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Commitment and Contingencies | 12 Months Ended
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Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company is subject to various claims, lawsuits and legal proceedings, including routine litigation arising in the ordinary course of business, regarding the operation of its hotels, its managers and other Company matters. While it is not possible to ascertain the ultimate outcome of such matters, the Company believes that the aggregate identifiable amount of such liabilities, if any, will not have a material adverse impact on its financial condition or results of operations. Chatham RIMV LLC (a wholly owned subsidiary of the Company) is a defendant in a lawsuit brought by the City of San Diego and other related entities, San Diego Housing Commission et al. v. Neil et al. (Superior Court of California, County of San Diego, Case No. 37-2021-00033006-CU-BC-CTL) filed in connection with the sale of the Residence Inn Mission Valley to the City of San Diego. The City of San Diego is seeking a return of monies spent on the acquisition as well as a declaration that the purchase agreement executed in connection with the acquisition is void. At the time of this filing, the City of San Diego and the other Plaintiffs have made no allegations of wrongdoing by Chatham RIMV LLC or any other Company entity. We believe this lawsuit is without merit and we are defending our case vigorously. As of December 31, 2021, we have accrued $40 thousand related to legal costs incurred to date. At this time we believe potential future costs related to this lawsuit are not probable and estimable. Management Agreements The management agreements with IHM have an initial term of five years and automatically renew for two five-year periods unless IHM provides written notice to us no later than 90 days prior to the then current term's expiration date of their intent not to renew. The IHM management agreements provide for early termination at the Company’s option upon sale of any IHM-managed hotel for no termination fee, with six months advance notice. The IHM management agreements may be terminated for cause, including the failure of the managed hotel to meet specified performance levels. Base management fees are calculated as a percentage of the hotel's gross room revenue. If certain financial thresholds are met or exceeded, an incentive management fee is calculated as 10% of the hotel's net operating income less fixed costs, base management fees and a specified return threshold. The incentive management fee is capped at 1% of gross hotel revenues for the applicable calculation. As of December 31, 2021, terms of the Company's management agreements are (dollars are not in thousands):
Property | Management Company | Base Management Fee | Monthly Accounting Fee | Monthly Revenue Management Fee | Incentive Management Fee Cap
Homewood Suites by Hilton Boston-Billerica/ Bedford/ Burlington | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Homewood Suites by Hilton Minneapolis-Mall of America | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Homewood Suites by Hilton Nashville-Brentwood | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Homewood Suites by Hilton Dallas-Market Center | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Homewood Suites by Hilton Hartford-Farmington | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Homewood Suites by Hilton Orlando-Maitland | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Hampton Inn & Suites Houston-Medical Center | IHM | 3.0 | % | $1,000 | $1,000 | 1.0 | %
Residence Inn Long Island Holtsville | IHM | 3.0 | % | $1,000 | $1,000 | 1.0 | %
Residence Inn White Plains | IHM | 3.0 | % | $1,000 | $750 | 1.0 | %
Residence Inn New Rochelle | IHM | 3.0 | % | $1,000 | $750 | 1.0 | %
Residence Inn Garden Grove | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Homewood Suites by Hilton San Antonio River Walk | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Residence Inn Washington DC | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Residence Inn Tysons Corner | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Hampton Inn Portland Downtown | IHM | 3.0 | % | $1,000 | $550 | 1.0 | %
Courtyard Houston | IHM | 3.0 | % | $1,000 | $550 | 1.0 | %
