Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 12, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2020 | |
Entity File Number | 001-34087 | |
Entity Registrant Name | CONDOR HOSPITALITY TRUST, INC. | |
Entity Incorporation, State Country Name | MD | |
Entity Tax Identification Number | 52-1889548 | |
Entity Address, Address Line One | 1800 West Pasewalk Avenue | |
Entity Address, Address Line Two | Ste. 200 | |
Entity Address, City or Town | Norfolk | |
Entity Address, State or Province | NE | |
City Area Code | 301 | |
Local Phone Number | 861-3305 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | CDOR | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,009,818 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000929545 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Investment in hotel properties, net | $ 271,000 | $ 222,063 |
Investment in unconsolidated joint venture | 4,244 | |
Cash and cash equivalents | 3,697 | 2,584 |
Restricted cash, property and debt service escrows | 6,763 | 5,811 |
Accounts receivable, net | 1,071 | 1,099 |
Prepaid expenses and other assets | 1,856 | 1,118 |
Derivative assets, at fair value | 22 | |
Total Assets | 284,387 | 236,941 |
Liabilities | ||
Accounts payable, accrued expenses, and other liabilities | 7,755 | 5,523 |
Dividends and distributions payable | 434 | 145 |
Land option liability | 8,497 | |
Derivative liabilities, at fair value | 1,132 | 366 |
Convertible debt, at fair value | 1,032 | 1,080 |
Long-term debt, net of deferred financing costs | 179,077 | 134,001 |
Total Liabilities | 197,927 | 141,115 |
Shareholders' Equity | ||
Common stock, $.01 par value, 200,000,000 shares authorized; 12,003,010 and 11,993,608 shares outstanding | 120 | 120 |
Additional paid-in capital | 233,335 | 233,189 |
Accumulated deficit | (157,091) | (147,582) |
Total Shareholders' Equity | 86,414 | 95,777 |
Noncontrolling interest in consolidated partnership (Condor Hospitality Limited Partnership), redemption value of $17 and $47 | 46 | 49 |
Total Equity | 86,460 | 95,826 |
Total Liabilities and Equity | 284,387 | 236,941 |
Series E Preferred Stock [Member] | ||
Shareholders' Equity | ||
Preferred stock, 40,000,000 shares authorized: 6.25% Series E, 925,000 shares authorized, $.01 par value, 925,000 shares outstanding, liquidation preference of $9,684 and $9,395 | $ 10,050 | $ 10,050 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Preferred stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares outstanding | 12,003,010 | 11,993,608 |
Noncontrolling interest in consolidated partnership, redemption value | $ 17 | $ 47 |
Series E Preferred Stock [Member] | ||
Preferred stock, annual dividend rate | 6.25% | 6.25% |
Preferred stock, shares authorized | 925,000 | 925,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares outstanding | 925,000 | 925,000 |
Preferred stock, liquidation preference | $ 9,684 | $ 9,395 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue | ||||
Room rentals and other hotel services | $ 4,811 | $ 16,177 | $ 18,038 | $ 32,080 |
Operating Expenses | ||||
Hotel and property operations | 5,089 | 9,755 | 14,904 | 19,548 |
Depreciation and amortization | 2,777 | 2,394 | 5,487 | 4,756 |
General and administrative | 1,014 | 1,572 | 2,207 | 3,235 |
Acquisition and terminated transactions | 7 | 14 | ||
Strategic alternatives | 80 | 834 | 224 | 834 |
Total operating expenses | 8,960 | 14,562 | 22,822 | 28,387 |
Operating income (loss) | (4,149) | 1,615 | (4,784) | 3,693 |
Net gain (loss) on disposition of assets | (1) | (16) | (10) | 23 |
Equity in earnings of joint venture | 166 | 80 | 679 | |
Net gain (loss) on derivatives and convertible debt | 19 | (456) | (740) | (693) |
Other expense, net | (58) | (24) | (86) | (53) |
Interest expense | (2,070) | (2,094) | (4,050) | (4,257) |
Loss before income taxes | (6,259) | (809) | (9,590) | (608) |
Income tax benefit (expense) | 61 | (461) | 367 | (647) |
Net loss | (6,198) | (1,270) | (9,223) | (1,255) |
Loss attributable to noncontrolling interest | 2 | 6 | 3 | 7 |
Net loss attributable to controlling interests | (6,196) | (1,264) | (9,220) | (1,248) |
Dividends declared and undeclared on preferred stock | (144) | (144) | (289) | (289) |
Net loss attributable to common shareholders | $ (6,340) | $ (1,408) | $ (9,509) | $ (1,537) |
Earnings (Loss) per Share | ||||
Total - Basic Earnings (Loss) per Share | $ (0.53) | $ (0.12) | $ (0.80) | $ (0.13) |
Total - Diluted Earnings (Loss) per Share | $ (0.53) | $ (0.12) | $ (0.80) | $ (0.13) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2018 | $ 10,050 | $ 119 | $ 231,805 | $ (134,970) | $ 107,004 | $ 848 | $ 107,852 |
Balance, shares at Dec. 31, 2018 | 925 | 11,886 | |||||
Stock-based compensation | 594 | 594 | 594 | ||||
Stock-based compensation, shares | 25 | ||||||
Dividends and distributions declared | |||||||
Common Stock | (4,647) | (4,647) | (4,647) | ||||
Series E Preferred | (289) | (289) | (289) | ||||
Common unit | (22) | (22) | |||||
Redemption of common units | 6 | 6 | (48) | (42) | |||
Net loss | (1,248) | (1,248) | (7) | (1,255) | |||
Balance at Jun. 30, 2019 | $ 10,050 | $ 119 | 232,405 | (141,154) | 101,420 | 771 | 102,191 |
Balance, shares at Jun. 30, 2019 | 925 | 11,911 | |||||
Balance at Mar. 31, 2019 | $ 10,050 | $ 119 | 232,082 | (137,423) | 104,828 | 788 | 105,616 |
Balance, shares at Mar. 31, 2019 | 925 | 11,918 | |||||
Stock-based compensation | 323 | 323 | 323 | ||||
Stock-based compensation, shares | (7) | ||||||
Dividends and distributions declared | |||||||
Common Stock | (2,323) | (2,323) | (2,323) | ||||
Series E Preferred | (144) | (144) | (144) | ||||
Common unit | (11) | (11) | |||||
Redemption of common units | |||||||
Net loss | (1,264) | (1,264) | (6) | (1,270) | |||
Balance at Jun. 30, 2019 | $ 10,050 | $ 119 | 232,405 | (141,154) | 101,420 | 771 | 102,191 |
Balance, shares at Jun. 30, 2019 | 925 | 11,911 | |||||
Balance at Dec. 31, 2019 | $ 10,050 | $ 120 | 233,189 | (147,582) | 95,777 | 49 | 95,826 |
Balance, shares at Dec. 31, 2019 | 925 | 11,994 | |||||
Stock-based compensation | 146 | 146 | 146 | ||||
Stock-based compensation, shares | 9 | ||||||
Dividends and distributions declared | |||||||
Series E Preferred | (289) | (289) | (289) | ||||
Net loss | (9,220) | (9,220) | (3) | (9,223) | |||
Balance at Jun. 30, 2020 | $ 10,050 | $ 120 | 233,335 | (157,091) | 86,414 | 46 | 86,460 |
Balance, shares at Jun. 30, 2020 | 925 | 12,003 | |||||
Balance at Mar. 31, 2020 | $ 10,050 | $ 120 | 233,258 | (150,751) | 92,677 | 48 | 92,725 |
Balance, shares at Mar. 31, 2020 | 925 | 11,996 | |||||
Stock-based compensation | 77 | 77 | 77 | ||||
Stock-based compensation, shares | 7 | ||||||
Dividends and distributions declared | |||||||
Series E Preferred | (144) | (144) | (144) | ||||
Net loss | (6,196) | (6,196) | (2) | (6,198) | |||
Balance at Jun. 30, 2020 | $ 10,050 | $ 120 | $ 233,335 | $ (157,091) | $ 86,414 | $ 46 | $ 86,460 |
Balance, shares at Jun. 30, 2020 | 925 | 12,003 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Consolidated Statements of Equity [Abstract] | ||
Dividends and distributions declared: Common stock, per share | $ 0.195 | $ 0.39 |
Dividends and distributions declared: Common units, per unit | $ 0.00375 | $ 0.0075 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (9,223) | $ (1,255) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 5,487 | 4,756 |
Net (gain) loss on disposition of assets | 10 | (23) |
Net loss on derivatives and convertible debt | 740 | 693 |
Equity in earnings of joint venture | (80) | (679) |
Distributions from cumulative earnings of joint venture | 3 | |
Amortization of deferred financing costs | 545 | 695 |
Stock-based compensation expense | 166 | 760 |
Provision for deferred taxes | (421) | 619 |
Changes in operating assets and liabilities: | ||
Increase in assets | (520) | (2,359) |
Increase in liabilities | 1,435 | 1,160 |
Net cash provided by (used in) operating activities | (1,861) | 4,370 |
Cash flows from investing activities: | ||
Additions to hotel properties | (292) | (1,070) |
Distributions in excess of cumulative earnings from joint venture | 480 | 850 |
Hotel acquisitions, net of cash acquired | (7,193) | |
Net proceeds from sale of hotel assets | 2 | 4,189 |
Net cash provided by (used in) investing activities | (7,003) | 3,969 |
Cash flows from financing activities: | ||
Deferred financing costs | (480) | (412) |
Proceeds from long-term debt | 45,763 | 1,500 |
Principal payments on long-term debt | (34,832) | (4,684) |
Redemption of common units | (42) | |
Tax withholdings on stock compensation | (20) | (166) |
Deposit on strategic alternatives | 500 | |
Cash dividends paid to common shareholders | (4,642) | |
Cash dividends paid to common unit holders | (23) | |
Cash dividends paid to preferred shareholders | (145) | |
Other items | (2) | |
Net cash provided by (used in) financing activities | 10,929 | (8,614) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 2,065 | (275) |
Cash, cash equivalents, and restricted cash beginning of period | 8,395 | 9,156 |
Cash, cash equivalents, and restricted cash end of period | 10,460 | 8,881 |
Supplemental cash flow information: | ||
Interest paid | 3,213 | 3,519 |
Income taxes paid, net of refunds | 114 | 67 |
Schedule of noncash investing and financing activities: | ||
Debt assumed in acquisition | 34,080 | |
Increase in accrued liabilities related to insurance premium financing agreement | 823 | $ 375 |
Land option liability in acquisition | $ 8,497 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Condor Hospitality Trust, Inc. (“C ondor”), a Maryland corporation, is a self-administered real estate investment trust (“REIT”) for federal income tax purposes that specializes in the investment and ownership of high -quality select-service, limited- service, extended stay, and comp act full service hotels. As of June 30 , 2020 , the Company owned 15 hotels in eight states . References to the “Company”, “we,” “our,” and “us” herein refer to Condor Hospitality Trust, Inc., including, as the context requires, its direct and indirect subsidiaries. The Company , thro ugh its wholly owned subsidiary Condor H ospitality REIT Trust, owns a controlling interest in Condor Hospitality Limi ted Partnership (the “operating partnership”), for which we serve as general partner. The operating partnership , including its various subsidiaries , holds substantially all of the Company’s assets (with the exception of the furniture and equipment of all properties held by TRS Leasing, Inc.) and conducts all of its operations. At June 30, 2020 , the Company owned 99.9% of the common operating units (“ common units”) of the operating partnership with the remaining common units owned by other limited partners. In order for the income from our hotel property investments to constitute “rents from real properties” for purposes of the gross income tests required by the Internal Revenue Service (“IRS”) for REIT qualification, the income we earn cannot be derived from the operation of any of our hotels. Therefore, the operating partnership and its subsidiaries lease our hotel properties to the Company’s wholly owned taxable REIT subsidiary, TRS Leasing, Inc., and its wholly owned subsidiaries (the “TRS”). The TRS in turn engages third-party eligible independent contractors to manage the hotels. The operating partnership, the TRS, and their respective subsidiaries are consolidated into the Company’s financial statements. Historically, as a result of the geographic areas in which we operate, the operations of our hotels have been seasonal in nature. Generally, occupancy rates, revenue, and operating income have been greater in the second and third quarters of the calendar year than in the first and fourth quarters, with the exception of our hotels located in Florida, which experience peak demand in the first and fourth quarters annually. Agreement and Plan of Merger On July 19, 2019, the Company, the operating partnership (the Company and operating partnership, the “Company Parties”), NHT Operating Partnership, LLC (“NHT Parent”), NHT REIT Merger Sub, LLC (“NHT Merger Sub”) and NHT Operating Partnership II, LLC (“NHT Merger OP,” and together with NHT Parent and NHT Merger Sub, the “NHT Parent Parties”), entered into an Agreement and Plan of Merger (as amended from time to time, the “Merger Agreement”). Closing of the acquisition did not occur on March 23, 2020, the contemplated closing date of the acquisition, and has not occurred as of the time of this filing. The Company Parties and the NHT Parties are in discussions concerning potential amendments to restructure the transaction, which will be disclosed if and when such amendments are agreed. There can be no assurance with respect to the outcome of such discussions, and the Company continues reviewing its options and reserves all rights and remedies under the Merger Agreement. The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Merger OP will merge with and into the operating partnership (the “Partnership Merger”), and, Merger Sub will merge with and into the Company (the “Company Merger” and, together with the Partnership Merger, the “Mergers”). Upon completion of the Partnership Merger, Merger OP will survive and the separate existence of the operating partnership will cease. Upon completion of the Company Merger, the Company will survive and the separate existence of Merger Sub will cease. The Mergers and the other transactions contemplated by the Merger Agreement were unanimously approved by the Company’s Board of Directors (the “Company Board” ) , and subsequently approved by the holders of the Company’s common stock (the “Company common stock”) and 6.25% Series E Cumulative Convertible Preferred Stock (the “Series E Preferred Stock”) at a special meeting of shareholders held on September 23, 2019. Pursuant to the terms and conditions in the Merger Agreement, if the Company Merger is consummated, each share of the Company common stock (other than treasury shares and shares held by the NHT Parent Parties, which will be cancelled and retired and will cease to exist with no consideration being delivered in exchange therefor), will be converted into the right to receive $11.10 per share in cash, and each share of Series E Preferred Stock will be converted into the right to receive $10.00 in cash, each without interest and less any applicable withholding taxes. If the Partnership Merger consummated, each common unit of partnership interest in the operating partnership (excluding operating partnership common units held by the general partner of the operating partnership) will be converted into the right to receive $0.21346 in cash, without interest and less any applicable withholding taxes. Pursuant to the terms and conditions of the Merger Agreement, each of the outstanding awards granted pursuant to the Company’s equity incentive plans will automatically become fully vested and all restrictions thereon will lapse, and thereafter, all Company common stock represented thereby will be considered outstanding for all purposes under the Merger Agreement and will only have the right to receive an amount equal to $11.10 in cash, without interest and less any applicable withholding taxes. Pursuant to the terms of the Merger Agreement, the Company exercised its right to acquire the remaining 20% equity interest of the Atlanta JV (see Note 3) that it did not own. The Merger Agreement contains customary representations, warranties and covenants, including, among others, covenants by the Company to in all material respects carry on its business in the ordinary course of business consistent with past practice, subject to certain exceptions, during the period between the execution of the Merger Agreement and the consummation of the Mergers. The obligations of the parties to consummate the Mergers are not subject to any financing condition or the receipt of any financing by Parent, Merger Sub or Merger OP. Upon a termination of the Merger Agreement, under certain circumstances, the Company will be required to pay a termination fee to Parent of $9,540 . In certain other circumstances, including termination by the Company for the NHT Parties’ failure to close or for a material breach by the NHT Parties, NHT Parent will be required to pay the Company a termination fee of $11,925 upon termination of the Merger Agreement. During the term of the Merger Agreement, without the consent of the NHT Parties, the Company may not pay cash dividends to holders of the Company common stock or the Series E Preferred Stock. The holders of the Series E Preferred Stock have agreed to waive accrual of any unpaid dividends between signing and closing. The Company received nonrefundable cash of $500 from NHT Parties in connection with the ongoing discussions concerning potential adjustments to restructure the transaction, which, in the event a transaction occurs, will be credited against the acquisition purchase price. Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company, as well as the accounts of the operating partnership and its subsidiaries and our wholly owned TRS and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. We evaluate each of our investments and contractual relationships to determine whether they meet the guidelines for consolidation. Entities are consolidated if the determination is made that we are the primary beneficiary in a variable interest entity (“VIE ”) or we maintain control of the asset through our voting interest or other rights in the operation of the entity. The Company has c oncluded that our operating partnership meets the criteria to be considered a VIE of which the Company is the primary beneficiary and, accordingly, the Company consolidates the operating partnership . The Company’s sole significant asset is its investment in the operating partnership , and consequently, substantially all of the Company’s assets and liabilities represent thos e assets and liabilities of the operating partnership . All of the Company ’s debt is an obligation of the operating partnership . The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the general instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited consolidated financial statements include all adjustments considered necessary for a fair presentation of the consolidated financial statements for the periods presented. Interim results are not necessarily indicative of full-year performance for t he year ending December 31, 2020 or any future period. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Estimates, Risks, and Uncertainties The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as revenue and expenses recognized during the reporting period. Actual results could differ from those estimates. Because the state of the economy and the real estate market can significantly impact hotel operating performance and the estimated fair value of our assets, it is possible that the estimates and assumptions that have been utilized in the preparation of the consolidated financial statements could change. The novel coronavirus (COVID-19) has reduced travel significantly and adversely affected the h ospitality industry in general. The actual and threatened spread of COVID-19 globally or in the regions in which we operate, or future widespread outbreak of infectious or contagious disease, can continue to reduce national and inte rnational travel in general. The extent to which the hospitality industry, and thus our business will be affected by COVID-19 will largely depend on future developments which we cannot accurately predict, and the impact on customer travel, including the duration of the outbreak, the continued spread and treatment of COVID-19 , and new information and developments that may emerge concernin g the severity of COVID-19 and the ac tions to contain COVID-19 or treat its impact, among others. To the extent that travel activity in the U.S. is and will be materially and adver sely affected by COVID-19 , business and financial results of the hospitality industry, and thus our business and financial results, co uld be impacted. Since late March 2020 , similar to the conditions affecting the hospitality industry as a whole, we experienced occupancy declines at many of our properties which will require us to adjust our business operations, and will have an impact on our operating income and may potentially impact future compliance with our debt covenants. As a result of the above factors, the Company is taking actions at the corporate and hotel level, including, but not limited to: · Amending its secured credit facility with KeyBank National Association and the other lenders party thereto (the “credit facility”) on March 30, 2020 to provide extension options out to March 1, 2022 , waivers / modifications of certain covenants, and establishment of interest reserves for near term debt service payments as necessary (see further discussion of the Sixth Amendment to the credit facility in Note 6) . · Asset management working with hotel management companies to reduce all hotels operating expenses including, but not limited to, closing off multiple floors, staffing reductions and furloughs, utility consumption reductions, purchasing reductions and eliminations, contract services reductions and eliminations, food services closures, exercise facilities closures, and certain reduction and elimination of certain marketing expenditures. · Seeking potential alternative revenue sources through health care providers, government agencies, universities and airlines. · Obtaining Paycheck Protection Program (“PPP”) loans authorized under the recently con gressionally approved Coronavirus Aid, Relief, and Economic Security (“CARES”) Act totaling $2,299 (see Note 6). · Seeking potential recovery of certain losses through insurance coverage. · Pursuing corporate cost reductions, including staffing reductions resulting in an approximately 20% decrease in non-consulting expenses compared to historical operations. · With its credit facility amended, representing approximately 72% of Condor’s debt , Condor has approached its remaining lenders for potential modifications to provide interest reserves or acc ruals during the second and third quarters of 2020. Two lenders representing approximately 22% of Condor’s debt have agreed (see