þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Maryland
|
|
46-2488594
|
(State or other jurisdiction of incorporation or organization)
|
|
(IRS employer identification number)
|
|
|
|
14185 Dallas Parkway, Suite 1100
|
|
|
Dallas, Texas
|
|
75254
|
(Address of principal executive offices)
|
|
(Zip code)
|
Large accelerated filer
|
¨
|
Accelerated filer
|
þ
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
|
|
Emerging growth company
|
þ
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock
|
|
BHR
|
|
New York Stock Exchange
|
Preferred Stock, Series B
|
|
BHR-PB
|
|
New York Stock Exchange
|
Preferred Stock, Series D
|
|
BHR-PD
|
|
New York Stock Exchange
|
Common Stock, $0.01 par value per share
|
|
32,902,713
|
(Class)
|
|
Outstanding at August 2, 2019
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
||||
Investments in hotel properties, gross
|
$
|
1,748,734
|
|
|
$
|
1,562,806
|
|
Accumulated depreciation
|
(288,319
|
)
|
|
(262,905
|
)
|
||
Investments in hotel properties, net
|
1,460,415
|
|
|
1,299,901
|
|
||
Cash and cash equivalents
|
80,360
|
|
|
182,578
|
|
||
Restricted cash
|
70,064
|
|
|
75,910
|
|
||
Accounts receivable, net of allowance of $119 and $101, respectively
|
19,266
|
|
|
12,739
|
|
||
Inventories
|
2,321
|
|
|
1,862
|
|
||
Prepaid expenses
|
8,246
|
|
|
4,409
|
|
||
Investment in Ashford Inc., at fair value
|
6,195
|
|
|
10,114
|
|
||
Investment in unconsolidated entity
|
1,821
|
|
|
1,766
|
|
||
Derivative assets
|
911
|
|
|
772
|
|
||
Operating lease right-of-use assets
|
82,353
|
|
|
—
|
|
||
Other assets
|
10,847
|
|
|
13,831
|
|
||
Intangible assets, net
|
5,208
|
|
|
27,678
|
|
||
Due from related party, net
|
875
|
|
|
—
|
|
||
Due from third-party hotel managers
|
11,557
|
|
|
4,927
|
|
||
Total assets
|
$
|
1,760,439
|
|
|
$
|
1,636,487
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Indebtedness, net
|
$
|
1,047,681
|
|
|
$
|
985,873
|
|
Accounts payable and accrued expenses
|
85,542
|
|
|
64,116
|
|
||
Dividends and distributions payable
|
9,334
|
|
|
8,514
|
|
||
Due to Ashford Inc.
|
4,030
|
|
|
4,001
|
|
||
Due to related party, net
|
—
|
|
|
224
|
|
||
Due to third-party hotel managers
|
3,154
|
|
|
1,633
|
|
||
Operating lease liabilities
|
60,779
|
|
|
—
|
|
||
Other liabilities
|
27,991
|
|
|
29,033
|
|
||
Total liabilities
|
1,238,511
|
|
|
1,093,394
|
|
||
Commitments and contingencies (note 16)
|
|
|
|
||||
5.50% Series B cumulative convertible preferred stock, $0.01 par value, 4,965,850 shares issued and outstanding at June 30, 2019 and December 31, 2018
|
106,123
|
|
|
106,123
|
|
||
Redeemable noncontrolling interests in operating partnership
|
42,075
|
|
|
44,885
|
|
||
Equity:
|
|
|
|
||||
Preferred stock, $0.01 value, 50,000,000 shares authorized:
|
|
|
|
||||
