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
|
|
32,885,863
|
(Class)
|
|
Outstanding at November 4, 2019
|
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
||||
Investments in hotel properties, gross
|
$
|
1,768,160
|
|
|
$
|
1,562,806
|
|
Accumulated depreciation
|
(296,557
|
)
|
|
(262,905
|
)
|
||
Investments in hotel properties, net
|
1,471,603
|
|
|
1,299,901
|
|
||
Cash and cash equivalents
|
82,583
|
|
|
182,578
|
|
||
Restricted cash
|
57,367
|
|
|
75,910
|
|
||
Accounts receivable, net of allowance of $128 and $101, respectively
|
19,657
|
|
|
12,739
|
|
||
Inventories
|
2,350
|
|
|
1,862
|
|
||
Prepaid expenses
|
6,376
|
|
|
4,409
|
|
||
Investment in Ashford Inc., at fair value
|
4,724
|
|
|
10,114
|
|
||
Investment in unconsolidated entity
|
1,949
|
|
|
1,766
|
|
||
Derivative assets
|
773
|
|
|
772
|
|
||
Operating lease right-of-use assets
|
82,976
|
|
|
—
|
|
||
Other assets
|
12,257
|
|
|
13,831
|
|
||
Intangible assets, net
|
5,114
|
|
|
27,678
|
|
||
Due from related party, net
|
817
|
|
|
—
|
|
||
Due from third-party hotel managers
|
18,019
|
|
|
4,927
|
|
||
Total assets
|
$
|
1,766,565
|
|
|
$
|
1,636,487
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Indebtedness, net
|
$
|
1,057,467
|
|
|
$
|
985,873
|
|
Accounts payable and accrued expenses
|
97,945
|
|
|
64,116
|
|
||
Dividends and distributions payable
|
9,502
|
|
|
8,514
|
|
||
Due to Ashford Inc.
|
4,749
|
|
|
4,001
|
|
||
Due to related party, net
|
—
|
|
|
224
|
|
||
Due to third-party hotel managers
|
2,172
|
|
|
1,633
|
|
||
Operating lease liabilities
|
61,168
|
|
|
—
|
|
||
Other liabilities
|
29,525
|
|
|
29,033
|
|
||
Total liabilities
|
1,262,528
|
|
|
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 September 30, 2019 and December 31, 2018
|
106,123
|
|
|
106,123
|
|
||
Redeemable noncontrolling interests in operating partnership
|
40,584
|
|
|
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 September 30, 2019 and December 31, 2018
|
16
|
|
|
16
|
|
||
Common stock, $0.01 par value, 200,000,000 shares authorized, 32,900,422 and 32,511,660 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively
|
329
|
|
|
325
|
|
||
Additional paid-in capital
|
518,304
|
|
|
512,545
|
|
||
Accumulated deficit
|
(155,024
|
)
|
|
(115,410
|
)
|
||
Total stockholders’ equity of the Company
|
363,625
|
|
|
397,476
|
|
||
Noncontrolling interest in consolidated entities
|
(6,295
|
)
|
|
(5,391
|
)
|
||
Total equity
|
357,330
|
|
|
392,085
|
|
||
Total liabilities and equity
|
$
|
1,766,565
|
|
|
$
|
1,636,487
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
REVENUE
|
|
|
|
|
|
|
|
||||||||
Rooms
|
$
|
76,808
|
|
|
$
|
74,358
|
|
|
$
|
228,660
|
|
|
$
|
218,304
|
|
Food and beverage
|
26,422
|
|
|
21,171
|
|
|
84,326
|
|
|
70,064
|
|
||||
Other
|
15,652
|
|
|
13,317
|
|
|
52,920
|
|
|
44,085
|
|
||||
Total hotel revenue
|
118,882
|
|
|
108,846
|
|
|
365,906
|
|
|
332,453
|
|
||||
Other
|
2
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Total revenue
|
118,884
|
|
|
108,846
|
|
|
365,913
|
|
|
332,453
|
|
||||
EXPENSES
|
|
|
|
|
|
|
|
||||||||
Hotel operating expenses:
|
|
|
|
|
|
|
|
||||||||
Rooms
|
18,265
|
|
|
16,624
|
|
|
52,080
|
|
|
48,194
|
|
||||
Food and beverage
|
20,721
|
|
|
16,171
|
|
|
62,325
|
|
|
49,078
|
|
||||
Other expenses
|
36,201
|
|
|
32,058
|
|
|
111,431
|
|
|
95,490
|
|
||||
Management fees
|
3,960
|
|
|
3,963
|
|
|
12,542
|
|
|
12,081
|
|
||||
Total hotel expenses
|
79,147
|
|
|
68,816
|
|
|
238,378
|
|
|
204,843
|
|
||||
