payable, principal assumed or originated | $ 28,470 | ||||
Outstanding Balance | $ 26,264 | 27,078 | |||
Courtyard Santa Ana, CA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 3.94% | |||
Loan Assumption or Origination Date | Mar. 9, 2018 | ||||
Maturity Date | Apr. 1, 2028 | ||||
Note payable, principal assumed or originated | $ 15,530 | ||||
Outstanding Balance | $ 14,326 | 14,770 | |||
Courtyard Richmond, VA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 3.40% | |||
Loan Assumption or Origination Date | Feb. 12, 2020 | ||||
Maturity Date | Mar. 11, 2030 | ||||
Note payable, principal assumed or originated | $ 14,950 | ||||
Outstanding Balance | $ 14,521 | 14,739 | |||
Residence Inn Richmond, VA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 3.40% | |||
Loan Assumption or Origination Date | Feb. 12, 2020 | ||||
Maturity Date | Mar. 11, 2030 | ||||
Note payable, principal assumed or originated | $ 14,950 | ||||
Outstanding Balance | $ 14,521 | 14,739 | |||
Residence Inn Portland, ME [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 3.43% | |||
Loan Assumption or Origination Date | Mar. 2, 2020 | ||||
Maturity Date | Apr. 1, 2030 | ||||
Note payable, principal assumed or originated | $ 33,500 | ||||
Outstanding Balance | $ 33,500 | 33,500 | |||
Homewood Suites San Jose, CA [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4.22% | |||
Loan Assumption or Origination Date | Dec. 22, 2017 | ||||
Maturity Date | May 1, 2038 | ||||
Note payable, principal assumed or originated | $ 30,000 | ||||
Outstanding Balance | 26,579 | 27,392 | |||
Aggregate Properties [Member] | |||||
Debt Instrument [Line Items] | |||||
Note payable, principal assumed or originated | 631,096 | ||||
Outstanding Balance | 502,421 | 512,770 | |||
Unamortized fair value adjustment of assumed debt | 1,070 | 1,624 | |||
Unamortized debt issuance costs | $ (1,575) | $ (1,848) | |||
[1] | Interest rate was variable based on one-month LIBOR plus 3.00%. As of April 12, 2021, the date the loan was fully repaid, the interest rate was 3.11%. In July 2020, the principal amount of the note was reduced by approximately $1.1 million representing a credit from the developer for shared construction savings. | ||||
[2] | Loan was repaid in full on April 12, 2021. | ||||
[3] | Interest rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. | ||||
[4] | Loan was repaid in full on June 4, 2021. | ||||
[5] | On August 16, 2021, the Company acquired the fee interest in the land at the Seattle, Washington Residence Inn, previously held under a finance ground lease, for a purchase price of $80.0 million, consisting of a $24.0 million cash payment and a one-year |
Debt - Schedule of Mortgage D_2
Debt - Schedule of Mortgage Debt Obligations (Parentheticals) (Details) - USD ($) $ in Thousands | Aug. 16, 2021 | Jul. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | |||||
Cash payment | $ 197,228 | $ 88,687 | |||
Residence Inn, Seattle, Washington [Member] | |||||
Debt Instrument [Line Items] | |||||
Note payable, fixed annual interest rate | 4.00% | 4.00% | [1],[2] | ||
Gross Purchase Price | $ 80,000 | ||||
Cash payment | $ 24,000 | ||||
Note payable term | 1 year | ||||
Note payable, principal assumed or originated | $ 56,000 | $ 56,000 | [2] | ||
Mortgage Debt [Member] | Hampton and Home2 Suites Cape Canaveral, FL [Member] | |||||
Debt Instrument [Line Items] | |||||
Note payable, fixed annual interest rate | 3.11% | ||||
Debt instrument value reduced from developer for construction savings | $ 1,100 | ||||
London Interbank Offered Rate (LIBOR) [Member] | Mortgage Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 3.00% | ||||
Interest rate terms | one-month LIBOR plus 3.00% | ||||
[1] | Interest rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. | ||||
[2] | On August 16, 2021, the Company acquired the fee interest in the land at the Seattle, Washington Residence Inn, previously held under a finance ground lease, for a purchase price of $80.0 million, consisting of a $24.0 million cash payment and a one-year |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)Derivative_Instrument | Dec. 31, 2020USD ($) | |