Note 6). · Capital improvement projects have been suspended except for emergency circumstances and will remain on hold for immediate future, with the potential for the suspension to continue through 2020. · The Company determined that it wa s advisable and the best business practice to cause a temporary closure of two of its hotels, the Solomons Hilton Garden Inn on April 20, 2020 and the Leawood Aloft on April 9, 2020 . These hotels were both reopened on July 1, 2020 and no other hotel closures have been deemed necessary at this time. While we cannot assure you that that the assumptions used to estimate our future liquidity will be correct, t he Company believes it can generate the liquidity required to operate through the crisis through a combination of the co ntinued operation of our portfolio with significant cost reduction measures in place and, if necessary, additional debt and equity financings. However, there can be no assurance that the Company will be able to obtain such financing on acceptable terms or at all. Additionally, although the Company was in compliance with all its debt covenants as of June 30 , 2020, management has determined that the Company may violate certain financial covenants under its debt agreements within the next twelve months if covenant waivers or amendments are not obtained. If the Company were to violate one or more financial covenants, the lenders could declare the Company in default and could accelerate the amounts due under a portion or all of the Company’s outstanding debt. The Company believes it will receive such waivers before any covenants are violated. However, any waivers would be granted at the sole discretion of the lenders, and there can be no assurance that the Company will be able to obtain such waivers. Based on a combination of these factors and the guidanc e in U.S. GAAP that requires that , in making this determination for the one year period following the date of the financial statements , the Company cannot consider future fundraising activities or the likelihood of obtaining covenant waivers, all of which are outside of the Company's sole control, the Company has determined that there is substantial doubt about the Company’s ability to continue as a going concern for the one year period after the date the financial statements are issued. Management believes it will obtain required waivers from its lenders before any covenants are violated given that conditions are not exclusive to the Company and based on the actions of lenders thus far in this crisis, including waivers already granted to the Company. However, there can be no assurance that the Company will be able to obtain waivers on acceptable terms or at all. The consolidated financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from t he outcome of this uncertainty. Investment in Hotel Properties At the time of acquisition, the Company allocates the purchase price of assets to asset classes based on the fair value of the acquired real estate, furniture, fixtures, and equipment, and intangible assets, if any, and the fair value of liabilities assumed, including debt. Acquisition date fair values are determined based on replacement costs, appraised values, and estimated fair values using methods similar to those used by independent appraisers including discounted cash flows and capitalization rates. Effective January 1, 2018, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2017-01, Clarifying the Definition of a Business . As such, if substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or group of similar identifiable assets, the set is not considered a business. When we conclude that an acquisition meets this threshold, acquisition costs will be capitalized as part of our allocation of the purchase price of the acquired hotel properties. We concluded that the Company’s purchase of the remaining 20% of the joint venture that owns the Atlanta Aloft property (the “Atlanta JV”), completed in the first quarter of 2020, was the acquisition of assets and as such acquisition costs were capitalized as part of this transaction (see Note 3). The Company’s investments in hotel properties are recorded at cost and are depreciated using the straight-line method over an estimated useful life of 15 to 40 years for buildings and improvements and 3 to 12 years for furniture and equipment. Renovations and/or replacements that improve or extend the life of the hotel properties are capitalized and depreciated over their useful lives. Repairs and maintena nce are expensed as incurred. The initial fees incurred to enter into the franchise agreements are capitalized and amortized over the life of the franchise agreements using the straight-line method. Amortization expense is included in depreciation and amortization in the consolidated statements of operations. On an ongoing basis, the Company reviews the carrying value of each held for use hotel to determine if certain circumstances, known as triggering events, exist indicating impairment to the carrying value of the hotel or that depreciation periods should be modified. These triggering events include a significant change in the cash flows of or a significant adverse change in the business climate for a hotel. If facts or circumstances support the possibility of impairment, the Company will prepare an estimate of the undiscounted future cash flows, without interest charges, of the specific hotel and determine if the investment in such hotel is recoverable based on these undiscounted future cash flows. In the evaluation of impairment of its hotel properties, the Company makes many assumptions and estimates including projected cash flows both from operations and eventual disposition, expected useful life and holiday period, future required capital expenditures, and terminal capitalization rates. If the investment is not recoverable based on this analysis, an impairment charge will be taken, if necessary, to reduce the carrying value of the hotel to the hotel’s estimated fair value. Investment in Joint Venture If it is determined that we do not have a controlling interest in a joint venture, either through our financial interest in a VIE or through our voting interest in a voting interest entity (“VOE”) and we have the ability to provide significant influence, the equity method of accounting is used. Under this method, the investment, originally recorded at cost, is adjusted to recognize our share of net earnings or losses of the affiliate as they occur, with losses limited to the extent of our investment in, advances to, and commitments to the investee. Pursuant to our Atlanta JV agreement, prior to our acquisition of the remaining 20% interest in the Atlanta JV (see Note 3), allocations of the profits and losses of our Atlanta JV were potentially allocated disproportionately to nominal ownership percentages due to specified preferred return rate thresholds. Distributions received from a joint venture are classified in the consolidated statements of cash flows using the cumulative distributions approach. Distributions are classified as cash inflows from operating activities unless cumulative distributions, including those from prior periods not designated as a return of investment, exceed cumulative recognized equity in earnings of the joint venture. Excess distributions are classified as cash inflows from investing activities as a return of investment. On an annual basis or at interim periods if events and circumstances indicate that the investment may be impaired, the Company reviews the carrying value of its investment in unconsolidated joint venture to determine if circumstances indicate impairment to the carrying value of the investment that is other than temporary. The investment is considered impaired if its estimated fair value is less than the carrying amount of the investment and that impairment is other than temporary. Assets Held for Sale and Discontinued Operations A hotel is considered held for sale (a) when a contract for sale is entered into, a substantial, nonrefundable deposit has been committed by the purchaser, and sale is expected to occur within one year, or (b) if management has committed to and is actively engaged in a plan to sell the property, the property is available for sale in its current condition, and it is probable the sale will be completed within one year. If a hotel is considered held for sale as of the most recent balance sheet presented or was sold prior to that balance sheet date, the hotel property and the debt it collateralizes are shown as held for sale in all periods presented. Depreciation of our hotels is discontinued at the time they are considered held for sale. Only disposals representing a strategic shift in operations that have a major effect on an entity’s operations and financial results are presented as discontinued operations. The disposition completed in 201 9 did not me e t this definition, and we anticipate that most of our hotel dispositions will not be classified as discontinued operations as most will not fit this definition. At the end of each reporting period, if the fair value of a held for sale property less costs to sell is lower than the carrying value of the hotel, the Company will record an impairment loss. Impairment losses on held for sale properties may be subsequently recovered up to the amount of the cumulative impairment losses taken while the property is held for sale should future revisions to fair value estimates be required. If active marketing ceases or the property no longer meets the criteria to be classified as held for sale, the property is reclassified to held for use and measured at the lower of its (a) carrying amount before the property was classified as held for sale, adjusted for any depreciation expense that would have been recognized had the property been continuously classified as held for use, or (b) its fair value at the date of the decision not to sell. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents includes cash and highly liquid investments with original maturities of three months or less when acquired, and are carried at costs which approximates fair value. Restricted cash consists of cash held in escrow for the replacem ent of furniture and fixtures, real estate taxes, property insurance , and debt service as required under certain loan agreements. Revenue Recognition Revenue consists of amounts derived from hotel operations, including the sales of rooms, food and beverage, and other ancillary services. Room revenue is recognized over a customer's hotel stay at the daily contract rate. Revenue from food and beverage and other ancillary services is generated when a customer chooses to purchase goods or services separately from a hotel room and revenue is recognized on these distinct goods and services at the contract rate at the point in time or over the time period that goods or services are provided to the customer and the related performance obligations are fulfilled. Certain ancillary services are provided by third parties and the Company assesses whether it is the principal or agent in these arrangements. If the Company is the agent, revenue is recognized based upon the commission earned from the third party. If the Company is the principal, the Company recognizes revenue based upon the gross sales price. Accounts receivable primarily represents receivables from hotel guests who occupy hotel rooms and utilize hotel services. The Company maintains an allowance for doubtful accounts sufficient to cover estimated potential credit losses . Sales, use, occupancy, and similar taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenue in the consolidated statements of operations. Hotel operating revenues can be disaggregated into the following categories to demonstrate how economic factors affect the nature, amount, timing, and uncerta inty of revenue and cash flows: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Rooms $ 4,489 $ 15,464 $ 17,015 $ 30,615 Food and beverages 115 396 464 755 Other 207 317 559 710 Total revenue $ 4,811 $ 16,177 $ 18,038 $ 32,080 Income Taxes The Company qualifies and intends to continue to qualify as a REIT under the applicable provisions of the Internal Revenue Code (the “Code”), as amended. In general, under such Code provisions, an entity which has made the required election and, in the taxable year, meets certain requirements and distributes to its shareholders at least 90% of its REIT taxable income, will not be subject to federal income tax to the extent of the income currently distributed to shareholders. A REIT will incur a 100% tax on the net gain derived from any sale or other disposition of property that the REIT holds primarily for sale to customers in the ordinary course of a trade or business. We do not believe any of our hotels were held primarily for sale in the ordinary course of our trade or business. However, if the IRS would successfully assert that we held such hotels primarily for sale in the ordinary course of our business, the gain from such sales could be subject to a 100% prohibited transaction tax. Taxable income from non-REIT activities managed through the TRS is subject to federal, state, and local income taxes. We account for the federal income taxes of our TRS using the asset and liability method. Under this method, deferred income taxes are recognized for temporary differences between the financial reporting bases of assets and liabilities of the TRS and their respective tax bases and for operating loss and tax credit carryforwards based on enacted tax rates expected to be in effect when such amounts are realized or settled. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on the consideration of available evidence, including tax planning strategies and projections for future taxable income over the periods in which the remaining deferred tax assets are deductible. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not (defined as a likelihood of more than 50% ) that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are utilized to determine the value of certain liabilities and equity instruments , to perform impairment assessments, to account for hotel acquisitions, in the valuation of stock-based compensation, a nd for disclosure purposes. Fair value measurements are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Directly or indirectly observable inputs other than quoted prices included in Level 1. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and model-derived valuations whose inputs are observable. Level 3: Unobservable inputs for which there is little or no market data, which require a reporting entity to develop its own assumptions. Our estimates of fair value are determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or valuation techniques may have a material effect on estimated fair value measurements. We classify assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. With the exception of fixed rate debt (see Note 8 ) and other financial instruments carried at fair value, the carrying amounts of the Company’s financial instruments approximates their fair values due to their short-term nature or variable market-based interest rates. Fair Value Option Under U.S. GAAP, the Company has the irrevocable option to report most financial assets and financial liabilities at fair value on an instrument by instrument basis, with changes in fair value reported in net earnings. This option was elected for the treatment of the Company’s convertible debt entered in to on March 16, 2016 (see Note 7 ). Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which superseded most existing lease guidance in U.S. GAAP. ASU 2016-02 requires, among other changes to the lease accounting guidance, lessees to recognize most leases on-balance sheet via a right of use asset and lease liability and additional qualitative and quantitative disclosures. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases , to clarify how to apply certain aspects of the new leases standard, and ASU 2018-11, Leases (Topic 842): Targeted Improvements , to give companies another option for transition and to provide lessors with a practical expedient to reduce the cost and complexity of implementing the new standard. The transition option allows companies to not apply the new leases standard in the comparative periods they present in their financial statements in the year of adoption. The Company adopted this standard on January 1, 2019. The Company elected the practical expedients allowed under the guidance and retained the original lease classification and historical accounting for initial direct costs for leases existing prior to the adoption date. The Company also elected not to restate prior periods for the impact of the adoption of the new standard. The adoption of this standard has resulted in the recognition of right-of-use assets and related liabilities to account for the Company's future obligations under the operating leases for which the Company is the lessee. See Notes 2 and 15 to the accompanying consolidated financial statements for additional disclosures related to the adoption of this standard. |
Investment in Hotel Properties
Investment in Hotel Properties | 6 Months Ended |
Jun. 30, 2020 | |
Investment in Hotel Properties [Abstract] | |
Investment in Hotel Properties | NOTE 2. INVESTMENT IN HOTEL PROPERTIES Investment in hotel properties consisted of the following at June 30, 2020 and December 31, 2019 : As of June 30, 2020 December 31, 2019 Land $ 34,929 $ 20,200 Buildings, improvements, vehicle 244,000 206,971 Furniture and equipment 24,530 21,805 Initial franchise fees 1,784 1,784 Construction-in-progress 25 100 Right of use asset 71 80 Investment in hotel properties 305,339 250,940 Less accumulated depreciation (34,339) (28,877) Investment in hotel properties, net $ 271,000 $ 222,063 On January 1, 2019, the Company adopted ASU 842, Leases, and applied it prospectively. At adoption, the Company also elected the practical expedients which permitted it to not reassess its prior conclusions about lease identification, classification, and initial direct costs. Consequently on January 1, 2019, the Company recognized right-of-use assets and related liabilities related to its operating leases. Since most of the Company's leases do not provide an implicit rate, the Company used in cremental borrowing rates, with a weighted average rate of 5.2% at June 30, 2020. The right-of-use assets and liabilities are amortized to rent expense, included in either hotel and property operations expenses or general and administrative expenses depending on the nature of the lease, over the term of the underlying lease agreements. The weighted average remaining life of the Company’s operating leases, including options to extend when it is reasonably certain the Company will exercise such options, was 6.5 years at June 30, 2020. As of June 30, 2020, the Company's right-of-use assets, net of $71 are included in investment in hotel properties, net and its related lease liabilities of $71 are presented in accounts payable, accrued expenses, and other liabilities in the Company's consolidated balance sheets. The adoption of this standard had minimal impact on the Company's consolidated statements of operations. |
Acquisition of Hotel Properties
Acquisition of Hotel Properties | 6 Months Ended |
Jun. 30, 2020 | |
Acquisition of Hotel Properties [Abstract] | |
Acquisition of Hotel Properties | NOTE 3. ACQUISITION OF HOTEL PROPERTIES On February 14, 2020, the Company purchased the remaining 20% interest in the Atlanta JV from our joint venture partner (see detailed description of the Atlanta JV in Note 4) for $7,300 as allowed by the purchase op tion included in the original joint venture agreements. The $7,300 was funded from the Company’s credit facility, and the Company became the primary obligator on the $34,080 New Term Loan (as defined in Note 4) as part of the transaction. As the Atlanta JV was previously accounted for under the equity method and the acquisition was considered the acquisition of assets , the liabilities assumed as part of the transaction were recorded at fair value while the assets purchased in the transaction were recorded based on a pro-rata fair value allocation of the total available basis, which included the fair value of liabilities assumed, the cash purchase price paid, the balance of the investment in the unconsolidated joint venture at the time of the acquisition, and the acquisition costs incurred. The purchase was recognized as follows: Cash purchase price $ 7,300 Investment in unconsolidated joint venture 3,844 Acquisition costs 122 Total investment in net assets $ 11,266 Cash $ 125 Working capital (462) Land 14,728 Buildings, improvements, and vehicle 37,020 Furniture and equipment 2,432 Debt assumed at acquisition (34,080) Land option liability (1) (8,497) Total allocation to net assets $ 11,266 (1) The purchase agreement includes a provision which permits the seller to purchase the surface parking lot north of the hotel exercisable for approximately seven years at less than market rates. Included in the consolidated statements of operations for the three and six months ended June 30 , 2020 are total revenues of $547 and $1,360 , respectively, and total operating losses of $574 and $861 , respectively, related to the results of operations for Atlanta Aloft hotel since the date of its acquis ition. All purchase price allocations were determined using Level 3 fair value inputs. |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Venture | 6 Months Ended |
Jun. 30, 2020 | |
Investment in Unconsolidated Joint Venture [Abstract] | |
