XML 33 R22.htm IDEA: XBRL DOCUMENT
v3.10.0.1

INVESTMENT IN HOTEL PROPERTIES, NET (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2018
Business Combinations [Abstract] |
Schedule of investment in hotel properties, net | Investment in hotel properties, net at June 30, 2018 and December 31, 2017 is as follows (in thousands):
|  | June 30, 2018 |  | December 31, 2017
Land |  | $ | 265,699 |  |  | $ | 272,932 |
Hotel buildings and improvements |  | 1,850,655 |  |  | 1,868,273 |
Intangible assets |  | 22,764 |  |  | 22,764 |
Construction in progress |  | 15,410 |  |  | 12,464 |
Furniture, fixtures and equipment |  | 180,446 |  |  | 174,126 |
|  | 2,334,974 |  |  | 2,350,559 |
Less - accumulated depreciation and amortization |  | (320,387 | ) |  | (291,067 | )
|  | $ | 2,014,587 |  |  | $ | 2,059,492 |
Schedule of intangible assets and intangible liabilities | Intangible assets included in Investment in hotel properties, net and intangible liabilities included in Accrued expenses and other in our Condensed Consolidated Balance Sheets include the following (in thousands):
|  | June 30, 2018 |  | December 31, 2017
Intangible assets: |  |  |  |
Air rights (1) |  | $ | 10,754 |  |  | $ | 10,754 |
Favorable leases (2) |  | 10,569 |  |  | 10,569 |
In-place lease agreements |  | 1,361 |  |  | 1,361 |
Other |  | 80 |  |  | 80 |
|  | 22,764 |  |  | 22,764 |
Less accumulated amortization |  | (1,411 | ) |  | (1,001 | )
Intangible assets, net |  | $ | 21,353 |  |  | $ | 21,763 |
Intangible liabilities: |  |  |  |
Unfavorable leases (2) |  | $ | 5,002 |  |  | $ | 5,002 |
Less accumulated amortization |  | (333 | ) |  | (285 | )
Intangible liabilities, net |  | $ | 4,669 |  |  | $ | 4,717 |
(1) | In conjunction with the acquisition of the Courtyard by Marriott - Charlotte, NC, the Company acquired certain air rights related to the hotel property.
(2) | Intangible assets and liabilities are recorded on contracts assumed as part of the acquisition of certain hotels. Above-market and below-market contract values are based on the present value of the difference between contractual amounts to be paid pursuant to the contracts assumed and our estimate of the fair market contract rates for corresponding contracts measured over a period equal to the remaining non-cancelable term of the contracts assumed. Intangible assets and liabilities are amortized over the remaining non-cancelable term of the related contracts.
Schedule of sale of hotels | The agreements were modified on various occasions between 2015 and 2017 such that we sold 23 hotels containing 2,448 guestrooms to HIT in three tranches over that time period for a combined price of approximately $325.1 million (collectively, the “HIT Sale”) as follows (dollars in thousands):
Tranche |  | Closing Date |  | Hotels Sold |  | Sales Price
1 |  | October 2015 |  | 10 |  |  | $ | 150,000 |
2 |  | February 2016 |  | 6 |  |  | 108,300 |
3 |  | April 2017 |  | 7 |  |  | 66,800 |
|  | 23 |  |  | $ | 325,100 |
Assets Held for Sale at June 30, 2018 also include four hotels under contract for sale that are expected to close during the three months ended September 30, 2018 as follow:
Property |  | Guestrooms
Sale 1: |  |
Hilton Garden Inn - Smyrna, TN |  | 112 |
Hampton Inn & Suites - Smyrna, TN |  | 83 |
Hyatt Place Phoenix North - Phoenix, AZ |  | 127 |
|  | 322 |
Sale 2: |  |
Hyatt Place - Fort Myers, FL |  | 148 |
|  | 470 |
Schedule of hotel property acquisitions | A summary of the hotel properties acquired during the six months ended June 30, 2017 is as follows (in thousands):
Date Acquired |  | Franchise/Brand |  | Location |  | Purchase Price |
March 1, 2017 |  | Homewood Suites |  | Aliso Viejo (Laguna Beach), CA |  | $ | 38,000 |  |
March 30, 2017 |  | Hyatt Place |  | Phoenix (Mesa), AZ |  | 22,200 |  |
May 23, 2017 |  | Courtyard by Marriott |  | Fort Lauderdale, FL |  | 85,000 |  |
June 9, 2017 |  | Courtyard by Marriott |  | Charlotte, NC |  | 56,250 |  |
June 21, 2017 |  | Courtyard by Marriott |  | Fort Worth, TX |  | 40,000 |  |
June 21, 2017 |  | Courtyard by Marriott |  | Kansas City, MO |  | 24,500 |  |
June 21, 2017 |  | Courtyard by Marriott |  | Pittsburgh, PA |  | 42,000 |  |
June 21, 2017 |  | Hampton Inn & Suites |  | Baltimore, MD |  | 18,000 |  |
June 21, 2017 |  | Residence Inn by Marriott |  | Baltimore, MD |  | 38,500 |  |
|  |  |  | $ | 364,450 |  | (1)