Property taxes, insurance and other
|
7,690
|
|
|
6,835
|
|
|
20,356
|
|
|
18,516
|
|
||||
Depreciation and amortization
|
16,831
|
|
|
14,474
|
|
|
51,991
|
|
|
42,291
|
|
||||
Impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
||||
Advisory services fee
|
5,158
|
|
|
5,733
|
|
|
15,579
|
|
|
15,857
|
|
||||
Transaction costs
|
—
|
|
|
—
|
|
|
704
|
|
|
949
|
|
||||
Corporate general and administrative
|
1,575
|
|
|
1,765
|
|
|
3,633
|
|
|
2,999
|
|
||||
Total expenses
|
110,401
|
|
|
97,623
|
|
|
330,641
|
|
|
285,526
|
|
||||
Gain (loss) on disposition of assets and sale of hotel property
|
(1,163
|
)
|
|
—
|
|
|
(1,154
|
)
|
|
15,711
|
|
||||
OPERATING INCOME (LOSS)
|
7,320
|
|
|
11,223
|
|
|
34,118
|
|
|
62,638
|
|
||||
Equity in earnings (loss) of unconsolidated entity
|
(48
|
)
|
|
(81
|
)
|
|
(149
|
)
|
|
(146
|
)
|
||||
Interest income
|
249
|
|
|
540
|
|
|
898
|
|
|
970
|
|
||||
Other income (expense)
|
(114
|
)
|
|
(64
|
)
|
|
(370
|
)
|
|
(190
|
)
|
||||
Interest expense and amortization of loan costs
|
(13,646
|
)
|
|
(13,084
|
)
|
|
(41,894
|
)
|
|
(35,941
|
)
|
||||
Write-off of loan costs and exit fees
|
(335
|
)
|
|
—
|
|
|
(647
|
)
|
|
(4,178
|
)
|
||||
Unrealized gain (loss) on investment in Ashford Inc.
|
(1,471
|
)
|
|
2,158
|
|
|
(5,390
|
)
|
|
(3,338
|
)
|
||||
Unrealized gain (loss) on derivatives
|
(754
|
)
|
|
(578
|
)
|
|
(972
|
)
|
|
(803
|
)
|
||||
INCOME (LOSS) BEFORE INCOME TAXES
|
(8,799
|
)
|
|
114
|
|
|
(14,406
|
)
|
|
19,012
|
|
||||
Income tax (expense) benefit
|
(155
|
)
|
|
(740
|
)
|
|
(1,493
|
)
|
|
(2,514
|
)
|
||||
NET INCOME (LOSS)
|
(8,954
|
)
|
|
(626
|
)
|
|
(15,899
|
)
|
|
16,498
|
|
||||
(Income) loss attributable to noncontrolling interest in consolidated entities
|
(1,899
|
)
|
|
(1,695
|
)
|
|
(1,750
|
)
|
|
(1,742
|
)
|
||||
Net (income) loss attributable to redeemable noncontrolling interests in operating partnership
|
1,465
|
|
|
452
|
|
|
2,770
|
|
|
(1,075
|
)
|
||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY
|
(9,388
|
)
|
|
(1,869
|
)
|
|
(14,879
|
)
|
|
13,681
|
|
||||
Preferred dividends
|
(2,533
|
)
|
|
(1,707
|
)
|
|
(7,597
|
)
|
|
(5,122
|
)
|
||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(11,921
|
)
|
|
$
|
(3,576
|
)
|
|
$
|
(22,476
|
)
|
|
$
|
8,559
|
|
INCOME (LOSS) PER SHARE - BASIC:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to common stockholders
|
$
|
(0.37
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
0.25
|
|
Weighted average common shares outstanding – basic
|
32,347
|
|
|
32,023
|
|
|
32,259
|
|
|
31,905
|
|
||||
INCOME (LOSS) PER SHARE - DILUTED:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to common stockholders
|
$
|
(0.37
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
0.25
|
|
Weighted average common shares outstanding – diluted
|
32,347
|
|
|
32,023
|
|
|
32,259
|
|
|
31,922
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
NET INCOME (LOSS)
|
$
|
(8,954
|
)
|
|
$
|
(626
|
)
|
|
$
|
(15,899
|
)
|
|
$
|
16,498
|
|
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
|
|
|
|
|
|
|
|
||||||||
Total other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
TOTAL COMPREHENSIVE INCOME (LOSS)
|
(8,954
|
)
|
|
(626
|
)
|
|
(15,899
|
)
|
|
16,498
|
|
||||
Comprehensive (income) loss attributable to noncontrolling interest in consolidated entities
|
(1,899
|
)
|
|
(1,695
|
)
|
|
(1,750
|
)
|
|
(1,742
|
)
|
||||
Comprehensive (income) loss attributable to redeemable noncontrolling interests in operating partnership
|
1,465
|
|
|
452
|
|
|
2,770
|
|
|