Investment in Unconsolidated Joint Venture | NOTE 4. INVESTMENT IN UNCONSOLIDATED JOINT VENTURE On August 1, 2016, the Company entered into a joint venture, the Atlanta JV, with Three Wall Capital LLC and certain of its affiliates (“TWC”) to acquire an Aloft hotel in downtown Atlanta, Georgia. The Atlanta Aloft acquisition had a total purchase price of $43,550 and closed on August 22, 2016. Prior to the purchase of the remaining interest in the Atlanta JV on February 14, 2020 (see Note 3), the Company accounted for the Atlanta JV under the equity method. Condor owned 80% of the Atlanta JV with TWC owning the remaining 20% . The Atlanta JV was comprised of two companies: Spring Street Hotel Property II LLC, of which the operating partnership indirectly owned an 80% equity interest, and Spring Street Hotel OpCo II LLC, of which our TRS indirectly owned an 80% equity interest. TWC owned the remaining 20% equity interest in these two companies. The purchase was partially funded with a $33,750 term loan secured b y the property. On August 9, 2019, the operating partnership and the owner and lessee of the Aloft Atlanta hotel in the Atlanta JV (Spring Street Hotel Property LLC and Spring Street Hotel OpCo LLC, respectively), as Borrowers, closed on a $34,080 term loan pursuant to a term loan agreement with KeyBank National Association and the other lenders party thereto, as Lenders, and KeyBank National Association, as Agent for the Lenders (the “New Term Loan”). The proceeds of the New Term Loan were used to repay the original term loan , which was terminated following the repayment. The New Term Loan was included in full on the balance sheet of the Atlanta JV prior to the acquisition of the remaining interest by the Company in 2020 . The New Term Loan matured upon the earlier to occur of (a) consummation of the merger under the Merger Agreement (see Note 1) and (b) May 8, 2020 . The New Term Loan was refinanced in May 2020 (see Note 6). The New Term Loan bore interest, at the Borrower’s option, at either LIBOR plus 2.25% or a base rate plus 1.25% . The New Term Loan required monthly interest payments and principal is due on the m aturity date. The Borrowers could , at any time, voluntarily prepay the New Term Loan in whole or in part without premium or penalty (other than c ustomary LIBOR breakage costs). The New Term Loan wa s secured by a first priority lien and security interest on the Aloft Atlanta hotel and the tangible and intangible personal property used in connection with such hotel, including inventory, equipment, fixtures, accounts and general in tangibles. The New Term Loan was guaranteed by the Company and certain of its subsidiaries. Under the Atlanta JV agreement, the Atlanta JV was managed by TWC in accordance with business plans and budgets approved by both partners. Major decisions as detailed in the agreement also required joint approval. Condor could remove TWC as manager of the Atlanta JV and appoint a new manager only upon the occurrence of certain events. The Atlanta Aloft hotel was managed by Boast Hotel Management Company LLC (“Boast”), an affiliate of TWC. The Atlanta JV paid to Boast total management fees of $61 during the first quarter of 2020 and paid management fees of $96 and $212 for the three and six months ended June 30, 2019, respectively. The management of the Atlanta Aloft hotel was moved to Aimbridge Hospitality on March 1, 2020 following the acquisition of the remaining interest in the Atlanta JV by Condor. Net cash flow from the Atlanta JV was distributed each quarter first with a 10% annual preferred return on capital contributions to Condor, second with a 10% annual preferred return on capital contributions to TWC, and third with any remainder distributed to the partners based on their pro-rata equity ownership. Profits were allocated in the same proportion as net cash flow. Losses were allocated based on pro-rata equity ownership. Cash distributions totaling $480 were received from the Atlanta JV in the first quarter of 2020 prior to its acquisition by Condor, and cash distributions totaling $653 and $853 were received in the three and six months ended June 30, 2019, respectively. The Atlanta JV agreement also included buy-sell rights for both members (generally after three years of hotel ownership for Condor and after five years for TWC) and Condor had a purchase option for TWC’s Atlanta JV ownership interest exercisable between the third and fifth anniversary of the hotel closing. The following table represents the total assets, liabilities, and equity, including the Company’s share, of the Atlanta JV as of December 31, 2019: As of December 31, 2019 Investment in hotel properties, net $ 45,547 Cash and cash equivalents 661 Accounts receivable, prepaid expenses, and other assets 279 Total Assets $ 46,487 Accounts payable, accrued expenses, and other liabilities $ 1,026 Land option liability 6,190 Long-term debt, net of deferred financing costs 33,966 Total Liabilities 41,182 Condor equity 4,244 TWC equity 1,061 Total Equity 5,305 Total Liabilities and Equity $ 46,487 The table below provides the components of net earnings, including the Company’s share of the Atlanta JV, for the first quarter of 2020 prior to its acquisition by the Company and for the three and six months ended June 30, 2019. For the period of January 1 to February 14, Three months ended June 30, Six months ended June 30, 2020 2019 2019 Revenue Room rentals and other hotel services $ 1,522 $ 3,184 $ 7,058 Operating Expenses Hotel and property operations 960 1,900 4,077 Depreciation and amortization 181 374 745 Total operating expenses 1,141 2,274 4,822 Operating income 381 910 2,236 Net loss on derivative - - (1) Interest expense (281) (702) (1,386) Net earnings $ 100 $ 208 $ 849 Condor allocated earnings $ 80 $ 166 $ 679 TWC allocated earnings 20 42 170 Net earnings $ 100 $ 208 $ 849 |
Disposition of Hotel Properties
Disposition of Hotel Properties | 6 Months Ended |
Jun. 30, 2020 | |
Disposition of Hotel Properties [Abstract] | |
Disposition of Hotel Properties | NOTE 5. DISPOSITIONS OF HOTEL PROPERTIES As of June 30, 2020 and December 31, 2019 , the Company had no hotels classified as held for sale. During the three and six months ended June 30, 2020 and the three months ended June 30, 2019, the Company sold no hotels. During the six months ended June 30, 2019 , the Company sold one hotel resulting in a total gain of $62 . |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | NOTE 6 . LONG-TERM DEBT On February 14, 2020, with the purchase of the remaining interest in the Atlanta JV (see Note 3), the Company became the primary obligator on the New Term Loan and drew an additional $7,300 under its credit facility with KeyBank to fund the transaction . The New Term Loan was refinanced on May 13, 2020 with the Seventh Amendment to its credit facility with KeyBank as subsequently discussed. On March 30, 2020, the Company entered into a Six th Amendment to its credit facility with KeyBank which, among other things, made the following changes to the credit facility : · Sets the size of the credit faci lity at $102,000 and removes the ability to reborrow under the credit facility in the future (without lender approval) . · Extends the maturity date of the credit facility to April 1, 2021 , and provides for two extension options ( six months and five months) with the satisfaction of certain conditions, including payment of extension fees, no defaults existing, delivery of evidence of pro forma compliance with financial covenants and delivery of updated appraisals. · Provides for principal prepayments with certain proceeds and cash flows through a cash management system / cash flow waterfall. · Implements a collateral-specific minimum debt yield (ratio of adjusted net operating income for the borrowing base properties to indebtedness outstanding under the credit facility) of 10% . The covenant is first tested on September 30, 2020 and for purposes of calculating compliance with the covenant, annualized results are used until June 30, 2021 when the calculation is based on the most recently ended four fiscal quarters. · Maintains the maximum consolidated leverage ratio (ratio of consolidated total indebtedness to consolidated total asset value) of 60% but provides for updated appraisals to determine consolidated total asset value (if required by the lenders). · Modifies the fixed charge coverage ratio (ratio of adjusted consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (“ EBITDA ”)) to consolidated fixed charges) to (a) 1.25 to 1 as of the end of the fiscal quarter ending September 30, 2020 and (b) 1.50 to 1 as of the end of the fiscal quarter ending December 31, 2020 and each fiscal quarter thereafter. For purposes of calculating compliance with the covenant, annualized results are used until June 30, 2021 when the calculation is based on the most recently ended four fiscal quarters. · Implements a maximum borrowing base leverage ratio (ratio of indebtedness outstanding under the credit facility to borrowing base asset value (based on updated appraisals required by the lenders) of 65% . The covenant is first tested on June 30, 2021. · Eliminates the financial covenants regarding secured leverage ratio, tangible net worth and variable rate debt. · Modifies the covenant on dividends and distributions to provide that no cash dividends or distributions may be made to common or preferred shareholders. · Modifies the covenants on recourse debt and investments to provide that no additional recourse debt or investments will be permitted. · Adds certain monthly reporting obligations. · Increases the interest rate for the credit facility to LIBOR plus 3.25% or a base rate plus 2.25% , and further increases the interest rate spreads by 0.25% at six month intervals. The LIBOR rate is subject to a floor of 0.25% . · Provides for an interest reserve account, which was funded with $1,720 on March 30, 2020. The funds are available to make interest payments under the credit facility upon the satisfaction of certain conditions, including if the Company’s unrestricted cash balance is less than $ 1,500 . The remaining balance in the interest reserve account, included in restricted cash, at June 30, 2020 was $677 . On March 30, 2020, the Company entered into an agreement with Great Western Bank to defer the monthly principal and interest payments due under that loan on April 1, 2020, May 1, 2020, and June 1, 2020 until the loan’s maturity date in December 2021 . On April 4, 2020 and April 11, 2020, the Company obtained three PPP loans totaling $2,299 that are recognized as long-term debt. Management expects that the entire amount of the loans will be used for payroll, utilities and interest, and therefore, management anticipates that the loans will be substantially forgiven. To the extent that they are not forgiven, the Company would be required to repay that portion at an interest rate of 1% over a period of two years with first installments beginning in December 2020. On May 12, 2020, the Company entered into an amendment to its loan agreement with Wells Fargo Bank which, among other things: · Suspends principal payments under the loan agreement until October 2020. · Suspends measurement of the debt yield for purposes of determining if a cash trap has occurred under the loan agreement until February 1, 2021. · Suspends payments to the monthly furniture, fixtures, and equipment (“FF&E”) reserve under the loan agreement until November 2020. · Permits the withdrawal of $650 from the FF&E reserve under the loan agreement between May 2020 and September 2020 to pay operating expenses of the borrowers thereunder. As of June 30, 2020, $300 of the FF&E had been used for this purpose. · Provides for the allocation of 50% of the excess cash flow of the borrowers thereunder to the FF&E reserve starting in January 2021 and continuing until the FF&E reserve is replenished with $923 . · Suspends the ability of the borrowers thereunder to make dividends and other distributions until the FF&E reserve is replenished. On May 13, 2020, the Company entered into the Seventh Amendment to its credit facility with KeyBank which, among other things · I ncreases the commitments under the credit facility from $102,000 to $136,080 and provides for an additional advance in order to refinance the New Term Loan related to the Aloft hotel located in downtown Atlanta, Georgia. At the closing of the amendment, the Company borrowed $34,080 under the credit facility to repay the New Term Loan and the hotel was added to the collateral pool of hot els securing the credit facility. · I ncreases the floor to LIBOR for purposes of calculating the applicable interest rate under the credit facility from 0.25% to 0.50% . On May 13, 2020, the Company entered into an amendment to its loan agreement with Great Western Bank which, among other things, provides for the following modifications to the debt service coverage ratio covenant for the Leawood, Kansas Aloft collateral: · R educes the pre-distribution covenant from 1.35x to 1.00x for March 31, 2021 and June 30, 2021; · R educes the post-distribution covenant from 1.05x to 1.00x for March 31, 2021 and June 30, 2021; and · P rovides for the use of annualized results for purposes of measuring the covenants through March 31, 2021. Subsequent to quarter end, the Company further amended its loan agreement with Great Western Bank as discussed in Subsequent Events (see Note 16). Long-term debt related to wholly owned properties , including debt related to hotel properties held for sale, consisted of the following loans payable at June 30, 2020 and December 31, 2019 : Lender Balance at June 30, 2020 Interest rate at June 30, 2020 Maturity Amortization provision Properties encumbered at June 30, 2020 Balance at December 31, 2019 Fixed rate debt Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18 $ 8,547 4.54% 08/2024 25 years 1 $ 8,639 Great Western Bank (1) 13,199 4.33% 12/2021 (5) 25 years 1 13,290 Great Western Bank (1) 915 4.33% 12/2021 (5) 7 years - 971 Paycheck Protection Program (8) 2,299 1.00% 05/2022 (8) - - Total fixed rate debt 24,960 22,900 Variable rate debt Wells Fargo 25,463 2.56% (2) 11/2022 (6) 30 years 3 25,612 KeyBank credit facility (3) 129,945 3.75% (4) 4/2021 (7) Interest only 10 86,845 Total variable rate debt 155,408 15 112,457 Total long-term debt $ 180,368 $ 135,357 Less: Deferred financing costs (1,291) (1,356) Total long-term debt, net of deferred financing costs $ 179,077 $ 134,001 (1) Both loans are collateralized by Aloft Leawood. (2) Variable rate of 30-day LIBOR plus 2.39% , effectively fixed at 4.44% after giving effect to interest rate swap (see Note 8). (3) Prior to March 30, 2020, the $150,000 credit facility included an accordion feature that would allow the credit facility to be increased to $400,000 with additional lender commitments. Available borrowing capacity under the credit facility was based on a borrowing base formula for the pool of hotel properties securing the facility. The commitment fee on the unused facility was 0.20% . With Sixth and Seventh Amendment s to the credit facility, as discussed above, modified this availability to set the size of the facility at $136,080 with no ability to reborrow under the facility in the future without lender approval. (4) Prior to March 30, 2020, borrowings under the facility accrued interest based on a leverage-based pricing grid, at the Company’s option, at either LIBOR plus a spread ranging from 2.25% to 3.00% (depending on leverage) or a base rate plus a spread ranging from 1.25% to 2.00% (depending on leverage). On March 30, 2020, these terms were modified with the Sixth Amendment to the credit facility, as discussed above, to increase the interest rate to LIBOR (with a floor of 0.25% ) plus 3.25% or a base rate plus 2.25% , with further increases to interest rate spreads of 0.25% at six month intervals. On May 13, 2020, with the Seventh Amendment to the credit facility, as discussed above, the LIBOR floor was increased to 0.50% . The 30-day LIBOR for $30,000 notional capped at 3.35% after giving effect to market rate cap (see Note 8). (5) Term may be extended for additional two years subject to interest rate adjustments. (6) Two one -year extension options subject to the satisfaction of certain conditions. (7) With the signing of the Sixth Amendment to the credit facility as discussed above, two extension options ( six months and five months) are available subject to the satisfaction of certain conditions. (8) The PPP loans are made up of three separate loans received in April 2020. Monthly payments totaling $121 are scheduled to begin December 2020 if the loan or a portion of it is not forgiven. Aggregate annual principal payments on debt for the remainder of 2020 and thereafter are as follows: Total Remainder of 2020 $ 610 2021 145,861 2022 25,844 2023 214 2024 7,839 Thereafter - Total $ 180,368 Financial Covenants We are required to satisfy various financial covenants within our debt agreements, including the following financial covenants within our credit facility with KeyBank: · Debt Yield: The ratio of adjusted net operating income for the borrowing base properties to indebtedness outstanding under the credit facility cannot be less than 10% . The covenant is first tested on September 30, 2020 and for purposes of calculating compliance with the covenant, annualized results are used until June 30, 2021 when the calculation is based on the most recently ended four fiscal quarters. · Consolidated Leverage Ratio: The ratio of consolidated total indebtedness to consolidated total asset value cannot exceed 60% . · Fixed Charge Coverage Ratio: The ratio of adjusted consolidated EBITDA to consolidated fixed charges cannot be less than (a) 1.25 to 1 as of the end of the fiscal quarter ending September 30, 2020 and (b) 1.50 to 1 as of the end of the fiscal quarter ending December 31, 2020 and each fiscal quarter thereafter. For purposes of calculating compliance with the covenant, annualized results are used until June 30, 2021 when the calculation is based on the most recently ended four fiscal quarters. · Borrowing Base Leverage Ratio: The ratio of indebtedness outstanding under the credit facility to borrowing base asset value (based on updated appraisals required by the lenders) cannot exceed 65% . The covenant is first tested on June 30, 2021. Certain of the terms used in the foregoing descriptions of the financial covenants within our credit facility have the meanings given to them in the credit facility, and certain of the financial covenants are subject to pro forma adjustments for acquisitions and sales of hotel properties and for specific capital events. As a result of the actual and anticipated impact of the COVID-19 virus on the hotel industry generally, the Company has received waivers from Great Western Bank with respect to compliance with its quarterly debt service coverage ratios (consolidated and for the Leawood Aloft collateral) for Marc h 31, 2020 and June 30, 2020. The Company and certain of its lenders have also modified various financial covenants in response to COVID-19 for June 30, 2020, September 30, 2020, December 31, 2020 , March 31, 2021, and June 30, 2021 ( by suspending measurements, providing for lower covenant s, a nd/or using of annualized results). If we fail to pay our indebtedness when due, fail to comply with covenants or otherwise default on our loans, unless waived, we could incur higher interest rates during the period of such loan defaults, be required to immediately pay our indebtedness, and ultimately lose our hotels through lender foreclosure if we are unable to obtain alternative sources of financing with acceptable terms. Our credit facility contains cross-default provisions which would allow the lenders under our credit facility to declare a default and accelerate our indebtedness to them if we default on our other loans and such default would permit that lender to accelerate our indebtedness under any such loan. As of June 30, 2020 , we are not in default of any of our loan s. |
Convertible Debt at Fair Value
Convertible Debt at Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Convertible Debt at Fair Value [Abstract] | |
Convertible Debt at Fair Value | NOTE 7. CONVERTIBLE DEBT AT FAIR VALUE As part of an Exchange A greement entered into on March 16, 2016 with Real Estate Strate gies, L.P. (“RES”, which also includes affiliated entities) , the Company issued to RES a Convertible Promissory Note (the “Note”), bearing interest at 6.25% per annum, in the principal amount of $1,012 . The Note is convertible directly into 97,269 shares of common stock at any time at the option of RES or automatically when the Series E Preferred Stock is required to be converted or is redeemed in whole (see Note 10). The Note is not convertible to the extent that a conversion would cause RES, together with its affiliates, to beneficially own more than 49% of the voting stock of the Company at the time of the conversion. Any conversion reduce s the principal amount of the Note proportionally. The Company has made an irrev ocable election to record this convertible d ebt in its entirety at fair value utilizing the fair value option available under U.S. GAAP in order to more accurately reflect the economic value of this Note. As such, gains and losses on the Note are included in net gain on derivatives and convertible debt within net earnings each reporting period. Gains (losses) related to this Note were recognized totaling $8 and ($24) duri ng the three months ended June 30 , 20 20 and 2019 , respectively , and $48 and ( $72 ) during the six months ended June 30, 2020 and 2019, respectively. The fair value of the Note is determined using a trinomial lattice -based model, which is a generally accepted computational model typically used for pricing options. The fair value of the Note on the date of issuance was determined to be equal to its principal amount. Interest expense related to this Note is recorded separately from other changes in its fair value within interest expense each period . The following table represent s the difference between the fair value and the unpaid principal balance of the Note as of June 30, 2020 : Fair value as of June 30, 2020 Unpaid principal balance as of June 30, 2020 Fair value carrying amount over/(under) unpaid principal 6.25% Convertible Debt $ 1,032 $ 1,012 $ 20 |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements and Derivative Instruments [Abstract] | |
