Relationship with Managers (Tables)

12 Months Ended

Dec. 31, 2015

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 hotels. 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
Atlanta Alpharetta Marriott	Marriott	9/2000	30 years	Two ten-year periods
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
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
The Gwen Chicago	Crescent Hotels & Resorts (1)	9/2015	10 years	None
Hilton Boston Downtown	Davidson Hotels & Resorts	11/2012	7 years	Two five-year periods
Hilton Burlington	Interstate Hotels & Resorts	12/2010	5 years	Month-to-month
Hilton Garden Inn Chelsea/New York City	HEI Hotels & Resorts (2)	9/2015	10 years	None
Hilton Garden Inn New York City/Times Square Central	Highgate Hotels	1/2011	10 years	One five-year period
Hilton Minneapolis	Hilton	3/2006	20 ¾ years	None
Hotel Rex	Joie de Vivre Hotels	9/2005	5 years	Month-to-month
Inn at Key West	Noble House Hotels & Resorts (3)	9/2015	10 years	Two five-year periods
JW Marriott Denver at Cherry Creek	Sage Hospitality	5/2011	5 years	One five-year period
Lexington Hotel New York	Highgate Hotels	6/2011	10 years	One five-year period
Orlando Airport Marriott	Marriott	11/2005	30 years	None
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
Sheraton Suites Key West	Ocean Properties	6/2015	12 years	None
Shorebreak Hotel	Kimpton Hotel & Restaurant Group	2/2015	10 years	None
The Lodge at Sonoma, a Renaissance Resort & Spa	Marriott	10/2004	20 years	One ten-year period
Vail Marriott Mountain Resort & Spa	Vail Resorts	6/2005	15½ years	None
Westin Fort Lauderdale Beach Resort	HEI Hotels & Resorts	12/2014	10 years	None
Westin San Diego	Interstate Hotels & Resorts	12/2010	5 years	Month-to-month
Westin Washington D.C. City Center	HEI Hotels & Resorts (4)	4/2015	10 years	None

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(1)	Crescent Hotels & Resorts assumed management of the hotel in September 2015. The hotel was previously managed by Hilton.


(2)	HEI Hotels & Resorts assumed management of the hotel in September 2015. The hotel was previously managed by Alliance Hospitality Management.


(3)	Noble House Hotels & Resorts assumed management of the hotel in September 2015. The hotel was previously managed by Remington Hotels.


(4)	HEI Hotels & Resorts assumed management of the hotel in April 2015. The hotel was previously managed by Interstate Hotels & Resorts.

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)
Atlanta Alpharetta Marriott	3	%			25	%		5	%
Bethesda Marriott Suites	3	%			50	%	(3)	5	%	(4)
Boston Westin Waterfront	2.5	%			20	%		4	%
Chicago Marriott Downtown	3	%			18	%	(5)	5	%
Courtyard Denver Downtown	2	%	(6)		10	%		4	%
Courtyard Manhattan/Fifth Avenue	6	%			25	%		4	%
Courtyard Manhattan/Midtown East	5	%			25	%		4	%
Frenchman's Reef & Morning Star Marriott Beach Resort	3	%			15	%		5.5	%
The Gwen Chicago	1	%	(7)		15	%		4	%
Hilton Boston Downtown	2	%			10	%		4	%
Hilton Burlington	1.5	%	(8)		10	%		—
Hilton Garden Inn Chelsea/New York City	2.25	%	(9)		15	%		4	%
Hilton Garden Inn New York City/Times Square Central	3	%	(10)		15	%		4	%
Hilton Minneapolis	3	%			15	%		4	%
Hotel Rex	3	%			10	%		4	%
Inn at Key West	3	%			15	%		4	%
JW Marriott Denver at Cherry Creek	2.25	%	(11)		10	%		4	%
Lexington Hotel New York	3	%			20	%		4	%
Orlando Airport Marriott	3	%			25	%		5	%
Renaissance Charleston	2.5	%	(12)		20	%		5	%
Renaissance Worthington	3	%			25	%		5	%
Salt Lake City Marriott Downtown	3	%			20	%		5	%
Sheraton Suites Key West	3	%			10	%		4	%
Shorebreak Hotel	1.25	%	(13	)	15	%		4	%
The Lodge at Sonoma, a Renaissance Resort & Spa	3	%			20	%		5	%
Vail Marriott Mountain Resort & Spa	3	%			20	%		4	%
Westin Fort Lauderdale Beach Resort	2.25	%	(14)		15	%		4	%
Westin San Diego	1.5	%	(8)		10	%		4	%
Westin Washington D.C. City Center	2	%	(15)		15	%		4	%

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(1)	As a percentage of gross revenues.


