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Relationship with Managers (Tables) | 12 Months Ended
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Dec. 31, 2011
Relationships with Managers [Abstract] |
Schedule Sets Forth the Agreement Date, Initial Term and Number of Renewal Terms Under the Respective Hotel Management Agreements for Each of Our Owned Hotels | The following table sets forth the agreement date, initial term and number of renewal terms under the respective hotel management agreements for each of our owned hotels at December 31, 2011. Generally, the term of the hotel management agreements renew automatically for a negotiated number of consecutive periods upon the expiration of the initial term unless the property manager gives notice to us of its election not to renew the hotel management agreement.
Property |  | Manager |  | Date of Agreement |  | Initial Term |  | Number of Renewal Terms
Austin Renaissance (1) |  | Marriott |  | 6/2005 |  | 20 years |  | Three ten-year periods
Atlanta Alpharetta Marriott |  | Marriott |  | 9/2000 |  | 30 years |  | Two ten-year periods
Atlanta Westin North at Perimeter |  | Davidson Hotels & Resorts |  | 6/2009 |  | 10 years |  | None
Bethesda Marriott Suites |  | Marriott |  | 12/2004 |  | 21 years |  | Two ten-year periods
Boston Westin Waterfront |  | Starwood |  | 5/2004 |  | 20 years |  | Four ten-year periods
Chicago Marriott Downtown |  | Marriott |  | 3/2006 |  | 32 years |  | Two ten-year periods
Conrad Chicago |  | Hilton |  | 11/2005 |  | 10 years |  | Two five-year periods
Courtyard Denver Downtown |  | Sage Hospitality |  | 7/2011 |  | 5 years |  | One five-year period
Courtyard Manhattan/Fifth Avenue |  | Marriott |  | 12/2004 |  | 30 years |  | None
Courtyard Manhattan/Midtown East |  | Marriott |  | 11/2004 |  | 30 years |  | Two ten-year periods
Frenchman's Reef & Morning Star Marriott Beach Resort |  | Marriott |  | 9/2000 |  | 30 years |  | Two ten-year periods
Hilton Garden Inn Chelsea/New York City |  | Alliance Hospitality Management |  | 9/2010 |  | 10 years |  | None
Hilton Minneapolis |  | Hilton |  | 3/2006 |  | 20 ¾ years |  | None
JW Marriott Denver at Cherry Creek |  | Sage Hospitality |  | 5/2011 |  | 5 years |  | One five-year period
Los Angeles Airport Marriott |  | Marriott |  | 9/2000 |  | 40 years |  | Two ten-year periods
Marriott Griffin Gate Resort (1) |  | Marriott |  | 12/2004 |  | 20 years |  | One ten-year period
Oak Brook Hills Marriott Resort |  | Marriott |  | 7/2005 |  | 30 years |  | None
Orlando Airport Marriott |  | Marriott |  | 11/2005 |  | 30 years |  | None
Radisson Lexington Hotel New York |  | Highgate Hotels |  | 6/2011 |  | 10 years |  | One five-year period
Renaissance Charleston |  | Marriott |  | 1/2000 |  | 21 years |  | Two five-year periods
Renaissance Worthington |  | Marriott |  | 9/2000 |  | 30 years |  | Two ten-year periods
Salt Lake City Marriott Downtown |  | Marriott |  | 12/2001 |  | 30 years |  | Three fifteen-year periods
The Lodge at Sonoma, a Renaissance Resort & Spa |  | Marriott |  | 10/2004 |  | 20 years |  | One ten-year period
Torrance Marriott South Bay |  | Marriott |  | 1/2005 |  | 40 years |  | None
Waverly Renaissance (1) |  | Marriott |  | 6/2005 |  | 20 years |  | Three ten-year periods
Vail Marriott Mountain Resort & Spa |  | Vail Resorts |  | 6/2005 |  | 15½ years |  | None
________________
(1) | The hotel is under contract to be sold and is classified as "held for sale" and reported in discontinued operations. The sale is expected to close during the first quarter of 2012.