Fair Value of Financial Instruments [Line Items] | ||
Debt, net | $ 1,366,621 | $ 1,482,571 |
Long-term debt, fair value | 1,300,000 | $ 1,500,000 |
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net | $ (11,400) | |
Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments [Line Items] | ||
Number of interest rate swap agreements | Derivative_Instrument | 13 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Interest Rate Swap Agreements (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Fair value asset (liability) | $ (24,650) | $ (42,802) |
Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | 770,000 | |
Fair value asset (liability) | (24,650) | (42,685) |
Interest Rate Swap #1 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 100,000 | |
Origination Date | Apr. 7, 2016 | |
Effective Date | Sep. 30, 2016 | |
Maturity date | Mar. 31, 2023 | |
Swap fixed interest rate | 1.33% | |
Fair value asset (liability) | $ (1,690) | (2,681) |
Interest Rate Swap #2 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 75,000 | |
Origination Date | May 31, 2017 | |
Effective Date | Jul. 31, 2017 | |
Maturity date | Jun. 30, 2024 | |
Swap fixed interest rate | 1.96% | |
Fair value asset (liability) | $ (3,022) | (4,639) |
Interest Rate Swap #3 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 10,000 | |
Origination Date | Aug. 10, 2017 | |
Effective Date | Aug. 10, 2017 | |
Maturity date | Jun. 30, 2024 | |
Swap fixed interest rate | 2.01% | |
Fair value asset (liability) | $ (416) | (636) |
Interest Rate Swap #4 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Jun. 1, 2018 | |
Effective Date | Jan. 31, 2019 | |
Maturity date | Jun. 30, 2025 | |
Swap fixed interest rate | 2.89% | |
Fair value asset (liability) | $ (4,065) | (5,911) |
Interest Rate Swap #5 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Jul. 2, 2019 | |
Effective Date | Jul. 5, 2019 | |
Maturity date | Jul. 18, 2024 | |
Swap fixed interest rate | 1.65% | |
Fair value asset (liability) | $ (1,610) | (2,593) |
Interest Rate Swap #6 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Aug. 21, 2019 | |
Effective Date | Aug. 23, 2019 | |
Maturity date | Aug. 18, 2024 | |
Swap fixed interest rate | 1.32% | |
Fair value asset (liability) | $ (1,141) | (2,036) |
Interest Rate Swap #7 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Aug. 21, 2019 | |
Effective Date | Aug. 23, 2019 | |
Maturity date | Aug. 30, 2024 | |
Swap fixed interest rate | 1.32% | |
Fair value asset (liability) | $ (1,143) | (2,049) |
Interest Rate Swap #8 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 85,000 | |
Origination Date | Dec. 31, 2019 | |
Effective Date | Dec. 31, 2019 | |
Maturity date | Dec. 31, 2029 | |
Swap fixed interest rate | 1.86% | |
Fair value asset (liability) | $ (3,978) | (8,677) |
Interest Rate Swap #9 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 25,000 | |
Origination Date | Dec. 6, 2018 | |
Effective Date | Jan. 31, 2020 | |
Maturity date | Jun. 30, 2025 | |
Swap fixed interest rate | 2.75% | |
Fair value asset (liability) | $ (1,904) | (2,801) |
Interest Rate Swap #10 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Dec. 7, 2018 | |
Effective Date | May 18, 2020 | |
Maturity date | Jan. 31, 2024 | |
Swap fixed interest rate | 2.72% | |
Fair value asset (liability) | $ (2,736) | (3,967) |
Interest Rate Swap #11 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 75,000 | |
Origination Date | Aug. 21, 2019 | |
Effective Date | May 18, 2020 | |
Maturity date | May 18, 2025 | |
Swap fixed interest rate | 1.27% | |
Fair value asset (liability) | $ (1,536) | (3,294) |
Interest Rate Swap #12 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 75,000 | |
Origination Date | Jul. 31, 2020 | |
Effective Date | Aug. 18, 2020 | |
Maturity date | Aug. 18, 2022 | |
Swap fixed interest rate | 0.13% | |
Fair value asset (liability) | $ (8) | 14 |