Fair Value Measurements and Derivative Instruments | NOTE 8. FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS Our determination of fair value measurements is based on the assumptions that market participants would use in pricing the asset or liability. At June 30, 2020 , the Compan y’s convertible debt (see Note 7 ) and certain derivative instruments were the only financial instruments measured in the financial statements at fair value on a recurring basis. Nonrecurring fair value measurements were utilized in the determination of the fair value of acquired property in 2020 (see Note 3), and in the valuation of the stock-based compensation grants (see Note 12) . No impairments or recoveries of impairment were recognized during the three or six months ended June 30, 2020 or 2019. Derivative Instruments C urrently, the Company uses derivatives, such as interest rate swaps and caps, to manage its interest rate risk. The fair value of interest rate positions is determined using the standard market methodology of netting discounted expected future cash receipts and payments. Variable interest rates used in the calculation of projected receipts and payments on the positions are based on expectations of future interest rates derived from observable market interest rate curves and volatilities. Derivatives expose the Company to credit risk in the event of non-performance by the counterparties under the terms of the agreements. The Company believes it minimizes this credit risk by transacting with major creditworthy financial institutions. These interest rate positions at June 30, 2020 and December 31, 2019 are as follows: Associated debt Type Terms Effective Date Maturity Date Notional amount at June 30, 2020 Notional amount at December 31, 2019 Wells Fargo Swap Swaps 30-day LIBOR for fixed rate of 2.053% 11/2017 11/2022 $ 25,463 (1) $ 25,612 (1) Credit facility Cap Caps 30-day LIBOR at 3.35% 4/1/2019 10/2020 $ 30,000 $ 30,000 (1) Notional amount amortizes consistently with the principal amortization of the associated loan. Additionally, included in the Series E Preferred Stock issued on March 1, 2017 is a redemption right that allows the Company to redeem up to a total of 490,250 shares of Series E Preferred Stock for specific percentages of its liquidation preference (see Note 10). This option requires bifurcation and as such is treated as a separate derivative instrument. All derivatives recognized by the Company are reported as derivative assets or liabilities on the consolidated balance sheet s and are adjusted to their fair value at each reporting date. All gains and losses on derivative instruments are included in net gain on derivatives and convertible debt and with the exception of realized gains and losses related to the interest rate instruments, which are included in interest expense on the consolidated statements of operations. Net gains (losses) of $11 and ( $432 ) for t he three months ended June 30, 2020 and 2019, respectively, and ( $788 ) and ( $621 ) for the six months ended June 30, 2020 and 2019, respectively, were recognized related to derivative instruments. Recurring Fair Value Measurements The following tables provide the fair value of the Company’s financial assets and ( liabilities ) carried at fair value and measured on a recurring basis: Fair value at June 30, 2020 Level 1 Level 2 Level 3 Interest rate derivatives $ (1,132) $ - $ (1,132) $ - Series E Preferred embedded redemption option - - - - Convertible debt (1,032) - - (1,032) Total $ (2,164) $ - $ (1,132) $ (1,032) Fair value at December 31, 2019 Level 1 Level 2 Level 3 Interest rate derivatives $ (366) $ - $ (366) $ - Series E Preferred embedded redemption option 22 - - 22 Convertible debt (1,080) - - (1,080) Total $ (1,424) $ - $ (366) $ (1,058) There were no transfers between levels during the three or six months ended June 30, 2020 or 2019 . The following table presents a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that use significant unobservable inputs (Level 3) and the related gains and losses recorded in the consolidated statements of operations during the period s : Three months ended June 30, 2020 2019 Series E Preferred embedded redemption option Convertible debt Total Series E Preferred embedded redemption option Convertible debt Total Fair value, beginning of period $ - $ (1,040) $ (1,040) $ 356 $ (1,048) $ (692) Net gains (losses) recognized in earnings - 8 8 42 (24) 18 Fair value, end of period $ - $ (1,032) $ (1,032) $ 398 $ (1,072) $ (674) Total unrealized gains (losses) during the period included in earnings related to instruments held at end of period $ - $ 8 $ 8 $ 42 $ (24) $ 18 Six months ended June 30, 2020 2019 Series E Preferred embedded redemption option Convertible debt Total Series E Preferred embedded redemption option Convertible debt Total Fair value, beginning of period $ 22 $ (1,080) $ (1,058) $ 289 $ (1,000) $ (711) Net gains (losses) recognized in earnings (22) 48 26 109 (72) 37 Fair value, end of period $ - $ (1,032) $ (1,032) $ 398 $ (1,072) $ (674) Total unrealized gains (losses) during the period included in earnings related to instruments held at end of period $ (22) $ 48 $ 26 $ 109 $ (72) $ 37 Fair Value of Long-Term Debt The Company estimates the fair value of its fixed rate debt by discounting the future cash flows of each instrument at estimated market rates or credit spreads consistent with the maturity of debt obligati ons with similar credit risks . Credit spreads take into consideration general market conditions and maturity. The inputs utilized in estimating the fair value of debt are classified in Level 2 of the fair value hierarchy. Both t he carrying value and estimated fair value of the Company’s long-term debt are presented net of deferred financing costs in the table below: Carrying value as of Estimated fair value as of June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Total $ 179,077 $ 134,001 $ 179,732 $ 134,288 |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2020 | |
Common Stock and Preferred Stock [Abstract] | |
Common Stock | NOTE 9. COMMON STOCK The Company’s common stock is duly authorized, fully paid, and non-assessable. |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jun. 30, 2020 | |
Common Stock and Preferred Stock [Abstract] | |
Preferred Stock | NOTE 10. PREFERRED STOCK The Company has 925,000 shares outstanding of Series E Preferred Stock. The Series E Preferred Stock ranks senior to the Company’s common stock and any other preferred stock issuances and receives preferential cumulative cash dividends at a rate of 6.25% per annum , payable quarterly of the $10.00 face value per share. If the Company fails to pay a dividend then during the period that dividends are not paid, the dividend rate increases to 9.50% per annum. Dividends on the Series E Preferr ed Stock accrue whether or not the Company has earnings, whether or not there are funds legally available for the payment of such dividends, whether or not such dividends are declared, and whether or not such dividen ds are prohibited by agreement. Under the Sixth Amendment to the credit facility, no cash dividends can be paid to common or preferred shareholders. As of June 30, 2020, there are $434 of accrued but unpaid dividends related to the Series E Preferred Stock that will be due to Series E Preferred Stock holders should the Agreement and Plan of Merger not close in accordance with its current terms. Each share of Series E Preferred Stock is convertible, at the option of the holder, at any time on or after February 28, 2019, into a number of shares of common stock determined by dividing the conversion price of $13.845 into an amount equal to the $10.00 face value per share plus accrued and unpaid dividends, if any. Upon liquidation, each share of Series E Preferred Stock is entitled to $10.00 per share and accrued and unpaid dividends. The conversion price is subject to anti-dilution adjustments upon the occurrence of stock splits and stock dividends. Following a specific equity offering or offerings, from time to time a number of shares of Series E Preferred Stock automatically converts into common stock if the common stock trades at 120% of the conversion price for 60 trading days, and the number of shares converted will be determined by certain trading volumes measures. The Company has rights to redeem up to 490,250 shares of the Series E Preferred Stock at prices from 110% to 130% of its liquidation value. The holders have put rights commencing March 16, 2021 to put the Series E Preferred Stock to the Company at 130% of its liquidation preference, which the Company can satisfy with cash or common stock. The Series E Preferred Stock votes as a class on matters generally affecting the Series E Preferred Stock, and as long as 434,750 shares of Series E Preferred Stock ( 47% of the originally issued shares of Series E Preferred Stock) remain outstanding, then 75% approval of the Series E Preferred Stock will be required to approve merger, consolidation, liquidation or winding up of Condor, related party transactions exceeding $120 , payment of dividends on common stock except from funds from operations or to maintain REIT status, the grant of exemptions from Condor’s charter limitation on ownership of 9.9% of any class or series of its securities (exclusive of persons currently holding exemptions), issuance of preferred stock or commitment or agreement to do any of the foregoing. The Series E Preferred Stock was determined to have a fair value of $9,900 on the date of issuance as measured using a trinomial lattice-based model. From this value, the embedded redemption option (see Note 8), which was determined to be an asset with a fair value on the date of issuance of $150 using the same model, was bifurcated and will be accounted for at fair value at each period end. These are considered Level 3 fair value measurements. |
Noncontrolling Interest in the
Noncontrolling Interest in the Operating Partnership | 6 Months Ended |
Jun. 30, 2020 | |
Noncontrolling Interest in the Operating Partnership [Abstract] | |
Noncontrolling Interest in the Operating Partnership | NOTE 11 . NONCONTROLLING INTEREST IN THE OPERATING PARTNERSHIP Noncontrolling interest in the operating partnership represents the limited partners’ proportionate share of the equity in the operating partnership. Earnings and loss are allocated to noncontrolling interest in accordance with the weighted a verage percentage ownership of the operating partnership during the period. Our ownership interest in the operating partnership was 99.9% as of June 30, 2020 and December 31, 2019, with 219,183 common units owned by limited partners were outstanding at both dates . The total redemption value for the common units was $17 and $47 at June 30, 2020 and December 31, 2019 , respectively. Each limited partner of the operating partnership may, subject to cer tain limitations, require that the operating partnership redeem all or a portion of his or her common units at any time after a specified period following the date the units were acquired, by delivering a redempt ion notice to the operating partnership . When a limited partner tenders common units for redemption, the Company can, at its sole discretion, choose to purchase the units for either (1) a number of shares of Company common stock at a rate of one shar e of common stock for each 52 common units redeemed or (2) cash in an amount equal to the market value of the number of shares of Company common stock the limited partner would have received if the Company chose to purchase the units for common stock. No common units were redeemed during the three and six months ended June 30, 2020 or during the three months ended June 30, 2019. During the six months ended June 30, 2019, 259,685 common units were redeemed for cash totaling $42 . |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 12. STOCK-BASED COMPENSATION The Company currently has in place the Condor 2016 Stock Plan, which was approved by the Company’s shareholders at the annual shareholders meeting on June 15, 2016. The 2016 Stock Plan authorizes the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, deferred stock units, and other forms of stock-based compensation. The maximum number of shares of the Company’s common stock that may be issued under the 2016 Stock Plan is 761,538 following an amendment to the plan to increase the number of available shares by 300,000 that was approved by shareholders on May 17, 2018 at the annual meeting of shareholders. As of June 30, 2020, there were 499,020 common shares available for issuance under the 2016 Stock Plan. Equity-based compensation is measured at the fair value of the award on the date of grant and recognized as an expense on a straight-line basi s over the requisite service period. Stock -based compensation awards that contain a performance condition are reviewed at least quarterly to assess the achievement of the performance condition. Compensation expense will be adjusted when a change in the assessment of achievement of the specific performance condition level is determined to be probable. The determination of fair value of these awards is subjective and involves significant estimates and assumptions including expected volatility of our stock, expected dividend yield, expected term, and assumptions of whether these awards will achieve performance thresholds. We believe that the assumptions and estimates utilized are appropriate based on the information available to management at the point of measurement. Compensation cost is recognized as additional paid-in capital for awards of the Company’s common stock . The Company has elected to account for forfeitures of stock-based compensation as they occur. Service Condition Share Awards From time to time, the Company awards restricted shares of common stock to employees, officers, and members of the Board of Directors under the 2016 Stock Plan. These shares generally vest ratably over five years for employees and officers and three years for members of the Board of Directors based on continued service or employment. Dividends paid on these restricted shares during the vesting period are not forfeited in the event that the shares fail to vest. The following table presents a summary of the service condition unvested share activity for the six months ended June 30, 2020 and 2019: For the six months ended June 30, 2020 2019 Shares Weighted-average grant date fair value Shares Weighted-average grant date fair value Unvested at December 31 46,682 $ 10.16 76,500 $ 10.48 Granted 2,432 $ 7.58 19,659 $ 8.29 Vested (10,028) $ 10.18 (40,821) $ 9.83 Forfeited - $ - (1,407) $ 9.83 Unvested at June 30 39,086 $ 9.99 53,931 $ 10.21 The fair value of the service co ndition unvested share awards was determined based on the closing price of the Company’s common stock on the grant date. Market Based Share Awards Pursuant to an amendment of an employment agreement o n June 28, 2017, an executive officer may earn shares of common stock if certain market share prices of common stock are attained. Any such shares, if earned, will be issued under the 2016 Stock Plan or another shareholder approved plan. The executive officer will earn and be issued 36,692 common shares each time stock market price targets of $11.00 to $18.00 (in one dollar increments) per common share are first achieved prior to March 31, 2022 based on the weighted-average common stock price for 60 consecutive trading days. Additionally, the shares vest to the extent of the value received per share of common stock in connection with a change in control, with the payout in such case to be prorated for the portion of the value above a stock market price target but below the next stock market price target. The $11.00 tranche of this award vested on November 22, 2019. The compensation cost related to awards that are contingent upon achieving a market based criteria is measured at the fair value of the award on the date of gran t using the Monte Carlo simulation, including consideration of the market criteria, and amortized on a straight line basis over the derived performance period which is also estimated using this model. The Monte Carlo simulation method is a generally accepted statistical method used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of future expected stock prices of the Company and its peer group and minimize standard error. The total grant date fair value of this market based share award, including additional value assessed at the time of subsequent amendment of the award, was $1,380 . Performance Based Share Awards Pursuant to an amendment of an employment agreement on June 28, 2017, an executive officer may earn shares of common stock if certain operating results of the Company are obtained . Any such shares, if earned, will be issued under the 2016 Stock Plan or another shareholder approved plan . For each of the Company’s fiscal years 2017 through 2021 , if the Company achieves between 85% and 101% of budgeted Funds from Operations (“FFO”) as approved by the Board of Directors, the executive shall earn and be issued between 11,741 and 19,569 shares of common stock, determined on a straight-line basis based on the percentage of budgeted FFO achieved. In addition, for any fiscal year in which the Company achieves in excess of 101% of budgeted FFO, an additional 391 shares of common stock will be earned for each two percent actual FFO exceeds 101% of budgeted FFO, up to a total of 3,910 additional shares of common stock per year. The fair value of the performance based share awards is based on the closing price of the Company’s common stock on the grant date, discounted for estimated common stock dividends to be declared prior to the shares being issued. The grant date occurs on an annual basis when budgeted FFO is app roved by the Board of Directors. During the three and six months ended June 30, 2020, as well as the three months ended June 30, 2019, there were no shares issued related to performance based share awards. During the six months ended June 30, 2019 , 13,778 shares with a grant date fair value totaling $122 were awarded to the executive based on 2018 FFO. Simultaneously, 2,550 fully vested shares were issued to the executive with a fair value of $22 as a discretionary grant. Director Fully Vested Share Compensation Independent directors serving a s members of the Investment Committee of the Board of Directors receive their monthly Investment Committee fees in the form of shares of the Company’s common stock. Certain independent directors also elect to receive a portion of their director fees in the form of shares of the Company’s common stock. A total of 6,904 and 3,693 shares during the three months ended June 30, 2020 and 2019 , respectively , and 10,066 and 8,102 shares during the six months ended June 30, 2020 and 2019, respectively, were issued to independent directors under the 2016 Stock Plan with respect to these fees. Stock-Based Compensation Expense The expense recognized in the consolidated financial statements for stock-based comp ensation related to employees and directors for the three months ended June 30, 2020 and 2019 was $82 and $424 , respectively, and for the six months ended June 30, 2020 and 2019 was $166 and $760 , respectively, all of which is included in general and administrative expense. Total unrecognized compensation cost related to all awards at June 30, 2020 was $436 , which is expected to be recognized over a weighted-average remaining service period of 2.2 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 13. INCOME TAXES During the three months ended June 30 , 20 20 and 201 9 , income tax benefit ( expense ) totaling $61 and ($461) , respectively, was recognized primarily related to income (loss) earned by the TRS. During the six months ended June 30, 2020 and 2019, income tax benefit (expense) totaled $367 and ( $647 ). Management believes the combi ned federal and state income tax rate for the TRS will be approximately 24% . After consideration of limitations related to a change in control as defined under Code Section 382, the TRS’s net operating loss carryforward at June 30, 2020 as determined for federal income tax purposes was $4,990 . The availability of the loss carryforwards will expire from 2027 through 2034 , with an indefinite carryforward for losses arising after December 31, 2017. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company considers projected reversals of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. As a result of this analysis, the Company believed that a full valuation allowance against the net deferred tax asset position was necessary at June 30, 2020, leading to a valuation allowance of $633 being recorded during the second quarter of 2020. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings per Share [Abstract] | |