Schedule of Base Management Fee, Incentive Management Fee and FF&E Reserve Contribution | The following table sets forth the base management fee, incentive management fee and FF&E reserve contribution, generally due and payable each fiscal year, for each of our properties:
Property |  | Base Management Fee(1) |  | Incentive Management Fee(2) |  | FF&E Reserve Contribution(1) |
Austin Renaissance (3) |  | 3 | % |  | 20 | % | (4) | 4 | % | (5)
Atlanta Alpharetta Marriott |  | 3 | % |  | 25 | % | (6) | 5 | % |
Atlanta Westin North at Perimeter |  | 2.5 | % |  | 10 | % | (7) | 4 | % |
Bethesda Marriott Suites |  | 3 | % |  | 50 | % | (8) | 5 | % | (9)
Boston Westin Waterfront |  | 2.5 | % |  | 20 | % | (10) | 4 | % |
Chicago Marriott Downtown |  | 3 | % |  | 20 | % | (11) | 5 | % |
Conrad Chicago |  | 3 | % | (12) | 15 | % | (13) | 4 | % |
Courtyard Denver Downtown |  | 2 | % | (14) | 10 | % | (15) | 4 | % |
Courtyard Manhattan/Fifth Avenue |  | 5.5 | % | (16) | 25 | % | (17) | 4 | % |
Courtyard Manhattan/Midtown East |  | 5 | % |  | 25 | % | (18) | 4 | % |
Frenchman's Reef & Morning Star Marriott Beach Resort |  | 3 | % |  | 15 | % | (19) | 5.5 | % |
Hilton Garden Inn Chelsea/New York City |  | 2.5 | % | (20) | 10 | % | (21) | None |  |
Hilton Minneapolis |  | 3 | % |  | 15 | % | (22) | 4 | % |
JW Marriott Denver at Cherry Creek |  | 2.25 | % | (23) | 10 | % | (24) | 4 | % |
Los Angeles Airport Marriott |  | 3 | % |  | 25 | % | (25) | 5 | % |
Marriott Griffin Gate Resort (3) |  | 3 | % |  | 20 | % | (26) | 5 | % |
Oak Brook Hills Marriott Resort |  | 3 | % |  | 30 | % | (27) | 5.5 | % |
Orlando Airport Marriott |  | 3 | % |  | 25 | % | (28) | 5 | % |
Radisson Lexington Hotel New York |  | 2.5 | % | (29) | 20 | % | (30) | None |  |
Renaissance Charleston |  | 3.5 | % |  | 20 | % | (31) | 5 | % |
Renaissance Worthington |  | 3 | % |  | 25 | % | (32) | 5 | % |
Salt Lake City Marriott Downtown |  | 3 | % | (33) | 20 | % | (34) | 5 | % |
The Lodge at Sonoma, a Renaissance Resort & Spa |  | 3 | % |  | 20 | % | (35) | 5 | % |
Torrance Marriott South Bay |  | 3 | % |  | 20 | % | (36) | 5 | % |
Waverly Renaissance (3) |  | 3 | % |  | 20 | % | (37) | 4 | % | (5)
Vail Marriott Mountain Resort & Spa |  | 3 | % |  | 20 | % | (38) | 4 | % |
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(1) | As a percentage of gross revenues.
(2) | Based on a percentage of hotel operating profits above a negotiated return on our invested capital as more fully described in the following footnotes.
(3) | The hotel is under contract to be sold and is classified as "held for sale" and reported in discontinued operations. The sale is expected to close during the first quarter of 2012.
(4) | Calculated as a percentage of operating profits in excess of the sum of (i) $6.0 million and (ii) 10.75% of certain capital expenditures.
(5) | The FF&E contribution increases to 4.5% beginning in January 2026 and thereafter.
(6) | Calculated as a percentage of operating profits in excess of the sum of (i) $4.1 million and (ii) 10.75% of certain capital expenditures.
(7) | Calculated as a percentage of operating profits after an owner's priority of $3.7 million in 2011, $4.2 million in 2012, $4.7 million in 2013 and $5.0 million in 2014. In 2015 and thereafter, the owner's priority adjusts annually based upon CPI. The incentive management fee cannot exceed 1.5% of total revenue.
(8) | Calculated as a percentage of operating profits in excess of the sum of (i) the payment of certain loan procurement costs, (ii) 10.75% of certain capital expenditures, (iii) an agreed-upon return on certain expenditures and (iv) the value of certain amounts paid into a reserve account established for the replacement, renewal and addition of certain hotel goods. The owner's priority expires in 2027.
(9) | The contribution is reduced to 1% until operating profits exceed an owner's priority of $3.8 million.
(10) | Calculated as a percentage of operating profits in excess of the sum of (i) actual debt service and (ii) 15% of cumulative and compounding return on equity, which resets with each sale.
(11) | Calculated as 20% of net operating income before base management fees. There is no owner's priority.
(12) | The base management fee is reduced by the amount in which operating profits do not meet the performance guarantee. The performance guarantee was $8.2 million in 2011 and base management fees were reduced to zero.
(13) | The owner's priority is calculated as 103% of the prior year cash flow.
(14) | The base management fee will increase to 2.5% of gross revenues if the hotel achieves operating results in excess of 7% of our invested capital and 3% of gross revenues if the hotel achieves operating profits in excess of 8% of our invested capital.
(15) | Calculated as a percentage of operating profits in excess of 12% of our invested capital and an additional 5% of operating profits in excess of 15% of our invested capital.
(16) | The base management fee is 5.5% of gross revenues through fiscal year 2014 and 6% for fiscal year 2015 through the expiration of the agreement. Prior to 2015, the base management fee may increase to 6.0% at the beginning of the fiscal year following the achievement of operating profits equal to or above $5.0 million.