Series D cumulative preferred stock, 1,600,000 shares issued and outstanding at June 30, 2019 and December 31, 2018
|
16
|
|
|
16
|
|
||
Common stock, $0.01 par value, 200,000,000 shares authorized, 32,879,913 and 32,511,660 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively
|
329
|
|
|
325
|
|
||
Additional paid-in capital
|
516,700
|
|
|
512,545
|
|
||
Accumulated deficit
|
(137,775
|
)
|
|
(115,410
|
)
|
||
Total stockholders’ equity of the Company
|
379,270
|
|
|
397,476
|
|
||
Noncontrolling interest in consolidated entities
|
(5,540
|
)
|
|
(5,391
|
)
|
||
Total equity
|
373,730
|
|
|
392,085
|
|
||
Total liabilities and equity
|
$
|
1,760,439
|
|
|
$
|
1,636,487
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
REVENUE
|
|
|
|
|
|
|
|
||||||||
Rooms
|
$
|
75,121
|
|
|
$
|
78,439
|
|
|
$
|
151,852
|
|
|
$
|
143,946
|
|
Food and beverage
|
25,790
|
|
|
25,393
|
|
|
57,904
|
|
|
48,893
|
|
||||
Other
|
17,605
|
|
|
17,286
|
|
|
37,268
|
|
|
30,768
|
|
||||
Total hotel revenue
|
118,516
|
|
|
121,118
|
|
|
247,024
|
|
|
223,607
|
|
||||
Other
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||
Total revenue
|
118,516
|
|
|
121,118
|
|
|
247,029
|
|
|
223,607
|
|
||||
EXPENSES
|
|
|
|
|
|
|
|
||||||||
Hotel operating expenses:
|
|
|
|
|
|
|
|
||||||||
Rooms
|
16,833
|
|
|
16,652
|
|
|
33,815
|
|
|
31,570
|
|
||||
Food and beverage
|
19,394
|
|
|
17,287
|
|
|
41,604
|
|
|
32,907
|
|
||||
Other expenses
|
36,335
|
|
|
33,768
|
|
|
75,230
|
|
|
63,432
|
|
||||
Management fees
|
4,166
|
|
|
4,501
|
|
|
8,582
|
|
|
8,118
|
|
||||
Total hotel expenses
|
76,728
|
|
|
72,208
|
|
|
159,231
|
|
|
136,027
|
|
||||
Property taxes, insurance and other
|
5,206
|
|
|
6,077
|
|
|
12,666
|
|
|
11,681
|
|
||||
Depreciation and amortization
|
18,474
|
|
|
14,811
|
|
|
35,160
|
|
|
27,817
|
|
||||
Impairment charges
|
—
|
|
|
59
|
|
|
—
|
|
|
71
|
|
||||
Advisory services fee
|
4,397
|
|
|
4,880
|
|
|
10,421
|
|
|
10,124
|
|
||||
Transaction costs
|
70
|
|
|
461
|
|
|
704
|
|
|
949
|
|
||||
Corporate general and administrative
|
932
|
|
|
1,206
|
|
|
2,058
|
|
|
1,234
|
|
||||
Total expenses
|
105,807
|
|
|
99,702
|
|
|
220,240
|
|
|
187,903
|
|
||||
Gain (loss) on sale of assets and hotel properties
|
9
|
|
|
15,711
|
|
|
9
|
|
|
15,711
|
|
||||
OPERATING INCOME (LOSS)
|
12,718
|
|
|
37,127
|
|
|
26,798
|
|
|
51,415
|
|
||||
Equity in earnings (loss) of unconsolidated entity
|
(51
|
)
|
|
(62
|
)
|
|
(101
|
)
|
|
(65
|
)
|
||||
Interest income
|
287
|
|
|
230
|
|
|
649
|
|
|
430
|
|
||||
Other income (expense)
|
(139
|
)
|
|
(63
|
)
|
|
(256
|
)
|
|
(126
|
)
|
||||
Interest expense and amortization of loan costs
|
(14,055
|
)
|
|
(12,678
|
)
|
|
(28,248
|
)
|
|
(22,857
|
)
|
||||
Write-off of loan costs and exit fees
|
—
|
|
|
(4,176
|
)
|
|
(312
|
)
|
|
(4,178
|
)
|
||||
Unrealized gain (loss) on investment in Ashford Inc.
