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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2013	May 02, 2013
Document and Entity Information
Entity Registrant Name	RLJ Lodging Trust
Entity Central Index Key	0001511337
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		122,780,547
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1

Combined Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Assets
Investment in hotel and other properties, net	$ 3,136,597	$ 3,073,483
Investment in loans	12,386	12,426
Cash and cash equivalents	347,027	115,861
Restricted cash reserves	64,008	64,787
Hotel and other receivables, net of allowance of $232 and $194, respectively	28,390	22,738
Deferred financing costs, net	10,418	11,131
Deferred income tax asset	2,292	2,206
Purchase deposits	7,936	9,910
Prepaid expense and other assets	28,566	33,843
Total assets	3,637,620	3,346,385
Liabilities and Equity
Borrowings under revolving credit facility		16,000
Mortgage loans	994,073	997,651
Term loans	400,000	400,000
Interest rate swap liability	816	470
Accounts payable and accrued expense	76,922	87,105
Deferred income tax liability	4,052	4,064
Advance deposits and deferred revenue	12,898	8,508
Accrued interest	2,403	2,284
Distributions payable	25,917	22,392
Total liabilities	1,517,081	1,538,474
Commitments and Contingencies (Note 9)
Shareholders' equity:
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized; zero shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively.
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 122,733,573 and 106,565,516 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively.	1,227	1,066
Additional paid-in-capital	2,171,357	1,841,449
Accumulated other comprehensive loss	(477)
Distributions in excess of net earnings	(69,552)	(52,681)
Total shareholders' equity	2,102,555	1,789,834
Noncontrolling interest
Noncontrolling interest in joint venture	6,718	6,766
Noncontrolling interest in Operating Partnership	11,266	11,311
Total noncontrolling interest	17,984	18,077
Total equity	2,120,539	1,807,911
Total liabilities and equity	$ 3,637,620	$ 3,346,385

Combined Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Hotel and other receivables, allowance (in dollars)	$ 232	$ 194
Preferred shares of beneficial interest, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares of beneficial interest, shares authorized	50,000,000	50,000,000
Preferred shares of beneficial interest, shares issued	0	0
Preferred shares of beneficial interest, shares outstanding	0	0
Common shares of beneficial interest, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares of beneficial interest, shares authorized	450,000,000	450,000,000
Common shares of beneficial interest, shares issued	122,733,573	106,565,516
Common shares of beneficial interest, shares outstanding	122,733,573	106,565,516

Combined Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Operating revenue
Room revenue	$ 186,427	$ 158,579
Food and beverage revenue	23,232	19,505
Other operating department revenue	6,228	5,109
Total revenue	215,887	183,193
Operating expense
Room expense	43,397	36,930
Food and beverage expense	16,577	14,440
Management fee expense	7,419	6,304
Other operating expense	66,900	58,558
Total property operating expense	134,293	116,232
Depreciation and amortization	31,435	33,697
Property tax, insurance and other	14,786	12,634
General and administrative	8,815	7,260
Transaction and pursuit costs	1,089	19
Total operating expense	190,418	169,842
Operating income	25,469	13,351
Other income	79	84
Interest income	296	419
Interest expense	(17,034)	(20,181)
Income (loss) before income tax expense	8,810	(6,327)
Income tax expense	(226)	(594)
Net income (loss)	8,584	(6,921)
Net (income) loss attributable to non-controlling interests
Noncontrolling interest in consolidated joint venture	48	370
Noncontrolling interest in common units of Operating Partnership	(139)	38
Net income (loss) attributable to common shareholders	$ 8,493	$ (6,513)
Basic per common share data:
Net income (loss) per share attributable to common shareholders (in dollars per share)	$ 0.08	$ (0.06)
Weighted-average number of common shares (in shares)	106,815,375	105,332,812
Diluted per common share data:
Net income (loss) per share attributable to common shareholders (in dollars per share)	$ 0.08	$ (0.06)
Weighted-average number of common shares (in shares)	107,423,195	105,332,812
Comprehensive income (loss)
Net income (loss) attributable to the Company	$ 8,493	$ (6,513)
Unrealized loss on interest rate derivatives	(477)	(6)
Comprehensive income (loss) attributable to the Company	$ 8,016	$ (6,519)