(17) | Calculated as a percentage of operating profits in excess of the sum of (i) $5.5 million and (ii) 12% of certain capital expenditures, less 5% of the total real estate tax bill (for as long as the hotel is leased to a party other than the manager).
(18) | Calculated as a percentage of operating profits in excess of the sum of (i) $7.9 million and (ii) 10.75% of certain capital expenditures.
(19) | Calculated as a percentage of operating profits in excess of the sum of (i) $13.0 million and (ii) 10.75% of certain capital expenditures
(20) | The base management fee will increase to 2.75% in September 2013 for the remaining term of the agreement.
(21) | Calculated as a percentage of operating profits in excess of the sum of (i) $8.3 million plus (ii) 12% of certain capital expenditures plus (iii) 12% of working capital provided by the owner. The incentive management fee payable in any year can be reduced by 25% if the actual House Profit margin is less than budget or if the trailing 12-month RevPAR Index is less than the previous year.
(22) | Calculated as a percentage of operating profits in excess of the sum of (i) $11.6 million and (ii) 11% of certain capital expenditures.
(23) | The base management fee is 2.75% of gross revenues if the hotel achieves operating profits in excess of 7% of our invested capital and 3.25% of gross revenues if the hotel achieves operating profits in excess of 8% of our invested capital.
(24) | Calculated as a percentage of operating profits in excess of 11% of our invested capital and an additional 5% of operating profits in excess of 12% of our invested capital.
(25) | Calculated as a percentage of operating profits in excess of the sum of (i) $10.4 million and (ii) 10.75% of certain capital expenditures.
(26) | Calculated as a percentage of operating profits in excess of the sum of (i) $6.2 million and (ii) 10.75% of certain capital expenditures.
(27) | Calculated as a percentage of operating profits in excess of the sum of (i) $8.1 million and (ii) 10.75% of certain capital expenditures. The percentage of operating profits will decrease to 20% beginning in fiscal year 2022.
(28) | Calculated as a percentage of operating profits in excess of the sum of (i) $9.0 million and (ii) 10.75% of certain capital expenditures. The percentage of operating profits will decrease to 20% beginning in fiscal year 2022.
(29) | The base management fee will increase to 3% beginning June 2012 and thereafter.
(30) | Calculated as a percentage of operating profits in excess of 8% of our invested capital. Total management fees cannot exceed 4% of gross revenues.
(31) | Calculated as a percentage of operating profits in excess of the sum of (i) $2.6 million and (ii) 10% of certain capital expenditures.
(32) | Calculated as a percentage of operating profits in excess of the sum of (i) $7.6 million and (ii) 10.75% of certain capital expenditures.
(33) Following the opening of two new Marriott-branded hotels in Salt Lake City, the base management fee will decrease to 1.5% for the first two years following the first hotel opening and 2.0% for the next three years.
(34) | Calculated as a percentage of operating profits in excess of the sum of (i) $6.1 million and (ii) 10.75% of capital expenditures.
(35) | Calculated as a percentage of operating profits in excess of the sum of (i) $3.6 million and (ii) 10.75% of capital expenditures.
(36) | Calculated as a percentage of operating profits in excess of the sum of (i) $7.5 million and (ii) 10.75% of certain capital expenditures.
(37) | Calculated as a percentage of operating profits in excess of the sum of (i) $10.3 million and (ii) 10.75% of certain capital expenditures.
(38) | Calculated as a percentage of operating profits in excess of the sum of (i) $7.4 million and (ii) 11% of certain capital expenditures. The incentive management fee rises to 25% if the hotel achieves operating profits in excess of 15% of our invested capital.
Schedule of the Terms of the Hotel Franchise Agreements | The following table sets forth the terms of the hotel franchise agreements for our six franchised hotels:
|  | Date of Agreement |  | Term |  | Franchise Fee
Vail Marriott Mountain Resort & Spa |  | 6/2005 |  | 16 years |  | 6% of gross room sales plus 3% of gross food and beverage sales
Atlanta Westin North at Perimeter |  | 5/2006 |  | 20 years |  | 7% of gross room sales plus 2% of food and beverage sales
Hilton Garden Inn Chelsea/New York City |  | 9/2010 |  | 17 years |  | Royalty fee of 5% of gross room sales and program fee of 4.3% of gross room sales
JW Marriott Denver at Cherry Creek |  | 5/2011 |  | 15 years |  | 6% of gross room sales and 3% of gross food and beverage sales
Radisson Lexington Hotel New York |  | 1/2000 |  | 20 years(1) |  | 2.75% of gross room sales (3% of gross room sales beginning April 2012 and thereafter)
Courtyard Denver Downtown |  | 7/2011 |  | 16 years |  | 5.5% of gross room sales
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(1) | An amendment to the franchise agreement permits two 60-day franchise agreement termination windows at the owner's discretion beginning March 1, 2012 and January 31, 2015.

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