Interest Rate Swap #13 [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 75,000 | |
Origination Date | Aug. 21, 2019 | |
Effective Date | May 18, 2021 | |
Maturity date | May 18, 2026 | |
Swap fixed interest rate | 1.30% | |
Fair value asset (liability) | $ (1,401) | (3,415) |
Interest Rate Swap #14 [Member] | Matured at March 31, 2021 [Member] | ||
Fair Value of Financial Instruments Schedule of Interest Rate Swap Agreements [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Origination Date | Apr. 7, 2016 | |
Effective Date | Sep. 30, 2016 | |
Maturity date | Mar. 31, 2021 | |
Swap fixed interest rate | 1.09% | |
Fair value asset (liability) | $ (117) |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Derivative Instruments, Gain (Loss) Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments Gain Loss Recognized [Abstract] | ||||
Net Unrealized Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ 478 | $ 33 | $ 9,714 | $ (48,628) |
Net Unrealized Loss Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest and Other Expense, net | $ (2,948) | $ (2,706) | $ (8,438) | $ (5,006) |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Aircraft Owned by Executive Officers [Member] | General and Administrative Expenses [Member] | |||
Related Parties Details [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 100,000 | $ 100,000 | |
Reimbursement Received From Related Parties For Their Proportionate Share of Staffing and Office Related Costs Provided by Apple Hospitality [Member] | |||
Related Parties Details [Line Items] | |||
Related Party Transaction, Amounts of Transaction | (500,000) | $ (900,000) | |
Due from related parties | $ 200,000 | $ 300,000 | |
Cost Sharing Arrangement [Member] | |||
Related Parties Details [Line Items] | |||
Related party transaction, Description of transaction | To efficiently manage cash disbursements, the Company or ARG may make payments for the other company. Under this cash management process, each company may advance or defer up to $1 million at any time. Each quarter, any outstanding amounts are settled between the companies. This process allows each company to minimize its cash on hand and reduces the cost for each company. The amounts outstanding at any point in time are not significant to either of the companies. | ||
Cost Sharing Arrangement [Member] | Maximum [Member] | |||
Related Parties Details [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 1,000,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | Oct. 18, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | Aug. 12, 2020 | May 31, 2020 |
Shareholders Equity Details [Line Items] | |||||||||||
Annual distribution rate | $ 1.20 | ||||||||||
Common stock, dividends, per share, cash paid | $ 0.02 | $ 0.30 | |||||||||
Payments of ordinary dividends, common stock | $ 4,510,000 | $ 67,324,000 | |||||||||
Quarterly distribution rate | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Accrued distribution | $ 2,279,000 | $ 2,279,000 | 2,279,000 | ||||||||
Proceeds from issuance of common stock, net | $ 75,036,000 | $ (247,000) | |||||||||
Stock repurchase program, extended term | 1 year | ||||||||||
Stock repurchase program, authorized amount | $ 345,000,000 | ||||||||||
Share repurchase program, end period | 2022-07 | ||||||||||
Number of shares repurchased | 1,500,000 | ||||||||||
Stock repurchased value per share | $ 9.42 | ||||||||||
Stock repurchased value | $ 14,336,000 | ||||||||||
ATM Program Executed August 12, 2020 [Member] | |||||||||||
Shareholders Equity Details [Line Items] | |||||||||||
Stock issuance program, authorized amount | $ 300,000,000 | ||||||||||
Issuance of common shares, net (in Shares) | 0 | 4,700,000 | |||||||||
Shares issued weighted average market sales price per share (in dollars per share) | $ 16.26 | ||||||||||
Proceeds from issuance of common stock, gross | $ 76,000,000 | ||||||||||
Commissions | 900,000 | ||||||||||
Proceeds from issuance of common stock, net | $ 75,100,000 | ||||||||||