Earnings per Share | NOTE 14 . EARNINGS PER SHARE The two-class method is utilized to compute earnings per common share (“EPS”) as our unvested restricted stock awards with non-forfeitable dividends are considered participating securities. Under the two-class method, losses are allocated only to those securities that have a contractual obligation to share in the losses of the Company. Our unvested restricted stock is not obligated to absorb Company losses and accordingly is not allocated losses. The following is a reconciliation of basic and dilu ted EPS : Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Numerator: Basic Net loss attributable to common shareholders $ (6,340) $ (1,408) $ (9,509) $ (1,537) Less: Allocation to participating securities - (11) - (28) Net loss attributable to common shareholders, net of amount allocated to participating securities $ (6,340) $ (1,419) $ (9,509) $ (1,565) Numerator: Diluted Net loss attributable to common shareholders, net of amount allocated to participating securities $ (6,340) $ (1,419) $ (9,509) $ (1,565) Denominator Weighted average number of common shares - Basic and Diluted 11,961,783 11,847,868 11,956,598 11,832,856 Earnings (Loss) per Share Basic Earnings (Loss) per Share $ (0.53) $ (0.12) $ (0.80) $ (0.13) Diluted Earnings (Loss) per Share $ (0.53) $ (0.12) $ (0.80) $ (0.13) The following table summarizes the weighted average number of potentially dilutive securities that have been excluded from the denominator for the purpose of computing diluted EPS as they are antidilutive: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Unvested restricted stock 38,991 66,432 42,130 74,300 Series E Preferred Stock 668,111 668,111 668,111 668,111 Convertible debt 97,269 97,269 97,269 97,269 Operating partnership common units (1) 4,215 58,105 4,215 59,926 Total potentially dilutive securities excluded from the denominator 808,586 889,917 811,725 899,606 (1) Common units of the operating partnership have been omitted from the denominator for the purpose of computing diluted EPS since the effect of including these amounts in the numerator and denominator would have no impact on calculated EPS. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 15 . COMMITMENTS AND CONTINGENCIES Management Agreements Our TRS engages eligible independent contractors as property managers for each of our hotels in accordance with the requirements for qualification as a REIT. The hotel management agreements provide that the management companies have control of all operational aspects of the hotels, including employee-related matters. The management companies must generally maintain each hotel under their management in good repair and condition and perform routine maintenance, repairs, and minor alterations. Additionally, the management companies must operate the hotels in accordance with the national franchise agreements that cover the hotels, which includes, as applicable, using franchisor sales an d reservation systems and abiding by the franchisors’ marketing standards. The management agreements generally require the TRS to fund debt service, working capital needs, and capital expenditures and to fund the management companies ’ third-party operating expenses , except those expenses not related to the operation of the hotels. The TRS also is responsible for obtaining and maintaining certain insurance policies with respect to the hotels. Each of the management companies employed by the TRS at June 30, 2020 receives a base monthly management fee of 3.0% to 3.5% of hotel revenue, with incentives for performance, which increase such fee to a maximum of 5.0% of hotel revenue. Base management fees totaled $144 and $472 , respectively, for the three months ended June 30, 2020 and 2019, and $541 and $946 for the six months ended June 30, 2020 and 2019, respectively, all of which was included as hotel and property operations expense. Incentive management fees totaled $0 and $ 33 , respectively, for the three months ended June 30 , 2020 and 2019, and $0 and $77 for the six months ended June 30, 2020 and 2019, respectively. The management agreements generally have initial terms of one to three years and renew for additional terms of one year unless either party to the agreement gives the other party written notice of termination at least 90 days before the end of a term. The Company may terminate a management agreement, subject to cure rights, if certain performance metrics tied to both individual hotel and total managed portfolio performance are not met. The Company may also terminate a management agreement with respect to a h otel at any time without reason, either with or without payment of a termination fee (depending on the agreement) . The management agreements terminate with respect to a hotel upon sale of the hotel, subject to certain notice requirements. Franchise Agreements As of June 30, 2020 , all of our properties operate under franchise licenses from national hotel companies. Under our franchise agreements, we are required to pay franchise fees generally between 3.3% and 5.5% of room revenue, plus additional fees for marketing, central reservation systems, and other franchisor programs and services that amount to between 2.5% and 6.0% of room revenue. The franchise agreements typically have 10 to 25 year terms although certain agreements may be terminated by either party on certain anniversary dates specified in the agreements. Further, each agreement provides for early termination fees in the event the agreement is terminated before the stated term. Franchise fee expense totaled $338 and $1, 246 for the three months ended June 30, 2020 and 2019, respectively, and $1,320 and $2,473 for the six months ended June 30, 2020 and 2019, respectively, all of which was included as hotel and property operations expense. The franchisor of two of our hotels advised us in 2019 that both of the hotels have dropped below the required level for guest satisfaction surveys, and that if the hotels do not achieve compliance, it reserves the right to elect to terminate the relevant franchise agreement. The Company is actively addressing the matter relating to the surveys and has plans in place which it believes will resolve these issues. Leases The Company has no land lease agreements in place related to properties owned at June 30, 2020 . The Company entered into three new office lease agreements in 2016, replacing all existing office lease agreements . Each of these office leases expired in 2019 with space currently being rented month to month . Office lease expense totaled $5 and $39 in the three months ended June 30 , 20 20 and 2019 , respectively, and $18 and $78 in the six months ended June 30, 2020, respectively, and is included in general and administrative expense. The Company also has in place operating leases for miscellaneous equipment at its hotel properties. The maturity of the lease liabilities for the Company’s operating leases is as follows: Maturity of lease liabilities Year ended December 31, Remainder of 2020 $ 11 2021 21 2022 20 2023 4 2024 4 Thereafter 24 Total lease payments $ 84 Less: Imputed interest (13) Present value of lease liabilities $ 71 Litigation Various claims and legal proceedings arise in the ordinary course of business and may be pending against the Company and its properties. We are not currently involved in any material litigation, nor, to our knowledge, is any material litigation threatened against us. The Company has insurance to cover potential material losses and we believe it is not reasonably possible that such matters will have a material impact on our financial condition or results of operations. On August 20, 2019, a putative class action complaint was filed against the Company and each of the Company directors, operating partnership, NHT Parent, NHT Merger Sub and NHT Merger Op, in the United States District Court for the District of Delaware under the caption Graham v. Condor Hospitality Trust, Inc., et al., Civil Action No. 1:19-cv-01552. The case was voluntarily dismissed by plaintiffs on January 28, 2020. A second putative class action complaint was filed on August 23, 2019 against the Company and each of the Company directors, the Operating Partnership, Parent, Merger Sub and Merger OP in the United States District Court for the District of Delaware under the caption Sabatini v. Condor Hospitality Trust, Inc., et al., Civil Action No. 1:19-cv-01564. These complaints asserted claims, purportedly brought on behalf of a class of shareholders, under Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 14a-9, and alleged that the preliminary proxy statement filed by the Company with the Securities and Exchange Commission (“SEC”) on Schedule 14A on August 9, 2019 (the “Preliminary Proxy Statement”) contained materially incomplete and misleading disclosures. Each of the complaints sought, among other things, injunctive relief enjoining defendants from taking steps to consummate the proposed transactions and damages, along with fees and costs. The case was voluntarily dismissed by plaintiffs on January 28, 2020. On August 26, 2019, a putative class action was filed against the Company and each of the Company’s directors in the United States District Court for the Southern District of New York under the caption Raul v. Condor Hospitality Trust, Inc., et al., Civil Action No. 1:19-cv-07968. The complaint asserted claims, purportedly brought on behalf of a class of shareholders, under Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 14a-9 and alleged that the Preliminary Proxy Statement contained materially incomplete and misleading disclosures. The complaint sought, among other things, injunctive relief enjoining defendants from taking steps to consummate the proposed transaction and damages, along with fees and costs. The case was voluntarily dismissed by plaintiffs on November 19, 2019. Pursuant to a Confidential Memorandum of Understanding dated September 16, 2019 between the plaintiffs in the above three actions and the Company, if the parties do not resolve any claim for fees and expenses related to the dismissed actions, the plaintiff may assert claims for fees, if at all, in the United States District Court of the District of Delaware. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16 . SUBSEQUENT EVENTS On July 20 , 2020, the Company entered into an agreement with Great Western Bank to defer the monthly principal and interest payments due under that loan on July 1, 2020, August 1, 2020, and September 1, 2020 until the loan’s maturity date in December 2021 . |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2020 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Description of Business | Description of Business Condor Hospitality Trust, Inc. (“C ondor”), a Maryland corporation, is a self-administered real estate investment trust (“REIT”) for federal income tax purposes that specializes in the investment and ownership of high -quality select-service, limited- service, extended stay, and comp act full service hotels. As of June 30 , 2020 , the Company owned 15 hotels in eight states . References to the “Company”, “we,” “our,” and “us” herein refer to Condor Hospitality Trust, Inc., including, as the context requires, its direct and indirect subsidiaries. The Company , thro ugh its wholly owned subsidiary Condor H ospitality REIT Trust, owns a controlling interest in Condor Hospitality Limi ted Partnership (the “operating partnership”), for which we serve as general partner. The operating partnership , including its various subsidiaries , holds substantially all of the Company’s assets (with the exception of the furniture and equipment of all properties held by TRS Leasing, Inc.) and conducts all of its operations. At June 30, 2020 , the Company owned 99.9% of the common operating units (“ common units”) of the operating partnership with the remaining common units owned by other limited partners. In order for the income from our hotel property investments to constitute “rents from real properties” for purposes of the gross income tests required by the Internal Revenue Service (“IRS”) for REIT qualification, the income we earn cannot be derived from the operation of any of our hotels. Therefore, the operating partnership and its subsidiaries lease our hotel properties to the Company’s wholly owned taxable REIT subsidiary, TRS Leasing, Inc., and its wholly owned subsidiaries (the “TRS”). The TRS in turn engages third-party eligible independent contractors to manage the hotels. The operating partnership, the TRS, and their respective subsidiaries are consolidated into the Company’s financial statements. Historically, as a result of the geographic areas in which we operate, the operations of our hotels have been seasonal in nature. Generally, occupancy rates, revenue, and operating income have been greater in the second and third quarters of the calendar year than in the first and fourth quarters, with the exception of our hotels located in Florida, which experience peak demand in the first and fourth quarters annually. |
Agreement and Plan of Merger | Agreement and Plan of Merger On July 19, 2019, the Company, the operating partnership (the Company and operating partnership, the “Company Parties”), NHT Operating Partnership, LLC (“NHT Parent”), NHT REIT Merger Sub, LLC (“NHT Merger Sub”) and NHT Operating Partnership II, LLC (“NHT Merger OP,” and together with NHT Parent and NHT Merger Sub, the “NHT Parent Parties”), entered into an Agreement and Plan of Merger (as amended from time to time, the “Merger Agreement”). Closing of the acquisition did not occur on March 23, 2020, the contemplated closing date of the acquisition, and has not occurred as of the time of this filing. The Company Parties and the NHT Parties are in discussions concerning potential amendments to restructure the transaction, which will be disclosed if and when such amendments are agreed. There can be no assurance with respect to the outcome of such discussions, and the Company continues reviewing its options and reserves all rights and remedies under the Merger Agreement. The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Merger OP will merge with and into the operating partnership (the “Partnership Merger”), and, Merger Sub will merge with and into the Company (the “Company Merger” and, together with the Partnership Merger, the “Mergers”). Upon completion of the Partnership Merger, Merger OP will survive and the separate existence of the operating partnership will cease. Upon completion of the Company Merger, the Company will survive and the separate existence of Merger Sub will cease. The Mergers and the other transactions contemplated by the Merger Agreement were unanimously approved by the Company’s Board of Directors (the “Company Board” ) , and subsequently approved by the holders of the Company’s common stock (the “Company common stock”) and 6.25% Series E Cumulative Convertible Preferred Stock (the “Series E Preferred Stock”) at a special meeting of shareholders held on September 23, 2019. Pursuant to the terms and conditions in the Merger Agreement, if the Company Merger is consummated, each share of the Company common stock (other than treasury shares and shares held by the NHT Parent Parties, which will be cancelled and retired and will cease to exist with no consideration being delivered in exchange therefor), will be converted into the right to receive $11.10 per share in cash, and each share of Series E Preferred Stock will be converted into the right to receive $10.00 in cash, each without interest and less any applicable withholding taxes. If the Partnership Merger consummated, each common unit of partnership interest in the operating partnership (excluding operating partnership common units held by the general partner of the operating partnership) will be converted into the right to receive $0.21346 in cash, without interest and less any applicable withholding taxes. Pursuant to the terms and conditions of the Merger Agreement, each of the outstanding awards granted pursuant to the Company’s equity incentive plans will automatically become fully vested and all restrictions thereon will lapse, and thereafter, all Company common stock represented thereby will be considered outstanding for all purposes under the Merger Agreement and will only have the right to receive an amount equal to $11.10 in cash, without interest and less any applicable withholding taxes. Pursuant to the terms of the Merger Agreement, the Company exercised its right to acquire the remaining 20% equity interest of the Atlanta JV (see Note 3) that it did not own. The Merger Agreement contains customary representations, warranties and covenants, including, among others, covenants by the Company to in all material respects carry on its business in the ordinary course of business consistent with past practice, subject to certain exceptions, during the period between the execution of the Merger Agreement and the consummation of the Mergers. The obligations of the parties to consummate the Mergers are not subject to any financing condition or the receipt of any financing by Parent, Merger Sub or Merger OP. Upon a termination of the Merger Agreement, under certain circumstances, the Company will be required to pay a termination fee to Parent of $9,540 . In certain other circumstances, including termination by the Company for the NHT Parties’ failure to close or for a material breach by the NHT Parties, NHT Parent will be required to pay the Company a termination fee of $11,925 upon termination of the Merger Agreement. During the term of the Merger Agreement, without the consent of the NHT Parties, the Company may not pay cash dividends to holders of the Company common stock or the Series E Preferred Stock. The holders of the Series E Preferred Stock have agreed to waive accrual of any unpaid dividends between signing and closing. The Company received nonrefundable cash of $500 from NHT Parties in connection with the ongoing discussions concerning potential adjustments to restructure the transaction, which, in the event a transaction occurs, will be credited against the acquisition purchase price. |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company, as well as the accounts of the operating partnership and its subsidiaries and our wholly owned TRS and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. We evaluate each of our investments and contractual relationships to determine whether they meet the guidelines for consolidation. Entities are consolidated if the determination is made that we are the primary beneficiary in a variable interest entity (“VIE ”) or we maintain control of the asset through our voting interest or other rights in the operation of the entity. The Company has c oncluded that our operating partnership meets the criteria to be considered a VIE of which the Company is the primary beneficiary and, accordingly, the Company consolidates the operating partnership . The Company’s sole significant asset is its investment in the operating partnership , and consequently, substantially all of the Company’s assets and liabilities represent thos e assets and liabilities of the operating partnership . All of the Company ’s debt is an obligation of the operating partnership . The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the general instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited consolidated financial statements include all adjustments considered necessary for a fair presentation of the consolidated financial statements for the periods presented. Interim results are not necessarily indicative of full-year performance for t he year ending December 31, 2020 or any future period. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . |
Estimates, Risks and Uncertainties | Estimates, Risks, and Uncertainties The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as revenue and expenses recognized during the reporting period. Actual results could differ from those estimates. Because the state of the economy and the real estate market can significantly impact hotel operating performance and the estimated fair value of our assets, it is possible that the estimates and assumptions that have been utilized in the preparation of the consolidated financial statements could change. The novel coronavirus (COVID-19) has reduced travel significantly and adversely affected the h ospitality industry in general. The actual and threatened spread of COVID-19 globally or in the regions in which we operate, or future widespread outbreak of infectious or contagious disease, can continue to reduce national and inte rnational travel in general. The extent to which the hospitality industry, and thus our business will be affected by COVID-19 will largely depend on future developments which we cannot accurately predict, and the impact on customer travel, including the duration of the outbreak, the continued spread and treatment of COVID-19 , and new information and developments that may emerge concernin g the severity of COVID-19 and the ac tions to contain COVID-19 or treat its impact, among others. To the extent that travel activity in the U.S. is and will be materially and adver sely affected by COVID-19 , business and financial results of the hospitality industry, and thus our business and financial results, co uld be impacted. Since late March 2020 , similar to the conditions affecting the hospitality industry as a whole, we experienced occupancy declines at many of our properties which will require us to adjust our business operations, and will have an impact on our operating income and may potentially impact future compliance with our debt covenants. As a result of the above factors, the Company is taking actions at the corporate and hotel level, including, but not limited to: · Amending its secured credit facility with KeyBank National Association and the other lenders party thereto (the “credit facility”) on March 30, 2020 to provide extension options out to March 1, 2022 , waivers / modifications of certain covenants, and establishment of interest reserves for near term debt service payments as necessary (see further discussion of the Sixth Amendment to the credit facility in Note 6) . · Asset management working with hotel management companies to reduce all hotels operating expenses including, but not limited to, closing off multiple floors, staffing reductions and furloughs, utility consumption reductions, purchasing reductions and eliminations, contract services reductions and eliminations, food services closures, exercise facilities closures, and certain reduction and elimination of certain marketing expenditures. · Seeking potential alternative revenue sources through health care providers, government agencies, universities and airlines. · Obtaining Paycheck Protection Program (“PPP”) loans authorized under the recently con gressionally approved Coronavirus Aid, Relief, and Economic Security (“CARES”) Act totaling $2,299 (see Note 6). · Seeking potential recovery of certain losses through insurance coverage. · Pursuing corporate cost reductions, including staffing reductions resulting in an approximately 20% decrease in non-consulting expenses compared to historical operations. · With its credit facility amended, representing approximately 72% of Condor’s debt , Condor has approached its remaining lenders for potential modifications to provide interest reserves or acc ruals during the second and third quarters of 2020. Two lenders representing approximately 22% of Condor’s debt have agreed (see Note 6). · Capital improvement projects have been suspended except for emergency circumstances and will remain on hold for immediate future, with the potential for the suspension to continue through 2020. · The Company determined that it wa s advisable and the best business practice to cause a temporary closure of two of its hotels, the Solomons Hilton Garden Inn on April 20, 2020 and the Leawood Aloft on April 9, 2020 . These hotels were both reopened on July 1, 2020 and no other hotel closures have been deemed necessary at this time. While we cannot assure you that that the assumptions used to estimate our future liquidity will be correct, t he Company believes it can generate the liquidity required to operate through the crisis through a combination of the co ntinued operation of our portfolio with significant cost reduction measures in place and, if necessary, additional debt and equity financings. However, there can be no assurance that the Company will be able to obtain such financing on acceptable terms or at all. Additionally, although the Company was in compliance with all its debt covenants as of June 30 , 2020, management has determined that the Company may violate certain financial covenants under its debt agreements within the next twelve months if covenant waivers or amendments are not obtained. If the Company were to violate one or more financial covenants, the lenders could declare the Company in default and could accelerate the amounts due under a portion or all of the Company’s outstanding debt. The Company believes it will receive such waivers before any covenants are violated. However, any waivers would be granted at the sole discretion of the lenders, and there can be no assurance that the Company will be able to obtain such waivers. Based on a combination of these factors and the guidanc e in U.S. GAAP that requires that , in making this determination for the one year period following the date of the financial statements , the Company cannot consider future fundraising activities or the likelihood of obtaining covenant waivers, all of which are outside of the Company's sole control, the Company has determined that there is substantial doubt about the Company’s ability to continue as a going concern for the one year period after the date the financial statements are issued. Management believes it will obtain required waivers from its lenders before any covenants are violated given that conditions are not exclusive to the Company and based on the actions of lenders thus far in this crisis, including waivers already granted to the Company. However, there can be no assurance that the Company will be able to obtain waivers on acceptable terms or at all. The consolidated financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from t he outcome of this uncertainty. |