|
(4,626
|
)
|
|
(6,024
|
)
|
|
(3,919
|
)
|
|
(5,496
|
)
|
||||
Unrealized gain (loss) on derivatives
|
654
|
|
|
(298
|
)
|
|
(218
|
)
|
|
(225
|
)
|
||||
INCOME (LOSS) BEFORE INCOME TAXES
|
(5,212
|
)
|
|
14,056
|
|
|
(5,607
|
)
|
|
18,898
|
|
||||
Income tax (expense) benefit
|
(411
|
)
|
|
(1,202
|
)
|
|
(1,338
|
)
|
|
(1,774
|
)
|
||||
NET INCOME (LOSS)
|
(5,623
|
)
|
|
12,854
|
|
|
(6,945
|
)
|
|
17,124
|
|
||||
(Income) loss attributable to noncontrolling interest in consolidated entities
|
248
|
|
|
(89
|
)
|
|
149
|
|
|
(47
|
)
|
||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
|
865
|
|
|
(1,235
|
)
|
|
1,305
|
|
|
(1,527
|
)
|
||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY
|
(4,510
|
)
|
|
11,530
|
|
|
(5,491
|
)
|
|
15,550
|
|
||||
Preferred dividends
|
(2,532
|
)
|
|
(1,708
|
)
|
|
(5,064
|
)
|
|
(3,415
|
)
|
||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(7,042
|
)
|
|
$
|
9,822
|
|
|
$
|
(10,555
|
)
|
|
$
|
12,135
|
|
INCOME (LOSS) PER SHARE - BASIC:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to common stockholders
|
$
|
(0.22
|
)
|
|
$
|
0.30
|
|
|
$
|
(0.34
|
)
|
|
$
|
0.37
|
|
Weighted average common shares outstanding – basic
|
32,307
|
|
|
32,006
|
|
|
32,213
|
|
|
31,845
|
|
||||
INCOME (LOSS) PER SHARE - DILUTED:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to common stockholders
|
$
|
(0.22
|
)
|
|
$
|
0.29
|
|
|
$
|
(0.34
|
)
|
|
$
|
0.37
|
|
Weighted average common shares outstanding – diluted
|
32,307
|
|
|
38,588
|
|
|
32,213
|
|
|
31,853
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
NET INCOME (LOSS)
|
$
|
(5,623
|
)
|
|
$
|
12,854
|
|
|
$
|
(6,945
|
)
|
|
$
|
17,124
|
|
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
|
|
|
|
|
|
|
|
||||||||
Total other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
TOTAL COMPREHENSIVE INCOME (LOSS)
|
(5,623
|
)
|
|
12,854
|
|
|
(6,945
|
)
|
|
17,124
|
|
||||
Comprehensive (income) loss attributable to noncontrolling interest in consolidated entities
|
248
|
|
|
(89
|
)
|
|
149
|
|
|
(47
|
)
|
||||
Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership
|
865
|
|
|
(1,235
|
)
|
|
1,305
|
|
|
(1,527
|
)
|
||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY
|
$
|
(4,510
|
)
|
|
$
|
11,530
|
|
|
$
|
(5,491
|
)
|
|
$
|
15,550
|
|
|
8.25% Series D Cumulative Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated Deficit
|
|
Noncontrolling Interest in Consolidated Entities
|
|
Total
|
|
5.50% Series B Cumulative Convertible
Preferred Stock
|
|
Redeemable Noncontrolling Interests in Operating Partnership
|
|||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||||||||||
Balance at March 31, 2019
|
1,600
|
|
|
$
|
16
|
|
|
32,841
|
|
|
$
|
328
|
|
|
$
|
514,739
|
|
|
$
|
(132,575
|
)
|
|
$
|
(5,292
|
)
|
|
$
|
377,216
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
51,010
|
|
Purchase of common stock
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(182
|
)
|
|
—
|
|
|
—
|
|
|
(182
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Equity-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,377
|
|
|
—
|
|
|
—
|
|
|
1,377
|
|
|
—
|
|
|
—
|
|
|
644
|
|
||||||||
Forfeiture of restricted common shares
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – common stock ($0.16/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,336
|
)
|
|
—
|
|
|
(5,336
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series B ($0.3437/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,707
|
)
|
|
—
|
|
|
(1,707
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series D ($0.5156/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(825
|
)
|
|
—
|
|
|
(825
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(769
|
)
|
||||||||
Redemption/conversion of operating partnership units