Stock issuance program, available for issuance | $ 224,000,000 | $ 224,000,000 | $ 224,000,000 | ||||||||
Subsequent Event [Member] | |||||||||||
Shareholders Equity Details [Line Items] | |||||||||||
Common stock, dividends, per share, cash paid | $ 0.01 | ||||||||||
Payments of ordinary dividends, common stock | $ 2,300,000 |
Compensation Plans - Additional
Compensation Plans - Additional Information (Details) | Apr. 01, 2020USD ($)Officershares | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($)Agreement |
New Officer Share-based Payment Arrangement [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Number of new officers | Officer | 5 | ||||
Share based compensation, net (in Shares) | shares | 200,000 | ||||
Total share-based compensation earned, including the surrendered shares (in millions) | $ 1,800,000 | ||||
Restricted common shares vesting date | Mar. 31, 2023 | ||||
Restriction period | 3 years | ||||
Share-based compensation expense | $ 100,000 | $ 100,000 | $ 400,000 | $ 300,000 | |
2021 Executive Management Incentive Plan [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Incentive compensation, description | The operational performance metrics account for 50% of the total target incentive compensation. The shareholder return metrics are weighted 75% for relative shareholder return metrics and 25% for total shareholder return metrics, and account for 50% of the total target incentive compensation. | ||||
Operational performance metrics accounted for total target incentive compensation, percentage | 50.00% | ||||
Percentage of relative shareholder return metrics on shareholder return metrics | 75.00% | ||||
Percentage of total shareholder return metrics on shareholder return metrics | 25.00% | ||||
Shareholder return metrics accounted for total target incentive compensation, percentage | 50.00% | ||||
Accrued liability for potential executive bonus payments | 13,000,000 | $ 13,000,000 | |||
Portion of awards paid in cash | 25.00% | ||||
Portion of awards issued in equity | 75.00% | ||||
2021 Executive Management Incentive Plan [Member] | General and Administrative Expenses [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Labor and related expense | $ 7,000,000 | $ 13,000,000 | |||
2021 Executive Management Incentive Plan [Member] | Equity Awards Vesting At The End Of 2021 [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Share-based compensation arrangement, vesting description | two-thirds | ||||
2021 Executive Management Incentive Plan [Member] | Equity Awards Vesting In December 2022 [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Share-based compensation arrangement, vesting description | one-third | ||||
2020 Executive Management Incentive Plan [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Labor and related expense | $ 1,500,000 | $ 4,000,000 | |||
Potential Aggregate Payout [Member] | 2021 Executive Management Incentive Plan [Member] | Minimum [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Labor and related expense | $ 0 | ||||
Potential Aggregate Payout [Member] | 2021 Executive Management Incentive Plan [Member] | Maximum [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Labor and related expense | $ 22,400,000 | ||||
One-Time Payment Under Separation Agreement [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Number of separation agreements | Agreement | 2 | ||||
One-Time Payment Under Separation Agreement [Member] | Retirement of Executive Vice President and Chief Financial Officer [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Labor and related expense | $ 1,250,000 | ||||
One-Time Payment Under Separation Agreement [Member] | Retirement of Executive Vice President and Chief Operating Officer [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Labor and related expense | 1,250,000 | ||||
One-Time Payment Under Separation Agreement [Member] | Retirements of Executive Vice President and Chief Operating Officer; and Executive Vice President and Chief Financial Officer [Member] | |||||
Compensation Plans Details [Line Items] | |||||