Investment In Hotel Properties | Investment in Hotel Properties At the time of acquisition, the Company allocates the purchase price of assets to asset classes based on the fair value of the acquired real estate, furniture, fixtures, and equipment, and intangible assets, if any, and the fair value of liabilities assumed, including debt. Acquisition date fair values are determined based on replacement costs, appraised values, and estimated fair values using methods similar to those used by independent appraisers including discounted cash flows and capitalization rates. Effective January 1, 2018, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2017-01, Clarifying the Definition of a Business . As such, if substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or group of similar identifiable assets, the set is not considered a business. When we conclude that an acquisition meets this threshold, acquisition costs will be capitalized as part of our allocation of the purchase price of the acquired hotel properties. We concluded that the Company’s purchase of the remaining 20% of the joint venture that owns the Atlanta Aloft property (the “Atlanta JV”), completed in the first quarter of 2020, was the acquisition of assets and as such acquisition costs were capitalized as part of this transaction (see Note 3). The Company’s investments in hotel properties are recorded at cost and are depreciated using the straight-line method over an estimated useful life of 15 to 40 years for buildings and improvements and 3 to 12 years for furniture and equipment. Renovations and/or replacements that improve or extend the life of the hotel properties are capitalized and depreciated over their useful lives. Repairs and maintena nce are expensed as incurred. The initial fees incurred to enter into the franchise agreements are capitalized and amortized over the life of the franchise agreements using the straight-line method. Amortization expense is included in depreciation and amortization in the consolidated statements of operations. On an ongoing basis, the Company reviews the carrying value of each held for use hotel to determine if certain circumstances, known as triggering events, exist indicating impairment to the carrying value of the hotel or that depreciation periods should be modified. These triggering events include a significant change in the cash flows of or a significant adverse change in the business climate for a hotel. If facts or circumstances support the possibility of impairment, the Company will prepare an estimate of the undiscounted future cash flows, without interest charges, of the specific hotel and determine if the investment in such hotel is recoverable based on these undiscounted future cash flows. In the evaluation of impairment of its hotel properties, the Company makes many assumptions and estimates including projected cash flows both from operations and eventual disposition, expected useful life and holiday period, future required capital expenditures, and terminal capitalization rates. If the investment is not recoverable based on this analysis, an impairment charge will be taken, if necessary, to reduce the carrying value of the hotel to the hotel’s estimated fair value. |
Investment in Joint Venture | Investment in Joint Venture If it is determined that we do not have a controlling interest in a joint venture, either through our financial interest in a VIE or through our voting interest in a voting interest entity (“VOE”) and we have the ability to provide significant influence, the equity method of accounting is used. Under this method, the investment, originally recorded at cost, is adjusted to recognize our share of net earnings or losses of the affiliate as they occur, with losses limited to the extent of our investment in, advances to, and commitments to the investee. Pursuant to our Atlanta JV agreement, prior to our acquisition of the remaining 20% interest in the Atlanta JV (see Note 3), allocations of the profits and losses of our Atlanta JV were potentially allocated disproportionately to nominal ownership percentages due to specified preferred return rate thresholds. Distributions received from a joint venture are classified in the consolidated statements of cash flows using the cumulative distributions approach. Distributions are classified as cash inflows from operating activities unless cumulative distributions, including those from prior periods not designated as a return of investment, exceed cumulative recognized equity in earnings of the joint venture. Excess distributions are classified as cash inflows from investing activities as a return of investment. On an annual basis or at interim periods if events and circumstances indicate that the investment may be impaired, the Company reviews the carrying value of its investment in unconsolidated joint venture to determine if circumstances indicate impairment to the carrying value of the investment that is other than temporary. The investment is considered impaired if its estimated fair value is less than the carrying amount of the investment and that impairment is other than temporary. |
Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued Operations A hotel is considered held for sale (a) when a contract for sale is entered into, a substantial, nonrefundable deposit has been committed by the purchaser, and sale is expected to occur within one year, or (b) if management has committed to and is actively engaged in a plan to sell the property, the property is available for sale in its current condition, and it is probable the sale will be completed within one year. If a hotel is considered held for sale as of the most recent balance sheet presented or was sold prior to that balance sheet date, the hotel property and the debt it collateralizes are shown as held for sale in all periods presented. Depreciation of our hotels is discontinued at the time they are considered held for sale. Only disposals representing a strategic shift in operations that have a major effect on an entity’s operations and financial results are presented as discontinued operations. The disposition completed in 201 9 did not me e t this definition, and we anticipate that most of our hotel dispositions will not be classified as discontinued operations as most will not fit this definition. At the end of each reporting period, if the fair value of a held for sale property less costs to sell is lower than the carrying value of the hotel, the Company will record an impairment loss. Impairment losses on held for sale properties may be subsequently recovered up to the amount of the cumulative impairment losses taken while the property is held for sale should future revisions to fair value estimates be required. If active marketing ceases or the property no longer meets the criteria to be classified as held for sale, the property is reclassified to held for use and measured at the lower of its (a) carrying amount before the property was classified as held for sale, adjusted for any depreciation expense that would have been recognized had the property been continuously classified as held for use, or (b) its fair value at the date of the decision not to sell. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents includes cash and highly liquid investments with original maturities of three months or less when acquired, and are carried at costs which approximates fair value. Restricted cash consists of cash held in escrow for the replacem ent of furniture and fixtures, real estate taxes, property insurance , and debt service as required under certain loan agreements. |
Revenue Recognition | Revenue Recognition Revenue consists of amounts derived from hotel operations, including the sales of rooms, food and beverage, and other ancillary services. Room revenue is recognized over a customer's hotel stay at the daily contract rate. Revenue from food and beverage and other ancillary services is generated when a customer chooses to purchase goods or services separately from a hotel room and revenue is recognized on these distinct goods and services at the contract rate at the point in time or over the time period that goods or services are provided to the customer and the related performance obligations are fulfilled. Certain ancillary services are provided by third parties and the Company assesses whether it is the principal or agent in these arrangements. If the Company is the agent, revenue is recognized based upon the commission earned from the third party. If the Company is the principal, the Company recognizes revenue based upon the gross sales price. Accounts receivable primarily represents receivables from hotel guests who occupy hotel rooms and utilize hotel services. The Company maintains an allowance for doubtful accounts sufficient to cover estimated potential credit losses . Sales, use, occupancy, and similar taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenue in the consolidated statements of operations. Hotel operating revenues can be disaggregated into the following categories to demonstrate how economic factors affect the nature, amount, timing, and uncerta inty of revenue and cash flows: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Rooms $ 4,489 $ 15,464 $ 17,015 $ 30,615 Food and beverages 115 396 464 755 Other 207 317 559 710 Total revenue $ 4,811 $ 16,177 $ 18,038 $ 32,080 |
Income Taxes | Income Taxes The Company qualifies and intends to continue to qualify as a REIT under the applicable provisions of the Internal Revenue Code (the “Code”), as amended. In general, under such Code provisions, an entity which has made the required election and, in the taxable year, meets certain requirements and distributes to its shareholders at least 90% of its REIT taxable income, will not be subject to federal income tax to the extent of the income currently distributed to shareholders. A REIT will incur a 100% tax on the net gain derived from any sale or other disposition of property that the REIT holds primarily for sale to customers in the ordinary course of a trade or business. We do not believe any of our hotels were held primarily for sale in the ordinary course of our trade or business. However, if the IRS would successfully assert that we held such hotels primarily for sale in the ordinary course of our business, the gain from such sales could be subject to a 100% prohibited transaction tax. Taxable income from non-REIT activities managed through the TRS is subject to federal, state, and local income taxes. We account for the federal income taxes of our TRS using the asset and liability method. Under this method, deferred income taxes are recognized for temporary differences between the financial reporting bases of assets and liabilities of the TRS and their respective tax bases and for operating loss and tax credit carryforwards based on enacted tax rates expected to be in effect when such amounts are realized or settled. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on the consideration of available evidence, including tax planning strategies and projections for future taxable income over the periods in which the remaining deferred tax assets are deductible. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not (defined as a likelihood of more than 50% ) that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are utilized to determine the value of certain liabilities and equity instruments , to perform impairment assessments, to account for hotel acquisitions, in the valuation of stock-based compensation, a nd for disclosure purposes. Fair value measurements are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Directly or indirectly observable inputs other than quoted prices included in Level 1. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and model-derived valuations whose inputs are observable. Level 3: Unobservable inputs for which there is little or no market data, which require a reporting entity to develop its own assumptions. Our estimates of fair value are determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or valuation techniques may have a material effect on estimated fair value measurements. We classify assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. With the exception of fixed rate debt (see Note 8 ) and other financial instruments carried at fair value, the carrying amounts of the Company’s financial instruments approximates their fair values due to their short-term nature or variable market-based interest rates. |
Fair Value Option | Fair Value Option Under U.S. GAAP, the Company has the irrevocable option to report most financial assets and financial liabilities at fair value on an instrument by instrument basis, with changes in fair value reported in net earnings. This option was elected for the treatment of the Company’s convertible debt entered in to on March 16, 2016 (see Note 7 ). |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which superseded most existing lease guidance in U.S. GAAP. ASU 2016-02 requires, among other changes to the lease accounting guidance, lessees to recognize most leases on-balance sheet via a right of use asset and lease liability and additional qualitative and quantitative disclosures. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases , to clarify how to apply certain aspects of the new leases standard, and ASU 2018-11, Leases (Topic 842): Targeted Improvements , to give companies another option for transition and to provide lessors with a practical expedient to reduce the cost and complexity of implementing the new standard. The transition option allows companies to not apply the new leases standard in the comparative periods they present in their financial statements in the year of adoption. The Company adopted this standard on January 1, 2019. The Company elected the practical expedients allowed under the guidance and retained the original lease classification and historical accounting for initial direct costs for leases existing prior to the adoption date. The Company also elected not to restate prior periods for the impact of the adoption of the new standard. The adoption of this standard has resulted in the recognition of right-of-use assets and related liabilities to account for the Company's future obligations under the operating leases for which the Company is the lessee. See Notes 2 and 15 to the accompanying consolidated financial statements for additional disclosures related to the adoption of this standard. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Disaggregation of Operating Revenues | Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Rooms $ 4,489 $ 15,464 $ 17,015 $ 30,615 Food and beverages 115 396 464 755 Other 207 317 559 710 Total revenue $ 4,811 $ 16,177 $ 18,038 $ 32,080 |
Investment in Hotel Properties
Investment in Hotel Properties (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investment in Hotel Properties [Abstract] | |
Schedule of Investment in Hotel Properties | As of June 30, 2020 December 31, 2019 Land $ 34,929 $ 20,200 Buildings, improvements, vehicle 244,000 206,971 Furniture and equipment 24,530 21,805 Initial franchise fees 1,784 1,784 Construction-in-progress 25 100 Right of use asset 71 80 Investment in hotel properties 305,339 250,940 Less accumulated depreciation (34,339) (28,877) Investment in hotel properties, net $ 271,000 $ 222,063 |
Acquisition of Hotel Properti_2
Acquisition of Hotel Properties (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Acquisition of Hotel Properties [Abstract] | |
Schedule of Purchase Price Allocation | Cash purchase price $ 7,300 Investment in unconsolidated joint venture 3,844 Acquisition costs 122 Total investment in net assets $ 11,266 Cash $ 125 Working capital (462) Land 14,728 Buildings, improvements, and vehicle 37,020 Furniture and equipment 2,432 Debt assumed at acquisition (34,080) Land option liability (1) (8,497) Total allocation to net assets $ 11,266 (1) The purchase agreement includes a provision which permits the seller to purchase the surface parking lot north of the hotel exercisable for approximately seven years at less than market rates. |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Venture (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investment in Unconsolidated Joint Venture [Abstract] | |
Schedule of Financial Position of Unconsolidated Joint Ventures | As of December 31, 2019 Investment in hotel properties, net $ 45,547 Cash and cash equivalents 661 Accounts receivable, prepaid expenses, and other assets 279 Total Assets $ 46,487 Accounts payable, accrued expenses, and other liabilities $ 1,026 Land option liability 6,190 Long-term debt, net of deferred financing costs 33,966 Total Liabilities 41,182 Condor equity 4,244 TWC equity 1,061 Total Equity 5,305 Total Liabilities and Equity $ 46,487 |
Summary of Results of Operations of Unconsolidated Joint Ventures | For the period of January 1 to February 14, Three months ended June 30, Six months ended June 30, 2020 2019 2019 Revenue Room rentals and other hotel services $ 1,522 $ 3,184 $ 7,058 Operating Expenses Hotel and property operations 960 1,900 4,077 Depreciation and amortization 181 374 745 Total operating expenses 1,141 2,274 4,822 Operating income 381 910 2,236 Net loss on derivative - - (1) Interest expense (281) (702) (1,386) Net earnings $ 100 $ 208 $ 849 Condor allocated earnings $ 80 $ 166 $ 679 TWC allocated earnings 20 42 170 Net earnings $ 100 $ 208 $ 849 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Long-Term Debt [Abstract] | |
Summary of Long Term Debt | Lender Balance at June 30, 2020 Interest rate at June 30, 2020 Maturity Amortization provision Properties encumbered at June 30, 2020 Balance at December 31, 2019 Fixed rate debt Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18 $ 8,547 4.54% 08/2024 25 years 1 $ 8,639 Great Western Bank (1) 13,199 4.33% 12/2021 (5) 25 years 1 13,290 Great Western Bank (1) 915 4.33% 12/2021 (5) 7 years - 971 Paycheck Protection Program (8) 2,299 1.00% 05/2022 (8) - - Total fixed rate debt 24,960 22,900 Variable rate debt Wells Fargo 25,463 2.56% (2) 11/2022 (6) 30 years 3 25,612 KeyBank credit facility (3) 129,945 3.75% (4) 4/2021 (7) Interest only 10 86,845 Total variable rate debt 155,408 15 112,457 Total long-term debt $ 180,368 $ 135,357 Less: Deferred financing costs (1,291) (1,356) Total long-term debt, net of deferred financing costs $ 179,077 $ 134,001 (1) Both loans are collateralized by Aloft Leawood. (2) Variable rate of 30-day LIBOR plus 2.39% , effectively fixed at 4.44% after giving effect to interest rate swap (see Note 8). (3) Prior to March 30, 2020, the $150,000 credit facility included an accordion feature that would allow the credit facility to be increased to $400,000 with additional lender commitments. Available borrowing capacity under the credit facility was based on a borrowing base formula for the pool of hotel properties securing the facility. The commitment fee on the unused facility was 0.20% . With Sixth and Seventh Amendment s to the credit facility, as discussed above, modified this availability to set the size of the facility at $136,080 with no ability to reborrow under the facility in the future without lender approval. (4) Prior to March 30, 2020, borrowings under the facility accrued interest based on a leverage-based pricing grid, at the Company’s option, at either LIBOR plus a spread ranging from 2.25% to 3.00% (depending on leverage) or a base rate plus a spread ranging from 1.25% to 2.00% (depending on leverage). On March 30, 2020, these terms were modified with the Sixth Amendment to the credit facility, as discussed above, to increase the interest rate to LIBOR (with a floor of 0.25% ) plus 3.25% or a base rate plus 2.25% , with further increases to interest rate spreads of 0.25% at six month intervals. On May 13, 2020, with the Seventh Amendment to the credit facility, as discussed above, the LIBOR floor was increased to 0.50% . The 30-day LIBOR for $30,000 notional capped at 3.35% after giving effect to market rate cap (see Note 8). (5) Term may be extended for additional two years subject to interest rate adjustments. (6) Two one -year extension options subject to the satisfaction of certain conditions. (7) With the signing of the Sixth Amendment to the credit facility as discussed above, two extension options ( six months and five months) are available subject to the satisfaction of certain conditions. (8) The PPP loans are made up of three separate loans received in April 2020. Monthly payments totaling $121 are scheduled to begin December 2020 if the loan or a portion of it is not forgiven. |