Combined Consolidated Statement of Changes in Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in-Capital	Distributions in excess of net earnings	Accumulated Other Comprehensive Loss	Total Noncontrolling Interests	Operating Partnership	Consolidated Joint Venture
Balance at Dec. 31, 2011	$ 1,833,988	$ 1,063	$ 1,835,011	$ (18,960)	$ (1,782)	$ 18,656	$ 11,486	$ 7,170
Balance (in shares) at Dec. 31, 2011		106,279,049
Increase (Decrease) in Owners' Equity
Net income (loss)	(6,921)			(6,513)		(408)	(38)	(370)
Unrealized gain (loss) on interest rate derivative	(6)				(6)
Issuance of restricted stock		$ 4	(4)
Issuance of restricted stock (in shares)		389,711
Amortization of share based compensation	1,459		1,459
Share grants to trustees	40		40
Share grants to trustees (in shares)		2,146
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock	(439)		(439)
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares)		(24,664)
Distributions on common shares and units	(17,744)			(17,596)		(148)	(148)
Balance at Mar. 31, 2012	1,810,377	$ 1,067	1,836,067	(43,069)	(1,788)	18,100	11,300	6,800
Balance (in shares) at Mar. 31, 2012		106,646,242
Balance at Dec. 31, 2012	1,807,911	$ 1,066	1,841,449	(52,681)		18,077	11,311	6,766
Balance (in shares) at Dec. 31, 2012		106,565,516
Increase (Decrease) in Owners' Equity
Net income (loss)	8,584			8,493		91	139	(48)
Unrealized gain (loss) on interest rate derivative	(477)				(477)
Proceeds from sale of common stock, net	327,743	$ 159	327,584
Proceeds from sale of common stock, net (in shares)		15,870,000
Issuance of restricted stock		$ 3	(3)
Issuance of restricted stock (in shares)		330,640
Amortization of share based compensation	3,014		3,014
Share grants to trustees	40		40
Share grants to trustees (in shares)		1,756
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock	(728)	$ (1)	(727)
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares)		(34,339)
Distributions on common shares and units	(25,548)			(25,364)		(184)	(184)
Balance at Mar. 31, 2013	$ 2,120,539	$ 1,227	$ 2,171,357	$ (69,552)	$ (477)	$ 17,984	$ 11,266	$ 6,718
Balance (in shares) at Mar. 31, 2013		122,733,573

Combined Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities:
Net income (loss)	$ 8,584	$ (6,921)
Adjustments to reconcile net income (loss) to cash flow provided by operating activities:
Depreciation and amortization	31,435	33,697
Amortization of deferred financing costs	789	1,000
Amortization of deferred management fees	250	250
Share grants to trustees	40	40
Amortization of share based compensation	3,014	1,459
Deferred income taxes	(98)	(11)
Changes in assets and liabilities:
Hotel and other receivables, net	(5,475)	(6,449)
Prepaid expense and other assets	5,226	3,058
Accounts payable and accrued expense	(14,233)	(18,090)
Advance deposits and deferred revenue	4,374	2,263
Accrued interest	119	171
Net cash flow provided by operating activities	34,025	10,467
Cash flows from investing activities:
Acquisition of hotel and other properties, net of cash acquired	(79,521)
Purchase deposits	1,974
Proceeds from principal payments on investment in loans	40	88
Improvements and additions to hotel and other properties	(11,423)	(40,866)
Additions to property and equipment	(46)	(47)
Releases from restricted cash reserves, net	779	981
Net cash flow used in investing activities	(88,197)	(39,844)
Cash flows from financing activities:
Borrowings under revolving credit facility	83,000
Repayments under revolving credit facility	(99,000)
Payment of mortgage principal	(3,578)	(3,251)
Repurchase of common shares	(728)	(439)
Distributions on common shares	(21,839)	(15,942)
Distributions on Operating Partnership units	(184)	(134)
Payment of deferred financing costs	(76)	(23)
Proceeds from issuance of common shares	327,743
Net cash flow provided by (used in) financing activities	285,338	(19,789)
Net change in cash and cash equivalents	231,166	(49,166)
Cash and cash equivalents, beginning of period	115,861	310,231
Cash and cash equivalents, end of period	$ 347,027	$ 261,065