Labor and related expense | $ 2,500,000 |
Compensation Plans - Informatio
Compensation Plans - Information Pertaining to Share-based Compensation Issued (Details) - Share Based Compensation [Member] $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2021USD ($)$ / sharesshares | ||
2020 Executive Management Incentive Plan [Member] | Equity Awards Issued in the First Quarter of 2021 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common shares earned under each incentive plan | 555,726 | |
Common shares surrendered on issuance date to satisfy tax withholding obligations | 117,647 | |
Common shares earned and issued under each incentive plan, net of common shares surrendered on issuance date to satisfy tax withholding obligations | 438,079 | |
Closing stock price on issuance date | $ / shares | $ 14.03 | |
Total share-based compensation earned, including the surrendered shares (in millions) | $ | $ 7.8 | [1] |
Of the total common shares earned and issued, total common shares unrestricted at time of issuance | 160,216 | |
Of the total common shares earned and issued, total common shares restricted at time of issuance | 277,863 | |
Restricted common shares vesting date | Dec. 10, 2021 | |
2019 Executive Management Incentive Plan [Member] | Equity Awards Issued in the First Quarter of 2020 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common shares earned under each incentive plan | 665,552 | |
Common shares surrendered on issuance date to satisfy tax withholding obligations | 60,616 | |
Common shares earned and issued under each incentive plan, net of common shares surrendered on issuance date to satisfy tax withholding obligations | 604,936 | |
Closing stock price on issuance date | $ / shares | $ 13.01 | |
Total share-based compensation earned, including the surrendered shares (in millions) | $ | $ 8.7 | [2] |
Of the total common shares earned and issued, total common shares unrestricted at time of issuance | 426,553 | |
Of the total common shares earned and issued, total common shares restricted at time of issuance | 178,383 | |
Restricted common shares vesting date | Dec. 11, 2020 | |
Common shares surrendered on vesting date to satisfy tax withholding requirements resulting from vesting of restricted common shares | 60,066 | |
[1] | Of the total 2020 December 31, 2020 December 31, 2020 | |
[2] | Of the total 2019 share-based compensation, approximately $1.2 million, which vested on December 11, 2020 2020 |
Compensation Plans - Informat_2
Compensation Plans - Information Pertaining to Share-based Compensation Issued (Parenthetical) (Details) - Share Based Compensation [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2019 | Dec. 31, 2020 | |
2020 Executive Management Incentive Plan [Member] | Equity Awards Issued in the First Quarter of 2021 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation recorded as liability | $ 5.9 | |||
Share-based compensation, subject to vesting | $ 1.9 | |||
Share-based compensation expense | $ 0.5 | $ 1.5 | ||
2019 Executive Management Incentive Plan [Member] | Equity Awards Issued in the First Quarter of 2020 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 0.3 | $ 0.9 | $ 1.2 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ / shares in Units, $ in Thousands | Oct. 28, 2021USD ($)Room | Oct. 18, 2021USD ($)$ / shares | Sep. 30, 2021USD ($)Room$ / shares | Sep. 30, 2020USD ($)$ / shares |
Subsequent Event [Line Items] | ||||
Payments of ordinary dividends, common stock | $ 4,510 | $ 67,324 | ||
Common stock, dividends, per share, cash paid | $ / shares | $ 0.02 | $ 0.30 | ||
Aggregate number of hotel rooms | Room | 28,085 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Payments of ordinary dividends, common stock | $ 2,300 | |||
Common stock, dividends, per share, cash paid | $ / shares | $ 0.01 | |||
Subsequent Event [Member] | Hilton Garden Inn, Memphis, Tennessee [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate number of hotel rooms | Room | 150 | |||
Gross purchase price | $ 38,000 |