(2)	Based on a percentage of hotel operating profits above a specified return on our invested capital or specified operating profit thresholds.


(3)	The owner's priority expires in 2027.


(4)	The contribution is reduced to 1% until operating profits exceed an owner's priority of $3.9 million.


(5)	Effective April 2015, calculated as 18% of net operating income. There is no owner's priority; however, the Company's contribution to the hotel's multi-year guest room renovation is treated as a deduction in calculating net operating income. Prior to April 2015, calculated as 20% of net operating income before base management fees.


(6)	The base management fee is 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.


(7)	The base management fee increases to 1.25% for 2017 and 1.5% for 2018 through the remainder of the term.

(8) Total management fees are capped at 2.5% of gross revenues.

(9) The base management fee increases to 2.5% beginning June 4, 2016 through the remainder of the term.

(10) The base management fee increased to 3% from 2.5% beginning September 1, 2015.


(11)	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.


(12)	The base management fee decreased to 2.5% beginning September 2015 and will increase to 3.0% beginning September 2016 and 3.5% beginning September 2017 through the remainder of the term.

(13) The base management fee increases to 2.5% beginning January 1, 2016.

(14) The base management fee decreases to 2% beginning January 1, 2017.

(15) The base management fee decreases to 2% beginning January 1, 2017. Between April 2015 and April 2016, the base fee may be reduced if the hotel does not meet a specified operating profit threshold, subject to a floor of 1% of gross revenues.

Summary of Management Fees from Continuing Operations

The following is a summary of management fees from continuing operations for the years ended December 31, 2015, 2014 and 2013 (in thousands):



	Year Ended December 31,
	2015		2014		2013
Base management fees	$	23,228	$	21,473	$	19,324
Incentive management fees	7,405		8,554		6,222
Total management fees	$	30,633	$	30,027	$	25,546

Schedule of the Terms of the Hotel Franchise Agreements

The following table sets forth the terms of the hotel franchise agreements for our thirteen 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
Hilton Garden Inn Chelsea/New York City	9/2010	17 years	5% of gross room sales and 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
Lexington Hotel New York	3/2012	20 years	3% of gross room sales (1)
Courtyard Denver Downtown	7/2011	16 years	5.5% of gross room sales
Hilton Boston Downtown	7/2012	10 years	5% of gross room sales and 3% of gross food and beverage sales; program fee of 4% of gross room sales
Westin Washington D.C. City Center	12/2010	20 years	7% of gross room sales and 3% of gross food and beverage sales
Westin San Diego	12/2010	20 years	7% of gross room sales and 3% of gross food and beverage sales
Hilton Burlington	7/2012	10 years	5% of gross room sales and 3% of gross food and beverage sales; program fee of 4% of gross room sales
Hilton Garden Inn New York/Times Square Central	6/2011	22 years	3% of gross room sales (2); program fee of 4.3% of gross room sales
Westin Fort Lauderdale Beach Resort	12/2014	20 years	6% of gross room sales and 2% of gross food and beverage sales
The Gwen Chicago	5/2015	20 years	4.5% of gross room sales
Sheraton Suites Key West	2/2006 (3)	20 years	5% of gross room sales

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(1)	Increased to 4% on the first anniversary of the agreement and to 5% on the second anniversary of the agreement.

(2) Increased to 4% on the first anniversary of the opening date, which was September 1, 2014, and increases to 5% on the second anniversary of the opening date.


(3)	We assumed the franchise agreement on June 30, 2015, the date of our purchase of the hotel.