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Immaterial Correction of Error
 9 Months Ended
Sep. 30, 2020
Accounting Changes and Error Corrections [Abstract]  
Immaterial Correction of Error Correction of Immaterial Error
In connection with the preparation of the Company’s condensed consolidated financial statements for the three months ended September 30, 2020, management determined that the manner in which it accounted for default interest and late charges under its troubled debt restructurings was incorrect. Previously, the Company reversed default interest and late charges under its troubled debt restructurings immediately in the period that the relevant forbearance agreement was signed; however, such amounts should have been capitalized into the applicable loan balances and amortized over the remaining term of the loan using the effective interest method. The amount of the error as of and for the three and six months ended June 30, 2020 was $4.6 million.
Management assessed the materiality of error and determined the impact on the Company’s condensed consolidated financial statements was not material. The prior period comparative consolidated financial statements have been revised to correct the error.
The table below sets forth the impact of the revision on the previously issued condensed consolidated balance sheet (not presented herein) (in thousands):
 
June 30, 2020
 
As Previously Reported
 
Adjustments
 
As Revised
LIABILITIES AND EQUITY
 
 
 
 
 
Liabilities:
 
 
 
 
 
Indebtedness, net
$
1,123,313

 
$
4,614

 
$
1,127,927

Total liabilities
1,280,427

 
4,614

 
1,285,041

 
 
 
 
 
 
Redeemable noncontrolling interests in operating partnership
32,060

 
(471
)
 
31,589

Equity:
 
 
 
 
—

Accumulated deficit
(212,431
)
 
(4,143
)
 
(216,574
)
Total stockholders' equity of the Company
313,766

 
(4,143
)
 
309,623

Total equity
302,138

 
(4,143
)
 
297,995

Total liabilities and equity
$
1,721,977

 
$
—

 
$
1,721,977

The table below sets forth the impact of the revision on the previously issued condensed consolidated statements of operations (not presented herein) (in thousands):
 
Three Months Ended June 30, 2020
 
Six Months Ended June 30, 2020
 
As Previously Reported
 
Adjustments
 
As Revised
 
As Previously Reported
 
Adjustments
 
As Revised
EXPENSES
 
 
 
 
 
 
 
 
 
 
 
Interest expense and amortization of loan costs
$
(12,797
)
 
$
(4,614
)
 
$
(17,411
)
 
$
(24,694
)
 
$
(4,614
)
 
$
(29,308
)
INCOME (LOSS) BEFORE INCOME TAXES
(55,938
)
 
(4,614
)
 
(60,552
)
 
(69,955
)
 
(4,614
)
 
(74,569
)
NET INCOME (LOSS)
(51,491
)
 
(4,614
)
 
(56,105
)
 
(66,878
)
 
(4,614
)
 
(71,492
)
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
5,297

 
473

 
5,770

 
7,182

 
473

 
7,655

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY
(43,790
)
 
(4,141
)
 
(47,931
)
 
(56,720
)
 
(4,141
)
 
(60,861
)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
$
(46,345
)
 
$
(4,141
)
 
$
(50,486
)
 
$
(61,830
)
 
$
(4,141
)
 
$
(65,971
)
 
 
 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) PER SHARE – BASIC AND DILUTED
 
 
 
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
(1.41
)
 
$
(0.12
)
 
$
(1.53
)
 
$
(1.89
)
 
$
(0.13
)
 
$
(2.02
)
Weighted average common shares outstanding – basic
32,907

 
—

 
32,907

 
32,688

 
—

 
32,688

Diluted:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
(1.41
)
 
$
(0.12
)
 
$
(1.53
)
 
$
(1.89
)
 
$
(0.13
)
 
$
(2.02
)
Weighted average common shares outstanding – diluted
32,907

 
—

 
32,907

 
32,688

 
—

 
32,688

The table below sets forth the impact of the revision on the previously issued condensed consolidated statements of comprehensive income (loss) (not presented herein) (in thousands):
 
Three Months Ended June 30, 2020
 
Six Months Ended June 30, 2020
 
As Previously Reported
 
Adjustments
 
As Revised
 
As Previously Reported
 
Adjustments
 
As Revised
NET INCOME (LOSS)
$
(51,491
)
 
$
(4,614
)
 
$
(56,105
)
 
$
(66,878
)
 
$
(4,614
)
 
$
(71,492
)
TOTAL COMPREHENSIVE INCOME (LOSS)
(51,491
)
 
(4,614
)
 
(56,105
)
 
(66,878
)
 
(4,614
)
 
(71,492
)
Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership
5,297

 
473

 
5,770

 
7,182

 
473

 
7,655

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY
$
(43,790
)
 
$
(4,141
)
 
$
(47,931
)
 
$
(56,720
)
 
$
(4,141
)
 
$
(60,861
)
The table below sets forth the impact of the revision on the previously issued condensed consolidated statements of equity (not presented herein) (in thousands):
 
Three Months Ended June 30, 2020
 
Six Months Ended June 30, 2020
 
As Previously
Reported
 
Adjustments
 
As Revised
 
As Previously
Reported
 
Adjustments
 
As Revised
Consolidated statement of equity:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
(43,790
)
 
(4,141
)
 
(47,931
)
 
(56,720
)
 
(4,141
)
 
(60,861
)
Redemption value adjustment
22

 
(2
)
 
20

 
28

 
(2
)
 
26

Accumulated deficit
(212,431
)
 
(4,143
)
 
(216,574
)
 
(212,431
)
 
(4,143
)
 
(216,574
)
Total stockholders' equity of the Company
313,766

 
(4,143
)
 
309,623

 
313,766

 
(4,143
)
 
309,623

Total equity
$
302,138

 
$
(4,143
)
 
$
297,995

 
$
302,138

 
$
(4,143
)
 
$
297,995

 
 
 
 
 
 
 
 
 
 
 
 
Redeemable noncontrolling interests in operating partnership:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
(5,297
)
 
(473
)
 
(5,770
)
 
(7,182
)
 
(473
)
 
(7,655
)
Redemption value adjustment
(22
)
 
2

 
(20
)
 
(28
)
 
2

 
(26
)
Redeemable noncontrolling interests in operating partnership:
$
32,060

 
$
(471
)
 
$
31,589

 
$
(212,431
)
 
$
(471
)
 
$
(212,902
)
The table below sets forth the impact of the revision on the previously issued condensed consolidated statement of cash flows (not presented herein) (in thousands):
 
Six Months Ended June 30, 2020
 
As Previously Reported
 
Adjustments
 
As Revised
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
Net income (loss)
$
(66,878
)
 
$
(4,614
)
 
$
(71,492
)
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
 
 
 
 
 
Amortization of loan costs and capitalized default interest
$
2,018

 
$
(312
)
 
$
1,706

Changes in operating assets and liabilities, exclusive of the effects of hotel acquisition:
 
 
 
 
 
Accounts payable and accrued expenses
$
(16,287
)
 
$
4,926

 
$
(11,361
)
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
 
 
 
 
 
Non-cash loan principal associated with default interest and late fees
$
—

 
$
4,926

 
$
4,926