Organization	3 Months Ended
Organization	Mar. 31, 2013
Organization
Organization	1. Organization RLJ Lodging Trust (the “Company”) was formed as a Maryland real estate investment trust (“REIT”) on January 31, 2011. The Company is a self-advised and self-administered REIT that acquires primarily premium-branded, focused-service and compact full-service hotels. The Company qualified and elected to be taxed as a REIT for U.S. federal income tax purposes, commencing with the portion of its taxable year ended December 31, 2011. The Company completed the initial public offering of its common shares of beneficial interest (the “IPO”) on May 16, 2011. The IPO and subsequent exercise of the underwriters’ overallotment option (the “Overallotment”) resulted in the sale of 31,595,000 common shares at a price per share of $18.00 and generated gross proceeds of $568.7 million. The aggregate proceeds to the Company, net of underwriters’ discounts in connection with the IPO and Overallotment, were approximately $533.2 million. On March 25, 2013, the Company completed a follow-on offering of 15,870,000 common shares generating gross proceeds of approximately $342.8 million and proceeds, net of underwriters’ discounts and other offering costs, of approximately $327.7 million. Substantially all of the Company’s assets are held by, and all of its operations are conducted through, RLJ Lodging Trust, L.P. (the “Operating Partnership”). The Company is the sole general partner of the Operating Partnership. As of March 31, 2013, there were 123,627,573 units of limited partnership interest in the Operating Partnership (“OP units”) outstanding and the Company owned, through a combination of direct and indirect interests, 99.3% of the outstanding OP units. As of March 31, 2013, the Company owned 148 properties with approximately 22,000 suites/rooms, comprised of 147 hotels and one planned hotel conversion, located in 21 states and the District of Columbia, interests in land parcels located adjacent to certain hotels and an interest in two mortgage loans secured by hotels. The Company, through wholly-owned subsidiaries, owned a 100% interest in all of its properties, with the exception of the Doubletree Metropolitan Hotel New York City, in which the Company, through wholly-owned subsidiaries, owned a 95% controlling interest in a joint venture, DBT Met Hotel Venture, LP, which was formed to engage in hotel operations related to the Doubletree Metropolitan hotel. An independent operator manages each property. For the three months ended March 31, 2013, the Company declared dividends on common shares of $0.205.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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+ Details

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2013
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies *Basis of Presentation and Principles of Consolidation* The accompanying unaudited interim combined consolidated financial statements and related notes have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with the rules and regulations of the SEC applicable to interim financial information. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. The accompanying unaudited interim financial statements include adjustments based on management’s estimates (consisting of normal recurring adjustments), which the Company considers necessary for the fair statement of the combined consolidated balance sheets, statements of operations and comprehensive income (loss), statements of changes in equity and statements of cash flows for the interim periods presented. The unaudited interim combined consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2012, included in our Annual Report on Form 10-K filed with the SEC on February 28, 2013. Operating results for the three months ended March 31, 2013 are not necessarily indicative of actual operating results for the entire year. The unaudited interim combined consolidated financial statements include the accounts of the Company, the Operating Partnership and its wholly-owned subsidiaries, including a joint venture. All significant intercompany balances have been eliminated in consolidation. *Reporting Periods* As of March 31, 2013, the Company owned seven hotels that are managed by affiliates of Marriott International (“Marriott”). Beginning January 1, 2013, the Company’s hotels managed by Marriott are accounted for on a calendar year basis. Prior to January 1, 2013, the Company’s hotels managed by Marriott were accounted for on a fiscal year comprised of 52 or 53 weeks ending on the Friday closest to December 31. The Company’s results for the three months ended March 31, 2012 include the results of operations for the Company’s Marriott-managed hotels for the 12-week period ended March 23, 2012. *Use of Estimates* The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the amounts of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. *Revenue Recognition* The Company’s revenue comprises hotel operating revenue, such as room revenue, food and beverage revenue and revenue from other hotel operating departments (such as telephone, parking and business centers). These revenues are recorded net of any sales and occupancy taxes collected from guests. All rebates or discounts are recorded as a reduction in revenue, and there are no material contingent obligations with respect to rebates and discounts offered by the hotels. All revenues are recorded on an accrual basis as earned. Appropriate allowances are made for doubtful accounts and are recorded as bad debt expense. The allowances are calculated as a percentage of aged accounts receivable, based on individual hotel management company policy. Cash received prior to guest arrival is recorded as an advance from the guest and recognized as revenue at the time of occupancy. Incentive payments received pursuant to entry into management agreements are deferred and amortized into income over the life of the respective agreements. In May 2012, the Company received an incentive payment of $4.0 million related to purchasing a hotel and entering into a franchise agreement, which will be recognized over the remaining term of the franchise agreement. As of March 31, 2013, there were approximately $3.9 million remaining to be recognized. *Investment in Hotel and Other Properties* The Company’s acquisitions generally consist of land, land improvements, buildings, building improvements, furniture, fixtures and equipment (“FF&E”), and inventory. The Company may also acquire in-place leases or other intangible assets (e.g., management agreements or franchise agreements) when properties are acquired. The Company allocates the purchase price among the assets acquired and liabilities assumed based on their respective fair values. The Company’s investments in hotels and other properties are carried at cost and are depreciated using the straight-line method over estimated useful lives of 15 years for land improvements, 15 years for building improvements, 40 years for buildings and three to five years for FF&E. Intangible assets arising from acquisitions are amortized using the straight-line method over the non-cancelable portion of the term of the agreement. Maintenance and repairs are expensed and major renewals or improvements are capitalized. Upon the sale or disposition of a fixed asset, the asset and related accumulated depreciation are removed from the accounts and the related gain or loss is included in discontinued operations. The Company considers each individual property to be an identifiable component of the business. In accordance with the guidance on impairment or disposal of long-lived assets, the Company does not consider a property as “held for sale” until it is probable that the sale will be completed within one year and the other requisite criteria for such classification have been met. Once a property is designated as “held for sale” the operations for that property are included in discontinued operations. The Company does not depreciate properties so long as they are classified as “held for sale.” Upon designation of a property as being “held for sale” and quarterly thereafter, the Company reviews the realizability of the carrying value, less cost to sell, in accordance with the guidance. Any such adjustment in the carrying value of a property classified as “held for sale” is reflected in discontinued operations. The Company assesses the carrying values of each property whenever events or changes in circumstances indicate that the carrying amounts of these properties may not be fully recoverable. Recoverability of the property is measured by comparison of the carrying amount of the property to the estimated future undiscounted cash flows which take into account current market conditions and the Company’s intent with respect to holding or disposing of the property. If the Company’s analysis indicates that the carrying value of the property is not recoverable on an undiscounted cash flow basis, it recognizes an impairment charge for the amount by which the carrying value exceeds the fair value of the property. Fair value is determined through various valuation techniques, including internally developed discounted cash flow models, comparable market transactions and third party appraisals, where considered necessary. The use of projected future cash flows is based on assumptions that are consistent with a market participant’s future expectations for the travel industry and economy in general and the Company’s plans to manage the underlying properties. However, assumptions and estimates about future cash flows and capitalization rates are complex and subjective. Changes in economic and operating conditions and the Company’s ultimate investment intent that occur subsequent to a current impairment analysis could impact these assumptions and result in future impairment charges of the properties. *Franchise Agreements* As of March 31, 2013, 140 of the Company’s hotel properties were operated under franchise agreements with terms ranging from 10 to 30 years. The franchise agreements for these hotels allow the properties to operate under the respective brands. Pursuant to the franchise agreements, the Company pays a royalty fee, generally between 3.0% and 6.0% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs that amount to between 1.0% and 4.3% of room revenue. Certain hotels are also charged a royalty fee of between 1.0% and 3.0% of food and beverage revenues. Franchise fees are included in other hotel expenses in the accompanying unaudited interim combined consolidated financial statements. *Earnings Per Share* Basic earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period excluding the weighted average number of unvested restricted shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period, plus any shares that could potentially be outstanding during the period. Potential shares consist of unvested restricted share grants and unvested performance units, calculated using the treasury stock method. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation. *Share-based Compensation* From time to time, the Company may issue share-based awards under the 2011 Equity Incentive Plan (the “2011 Plan”), as compensation to officers, employees and non-employee trustees (see Note 10). The vesting of awards issued to officers and employees is based on either continued employment (time-based) or based on the relative total shareholder returns of the Company and continued employment (performance-based), as determined by the Board of Trustees at the date of grant. For time-based awards, the Company recognizes compensation expense for non-vested shares on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of grant, adjusted for forfeitures. For performance-based awards, the Company recognizes compensation expense over the requisite service period for each award, based on the fair market value of the shares on the date of grant, as determined using a Monte Carlo simulation, adjusted for forfeitures.

Acquisition of Hotel and Other Properties

3 Months Ended

Mar. 31, 2013

Acquisition of Hotel and Other Properties

Acquisition of Hotel and Other Properties

3. Acquisition of Hotel and Other Properties

During the three months ended March 31, 2013, the Company acquired the following properties, which were funded through a combination of cash available on the Company’s balance sheet and borrowings under its credit facility:

Property

Location

Acquisition Date

Management Company

Rooms

Purchase Price

%
Interest

Courtyard Houston Downtown

Houston, TX

March 19, 2013

Marriott International

191

34.3 million

100

Residence Inn Houston Downtown

Houston, TX

March 19, 2013

Marriott International

171

29.4 million

100

Humble Tower Apartments (1)

Houston, TX

March 19, 2013

The Sterling Group

15.6 million

100

444

79.3 million

(1) Conversion to a 166-room SpringHill Suites expected to be complete by mid-2015

The Company did not acquire any properties during the three months ended March 31, 2012.

The allocation of purchase price for the properties acquired was as follows (in thousands):

	March 31,
	2013
Land and land improvements	$	12,855
Buildings and improvements	66,622
Furniture, fixtures and equipment	3,151
Lease intangibles	342
Management agreement intangibles	(3,695		)
Total Purchase Price	$	79,275

There were no contingent consideration arrangements associated with these acquisitions nor was any goodwill recognized. See Note 13 for detail of non-cash prorations assumed at acquisition dates.

For the properties acquired during the three months ended March 31, 2013, total revenues and net loss from the date of acquisition through March 31, 2013 are included in the accompanying combined consolidated statements of operations for the three months ended March 31, 2013, as follows (in thousands):

	For the three months ended March 31,
	2013			2012
Revenue	$	693		$	—
Net loss	$	(887	)	$	—

The following unaudited condensed pro forma financial information presents the results of operations as if the 2013 acquisitions had taken place on January 1, 2012 and the 2012 acquisitions had taken place on January 1, 2011. The unaudited condensed pro forma financial information is not necessarily indicative of what actual results of operations of the Company would have been assuming the 2013 and 2012 acquisitions had taken place on January 1, 2012 and 2011, nor does it purport to represent the results of operations for future periods. The unaudited condensed pro forma financial information is as follows (in thousands, except share and per share data):

	For the three months ended March 31,
	2013		2012
Revenue	$	220,197	$	198,584
Net income (loss)	$	10,913	$	(4,649	)
Net income (loss) per share attributable to common shareholders - basic	$	0.10	$	(0.04	)
Net income (loss) per share attributable to common shareholders - diluted	$	0.10	$	(0.04	)

Weighted average number of shares outstanding - basic	106,815,375		105,332,812
Weighted average number of shares outstanding - diluted	107,423,195		105,332,812

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
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+ Details

Investment in Hotel and Other Properties

3 Months Ended

Mar. 31, 2013

Investment in Hotel and Other Properties

Investment in Hotel and Other Properties

4. Investment in Hotel and Other Properties

Investment in hotel and other properties as of March 31, 2013 and December 31, 2012 consisted of the following (in thousands):

	March 31,			December 31,
	2013			2012
Land and land improvements	$	576,561		$	563,524
Buildings and improvements	2,729,998			2,655,086
Furniture, fixtures and equipment	444,942			438,807
Intangibles	2,199			1,857
	3,753,700			3,659,274
Accumulated depreciation and amortization	(617,103		)	(585,791		)
Investment in hotel and other properties, net	$	3,136,597		$	3,073,483

For the three months ended March 31, 2013 and 2012, depreciation and amortization expense related to investment in hotel and other properties was approximately $31.3 million and $33.6 million, respectively.

Impairment

The Company determined that there was no impairment for either of the three month periods ended March 31, 2013 or 2012.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Debt

3 Months Ended

Mar. 31, 2013

Debt

Debt

5. Debt

Revolving Credit Facility and Term Loans

The Company entered into a credit agreement on November 20, 2012 that provides for (i) an unsecured revolving credit facility of up to $300.0 million with a scheduled maturity date of November 20, 2016 with a one-year extension option (the “Revolver”), and (ii) an unsecured term loan of $275.0 million with a scheduled maturity date of November 20, 2017 (the “Five-Year Term Loan”). The credit agreement amends and restates in its entirety the Company’s prior unsecured revolving credit facility, which was originally entered into as of June 20, 2011. In addition, on November 20, 2012 the Company also entered into an unsecured term loan of $125.0 million with a scheduled maturity date of November 20, 2019 (the “Seven-Year Term Loan”).

The credit agreement requires that a group of no less than 20 of the Company’s hotel properties remain unencumbered by outstanding indebtedness. The credit agreement contains certain financial covenants relating to the Company’s maximum leverage ratio, minimum fixed charge coverage ratio, minimum tangible net worth and maximum secured indebtedness. If an event of default exists the Company is not permitted to make distributions to shareholders, other than those required to qualify for and maintain REIT status. As of March 31, 2013, the Company was in compliance with all financial covenants.

The Company incurred $5.2 million in fees related to the credit agreement and the Seven-Year Term Loan which are being deferred and amortized over the term of the Revolver, the Five-Year Term Loan and the Seven-Year Term Loan, respectively.

Borrowings under the Revolver, the Five-Year Term Loan and the Seven-Year Term Loan bear interest at variable rates equal to the London InterBank Offered Rate (“LIBOR”) plus an applicable margin. The margin ranges from 1.70% to 3.00%, depending on the Company’s leverage ratio, as calculated under the terms of each facility. The Company incurs an unused facility fee on the Revolver of between 0.25% and 0.35%, based on the amount by which the maximum borrowing amount exceeds the total principal balance of outstanding borrowings.

Under the terms of the credit agreement, one or more standby letters of credit, up to a maximum aggregate outstanding balance of $30.0 million, may be issued on behalf of the Company by the lenders under the Revolver. The Company will incur a fee of 0.125% of the value of each standby letter of credit that is issued on its behalf. Any outstanding standby letters of credit would reduce the available borrowings on the Revolver by a corresponding amount. No standby letters of credit were outstanding at March 31, 2013. The Company also may borrow up to a maximum aggregate outstanding balance of $40.0 million of swingline loans. Any outstanding swingline loans reduce the available borrowings under the Revolver by a corresponding amount. No swingline loans were outstanding at March 31, 2013.

For the three months ended March 31, 2013, the Company incurred an unused commitment fee on the Revolver of approximately $0.2 million. At March 31, 2013, outstanding borrowings on the Revolver, the Five-Year Term Loan and the Seven-Year Term Loan were zero, $275.0 million and $125.0 million, respectively. For the three months ended March 31, 2013, interest expense incurred on the Revolver, the Five-Year Term Loan and the Seven-Year Term Loan was $0.1 million, $1.4 million and $0.8 million, respectively.

Prior Credit Facility

The Company entered into an unsecured revolving credit facility on June 20, 2011, that provided for maximum borrowings of up to $300.0 million. The credit facility required that a group of no less than 15 of the Company’s hotel properties remain unencumbered by outstanding indebtedness. The credit facility contained certain financial covenants relating to the Company’s maximum leverage ratio, minimum fixed charge coverage ratio, minimum tangible net worth and maximum secured indebtedness. If an event of default existed the Company was not permitted to make distributions to shareholders, other than those required to qualify for and maintain REIT status. As of March 31, 2012, the Company was in compliance with all financial covenants. On November 20, 2012, the unsecured revolving credit facility agreement was amended and restated in its entirety with the Revolver and Five-Year Term Loan as discussed above.

The Company incurred $3.0 million in fees related to the credit facility which were being deferred and amortized over the term of the credit facility. On November 20, 2012, when the unsecured revolving credit facility agreement was amended and restated in its entirety, approximately $1.7 million of the fees unamortized at the time of the amendment and restatement were transferred to the Revolver and will be amortized over the term of that credit facility.

Borrowings under the credit facility bore interest at variable rates equal to LIBOR plus an applicable margin. The margin ranged from 2.25% to 3.25%, depending on the Company’s leverage ratio, as calculated under the terms of the credit facility. The Company incurred an unused facility fee of between 0.30% and 0.40%, based on the amount by which the maximum borrowing amount exceeded the total principal balance of outstanding borrowings.

The Company did not incur any interest expense on the credit facility for the three months ended March 31, 2012. For the three months ended March 31, 2012, the Company incurred an unused commitment fee of approximately $0.3 million. There were no borrowings outstanding at March 31, 2012.

Mortgage Loans

As of March 31, 2013 and December 31, 2012, the Company was subject to the following mortgage loans (in thousands):