Aggregate Annual Principal Payments on Debt | Total Remainder of 2020 $ 610 2021 145,861 2022 25,844 2023 214 2024 7,839 Thereafter - Total $ 180,368 |
Convertible Debt at Fair Value
Convertible Debt at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Convertible Debt at Fair Value [Abstract] | |
Difference Between Fair Value and Unpaid Principal Balance of Note | Fair value as of June 30, 2020 Unpaid principal balance as of June 30, 2020 Fair value carrying amount over/(under) unpaid principal 6.25% Convertible Debt $ 1,032 $ 1,012 $ 20 |
Fair Value Measurements and D_2
Fair Value Measurements and Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements and Derivative Instruments [Abstract] | |
Schedule of Interest Rate Swaps and Caps | Associated debt Type Terms Effective Date Maturity Date Notional amount at June 30, 2020 Notional amount at December 31, 2019 Wells Fargo Swap Swaps 30-day LIBOR for fixed rate of 2.053% 11/2017 11/2022 $ 25,463 (1) $ 25,612 (1) Credit facility Cap Caps 30-day LIBOR at 3.35% 4/1/2019 10/2020 $ 30,000 $ 30,000 (1) Notional amount amortizes consistently with the principal amortization of the associated loan. |
Schedule of Fair Value Assets and (Liabilities) Carried at Fair Value and Measured on Recurring Basis | Fair value at June 30, 2020 Level 1 Level 2 Level 3 Interest rate derivatives $ (1,132) $ - $ (1,132) $ - Series E Preferred embedded redemption option - - - - Convertible debt (1,032) - - (1,032) Total $ (2,164) $ - $ (1,132) $ (1,032) Fair value at December 31, 2019 Level 1 Level 2 Level 3 Interest rate derivatives $ (366) $ - $ (366) $ - Series E Preferred embedded redemption option 22 - - 22 Convertible debt (1,080) - - (1,080) Total $ (1,424) $ - $ (366) $ (1,058) |
Reconciliation of Items Measured at Fair Value on a Recurring Basis | Three months ended June 30, 2020 2019 Series E Preferred embedded redemption option Convertible debt Total Series E Preferred embedded redemption option Convertible debt Total Fair value, beginning of period $ - $ (1,040) $ (1,040) $ 356 $ (1,048) $ (692) Net gains (losses) recognized in earnings - 8 8 42 (24) 18 Fair value, end of period $ - $ (1,032) $ (1,032) $ 398 $ (1,072) $ (674) Total unrealized gains (losses) during the period included in earnings related to instruments held at end of period $ - $ 8 $ 8 $ 42 $ (24) $ 18 Six months ended June 30, 2020 2019 Series E Preferred embedded redemption option Convertible debt Total Series E Preferred embedded redemption option Convertible debt Total Fair value, beginning of period $ 22 $ (1,080) $ (1,058) $ 289 $ (1,000) $ (711) Net gains (losses) recognized in earnings (22) 48 26 109 (72) 37 Fair value, end of period $ - $ (1,032) $ (1,032) $ 398 $ (1,072) $ (674) Total unrealized gains (losses) during the period included in earnings related to instruments held at end of period $ (22) $ 48 $ 26 $ 109 $ (72) $ 37 |
Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt | Carrying value as of Estimated fair value as of June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Total $ 179,077 $ 134,001 $ 179,732 $ 134,288 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stock-Based Compensation [Abstract] | |
Summary of Service Condition Unvested Share Activity | For the six months ended June 30, 2020 2019 Shares Weighted-average grant date fair value Shares Weighted-average grant date fair value Unvested at December 31 46,682 $ 10.16 76,500 $ 10.48 Granted 2,432 $ 7.58 19,659 $ 8.29 Vested (10,028) $ 10.18 (40,821) $ 9.83 Forfeited - $ - (1,407) $ 9.83 Unvested at June 30 39,086 $ 9.99 53,931 $ 10.21 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings per Common Share | Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Numerator: Basic Net loss attributable to common shareholders $ (6,340) $ (1,408) $ (9,509) $ (1,537) Less: Allocation to participating securities - (11) - (28) Net loss attributable to common shareholders, net of amount allocated to participating securities $ (6,340) $ (1,419) $ (9,509) $ (1,565) Numerator: Diluted Net loss attributable to common shareholders, net of amount allocated to participating securities $ (6,340) $ (1,419) $ (9,509) $ (1,565) Denominator Weighted average number of common shares - Basic and Diluted 11,961,783 11,847,868 11,956,598 11,832,856 Earnings (Loss) per Share Basic Earnings (Loss) per Share $ (0.53) $ (0.12) $ (0.80) $ (0.13) Diluted Earnings (Loss) per Share $ (0.53) $ (0.12) $ (0.80) $ (0.13) |
Schedule of Potentially Dilutive Securities Excluded from Computation of Earnings per Share | Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Unvested restricted stock 38,991 66,432 42,130 74,300 Series E Preferred Stock 668,111 668,111 668,111 668,111 Convertible debt 97,269 97,269 97,269 97,269 Operating partnership common units (1) 4,215 58,105 4,215 59,926 Total potentially dilutive securities excluded from the denominator 808,586 889,917 811,725 899,606 (1) Common units of the operating partnership have been omitted from the denominator for the purpose of computing diluted EPS since the effect of including these amounts in the numerator and denominator would have no impact on calculated EPS. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies [Abstract] | |
Maturity of Operating Lease Liabilities | Maturity of lease liabilities Year ended December 31, Remainder of 2020 $ 11 2021 21 2022 20 2023 4 2024 4 Thereafter 24 Total lease payments $ 84 Less: Imputed interest (13) Present value of lease liabilities $ 71 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Thousands | Mar. 30, 2020 | Feb. 14, 2020 | Jul. 19, 2019USD ($)$ / shares | Apr. 30, 2020property | Jun. 30, 2020USD ($)propertystateitem | Dec. 31, 2019 | Mar. 31, 2020USD ($) |
Number of hotels | property | 15 | ||||||
Number of states the entity owns hotels | state | 8 | ||||||
Percentage of remaining equity interest being acquired | 20.00% | 20.00% | 20.00% | ||||
Termination fee | $ 9,540 | ||||||
CARES Act, Paycheck Protection Program | $ 2,299 | ||||||
Percentage decrease in non-consulting expenses | 20.00% | ||||||
Number of hotels temporarily closed | property | 2 | ||||||
Building And Improvements [Member] | Minimum [Member] | |||||||
Estimated useful life | 15 years | ||||||
Building And Improvements [Member] | Maximum [Member] | |||||||
Estimated useful life | 40 years | ||||||
Furniture and Equipment [Member] | Minimum [Member] | |||||||
Estimated useful life | 3 years | ||||||
Furniture and Equipment [Member] | Maximum [Member] | |||||||
Estimated useful life | 12 years | ||||||
KeyBank Credit Facility [Member] | |||||||
Extension maturity | Mar. 1, 2022 | ||||||
KeyBank Credit Facility [Member] | Lender Concentration Risk [Member] | Liabilities, Total [Member] | |||||||
Concentration risk, percentage | 72.00% | ||||||
Two Lenders [Member] | Lender Concentration Risk [Member] | Liabilities, Total [Member] | |||||||
Concentration risk, percentage | 22.00% | ||||||
Number of lenders | item | 2 | ||||||
Condor Hospitality Limited Partnership [Member] | |||||||
Ownership percentage | 99.90% | 99.90% | |||||
Series E Preferred Stock [Member] | |||||||
Preferred stock, annual dividend rate | 6.25% | 6.25% | |||||
Company Merger Consideration [Member] | |||||||
Proceeds from nonrefundable deposit | $ 500 | ||||||
Company Merger Consideration [Member] | Series E Preferred Stock [Member] | |||||||
Right value per share, amount in cash without interest | $ / shares | $ 10 | ||||||
Company Merger Consideration [Member] | Common Units [Member] | |||||||
Right value per share, amount in cash without interest | $ / shares | 0.21346 | ||||||
Common Stock [Member] | Company Merger Consideration [Member] | |||||||
Right value per share, amount in cash without interest | $ / shares | $ 11.10 | ||||||
Parent [Member] | |||||||
Termination fee | $ 11,925 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies (Disaggregation of Operating Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 4,811 | $ 16,177 | $ 18,038 | $ 32,080 |
Rooms [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,489 | 15,464 | 17,015 | 30,615 |
Food and Beverage [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 115 | 396 | 464 | 755 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 207 | $ 317 | $ 559 | $ 710 |
Investment In Hotel Propertie_2
Investment In Hotel Properties (Narrative) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Investment in Hotel Properties [Abstract] | |
Weighted average rate | 5.20% |
Weighted average remaining life | 6 years 6 months |
Right-of-use asset | $ 71 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | cdor:RealEstateInvestmentPropertyHeldForUseNet |
Lease liability | $ 71 |
Investment in Hotel Propertie_3
Investment in Hotel Properties (Schedule of Investment in Hotel Properties) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Investment in hotel properties | $ 305,339 | $ 250,940 |
Less accumulated depreciation | (34,339) | (28,877) |
Investment in hotel properties, net | 271,000 | 222,063 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Investment in hotel properties | 34,929 | 20,200 |
Building, Improvements, Vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Investment in hotel properties | 244,000 | 206,971 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Investment in hotel properties | 24,530 | 21,805 |
Initial Franchise Fees [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Investment in hotel properties | 1,784 | 1,784 |
Construction-in-Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Investment in hotel properties | 25 | 100 |
Right of use Asset [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Investment in hotel properties | $ 71 | $ 80 |
Acquisition of Hotel Properti_3
Acquisition of Hotel Properties (Narrative) (Details) - USD ($) $ in Thousands | Feb. 14, 2020 | Jul. 19, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Business Acquisition [Line Items] | ||||||
Percentage of remaining equity interest being acquired | 20.00% | 20.00% | 20.00% | |||
Revenue | $ 4,811 | $ 16,177 | $ 18,038 | $ 32,080 | ||
Operating income (loss) | (6,196) | $ (1,264) | (9,220) | $ (1,248) | ||
Wholly Owned Properties Acquired [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Revenue | 547 | 1,360 | ||||
Operating income (loss) | (574) | (861) | ||||
Atlanta Joint Venture [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash purchase price | $ 7,300 | 7,300 | ||||
Debt assumed at acquisition | $ 34,080 | $ 34,080 | $ 34,080 |
Acquisition of Hotel Properti_4
Acquisition of Hotel Properties (Schedule of Purchase Price Allocation) (Details) - Atlanta Joint Venture [Member] - USD ($) $ in Thousands | Feb. 14, 2020 | Jun. 30, 2020 |
Business Acquisition [Line Items] | ||
Cash purchase price | $ 7,300 | $ 7,300 |
Investment in unconsolidated joint venture | 3,844 | |
Acquisition costs | 122 | |
Total investment in net assets | 11,266 | |
Cash | 125 | |
Working capital | (462) | |
Land | 14,728 | |
Buildings, improvements, and vehicle | 37,020 | |
Furniture and equipment | 2,432 | |
Debt assumed at acquisition | $ (34,080) | (34,080) |
Land option liability | (8,497) | |
Total allocation to net assets | $ 11,266 |
Investment in Unconsolidated _3
Investment in Unconsolidated Joint Venture (Narrative) (Details) | May 13, 2020 | Mar. 30, 2020 | Aug. 22, 2016USD ($) | Jun. 30, 2020USD ($)entity | Mar. 31, 2020USD ($) | Mar. 29, 2020 | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)entity | Jun. 30, 2019USD ($) | Dec. 31, 2019 | Aug. 09, 2019USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Management fees incurred | $ 144,000 | $ 472,000 | $ 541,000 | $ 946,000 | |||||||
KeyBank Credit Facility [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Maturity date of debt | Apr. 1, 2021 | Apr. 30, 2021 | |||||||||
Spring Street Hotel Property II LLC [Member] | Three Wall Capital LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity interest percentage | 20.00% | 20.00% | |||||||||
Spring Street Hotel OpCo II LLC [Member] | Three Wall Capital LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity interest percentage | 20.00% | 20.00% | |||||||||
Atlanta Joint Venture [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage | 80.00% | ||||||||||
Number of companies comprised in joint venture | entity | 2 | 2 | |||||||||
Management fees incurred | $ 61,000 | 96,000 | 212,000 | ||||||||
Cash distribution received | $ 480,000 | $ 653,000 | $ 853,000 | ||||||||
Atlanta Joint Venture [Member] | Condor Hospitality Trust, Inc. [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Preferred return on capital contributions | 10.00% | ||||||||||
Buy-sell rights | 3 years | ||||||||||
Atlanta Joint Venture [Member] | Three Wall Capital LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity interest percentage | 20.00% | 20.00% | |||||||||
Preferred return on capital contributions | 10.00% | ||||||||||
Buy-sell rights | 5 years | ||||||||||
Atlanta Joint Venture [Member] | KeyBank Credit Facility [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Debt issued | $ 34,080,000 | ||||||||||
Maturity date of debt | May 8, 2020 | ||||||||||
Atlanta Joint Venture [Member] | Minimum [Member] | Condor Hospitality Trust, Inc. [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Purchase option period | 3 years | ||||||||||
Atlanta Joint Venture [Member] | Maximum [Member] | Condor Hospitality Trust, Inc. [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Purchase option period | 5 years | ||||||||||
Condor Hospitality Limited Partnership [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage | 99.90% | 99.90% | |||||||||
Condor Hospitality Limited Partnership [Member] | Spring Street Hotel Property II LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage | 80.00% | ||||||||||
TRS Leasing, Inc [Member] | Spring Street Hotel OpCo II LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage | 80.00% | ||||||||||
LIBOR [Member] | KeyBank Credit Facility [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Basis spread | 0.50% | 3.25% | |||||||||
LIBOR [Member] | Minimum [Member] | KeyBank Credit Facility [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Basis spread | 2.25% | ||||||||||
LIBOR [Member] | Maximum [Member] | KeyBank Credit Facility [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Basis spread | 3.00% | ||||||||||
LIBOR [Member] | Atlanta Joint Venture [Member] | KeyBank Credit Facility [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Basis spread | 2.25% | ||||||||||
Base Rate [Member] | KeyBank Credit Facility [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Basis spread | 2.25% | ||||||||||
Base Rate [Member] | Minimum [Member] | KeyBank Credit Facility [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Basis spread | 1.25% | ||||||||||
Base Rate [Member] | Maximum [Member] | KeyBank Credit Facility [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Basis spread | 2.00% | ||||||||||
Base Rate [Member] | Atlanta Joint Venture [Member] | KeyBank Credit Facility [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Basis spread | 1.25% | ||||||||||
Interest Rate Cap [Member] | LIBOR [Member] | KeyBank Credit Facility [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Basis spread | 3.35% | ||||||||||
Atlanta, Georgia [Member] | Aloft Hotel [Member] | Atlanta Joint Venture [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Purchase price | $ 43,550,000 | ||||||||||
Atlanta, Georgia [Member] | Aloft Hotel [Member] | Atlanta Joint Venture [Member] | Term Loan [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Debt originated at acquisition | $ 33,750,000 |
Investment in Unconsolidated _4
Investment in Unconsolidated Joint Venture (Schedule of Financial Position of Unconsolidated Joint Ventures) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Investment in Unconsolidated Joint Venture [Abstract] | |
Investment in hotel properties, net | $ 45,547 |
Cash and cash equivalents | 661 |
Accounts receivable, prepaid expenses, and other assets | 279 |
Total Assets | 46,487 |
Accounts payable, accrued expenses, and other liabilities | 1,026 |
Land option liability | 6,190 |
Long-term debt, net of deferred financing costs | 33,966 |
Total Liabilities | 41,182 |
Condor equity | 4,244 |
TWC equity | 1,061 |
Total Equity | 5,305 |
Total Liabilities and Equity | $ 46,487 |
Investment in Unconsolidated _5
Investment in Unconsolidated Joint Venture (Summary of Results of Operations of Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended |
Feb. 14, 2020 | Jun. 30, 2019 | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Room rentals and other hotel services | $ 1,522 | $ 3,184 | $ 7,058 |
Hotel and property operations | 960 | 1,900 | 4,077 |
Depreciation and amortization | 181 | 374 | 745 |
Total operating expenses | 1,141 | 2,274 | 4,822 |
Operating income | 381 | 910 | 2,236 |
Net loss on derivative | (1) | ||
Interest expense | (281) | (702) | (1,386) |
Net earnings | 100 | 208 | 849 |
Condor Hospitality Trust, Inc. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Allocated earnings (loss) | 80 | 166 | 679 |
Three Wall Capital LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Allocated earnings (loss) | $ 20 | $ 42 | $ 170 |
Disposition of Hotel Properti_2
Disposition of Hotel Properties (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020property | Jun. 30, 2019property | Jun. 30, 2020property | Jun. 30, 2019USD ($)property | Dec. 31, 2019property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of hotels | 15 | 15 | |||
Number of properties sold | 0 | 0 | 0 | 1 | |
Net gain on sale of properties | $ | $ 62 | ||||
Held For Sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of hotels | 0 | 0 | 0 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | May 13, 2020USD ($) | May 12, 2020USD ($) | Apr. 11, 2020USD ($)loan | Mar. 30, 2020USD ($)item | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 29, 2020USD ($) | Jun. 30, 2020USD ($)loanitem | Mar. 31, 2020USD ($) | Feb. 14, 2020USD ($) |
Debt Instrument [Line Items] | ||||||||||
CARES Act, Paycheck Protection Program | $ 2,299,000 | |||||||||
KeyBank Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount borrowed | $ 34,080,000 | $ 7,300,000 | ||||||||
Line of credit facility, maximum borrowing capacity | $ 136,080,000 | $ 102,000,000 | $ 150,000,000 | |||||||
Maturity date of debt | Apr. 1, 2021 | Apr. 30, 2021 | ||||||||
Number of loan extensions | item | 2 | |||||||||
Minimum debt yield ratio | 10.00% | 10.00% | ||||||||
Leverage ratio | 60.00% | |||||||||
Cash dividends or distributions allowed to common and preferred shareholders | $ 0 | |||||||||
Increase in interest rate spreads | 0.25% | |||||||||
Increase in interest rate intervals | 6 months | |||||||||
Interest reserve | $ 1,720,000 | $ 677,000 | ||||||||
Maximum unrestricted cash balance allowed to make interest payments from interest reserve | $ 1,500,000 | |||||||||
KeyBank Credit Facility [Member] | Extension 1 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extension period | 6 months | |||||||||
KeyBank Credit Facility [Member] | Extension 2 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extension period | 5 months | |||||||||
KeyBank Credit Facility [Member] | Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed charge coverage ratio | 1.50 | 1.25 | ||||||||
Great Western Bank [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date of debt | Dec. 31, 2021 | |||||||||
Interest rate | 4.33% | |||||||||
Great Western Bank [Member] | Pre-Distribution Covenant [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt service coverage ratio | 1 | 1.35 | ||||||||
Great Western Bank [Member] | Post-Distribution Covenant [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt service coverage ratio | 1 | 1.05 | ||||||||
Paycheck Protection Program [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date of debt | May 1, 2022 | |||||||||
Number of loans | loan | 3 | 3 | ||||||||
CARES Act, Paycheck Protection Program | $ 2,299,000 | |||||||||
Interest rate | 1.00% | |||||||||
Loan term | 2 years | |||||||||
Wells Fargo [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date of debt | Nov. 30, 2022 | |||||||||
Number of loan extensions | item | 2 | |||||||||
Extension period | 1 year | |||||||||
Interest rate | 4.44% | |||||||||
Principal payments suspended, date | 2020-10 | |||||||||
Debt yield measurement suspended, date | Feb. 1, 2021 | |||||||||
Monthly payments for FF&E suspended, date | 2020-11 | |||||||||
Permitted amount of withdrawal from furniture, fixtures, and equipment reserve | $ 650,000 | |||||||||
Withdrawal from furniture, fixtures, and equipment reserve | $ 300,000 | |||||||||
Percentage allocation for excess cash flow to borrower | 50.00% | |||||||||
Required furniture, fixtures, and equipment reserve amount to be replenished | $ 923,000 | |||||||||
LIBOR [Member] | KeyBank Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 0.50% | 3.25% | ||||||||
Floor rate | 0.50% | 0.25% | ||||||||
LIBOR [Member] | Wells Fargo [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 2.39% | |||||||||
Base Rate [Member] | KeyBank Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 2.25% | |||||||||
Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Leverage ratio | 60.00% | |||||||||
Maximum [Member] | KeyBank Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Leverage ratio | 65.00% | |||||||||
Maximum [Member] | LIBOR [Member] | KeyBank Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 3.00% | |||||||||
Maximum [Member] | Base Rate [Member] | KeyBank Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 2.00% |
Long-Term Debt (Summary of Long