Hyatt Place Pittsburgh North Shore | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Hampton Inn Exeter | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Hilton Garden Inn Denver Tech | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Residence Inn Bellevue | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Springhill Suites Savannah | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Residence Inn Silicon Valley I | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Residence Inn Silicon Valley II | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Residence Inn San Mateo | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Residence Inn Mountain View | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Hyatt Place Cherry Creek | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Courtyard Addison | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Courtyard West University Houston | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Residence Inn West University Houston | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Hilton Garden Inn Burlington | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Residence Inn San Diego Gaslamp | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Hilton Garden Inn Marina del Rey | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Residence Inn Dedham | IHM | 3.0 | % | $1,200 | $1,000 | 1.0 | %
Residence Inn Il Lugano | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Hilton Garden Inn Portsmouth | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Courtyard Summerville | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Embassy Suites Springfield | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Residence Inn Summerville | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Courtyard Dallas | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Residence Inn Austin Northwest/The Domain Area | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
TownePlace Suites Austin Northwest/The Domain Area | IHM | 3.0 | % | $1,500 | $1,000 | 1.0 | %
Management fees totaled approximately $7.2 million, $5.3 million and $10.8 million, respectively, for the years ended December 31, 2021, 2020 and 2019. Incentive management fees paid to IHM for the years ended years ended December 31, 2021, 2020 and 2019 were $0.0 million, $0.0 million and $0.1 million, respectively. Franchise Agreements The fees associated with the franchise agreements are calculated as a specified percentage of the hotel's gross room revenue. Terms of the Company's franchise agreements are as of December 31, 2021:
Property |  | Franchise/Royalty Fee | Marketing/Program Fee | Expiration
Homewood Suites by Hilton Boston-Billerica/ Bedford/ Burlington |  | 4.0 | % | 4.0 | % | 2025
Homewood Suites by Hilton Minneapolis-Mall of America |  | 4.0 | % | 4.0 | % | 2025
Homewood Suites by Hilton Nashville-Brentwood |  | 4.0 | % | 4.0 | % | 2025
Homewood Suites by Hilton Dallas-Market Center |  | 4.0 | % | 4.0 | % | 2025
Homewood Suites by Hilton Hartford-Farmington |  | 4.0 | % | 4.0 | % | 2025
Homewood Suites by Hilton Orlando-Maitland |  | 4.0 | % | 4.0 | % | 2025
Hampton Inn & Suites Houston-Medical Center |  | 6.0 | % | 4.0 | % | 2035
Residence Inn Long Island Holtsville |  | 5.5 | % | 2.5 | % | 2025
Residence Inn White Plains |  | 5.5 | % | 2.5 | % | 2030
Residence Inn New Rochelle |  | 5.5 | % | 2.5 | % | 2030
Residence Inn Garden Grove |  | 5.0 | % | 2.5 | % | 2031
Homewood Suites by Hilton San Antonio River Walk |  | 4.0 | % | 4.0 | % | 2026
Residence Inn Washington DC |  | 5.5 | % | 2.5 | % | 2033
Residence Inn Tysons Corner |  | 5.0 | % | 2.5 | % | 2031
Hampton Inn Portland Downtown |  | 6.0 | % | 4.0 | % | 2032
Courtyard Houston |  | 5.5 | % | 2.0 | % | 2030
Hyatt Place Pittsburgh North Shore |  | 5.0 | % | 3.5 | % | 2030
Hampton Inn Exeter |  | 6.0 | % | 4.0 | % | 2031
Hilton Garden Inn Denver Tech |  | 5.5 | % | 4.3 | % | 2028
Residence Inn Bellevue |  | 5.5 | % | 2.5 | % | 2033
Springhill Suites Savannah |  | 5.0 | % | 2.5 | % | 2033
Residence Inn Silicon Valley I |  | 5.5 | % | 2.5 | % | 2029
Residence Inn Silicon Valley II |  | 5.5 | % | 2.5 | % | 2029
Residence Inn San Mateo |  | 5.5 | % | 2.5 | % | 2029
Residence Inn Mountain View |  | 5.5 | % | 2.5 | % | 2029
Hyatt Place Cherry Creek |  | 5.0 | % | 3.5 | % | 2034
Courtyard Addison |  | 5.5 | % | 2.0 | % | 2029
Courtyard West University Houston |  | 5.5 | % | 2.0 | % | 2029
Residence Inn West University Houston |  | 6.0 | % | 2.5 | % | 2024
Hilton Garden Inn Burlington |  | 5.5 | % | 4.3 | % | 2029
Residence Inn San Diego Gaslamp |  | 6.0 | % | 2.5 | % | 2035
Hilton Garden Inn Marina del Rey |  | 5.5 | % | 4.3 | % | 2030
Residence Inn Dedham |  | 6.0 | % | 2.5 | % | 2030
Residence Inn Il Lugano |  | 6.0 | % | 2.5 | % | 2045
Hilton Garden Inn Portsmouth |  | 5.5 | % | 4.0 | % | 2037
Courtyard Summerville |  | 6.0 | % | 2.5 | % | 2037
Embassy Suites Springfield |  | 5.5 | % | 4.0 | % | 2037
Residence Inn Summerville |  | 6.0 | % | 2.5 | % | 2038
Courtyard Dallas |  | 4.0% to 6.0% | 2.0 | % | 2038
Residence Inn Austin Northwest/The Domain Area |  | 5.5% to 6.0% | 2.5 | % | 2036
TownePlace Suites Austin Northwest/The Domain Area |  | 3.0% to 5.5% | 2.0 | % | 2041
Franchise and marketing/program fees totaled approximately $16.6 million, $11.6 million and $25.9 million, respectively, for the years ended December 31, 2021, 2020 and 2019.

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