(1,075
|
)
|
||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY
|
$
|
(9,388
|
)
|
|
$
|
(1,869
|
)
|
|
$
|
(14,879
|
)
|
|
$
|
13,681
|
|
|
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 June 30, 2019
|
1,600
|
|
|
$
|
16
|
|
|
32,880
|
|
|
$
|
329
|
|
|
$
|
516,700
|
|
|
$
|
(137,775
|
)
|
|
$
|
(5,540
|
)
|
|
$
|
373,730
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
42,075
|
|
Equity-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,604
|
|
|
—
|
|
|
—
|
|
|
1,604
|
|
|
—
|
|
|
—
|
|
|
755
|
|
||||||||
Issuance of restricted shares/units
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Forfeiture of restricted common shares
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – common stock ($0.16/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,339
|
)
|
|
—
|
|
|
(5,339
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series B ($0.3437/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,708
|
)
|
|
—
|
|
|
(1,708
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series D ($0.5156/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(825
|
)
|
|
—
|
|
|
(825
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,654
|
)
|
|
(2,654
|
)
|
|
—
|
|
|
—
|
|
|
(771
|
)
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,388
|
)
|
|
1,899
|
|
|
(7,489
|
)
|
|
—
|
|
|
—
|
|
|
(1,465
|
)
|
||||||||
Redemption value adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
||||||||
Balance at September 30, 2019
|
1,600
|
|
|
$
|
16
|
|
|
32,900
|
|
|
$
|
329
|
|
|
$
|
518,304
|
|
|
$
|
(155,024
|
)
|
|
$
|
(6,295
|
)
|
|
$
|
357,330
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
40,584
|
|
|
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
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,959
|
|
|
—
|
|
|
—
|
|
|
3,959
|
|
|
—
|
|
|
—
|
|
|
1,949
|
|
||||||||
Preferred stock offering costs
|
|
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Issuance of restricted shares/units
|
—
|
|
|
—
|
|
|
260
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||||
Forfeiture of restricted common shares
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – common stock ($0.48/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,004
|
)
|
|
—
|
|
|
(16,004
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series B ($1.0312/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,122
|
)
|
|
—
|
|
|
(5,122
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series D ($1.5469/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,475
|
)
|
|
—
|
|
|
(2,475
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,654
|
)
|
|
(2,654
|
)
|
|
—
|
|
|
—
|
|
|
(2,318
|
)
|
||||||||
Redemption/conversion of operating partnership units
|
—
|
|
|
—
|
|
|
165
|
|
|
2
|
|
|
2,199
|
|
|
—
|
|
|
—
|
|
|
2,201
|
|
|
—
|
|
|
—
|
|
|
(2,201
|
)
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,879
|
)
|
|
1,750
|
|
|
(13,129
|
)
|
|
—
|
|
|
—
|
|
|
(2,770
|
)
|
||||||||
Redemption value adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,031
|
)
|
|
—
|
|
|
(1,031
|
)
|
|
—
|
|
|
—
|
|
|
1,031
|
|
||||||||
Balance at September 30, 2019
|
1,600
|
|
|
$
|
16
|
|
|
32,900
|
|
|
$
|
329
|
|
|
$
|
518,304
|
|
|
$
|
(155,024
|
)
|
|
$
|
(6,295
|
)
|
|
$
|
357,330
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
40,584
|
|
|
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 June 30, 2018
|
—
|
|
|
$
|
—
|
|
|
32,502
|
|
|
$
|
325
|
|
|
$
|
472,945
|
|
|
$
|
(87,777
|
)
|
|
$
|
(5,245
|
)
|
|
$
|
380,248
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