Long-Term Debt (Summary of Long Term Debt) (Details) | May 13, 2020USD ($) | Apr. 11, 2020loan | Mar. 30, 2020USD ($)item | Mar. 29, 2020USD ($) | Jun. 30, 2020USD ($)propertyloanitem | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Total fixed rate debt | $ 24,960,000 | $ 22,900,000 | ||||
Total variable rate debt | 155,408,000 | 112,457,000 | ||||
Total long-term debt | 180,368,000 | 135,357,000 | ||||
Less: Deferred financing costs | (1,291,000) | (1,356,000) | ||||
Total long-term debt, net of deferred financing costs | $ 179,077,000 | 134,001,000 | ||||
Number of hotels | property | 15 | |||||
Encumbered Wholly Owned Properties [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of hotels | property | 15 | |||||
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total fixed rate debt | $ 8,547,000 | 8,639,000 | ||||
Fixed rate, interest rate | 4.54% | |||||
Maturity | Aug. 31, 2024 | |||||
Amortization provision | 25 years | |||||
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18 [Member] | Encumbered Wholly Owned Properties [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of hotels | property | 1 | |||||
Great Western Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total fixed rate debt | $ 13,199,000 | 13,290,000 | ||||
Fixed rate, interest rate | 4.33% | |||||
Maturity | Dec. 31, 2021 | |||||
Amortization provision | 25 years | |||||
Great Western Bank [Member] | Encumbered Wholly Owned Properties [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of hotels | property | 1 | |||||
Great Western Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total fixed rate debt | $ 915,000 | 971,000 | ||||
Fixed rate, interest rate | 4.33% | |||||
Maturity | Dec. 31, 2021 | |||||
Amortization provision | 7 years | |||||
Extension period | 2 years | |||||
Paycheck Protection Program [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total fixed rate debt | $ 2,299,000 | |||||
Fixed rate, interest rate | 1.00% | |||||
Maturity | May 1, 2022 | |||||
Monthly payment | $ 121,000 | |||||
Number of Loans | loan | 3 | 3 | ||||
Wells Fargo [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total variable rate debt | $ 25,463,000 | 25,612,000 | ||||
Fixed rate, interest rate | 4.44% | |||||
Variable rate, interest rate | 2.56% | |||||
Maturity | Nov. 30, 2022 | |||||
Amortization provision | 30 years | |||||
Number of loan extensions | item | 2 | |||||
Extension period | 1 year | |||||
Wells Fargo [Member] | Encumbered Wholly Owned Properties [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of hotels | property | 3 | |||||
Wells Fargo [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread | 2.39% | |||||
Reference rate | 30-day LIBOR | |||||
KeyBank Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total variable rate debt | $ 129,945,000 | 86,845,000 | ||||
Variable rate, interest rate | 3.75% | |||||
Maturity | Apr. 1, 2021 | Apr. 30, 2021 | ||||
Line of credit facility, maximum borrowing capacity | $ 136,080,000 | $ 102,000,000 | $ 150,000,000 | |||
Line of credit facility, accordion feature | $ 400,000,000 | |||||
Commitment fee | 0.20% | |||||
Increase in interest rate spreads | 0.25% | |||||
Increase in interest rate intervals | 6 months | |||||
Number of loan extensions | item | 2 | |||||
KeyBank Credit Facility [Member] | Extension 1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Extension period | 6 months | |||||
KeyBank Credit Facility [Member] | Extension 2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Extension period | 5 months | |||||
KeyBank Credit Facility [Member] | Encumbered Wholly Owned Properties [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of hotels | property | 10 | |||||
KeyBank Credit Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread | 0.50% | 3.25% | ||||
Floor rate | 0.50% | 0.25% | ||||
KeyBank Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread | 2.25% | |||||
KeyBank Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread | 3.00% | |||||
KeyBank Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread | 2.25% | |||||
KeyBank Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread | 1.25% | |||||
KeyBank Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread | 2.00% | |||||
Interest Rate Cap [Member] | KeyBank Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount | $ 30,000,000 | $ 30,000,000 | ||||
Interest Rate Cap [Member] | KeyBank Credit Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread | 3.35% | |||||
Reference rate | 30-day LIBOR |
Long-Term Debt (Aggregate Annua
Long-Term Debt (Aggregate Annual Principal Payments on Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Long-Term Debt [Abstract] | ||
Remainder of 2020 | $ 610 | |
2021 | 145,861 | |
2022 | 25,844 | |
2023 | 214 | |
2024 | 7,839 | |
Thereafter | ||
Total long-term debt | $ 180,368 | $ 135,357 |
Convertible Debt at Fair Valu_2
Convertible Debt at Fair Value (Narrative) (Details) - USD ($) | Mar. 16, 2016 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Debt Instrument [Line Items] | |||||
Gain (loss) on derivatives and convertible debt | $ 19,000 | $ (456,000) | $ (740,000) | $ (693,000) | |
6.25% Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 6.25% | 6.25% | 6.25% | ||
Principal amount | $ 1,012,000 | ||||
Number of shares of common stock debt can convert into | 97,269 | ||||
Maximum ownership percentage of voting stock upon debt conversion | 49.00% | ||||
Gain (loss) on derivatives and convertible debt | $ 8,000 | $ (24,000) | $ 48,000 | $ (72,000) |
Convertible Debt at Fair Valu_3
Convertible Debt at Fair Value (Difference Between Fair Value and Unpaid Principal Balance of Note) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Mar. 16, 2016 |
Debt Instrument [Line Items] | |||
Fair value | $ 1,032 | $ 1,080 | |
6.25% Convertible Debt [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.25% | 6.25% | |
Fair value | $ 1,032 | ||
Unpaid principal balance | 1,012 | ||
Fair value carrying amount over/(under) unpaid principal | $ 20 |
Fair Value Measurements and D_3
Fair Value Measurements and Derivative Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 01, 2017 | |
Fair Value Measurements And Derivative Instruments [Line Items] | |||||||
Fair value, assets, transfers Level 1 to Level 2 | $ 0 | $ 0 | $ 0 | $ 0 | |||
Fair value, assets, transfers Level 2 to Level 1 | $ 0 | $ 0 | |||||
Fair value, liabilities, transfers Level 1 to Level 2 | 0 | 0 | |||||
Fair value, liabilities, transfers Level 2 to Level 3 | 0 | 0 | |||||
Fair value, assets and liabilities, transfers into/(out of) Level 3 | $ 0 | $ 0 | |||||
Interest Rate Derivatives [Member] | |||||||
Fair Value Measurements And Derivative Instruments [Line Items] | |||||||
Net gain (loss) on interest rate instruments | $ 11,000 | $ (432,000) | $ (788,000) | $ (621,000) | |||
Redemption Rights [Member] | Series E Preferred Stock [Member] | |||||||
Fair Value Measurements And Derivative Instruments [Line Items] | |||||||
Number of shares called by redemption | 490,250 |
Fair Value Measurements and D_4
Fair Value Measurements and Derivative Instruments (Schedule of Interest Rate Swaps and Caps) (Details) - USD ($) $ in Thousands | May 13, 2020 | Mar. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Wells Fargo [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Effective date | Nov. 1, 2017 | |||
Maturity date | Nov. 30, 2022 | |||
Notional amount | $ 25,463 | $ 25,612 | ||
KeyBank Credit Facility [Member] | Interest Rate Cap [Member] | ||||
Derivative [Line Items] | ||||
Effective date | Apr. 1, 2019 | |||
Maturity date | Oct. 1, 2020 | |||
Notional amount | $ 30,000 | $ 30,000 | ||
LIBOR [Member] | Wells Fargo [Member] | ||||
Derivative [Line Items] | ||||
Reference rate | 30-day LIBOR | |||
Basis spread | 2.39% | |||
LIBOR [Member] | KeyBank Credit Facility [Member] | ||||
Derivative [Line Items] | ||||
Basis spread | 0.50% | 3.25% | ||
LIBOR [Member] | KeyBank Credit Facility [Member] | Interest Rate Cap [Member] | ||||
Derivative [Line Items] | ||||
Reference rate | 30-day LIBOR | |||
Basis spread | 3.35% | |||
Federal Funds Effective Swap Rate [Member] | Wells Fargo [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Basis spread | 2.053% |
Fair Value Measurements and D_5
Fair Value Measurements and Derivative Instruments (Schedule of Fair Value Assets and (Liabilities) Carried at Fair Value and Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Interest rate derivatives | $ (1,132) | $ (366) |
Series E Preferred embedded redemption option | 22 | |
Convertible debt | (1,032) | (1,080) |
Total | (2,164) | (1,424) |
Level 2 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Interest rate derivatives | (1,132) | (366) |
Total | (1,132) | (366) |
Level 3 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Series E Preferred embedded redemption option | 22 | |
Convertible debt | (1,032) | (1,080) |
Total | $ (1,032) | $ (1,058) |
Fair Value Measurements and D_6
Fair Value Measurements and Derivative Instruments (Reconciliation of Items Measured at Fair Value on a Recurring Basis) (Details) - Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value, beginning of period | $ (1,040) | $ (692) | $ (1,058) | $ (711) |
Net gains (losses) recognized in earnings | 8 | 18 | 26 | 37 |
Fair value, end of period | (1,032) | (674) | (1,032) | (674) |
Total unrealized gains (losses) during the period included in earnings related to instruments held at end of period | 8 | 18 | 26 | 37 |
Series E Preferred Embedded Redemption Option [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value, beginning of period | 356 | 22 | 289 | |
Net gains (losses) recognized in earnings | 42 | (22) | 109 | |
Fair value, end of period | 398 | 398 | ||
Total unrealized gains (losses) during the period included in earnings related to instruments held at end of period | 42 | (22) | 109 | |
Convertible Debt [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value, beginning of period | (1,080) | (1,000) | ||
Net gains (losses) recognized in earnings | 48 | (72) | ||
Fair value, end of period | (1,032) | (1,072) | (1,032) | (1,072) |
Total unrealized gains (losses) during the period included in earnings related to instruments held at end of period | 48 | (72) | ||
Convertible Debt [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value, beginning of period | (1,040) | (1,048) | ||
Net gains (losses) recognized in earnings | 8 | (24) | ||
Fair value, end of period | (1,032) | (1,072) | $ (1,032) | $ (1,072) |
Total unrealized gains (losses) during the period included in earnings related to instruments held at end of period | $ 8 | $ (24) |
Fair Value Measurements and D_7
Fair Value Measurements and Derivative Instruments (Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | $ 179,077 | $ 134,001 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | $ 179,732 | $ 134,288 |
Preferred Stock (Narrative) (De
Preferred Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Mar. 01, 2017 | |
Class of Stock [Line Items] | |||
Dividends and distributions payable | $ 434 | $ 145 | |
Series E Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares outstanding | 925,000 | 925,000 | |
Preferred stock, annual dividend rate | 6.25% | 6.25% | |
Preferred stock, dividend rate increase resulting from failure to pay dividend, with equity offerings | 9.50% | ||
Preferred stock, fixed annual amount of dividend per share | $ 10 | ||
Redeemable preferred stock, liquidation preference per share | $ 10 | ||
Preferred stock, percentage of conversion price at which preferred stock automatically converts to common stock | 120.00% | ||
Preferred stock, trading days for preferred stock automatically converting to common stock | 60 days | ||
Number of shares redeemable by company when market price is within defined range | 490,250 | ||
Preferred stock, percentage of liquidation value at which holders can sell | 130.00% | ||
Threshold of originally issued preferred stock shares outstanding required for approval of certain transactions by preferred shareholders | 434,750 | ||
Threshold of originally issued preferred stock shares outstanding required for approval of certain transactions by preferred shareholders, percent | 47.00% | ||
Percentage of approval required for certain transactions by preferred shareholders | 75.00% | ||
Threshold of amount of related party transactions for approval by preferred shareholders | $ 120 | ||
Threshold of maximum percentage of shares grantable before shareholder approval required | 9.90% | ||
Preferred stock, value | $ 10,050 | $ 10,050 | $ 9,900 |
Series E Preferred Stock [Member] | On Or After February 28,2019 [Member] | |||
Class of Stock [Line Items] | |||
Conversion price per share | $ 13.845 | ||
Minimum [Member] | Series E Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, percentage of liquidation value at which company can redeem preferred stock | 110.00% | ||
Maximum [Member] | Series E Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, percentage of liquidation value at which company can redeem preferred stock | 130.00% | ||
Level 3 [Member] | Redemption Rights [Member] | Series E Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Assets fair value | $ 150 |
Noncontrolling Interest in th_2
Noncontrolling Interest in the Operating Partnership (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Redeemable Noncontrolling Interest [Line Items] | ||||
Redemption value | $ 17 | $ 17 | $ 47 | |
Condor Hospitality Limited Partnership [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Ownership percentage of operating partnership | 99.90% | 99.90% | ||
Common units redemption to common stock | 0.019 | |||
Common Units [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Redemption value | $ 42 | |||
Common units redeemed | 0 | 0 | 259,685 | |
Noncontrolling Interest [Member] | Condor Hospitality Limited Partnership [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Common units outstanding | 219,183 | 219,183 | 219,183 | |
Redemption value | $ 17 | $ 17 | $ 47 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 22, 2019 | May 17, 2018 | Jun. 28, 2017 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share awards granted | 2,432 | 19,659 | |||||
Vested in period | 10,028 | 40,821 | |||||
Unrecognized compensation cost | $ 436 | $ 436 | |||||
Unrecognized compensation cost recognition period | 2 years 2 months 12 days | ||||||
Market price target | $ 11 | ||||||
Stock-based compensation | $ 82 | $ 424 | $ 166 | $ 760 | |||
2016 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized | 761,538 | 761,538 | |||||
Number of additional shares authorized | 300,000 | ||||||
Shares available for issuance | 499,020 | 499,020 | |||||
Shares issued to independent directors | 6,904 | 3,693 | 10,066 | 8,102 | |||
Employees and Officers [Member] | 2016 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Members of the Board of Directors [Member] | 2016 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Market Based Share Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | $ 1,380 | $ 1,380 | |||||
Market Based Share Awards [Member] | 2016 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration date | Mar. 31, 2022 | ||||||
Market based share award, potential shares earned and issued | 36,692 | ||||||
Market price target increments | $ 1 | ||||||
Trading period used to determine award price | 60 days | ||||||
Market Based Share Awards [Member] | Minimum [Member] | 2016 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Market price target | $ 11 | ||||||
Market Based Share Awards [Member] | Maximum [Member] | 2016 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Market price target | $ 18 | ||||||
Performance Based Share Awards [Member] | 2016 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration date | Dec. 31, 2021 | ||||||
Additional shares earned per percentage if actual FFO exceeds budgeted FFO | 391 | ||||||
Percentage increment required to earn additional shares | 2.00% | ||||||
Performance Based Share Awards [Member] | Minimum [Member] | 2016 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Required percentage of budgeted FFO to achieve performance award | 85.00% | ||||||
Potential shares earned and issued if operating results are obtained | 11,741 | ||||||
Performance Based Share Awards [Member] | Maximum [Member] | 2016 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Required percentage of budgeted FFO to achieve performance award | 101.00% | ||||||
Potential shares earned and issued if operating results are obtained | 19,569 | ||||||
Additional shares earned per percentage if actual FFO exceeds budgeted FFO | 3,910 | ||||||
Performance Based Share Awards [Member] | Executive Officer [Member] | 2016 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share awards granted | 0 | 0 | 0 | 13,778 | |||
Grant date fair value | $ 122 | ||||||
Vested in period | 2,550 | ||||||
Vested in period, fair value | $ 22 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Service Condition Unvested Share Activity) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Stock-Based Compensation [Abstract] | ||
Shares: Unvested at December 31 | 46,682 | 76,500 |
Shares: Granted | 2,432 | 19,659 |
Shares: Vested | (10,028) | (40,821) |
Shares: Forfeited | (1,407) | |
Shares: Unvested at June 30 | 39,086 | 53,931 |
Weighted-average grant date fair value: Unvested at December 31 | $ 10.16 | $ 10.48 |
Weighted-average grant date fair value: Granted | 7.58 | 8.29 |
Weighted-average grant date fair value: Vested | 10.18 | 9.83 |
Weighted-average grant date fair value: Forfeited | 9.83 | |
Weighted-average grant date fair value: Unvested at June 30 | $ 9.99 | $ 10.21 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Line Items] | ||||
Income tax benefit (expense) | $ 61 | $ (461) | $ 367 | $ (647) |
Valuation allowance | 633 | 633 | ||
TRS Leasing, Inc [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Income tax benefit (expense) | 61 | $ (461) | $ 367 | $ (647) |
Combined federal and state effective tax rate | 24.00% | |||
Net operating loss carryforward for federal income tax purposes | $ 4,990 | $ 4,990 | ||
TRS Leasing, Inc [Member] | Minimum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Loss carryforwards expiration period | Jan. 1, 2027 | |||
TRS Leasing, Inc [Member] | Maximum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Loss carryforwards expiration period | Dec. 31, 2034 |
Earnings per Share (Reconciliat
Earnings per Share (Reconciliation of Basic and Diluted Earnings per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: Basic | ||||
Net loss attributable to common shareholders | $ (6,340) | $ (1,408) | $ (9,509) | $ (1,537) |
Less: Allocation to participating securities | (11) | (28) | ||
Net loss attributable to common shareholders, net of amount allocated to participating securities | (6,340) | (1,419) | (9,509) | (1,565) |
Numerator: Diluted | ||||
Net loss attributable to common shareholders, net of amount allocated to participating securities | $ (6,340) | $ (1,419) | $ (9,509) | $ (1,565) |
Denominator | ||||
Weighted average number of common shares - Basic and Diluted | 11,961,783 | 11,847,868 | 11,956,598 | 11,832,856 |
Earnings (Loss) per Share | ||||
Basic Earnings (Loss) per Share | $ (0.53) | $ (0.12) | $ (0.80) | $ (0.13) |
Diluted Earnings (Loss) per Share | $ (0.53) | $ (0.12) | $ (0.80) | $ (0.13) |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Potentially Dilutive Securities Excluded from Computation of Earnings per Share) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities excluded from the denominator | 808,586 | 889,917 | 811,725 | 899,606 |
Unvested Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities excluded from the denominator | 38,991 | 66,432 | 42,130 | 74,300 |
Series E Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities excluded from the denominator | 668,111 | 668,111 | 668,111 | 668,111 |
Convertible Debt [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities excluded from the denominator | 97,269 | 97,269 | 97,269 | 97,269 |
Condor Hospitality Limited Partnership [Member] | Partnership Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities excluded from the denominator | 4,215 | 58,105 | 4,215 | 59,926 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)agreement | Jun. 30, 2019USD ($) | Dec. 31, 2019property | Dec. 31, 2016agreement | |
Loss Contingencies [Line Items] | ||||||
Management fees incurred | $ 144 | $ 472 | $ 541 | $ 946 | ||
Incentive management fee | 0 | 33 | $ 0 | 77 | ||
Management agreement renewal additional term | 1 year | |||||
Management agreement written notice of termination period | 90 days | |||||
Cost of goods and services sold | 5,089 | 9,755 | $ 14,904 | 19,548 | ||
Office Building [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of new leases entered into during period | agreement | 3 | |||||
Lease expense | 5 | 39 | $ 18 | 78 | ||
Minimum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Management fee percent | 3.00% | |||||
Management agreement term | 1 year | |||||
Franchise fee percent | 3.30% | |||||
Other franchiser programs and service fee percent | 2.50% | |||||
Franchise agreement term | 10 years | |||||
Maximum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Management fee percent | 3.50% | |||||
Incentive fee percent | 5.00% | |||||
Management agreement term | 3 years | |||||
Franchise fee percent | 5.50% | |||||
Other franchiser programs and service fee percent | 6.00% | |||||
Franchise agreement term | 25 years | |||||
Land [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of land lease agreements related to properties owned | agreement | 0 | |||||
Franchise [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Cost of goods and services sold | $ 338 | $ 1,246 | $ 1,320 | $ 2,473 | ||
Number of hotels that dropped below required level of guest satisfaction | property | 2 |
Commitments and Contingencies_3
Commitments and Contingencies (Maturity of Operating Lease Liabilities) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Commitments and Contingencies [Abstract] | |
Remainder of 2020 | $ 11 |
2021 | 21 |
2022 | 20 |
2023 | 4 |
2024 | 4 |
Thereafter | 24 |
Total lease payments | 84 |
Less: Imputed interest | (13) |
Present value of lease liabilities | $ 71 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Great Western Bank [Member] | |
Subsequent Event [Line Items] | |
Maturity | Dec. 31, 2021 |