|
—
|
|
|
—
|
|
|
55
|
|
|
1
|
|
|
766
|
|
|
—
|
|
|
—
|
|
|
767
|
|
|
—
|
|
|
—
|
|
|
(767
|
)
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,510
|
)
|
|
(248
|
)
|
|
(4,758
|
)
|
|
—
|
|
|
—
|
|
|
(865
|
)
|
||||||||
Redemption value adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,178
|
|
|
—
|
|
|
7,178
|
|
|
—
|
|
|
—
|
|
|
(7,178
|
)
|
||||||||
Balance at June 30, 2019
|
1,600
|
|
|
$
|
16
|
|
|
32,880
|
|
|
$
|
329
|
|
|
$
|
516,700
|
|
|
$
|
(137,775
|
)
|
|
$
|
(5,540
|
)
|
|
$
|
373,730
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
42,075
|
|
|
8.25% Series D Cumulative Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated Deficit
|
|
Noncontrolling Interest in Consolidated Entities
|
|
Total
|
|
5.50% Series B Cumulative Convertible
Preferred Stock |
|
Redeemable Noncontrolling Interests in Operating Partnership
|
|||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||||||||||
Balance at December 31, 2018
|
1,600
|
|
|
$
|
16
|
|
|
32,512
|
|
|
$
|
325
|
|
|
$
|
512,545
|
|
|
$
|
(115,410
|
)
|
|
$
|
(5,391
|
)
|
|
$
|
392,085
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
44,885
|
|
Impact of adoption of new accounting standard
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(103
|
)
|
|
—
|
|
|
(103
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Purchase of common stock
|
—
|
|
|
—
|
|
|
(30
|
)
|
|
—
|
|
|
(384
|
)
|
|
—
|
|
|
—
|
|
|
(384
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Equity-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,355
|
|
|
—
|
|
|
—
|
|
|
2,355
|
|
|
—
|
|
|
—
|
|
|
1,194
|
|
||||||||
Preferred stock offering costs
|
|
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Issuance of restricted shares/units
|
—
|
|
|
—
|
|
|
237
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||||||
Forfeiture of restricted common shares
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – common stock ($0.32/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,665
|
)
|
|
—
|
|
|
(10,665
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series B ($0.6875/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,414
|
)
|
|
—
|
|
|
(3,414
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series D ($1.0313/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,650
|
)
|
|
—
|
|
|
(1,650
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,547
|
)
|
||||||||
Redemption/conversion of operating partnership units
|
—
|
|
|
—
|
|
|
165
|
|
|
2
|
|
|
2,199
|
|
|
—
|
|
|
—
|
|
|
2,201
|
|
|
—
|
|
|
—
|
|
|
(2,201
|
)
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,491
|
)
|
|
(149
|
)
|
|
(5,640
|
)
|
|
—
|
|
|
—
|
|
|
(1,305
|
)
|
||||||||
Redemption value adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,042
|
)
|
|
—
|
|
|
(1,042
|
)
|
|
—
|
|
|
—
|
|
|
1,042
|
|
||||||||
Balance at June 30, 2019
|
1,600
|
|
|
$
|
16
|
|
|
32,880
|
|
|
$
|
329
|
|
|
$
|
516,700
|
|
|
$
|
(137,775
|
)
|
|
$
|
(5,540
|
)
|
|
$
|
373,730
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
42,075
|
|
|
8.25% Series D Cumulative Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated Deficit
|
|
Noncontrolling Interest in Consolidated Entities
|
|
Total
|
|
5.50% Series B Cumulative Convertible
Preferred Stock
|
|
Redeemable Noncontrolling Interests in Operating Partnership
|
|||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||||||||||
Balance at March 31, 2018
|
—
|
|
|
$
|
—
|
|
|
32,517
|
|
|
$
|
325
|
|
|
$
|
472,220
|
|
|
$
|
(91,769
|
)
|
|
$
|
(4,795
|
)
|
|
$
|
375,981
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
46,259
|
|
Purchase of common stock
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(129
|
)
|
|
—
|
|
|
—
|
|
|
(129
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Equity-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
854
|
|
|
—
|
|
|
—
|
|
|
854
|
|
|
—
|
|
|
—
|
|
|
588
|
|
||||||||
Forfeiture of restricted common shares
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – common stock ($0.16/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,272
|
)
|
|
—
|
|
|
(5,272
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series B ($0.3437/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,708
|
)
|
|
—
|
|
|
(1,708
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(539
|
)
|
|
(539
|
)
|
|
—
|
|
|
—
|
|
|
(822
|
)
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,530
|
|
|
89
|
|
|
11,619
|
|
|
—
|
|
|
—
|
|
|
1,235
|
|
||||||||
Redemption value adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(558
|
)
|
|
—
|
|
|
(558
|
)
|
|
—
|
|
|
—
|
|
|
558
|
|
||||||||
Balance at June 30, 2018
|
—
|
|
|
$
|
—
|
|
|
32,502
|
|
|
$
|
325
|
|
|
$
|
472,945
|
|
|
$
|
(87,777
|
)
|
|
$
|
(5,245
|
)
|
|
$
|
380,248
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
47,818
|
|
|
8.25% Series D Cumulative Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated Deficit
|
|
Noncontrolling Interest in Consolidated Entities
|
|
Total
|
|
5.50% Series B Cumulative Convertible
Preferred Stock
|
|
Redeemable Noncontrolling Interests in Operating Partnership
|
|||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||||||||||
Balance at January 1, 2018
|
—
|
|
|
$
|
—
|
|
|
32,120
|
|
|
$
|
321
|
|
|
$
|
469,791
|
|
|
$
|
(88,807
|
)
|
|
$
|
(4,753
|
)
|
|
$
|
376,552
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
46,627
|
|
Purchase of common stock
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
(203
|
)
|
|
—
|
|
|
—
|
|
|
(203
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Equity-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,303
|
|
|
—
|
|
|
—
|
|
|
3,303
|
|
|
—
|
|
|
—
|
|
|
732
|
|
||||||||
Issuance of restricted shares/units
|
—
|
|
|
—
|
|
|
406
|
|
|
4
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||||||
Forfeiture of restricted common shares
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – common stock ($0.32/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,547
|
)
|
|
—
|
|
|
(10,547
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series B ($0.6875/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,415
|
)
|
|
—
|
|
|
(3,415
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(539
|
)
|
|
(539
|
)
|
|
—
|
|
|
—
|
|
|
(1,644
|
)
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,550
|
|
|
47
|
|
|
15,597
|
|
|
—
|
|
|
—
|
|
|
1,527
|
|
||||||||
Redemption value adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(558
|
)
|
|
—
|
|
|
(558
|
)
|
|
—
|
|
|
—
|
|
|
558
|
|
||||||||
Balance at June 30, 2018
|
—
|
|
|
$
|
—
|
|
|
32,502
|
|
|
$
|
325
|
|
|
$
|
472,945
|
|
|
$
|
(87,777
|
)
|
|
$
|
(5,245
|
)
|
|
$
|
380,248
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
47,818
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income (loss)
|
$
|
(6,945
|
)
|
|
$
|
17,124
|
|
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
|
|
|
|
||||
Depreciation and amortization
|
35,160
|
|
|
27,817
|
|
||
Equity-based compensation
|
3,549
|
|
|
4,035
|
|
||
Bad debt expense
|
166
|
|
|
109
|
|
||
Amortization of loan costs
|
2,201
|
|
|
2,063
|
|
||
Write-off of loan costs and exit fees
|
312
|
|
|
4,178
|
|
||
Amortization of intangibles
|
237
|
|
|
92
|
|
||
Amortization of non-refundable membership initiation fees
|
(67
|
)
|
|
(5
|
)
|
||
Interest expense accretion on refundable membership club deposits
|
438
|
|
|
150
|
|
||
(Gain) loss on sale of hotel properties
|
(9
|
)
|
|
(15,711
|
)
|
||
Impairment charges
|
—
|
|
|
71
|
|
||
Unrealized (gain) loss on investment in Ashford Inc.
|
3,919
|
|
|
5,496
|
|
||
Realized and unrealized (gain) loss on derivatives
|
358
|
|
|
225
|
|
||
Net settlement of trading derivatives
|
(175
|
)
|
|
(290
|
)
|
||
Equity in (earnings) loss of unconsolidated entity
|
101
|
|
|
65
|
|
||
Deferred income tax expense (benefit)
|
592
|
|
|
122
|
|
||
Changes in operating assets and liabilities, exclusive of the effect of hotel acquisitions and dispositions:
|
|
|
|
||||
Accounts receivable and inventories
|
(5,325
|
)
|
|
(4,525
|
)
|
||
Prepaid expenses and other assets
|
(3,147
|
)
|
|
3,249
|
|
||
Accounts payable and accrued expenses
|
6,336
|
|
|
(3,239
|
)
|
||
Operating lease right-of-use assets
|
170
|
|
|
—
|
|
||
Due to/from related party, net
|
(1,099
|
)
|
|
(252
|
)
|
||
Due to/from third-party hotel managers
|
1,066
|
|
|
2,085
|
|
||
Due to/from Ashford Inc.
|
(381
|
)
|
|
(603
|
)
|
||
Operating lease liabilities
|
(86
|
)
|
|
—
|
|
||
Other liabilities
|
(4,892
|
)
|
|
(3,595
|
)
|
||
Net cash provided by (used in) operating activities
|
32,479
|
|
|
38,661
|
|
||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Proceeds from property insurance
|
—
|
|
|
24,663
|
|
||
Acquisition of hotel properties, net of cash and restricted cash acquired
|
(111,751
|
)
|
|
(177,875
|
)
|
||
Investment in unconsolidated entity
|
(156
|
)
|
|
(2,000
|
)
|
||
Net proceeds from sale of assets and hotel properties
|
1,420
|
|
|
65,336
|
|
||
Improvements and additions to hotel properties
|
(72,707
|
)
|
|
(32,423
|
)
|
||
Net cash provided by (used in) investing activities
|
(183,194
|
)
|
|
(122,299
|
)
|
||
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Borrowings on indebtedness
|
249,000
|
|
|
575,000
|
|
||
Repayments of indebtedness
|
(187,086
|
)
|
|
(399,312
|
)
|
||
Payments of loan costs and exit fees
|
(2,440
|
)
|
|
(9,406
|
)
|
||
Payments for derivatives
|
(62
|
)
|
|
(348
|
)
|
||
Purchase of common stock
|
(202
|
)
|
|
(203
|
)
|
||
Payments for dividends and distributions
|
(16,456
|
)
|
|
(15,122
|
)
|
||
Preferred stock offering costs
|
(110
|
)
|
|
—
|
|
||
Other
|
7
|
|
|
18
|
|
||
Net cash provided by (used in) financing activities
|
42,651
|
|
|
150,627
|
|
||
Net change in cash, cash equivalents and restricted cash
|
(108,064
|
)
|
|
66,989
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
258,488
|
|
|
185,342
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
150,424
|
|
|
$
|
252,331
|
|
|
|
|
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
|
|
|
||||
Interest paid
|
$
|
25,427
|
|
|
$
|
21,976
|
|
Income taxes paid (refund)
|
(494
|
)
|
|
704
|
|
||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
|
|
|
|
||||
Common stock purchases accrued but not paid
|
$
|
182
|
|
|
$
|
—
|
|
Dividends and distributions declared but not paid
|
9,334
|
|
|
8,572
|
|
||
Capital expenditures accrued but not paid
|
16,396
|
|
|
3,658
|
|
||
Non-cash dividends paid
|
—
|
|
|
58
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Non-cash settlement of note receivable
|
—
|
|
|
8,098
|
|
||
Non-cash settlement of TIF loan
|
—
|
|
|
8,098
|
|
||
SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
|
|
||||
Cash and cash equivalents at beginning of period
|
$
|
182,578
|
|
|
$
|
137,522
|
|
Restricted cash at beginning of period
|
75,910
|
|
|
47,820
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
$
|
258,488
|
|
|
$
|
185,342
|
|
|
|
|
|
||||
Cash and cash equivalents at end of period
|
$
|
80,360
|
|
|
$
|
169,235
|
|
Restricted cash at end of period
|
70,064
|
|
|
83,096
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
150,424
|
|
|
$
|
252,331
|
|
•
|
historical seasonality patterns at some of our hotel properties cause fluctuations in our overall operating results. Consequently, operating results for the
three and six
months ended
June 30, 2019
, are not necessarily indicative of the results that may be expected for the year ending
December 31, 2019
;
|
•
|
on April 4, 2018, we acquired the Ritz-Carlton, Sarasota. The operating results of the hotel property have been included in the results of operations as of its acquisition date;
|
•
|
on June 1, 2018, we sold the Tampa Renaissance; and
|
•
|
on January 15, 2019, we acquired the Ritz-Carlton, Lake Tahoe. The operating results of the hotel property have been included in the results of operations as of its acquisition date.
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||
Primary Geographical Market
|
|
Number of Hotels
|
|
Rooms
|
|
Food and Beverage
|
|
Other Hotel
|
|
Other
|
|
Total
|
||||||||||
California
|
|
5
|
|
$
|
26,549
|
|
|
$
|
7,956
|
|
|
$
|
3,526
|
|
|
$
|
—
|
|
|
$
|
38,031
|
|
Colorado
|
|
1
|
|
1,376
|
|
|
1,416
|
|
|
1,728
|
|
|
—
|
|
|
4,520
|
|
|||||
Florida
|
|
2
|
|
11,444
|
|
|
6,591
|
|
|
4,181
|
|
|
—
|
|
|
22,216
|
|
|||||
Illinois
|
|
1
|
|
8,229
|
|
|
2,408
|
|
|
406
|
|
|
—
|
|
|
11,043
|
|
|||||
Pennsylvania
|
|
1
|
|
7,257
|
|
|
905
|
|
|
254
|
|
|
—
|
|
|
8,416
|
|
|||||
Washington
|
|
1
|
|
7,901
|
|
|
1,606
|
|
|
425
|
|
|
—
|
|
|
9,932
|
|
|||||
Washington, D.C.
|
|
1
|
|
12,363
|
|
|
4,430
|
|
|
436
|
|
|
—
|
|
|
17,229
|
|
|||||
USVI
|
|
1
|
|
2
|
|
|
478
|
|
|
6,649
|
|
|
—
|
|
|
7,129
|
|
|||||
Total
|
|
13
|
|
$
|
75,121
|
|
|
$
|
25,790
|
|
|
$
|
17,605
|
|
|
$
|
—
|
|
|
$
|
118,516
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||
Primary Geographical Market
|
|
Number of Hotels
|
|
Rooms
|
|
Food and Beverage
|
|
Other Hotel
|
|
Other
|
|
Total
|
||||||||||
California
|
|
4
|
|
$
|
23,535
|
|
|
$
|
5,649
|
|
|
$
|
2,379
|
|
|
$
|
—
|
|
|
$
|
31,563
|
|
Colorado
|
|
1
|
|
1,761
|
|
|
1,745
|
|
|
1,731
|
|
|
—
|
|
|
5,237
|
|
|||||
Florida
|
|
2
|
|
10,807
|
|
|
7,053
|
|
|
3,172
|
|
|
—
|
|
|
21,032
|
|
|||||
Illinois
|
|
1
|
|
7,783
|
|
|
2,569
|
|
|
371
|
|
|
—
|
|
|
10,723
|
|
|||||
Pennsylvania
|
|
1
|
|
8,351
|
|
|
1,719
|
|
|
303
|
|
|
—
|
|
|
10,373
|
|
|||||
Washington
|
|
1
|
|
9,050
|
|
|
1,701
|
|
|
361
|
|
|
—
|
|
|
11,112
|
|
|||||
Washington, D.C.
|
|
1
|
|
12,791
|
|
|
3,896
|
|
|
337
|
|
|
—
|
|
|
17,024
|
|
|||||
USVI
|
|
1
|
|
1,472
|
|
|
132
|
|
|
5,253
|
|
|
—
|
|
|
6,857
|
|
|||||
Sold hotel properties
|
|
1
|
|
2,889
|
|
|
929
|
|
|
3,379
|
|
|
—
|
|
|
7,197
|
|
|||||
Total
|
|
13
|
|
$
|
78,439
|
|
|
$
|
25,393
|
|
|
$
|
17,286
|
|
|
$
|
—
|
|
|
$
|
121,118
|
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||
Primary Geographical Market
|
|
Number of Hotels
|
|
Rooms
|
|
Food and Beverage
|
|
Other Hotel
|
|
Other
|
|
Total
|
||||||||||
California
|
|
5
|
|
$
|
56,463
|
|
|
$
|
18,121
|
|
|
$
|
7,452
|
|
|
$
|
—
|
|
|
$
|
82,036
|
|
Colorado
|
|
1
|
|
10,973
|
|
|
6,252
|
|
|
5,394
|
|
|
—
|
|
|
22,619
|
|
|||||
Florida
|
|
2
|
|
26,440
|
|
|
14,687
|
|
|
9,003
|
|
|
—
|
|
|
50,130
|
|
|||||
Illinois
|
|
1
|
|
11,552
|
|
|
3,546
|
|
|
702
|
|
|
—
|
|
|
15,800
|
|
|||||
Pennsylvania
|
|
1
|
|
11,494
|
|
|
1,713
|
|
|
483
|
|
|
—
|
|
|
13,690
|
|
|||||
Washington
|
|
1
|
|
13,017
|
|
|
3,421
|
|
|
807
|
|
|
—
|
|
|
17,245
|
|
|||||
Washington, D.C.
|
|
1
|
|
21,071
|
|
|
8,991
|
|
|
818
|
|
|
—
|
|
|
30,880
|
|
|||||
USVI
|
|
1
|
|
842
|
|
|
1,173
|
|
|
12,609
|
|
|
—
|
|
|
14,624
|
|
|||||
Corporate entities
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|||||
Total
|
|
13
|
|
$
|
151,852
|
|
|
$
|
57,904
|
|
|
$
|
37,268
|
|
|
$
|
5
|
|
|
$
|
247,029
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||
Primary Geographical Market
|
|
Number of Hotels
|
|
Rooms
|
|
Food and Beverage
|
|
Other Hotel
|
|
Other
|
|
Total
|
||||||||||
California
|
|
4
|
|
$
|
42,639
|
|
|
$
|
12,954
|
|
|
$
|
5,854
|
|
|
$
|
—
|
|
|
$
|
61,447
|
|
Colorado
|
|
1
|
|
11,558
|
|
|
6,564
|
|
|
5,274
|
|
|
—
|
|
|
23,396
|
|
|||||
Florida
|
|
2
|
|
16,280
|
|
|
7,856
|
|
|
3,923
|
|
|
—
|
|
|
28,059
|
|
|||||
Illinois
|
|
1
|
|
11,202
|
|
|
3,820
|
|
|
581
|
|
|
—
|
|
|
15,603
|
|
|||||
Pennsylvania
|
|
1
|
|
14,504
|
|
|
2,892
|
|
|
600
|
|
|
—
|
|
|
17,996
|
|
|||||
Washington
|
|
1
|
|
14,552
|
|
|
3,365
|
|
|
626
|
|
|
—
|
|
|
18,543
|
|
|||||
Washington, D.C.
|
|
1
|
|
21,752
|
|
|
8,236
|
|
|
620
|
|
|
—
|
|
|
30,608
|
|
|||||
USVI
|
|
1
|
|
3,288
|
|
|
331
|
|