47,818
|
|
Purchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Equity-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,099
|
|
|
—
|
|
|
—
|
|
|
1,099
|
|
|
—
|
|
|
—
|
|
|
575
|
|
||||||||
Issuance of restricted shares/units
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Forfeiture of restricted common shares
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – common stock ($0.16/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,276
|
)
|
|
—
|
|
|
(5,276
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series B ($0.3437/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,707
|
)
|
|
—
|
|
|
(1,707
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,115
|
)
|
|
(2,115
|
)
|
|
—
|
|
|
—
|
|
|
(824
|
)
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,869
|
)
|
|
1,695
|
|
|
(174
|
)
|
|
—
|
|
|
—
|
|
|
(452
|
)
|
||||||||
Redemption value adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,609
|
)
|
|
—
|
|
|
(2,609
|
)
|
|
—
|
|
|
—
|
|
|
2,609
|
|
||||||||
Balance at September 30, 2018
|
—
|
|
|
$
|
—
|
|
|
32,524
|
|
|
$
|
325
|
|
|
$
|
474,043
|
|
|
$
|
(99,238
|
)
|
|
$
|
(5,665
|
)
|
|
$
|
369,465
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
49,726
|
|
|
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
|
)
|
|
—
|
|
|
(204
|
)
|
|
—
|
|
|
—
|
|
|
(204
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Equity-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,402
|
|
|
—
|
|
|
—
|
|
|
4,402
|
|
|
—
|
|
|
—
|
|
|
1,307
|
|
||||||||
Issuance of restricted shares/units
|
—
|
|
|
—
|
|
|
429
|
|
|
4
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||||||
Forfeiture of restricted common shares
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – common stock ($0.48/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,823
|
)
|
|
—
|
|
|
(15,823
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Dividends declared – preferred stock - Series B ($1.0312/share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,122
|
)
|
|
—
|
|
|
(5,122
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,654
|
)
|
|
(2,654
|
)
|
|
—
|
|
|
—
|
|
|
(2,468
|
)
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,681
|
|
|
1,742
|
|
|
15,423
|
|
|
—
|
|
|
—
|
|
|
1,075
|
|
||||||||
Redemption value adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,167
|
)
|
|
—
|
|
|
(3,167
|
)
|
|
—
|
|
|
—
|
|
|
3,167
|
|
||||||||
Balance at September 30, 2018
|
—
|
|
|
$
|
—
|
|
|
32,524
|
|
|
$
|
325
|
|
|
$
|
474,043
|
|
|
$
|
(99,238
|
)
|
|
$
|
(5,665
|
)
|
|
$
|
369,465
|
|
|
4,966
|
|
|
$
|
106,123
|
|
|
$
|
49,726
|
|
|
Nine Months Ended September 30,
|
||||||
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income (loss)
|
$
|
(15,899
|
)
|
|
$
|
16,498
|
|
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
|
|
|
|
||||
Depreciation and amortization
|
51,991
|
|
|
42,291
|
|
||
Equity-based compensation
|
5,908
|
|
|
5,709
|
|
||
Bad debt expense
|
307
|
|
|
186
|
|
||
Amortization of loan costs
|
3,248
|
|
|
3,157
|
|
||
Write-off of loan costs and exit fees
|
647
|
|
|
4,178
|
|
||
Amortization of intangibles
|
366
|
|
|
143
|
|
||
Amortization of non-refundable membership initiation fees
|
(117
|
)
|
|
(18
|
)
|
||
Interest expense accretion on refundable membership club deposits
|
651
|
|
|
376
|
|
||
(Gain) loss on disposition of assets and sale of hotel property
|
1,154
|
|
|
(15,711
|
)
|
||
Impairment charges
|
—
|
|
|
71
|
|
||
Unrealized (gain) loss on investment in Ashford Inc.