(1) The net assets acquired totaled $367.4 million due to the purchase at settlement of $0.8 million of net working capital assets and capitalized transaction costs of $2.1 million
Schedule of allocation of the aggregate purchase prices to the fair value of assets acquired and liabilities assumed | The allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired for the above acquisitions is as follows (in thousands):
|  | For the Six Months Ended June 30, 2017
Land |  | $ | 61,616 |
Hotel buildings and improvements |  | 274,961 |
Intangible assets |  | 15,710 |
Furniture, fixtures and equipment |  | 14,314 |
Other assets |  | 1,775 |
Total assets acquired |  | 368,376 |
Less - other liabilities assumed |  | (990 | )
Net assets acquired |  | $ | 367,386 |
Schedule of unaudited condensed pro forma financial information | The unaudited condensed pro forma financial information for the 80 hotel properties owned at June 30, 2018 for the three and six months ended June 30, 2018 and 2017 is as follows (in thousands, except per share):
|  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Revenues |  | $ | 148,501 |  |  | $ | 144,912 |  |  | $ | 285,145 |  |  | $ | 278,044 |
Income from hotel operations |  | $ | 56,877 |  |  | $ | 56,769 |  |  | $ | 106,148 |  |  | $ | 106,232 |
Net income (1) |  | $ | 19,640 |  |  | $ | 25,656 |  |  | $ | 28,971 |  |  | $ | 47,072 |
Net income attributable to common stockholders, net of amount allocated to participating securities (1) (2) |  | $ | 15,765 |  |  | $ | 21,249 |  |  | $ | 16,256 |  |  | $ | 38,279 |
Basic and diluted net income per share attributable to common stockholders (1) (2) |  | $ | 0.15 |  |  | $ | 0.22 |  |  | $ | 0.16 |  |  | $ | 0.40 |
(1) | Pro forma amounts include depreciation expense, property tax expense, interest expense, income tax expense, and other corporate expenses totaling $49.0 million and $39.1 million for the three months ended June 30, 2018 and 2017, respectively, and $97.8 million and $76.0 million for the six months ended June 30, 2018 and 2017, respectively.
(2) | Pro forma amounts for the three and six months ended June 30, 2018 include the effect of the premium on redemption of preferred stock of $3.3 million.
Disclosure of assets held for sale | Assets held for sale at June 30, 2018 and December 31, 2017 include the following (in thousands):
|  | June 30, 2018 |  | December 31, 2017
Land |  | $ | 7,410 |  |  | $ | 1,193 |
Hotel buildings and improvements |  | 28,558 |  |  | — |
Furniture, fixtures and equipment |  | 1,745 |  |  | — |
Construction in progress |  | 15 |  |  | — |
Franchise fees and other |  | 150 |  |  | — |
|  | $ | 37,878 |  |  | $ | 1,193 |

X
- Definition Schedule Of Intangible Assets And Intangible Liabilities [Table Text Block] + References No definition available. + Details
Name: | inn_ScheduleOfIntangibleAssetsAndIntangibleLiabilitiesTableTextBlock
Namespace Prefix: | inn_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2)-(3) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
Name: | us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of long lived assets held for sale. Disclosure may include the description of the facts and circumstances leading to the expected disposal, manner and timing of disposal, the carrying value of the assets held for sale, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230 + Details
Name: | us-gaap_DisclosureOfLongLivedAssetsHeldForSaleTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, balances by class of assets, depreciation and depletion expense and method used, including composite depreciation, and accumulated deprecation. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(13)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_PropertyPlantAndEquipmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1486-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
Name: | us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5C -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5B -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5D -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760 + Details
Name: | us-gaap_ScheduleOfDisposalGroupsIncludingDiscontinuedOperationsIncomeStatementBalanceSheetAndAdditionalDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84161108&loc=d3e4845-128472 + Details
Name: | us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration