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Equity Incentive Plan
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plan Equity Incentive Plan
We are authorized to issue up to 6,082,664 shares of our common stock under our 2016 Equity Incentive Plan (the “2016 Plan”), which we have fully committed as of December 31, 2023.

Restricted Stock Awards

Restricted stock awards issued to our officers and employees generally vest over a three to five year period from the date of the grant based on continued employment. We measure compensation expense for the restricted stock awards based upon the fair market value of our common stock at the date of grant. Compensation expense is recognized on a straight-line basis over the vesting period and is included in corporate expenses in the accompanying consolidated statements of operations and comprehensive income. A summary of our restricted stock awards from January 1, 2021 to December 31, 2023 is as follows:
Number of
Shares		Weighted-
Average Grant
Date Fair
Value
Unvested balance at January 1, 2021557,273 $9.83 
Granted1,177,537 9.37 
Forfeited(47,025)9.21 
Vested(244,490)9.94 
Unvested balance at December 31, 20211,443,295 9.46 
Granted438,070 9.55 
Forfeited(250,261)9.43 
Vested(274,167)9.56 
Unvested balance at December 31, 20221,356,937 9.47 
Granted247,762 8.94 
Forfeited(21,184)9.13 
Vested(382,822)9.60 
Unvested balance at December 31, 20231,200,693 $9.33 

The total unvested restricted stock awards as of December 31, 2023 are expected to vest as follows: 513,251 during 2024, 329,103 during 2025, 344,918 during 2026, 6,712 during 2027, and 6,709 during 2028. As of December 31, 2023, the unrecognized compensation cost related to restricted stock awards was $5.4 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 23 months. For the years ended December 31, 2023, 2022, and 2021, we recorded $4.2 million, $4.3 million and $3.9 million, respectively, of compensation expense net of forfeitures related to restricted stock awards. The compensation expense recorded for the year ended December 31, 2022
includes the reversal of $0.2 million of previously recognized compensation expense in connection with the resignation of our former Executive Vice President, Asset Management and Chief Operating Officer, as well as certain other employees.

Performance Stock Units

Performance stock units (“PSUs”) are restricted stock units that vest three to five years from the date of grant. Each executive officer is granted a target number of PSUs (the “PSU Target Award”). The actual number of shares of common stock issued to each executive officer is based on the Company's achievement of certain performance targets. Under this framework, 50% of the PSUs are based on relative total stockholder return and 50% on hotel market share improvement. The achievement of certain levels of total stockholder return relative to the total stockholder return of a peer group of publicly-traded lodging REITs is measured over a three-year performance period. There is no payout of shares of our common stock if our total stockholder return falls below the 30th percentile of the total stockholder returns of the peer group. The maximum number of shares of common stock issued to an executive officer is equal to 150% of the PSU Target Award and is earned if our total stockholder return is equal to or greater than the 75th percentile of the total stockholder returns of the peer group. The number of PSUs earned is limited to 100% of the PSU Target Award if the Company's total stockholder return is negative for the three-year performance period. The improvement in market share for each of our hotels is generally measured over a three-year performance period based on a report prepared for each hotel by STR, Inc., a well-recognized benchmarking service for the hospitality industry. There is no payout of shares of our common stock if the percentage of our hotels with market share improvements is less than 30%. The maximum number of shares of common stock issued to an executive officer is equal to 150% of the PSU Target Award and is earned if the percentage of our hotels with market share improvements is greater than or equal to 75%.

We measure compensation expense for the PSUs based upon the fair market value of the award at the grant date. Compensation expense is recognized on a straight-line basis over the vesting period and is included in corporate expenses in the accompanying consolidated statements of operations and comprehensive income. The grant date fair value of the portion of the PSUs based on our relative total stockholder return is determined using a Monte Carlo simulation performed by a third-party valuation firm. The grant date fair value of the portion of the PSUs based on hotel market share improvement is the closing price of our common stock on the grant date. The determination of the grant-date fair values of outstanding awards based on our relative total stockholder return included the following assumptions:
Award Grant DateVolatilityRisk-Free RateTotal Stockholder Return PSUsHotel Market Share PSUs
March 2, 202168.8 %0.26 %$9.28 $9.40 
February 22, 202271.4 %1.74 %$9.84 $9.56 
August 9, 202273.3 %3.20 %$9.65 $9.32 
February 23, 202374.5 %4.40 %$9.22 $8.94 

A summary of our PSUs from January 1, 2021 to December 31, 2023 is as follows:
Number of
Units		Weighted-
Average Grant
Date Fair
Value
Unvested balance at January 1, 2021912,186 $9.63 
Granted347,981 9.34 
Vested (1)
(290,927)9.90 
Unvested balance at December 31, 2021969,240 9.45 
Granted407,570 9.66 
Additional units from dividends3,600 7.89 
Vested (2)
(269,224)10.14 
Forfeited(160,533)9.34 
Unvested balance at December 31, 2022950,653 9.35 
Granted363,523 9.08 
Additional units from dividends17,886 8.35 
Vested (3)
(299,766)9.01 
Unvested balance at December 31, 20231,032,296 $9.34 
______________________
(1) The number of shares of common stock earned for the PSUs vested in 2021 was equal to 100.00% of the PSU Target Award.
(2)The number of shares of common stock earned for the PSUs vested in 2022 was equal to 105.71% of the PSU Target Award.
(3)The number of shares of common stock earned for the PSUs vested in 2023 was equal to 103.36% of the PSU Target Award.

The remaining unvested PSUs expected to vest are as follows: 300,905 during 2024, 328,122 in 2025 and 367,569 during 2026, and 35,700 during 2027. As of December 31, 2023, the unrecognized compensation cost related to the PSUs was $4.1 million and is expected to be recognized on a straight-line basis over a period of 24 months. For the years ended December 31, 2023, 2022, and 2021, we recorded approximately $3.0 million, $2.3 million, and $3.0 million, respectively, of compensation expense net of forfeitures related to the PSUs. The compensation expense recorded for the year ended December 31, 2022 includes the reversal of $0.5 million of previously recognized compensation expense in connection with the resignation of our former Executive Vice President, Asset Management and Chief Operating Officer.

LTIP Units

A summary of our LTIP units from January 1, 2021 to December 31, 2023 is as follows:
Number of
Units		Weighted-
Average Grant
Date Fair
Value
Unvested balance at January 1, 2021243,809 $10.29 
Vested (1)
(108,421)10.38
Unvested balance at December 31, 2021135,388 10.22 
Granted71,084 9.32
Vested (1)
(108,422)10.38
Unvested balance at December 31, 202298,050 9.39 
Granted257,270 8.94
Vested (1)
(41,183)9.49
Unvested balance at December 31, 2023314,137 $9.01 
______________________
(1)As of December 31, 2023, all vested LTIP units have achieved economic parity with common OP units and have been converted to common OP units.

The remaining unvested LTIP units are expected to vest as follows: 99,974 during 2024 and 2025, 99,973 during 2026, and 14,216 during 2027. As of December 31, 2023, the unrecognized compensation cost related to LTIP unit awards was $2.1 million and the weighted-average period over which the unrecognized compensation expense will be recorded is
approximately 30 months. For the years ended December 31, 2023, 2022, and 2021, we recorded $0.8 million, $0.5 million, and $1.1 million, respectively, of compensation expense related to LTIP unit awards.