|
5,390
|
|
|
3,338
|
|
||
Realized and unrealized (gain) loss on derivatives
|
1,162
|
|
|
803
|
|
||
Net settlement of trading derivatives
|
(1,074
|
)
|
|
(688
|
)
|
||
Equity in (earnings) loss of unconsolidated entity
|
149
|
|
|
146
|
|
||
Deferred income tax expense (benefit)
|
816
|
|
|
136
|
|
||
Changes in operating assets and liabilities, exclusive of the effect of hotel acquisitions and dispositions:
|
|
|
|
||||
Accounts receivable and inventories
|
(5,886
|
)
|
|
(5,593
|
)
|
||
Prepaid expenses and other assets
|
(2,672
|
)
|
|
922
|
|
||
Accounts payable and accrued expenses
|
13,856
|
|
|
(2,609
|
)
|
||
Operating lease right-of-use assets
|
398
|
|
|
—
|
|
||
Due to/from related party, net
|
(1,041
|
)
|
|
344
|
|
||
Due to/from third-party hotel managers
|
(6,378
|
)
|
|
5,578
|
|
||
Due to/from Ashford Inc.
|
(345
|
)
|
|
1,479
|
|
||
Operating lease liabilities
|
(144
|
)
|
|
—
|
|
||
Other liabilities
|
(3,521
|
)
|
|
(7,851
|
)
|
||
Net cash provided by (used in) operating activities
|
48,966
|
|
|
52,885
|
|
||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Proceeds from property insurance
|
—
|
|
|
24,663
|
|
||
Acquisition of hotel properties, net of cash and restricted cash acquired
|
(111,751
|
)
|
|
(177,874
|
)
|
||
Investment in unconsolidated entity
|
(332
|
)
|
|
(2,000
|
)
|
||
Net proceeds from disposition of assets and sale of hotel property
|
10,300
|
|
|
65,336
|
|
||
Improvements and additions to hotel properties
|
(108,182
|
)
|
|
(51,610
|
)
|
||
Net cash provided by (used in) investing activities
|
(209,965
|
)
|
|
(141,485
|
)
|
||
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Borrowings on indebtedness
|
329,500
|
|
|
575,000
|
|
||
Repayments of indebtedness
|
(257,086
|
)
|
|
(399,804
|
)
|
||
Payments of loan costs and exit fees
|
(4,447
|
)
|
|
(9,407
|
)
|
||
Payments for derivatives
|
(89
|
)
|
|
(348
|
)
|
||
Purchase of common stock
|
(384
|
)
|
|
(204
|
)
|
||
Payments for dividends and distributions
|
(24,931
|
)
|
|
(22,661
|
)
|
||
Preferred stock offering costs
|
(110
|
)
|
|
—
|
|
||
Distributions to noncontrolling interest in consolidated entities
|
—
|
|
|
(538
|
)
|
||
Other
|
8
|
|
|
18
|
|
||
Net cash provided by (used in) financing activities
|
42,461
|
|
|
142,056
|
|
||
Net change in cash, cash equivalents and restricted cash
|
(118,538
|
)
|
|
53,456
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
258,488
|
|
|
185,342
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
139,950
|
|
|
$
|
238,798
|
|
|
|
|
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
|
|
|
||||
Interest paid
|
$
|
38,221
|
|
|
$
|
31,641
|
|
Income taxes paid (refund)
|
(490
|
)
|
|
1,626
|
|
||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
|
|
|
|
||||
Dividends and distributions declared but not paid
|
9,502
|
|
|
8,840
|
|
||
Capital expenditures accrued but not paid
|
18,815
|
|
|
5,167
|
|
||
Non-cash dividends paid
|
—
|
|
|
58
|
|
|
Nine Months Ended September 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
|
$
|
82,583
|
|
|
$
|
163,825
|
|
Restricted cash at end of period
|
57,367
|
|
|
74,973
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
139,950
|
|
|
$
|
238,798
|
|
•
|
historical seasonality patterns at some of our hotel properties cause fluctuations in our overall operating results. Consequently, operating results for the three and nine months ended September 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 September 30, 2019
|
||||||||||||||||||||
Primary Geographical Market
|
|
Number of Hotels
|
|
Rooms
|
|
Food and Beverage
|
|
Other Hotel
|
|
Other
|
|
Total
|
||||||||||
California
|
|
5
|
|
$
|
32,070
|
|
|
$
|
9,190
|
|
|
$
|
4,441
|
|
|
$
|
—
|
|
|
$
|
45,701
|
|
Colorado
|
|
1
|
|
3,086
|
|
|
3,615
|
|
|
2,368
|
|
|
—
|
|
|
9,069
|
|
|||||
Florida
|
|
2
|
|
8,234
|
|
|
4,124
|
|
|
3,308
|
|
|
—
|
|
|
15,666
|
|
|||||
Illinois
|
|
1
|
|
7,501
|
|
|
2,250
|
|
|
466
|
|
|
—
|
|
|
10,217
|
|
|||||
Pennsylvania
|
|
1
|
|
6,675
|
|
|
1,474
|
|
|
310
|
|
|
—
|
|
|
8,459
|
|
|||||
Washington
|
|
1
|
|
10,361
|
|
|
1,649
|
|
|
382
|
|
|
—
|
|
|
12,392
|
|
|||||
Washington, D.C.
|
|
1
|
|
8,889
|
|
|
3,688
|
|
|
378
|
|
|
—
|
|
|
12,955
|
|
|||||
USVI
|
|
1
|
|
(8
|
)
|
|
432
|
|
|
3,999
|
|
|
—
|
|
|
4,423
|
|
|||||
Corporate entities
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|||||
Total
|
|
13
|
|
$
|
76,808
|
|
|
$
|
26,422
|
|
|
$
|
15,652
|
|
|
$
|
2
|
|
|
$
|
118,884
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||
Primary Geographical Market
|
|
Number of Hotels
|
|
Rooms
|
|
Food and Beverage
|
|
Other Hotel
|
|
Other
|
|
Total
|
||||||||||
California
|
|
4
|
|
$
|
26,368
|
|
|
$
|
5,209
|
|
|
$
|
2,404
|
|
|
$
|
—
|
|
|
$
|
33,981
|
|
Colorado
|
|
1
|
|
3,178
|
|
|
3,112
|
|
|
2,438
|
|
|
—
|
|
|
8,728
|
|
|||||
Florida
|
|
2
|
|
8,194
|
|
|
4,335
|
|
|
3,420
|
|
|
—
|
|
|
15,949
|
|
|||||
Illinois
|
|
1
|
|
8,157
|
|
|
2,280
|
|
|
327
|
|
|
—
|
|
|
10,764
|
|
|||||
Pennsylvania
|
|
1
|
|
7,137
|
|
|
1,422
|
|
|
267
|
|
|
—
|
|
|
8,826
|
|
|||||
Washington
|
|
1
|
|
11,035
|
|
|
1,799
|
|
|
380
|
|
|
—
|
|
|
13,214
|
|
|||||
Washington, D.C.
|
|
1
|
|
8,638
|
|
|
2,729
|
|
|
264
|
|
|
—
|
|
|
11,631
|
|
|||||
USVI
|
|
1
|
|
1,651
|
|
|
285
|
|
|
3,817
|
|
|
—
|
|
|
5,753
|
|
|||||
Total
|
|
12
|
|
$
|
74,358
|
|
|
$
|
21,171
|
|
|
$
|
13,317
|
|
|
$
|
—
|
|
|
$
|
108,846
|
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||
Primary Geographical Market
|
|
Number of Hotels
|
|
Rooms
|
|
Food and Beverage
|
|
Other Hotel
|
|
Other
|
|
Total
|
||||||||||
California
|
|
5
|
|
$
|
88,533
|
|
|
$
|
27,311
|
|
|
$
|
11,893
|
|
|
$
|
—
|
|
|
$
|
127,737
|
|
Colorado
|
|
1
|
|
14,059
|
|
|
9,867
|
|
|
7,762
|
|
|
—
|
|
|
31,688
|
|
|||||
Florida
|
|
2
|
|
34,674
|
|
|
18,811
|
|
|
12,311
|
|
|
—
|
|
|
65,796
|
|
|||||
Illinois
|
|
1
|
|
19,053
|
|
|
5,796
|
|
|
1,168
|
|
|
—
|
|
|
26,017
|
|
|||||
Pennsylvania
|
|
1
|
|
18,169
|
|
|
3,187
|
|
|
793
|
|
|
—
|
|
|
22,149
|
|
|||||
Washington
|
|
1
|
|
23,378
|
|
|
5,070
|
|
|
1,189
|
|
|
—
|
|
|
29,637
|
|
|||||
Washington, D.C.
|
|
1
|
|
29,960
|
|
|
12,679
|
|
|
1,196
|
|
|
—
|
|
|
43,835
|
|
|||||
USVI
|
|
1
|
|
834
|
|
|
1,605
|
|
|
16,608
|
|
|
—
|
|
|
19,047
|
|
|||||
Corporate entities
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|||||
Total
|
|
13
|
|
$
|
228,660
|
|
|
$
|
84,326
|
|
|
$
|
52,920
|
|
|
$
|
7
|
|
|
$
|
365,913
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||
Primary Geographical Market
|
|
Number of Hotels
|
|
Rooms
|
|
Food and Beverage
|
|
Other Hotel
|
|
Other
|
|
Total
|
||||||||||
California
|
|
4
|
|
$
|
69,007
|
|
|
$
|
18,163
|
|
|
$
|
8,258
|
|
|
$
|
—
|
|
|
$
|
95,428
|
|
Colorado
|
|
1
|
|
14,736
|
|
|
9,676
|
|
|
7,712
|
|
|
—
|
|
|
32,124
|
|
|||||
Florida
|
|
2
|
|
24,474
|
|
|
12,191
|
|
|
7,343
|
|
|
—
|
|
|
44,008
|
|
|||||
Illinois
|
|
1
|
|
19,359
|
|
|
6,100
|
|
|
908
|
|
|
—
|
|
|
26,367
|
|
|||||
Pennsylvania
|
|
1
|
|
21,641
|
|
|
4,314
|
|
|
867
|
|
|
—
|
|
|
26,822
|
|
|||||
Washington
|
|
1
|
|
25,587
|
|
|
5,164
|
|
|
1,006
|
|
|
—
|
|
|
31,757
|
|
|||||
Washington, D.C.
|
|
1
|
|
30,390
|
|
|
10,965
|
|
|
884
|
|
|
—
|
|
|
42,239
|
|
|||||
USVI
|
|
1
|
|
4,939
|
|
|
616
|
|
|
13,616
|
|
|
—
|
|
|
19,171
|
|
|||||
Sold hotel properties
|
|
1
|
|
8,171
|
|
|
2,875
|
|
|
3,491
|
|
|
—
|
|
|
14,537
|
|
|||||
Total
|
|
13
|
|
$
|
218,304
|
|
|
$
|
70,064
|
|
|
$
|
44,085
|
|
|
$
|
—
|
|
|
$
|
332,453
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Land
|
$
|
455,298
|
|
|
$
|
428,567
|
|
Buildings and improvements
|
1,106,503
|