	Number	Interest rate at
	of Assets	March 31,		Maturity		Principal balance at,
Lender	Encumbered	2013 (1)		Date		March 31, 2013		December 31, 2012
Wells Fargo	1	4.60	%(2)	Oct 2014	(3)	$	68,500	$	68,500
Wells Fargo	1	3.80	%(2)	Oct 2014	(3)	17,500		17,500
Wells Fargo	1	3.80	%(2)	Oct 2014	(3)	21,000		21,000
Wells Fargo	1	3.80	%(2)	Oct 2014	(3)	11,000		11,000
Wells Fargo	1	3.80	%(2)	Oct 2014	(3)	24,000		24,000
Capmark Financial Group	1	6.12	%	April 2015		4,168		4,202
Capmark Financial Group	1	5.55	%	May 2015		11,202		11,298
VFC Partners 20 LLC	1	5.50	%	June 2015		5,014		5,014
Capmark Financial Group	1	5.55	%	June 2015		4,860		4,901
Barclay’s Bank	1	5.55	%	June 2015		2,539		2,561
Barclay’s Bank	1	5.55	%	June 2015		4,168		4,203
Barclay’s Bank	1	5.55	%	June 2015		9,716		9,798
Barclay’s Bank	1	5.55	%	June 2015		8,671		8,745
Barclay’s Bank	1	5.55	%	June 2015		7,773		7,839
Barclay’s Bank	1	5.60	%	June 2015		5,389		5,434
Barclay’s Bank	1	5.60	%	June 2015		8,352		8,422
Barclay’s Bank	1	5.55	%	June 2015		5,091		5,134
Barclay’s Bank	1	5.55	%	June 2015		33,756		34,042
Barclay’s Bank	1	5.60	%	June 2015		6,412		6,466
Barclay’s Bank	1	5.55	%	June 2015		5,713		5,762
Barclay’s Bank	1	5.55	%	June 2015		6,565		6,621
Barclay’s Bank	1	5.60	%	June 2015		8,366		8,437
Barclay’s Bank	1	5.55	%	June 2015		6,559		6,614
Barclay’s Bank	1	5.55	%	June 2015		7,219		7,280
Barclay’s Bank	1	5.55	%	June 2015		6,565		6,621
Barclay’s Bank	1	5.55	%	June 2015		7,495		7,558
Barclay’s Bank	1	5.55	%	June 2015		9,405		9,484
Capmark Financial Group	1	5.50	%	July 2015		6,617		6,673
Barclay’s Bank	1	5.44	%	Sept 2015		10,792		10,883
PNC Bank (4)	7	2.55	%(2)	May 2016	(5)	85,000		85,000
Merrill Lynch	1	6.29	%	July 2016		9,148		9,180
Merrill Lynch	1	6.29	%	July 2016		5,531		5,531
Merrill Lynch	1	6.29	%	July 2016		7,657		7,684
Merrill Lynch	1	6.29	%	July 2016		9,162		9,194
Wachovia Securities (6)	43	6.29	%	July 2016		485,596		487,296
Wachovia Securities	1	6.29	%	July 2016		6,559		6,582
Wells Fargo / Morgan Stanley	2	6.29	%	July 2016		34,702		34,823
Wells Fargo / Morgan Stanley	1	6.29	%	July 2016		6,729		6,753
Wells Fargo / Morgan Stanley	1	6.29	%	July 2016		9,582		9,616
	88					$	994,073	$	997,651

(1) Interest rate at March 31, 2013 gives effect to interest rate hedges and LIBOR floors, as applicable.

(2) Requires payments of interest only until the commencement of the extension period(s).

(3) Maturity date may be extended for up to two additional one-year terms at the Company’s option (subject to the Company’s prior satisfaction of certain conditions and advance notice of the exercise of the Company’s option).

(4) The seven hotels encumbered by the PNC Bank loan are cross-collateralized.

(5) Maturity date may be extended for one one-year term at the Company’s option (subject to the Company’s prior satisfaction of certain conditions and advance notice of the exercise of the Company’s option).

(6) The 43 hotels encumbered by the Wachovia Securities loans are cross-collateralized.

Some mortgage agreements are subject to customary financial covenants. The Company was in compliance with these covenants at March 31, 2013 and December 31, 2012.

In November 2011, the Company elected to cease the subsidization of debt service on the mortgage loan secured by the SpringHill Suites Southfield, Michigan. The loan matures in June 2015. In January 2012, the Company received notice of an event of default for failure to make the required monthly payment on its mortgage loan secured by the SpringHill Suites Southfield. Under the terms of the mortgage loan, the lender receives the monthly net cash from operations from the hotel. In December 2012, the Company entered into a deed in lieu of foreclosure agreement with the lender, providing for a consensual transfer of the property to the lender or its designee. This transaction is expected to close in the second quarter of 2013. As of March 31, 2013, the principal balance outstanding was $5.0 million for the SpringHill Suites Southfield loan.

In November 2011, the Company elected to cease the subsidization of debt service on the mortgage loan secured by the Courtyard Goshen, Indiana. The loan matures in July 2016. In December 2011, the Company received notice of an event of default for failure to make the required monthly payment on its mortgage loan secured by the Courtyard Goshen. In May 2012, an Order Appointing Receiver (the “Order”) was entered in the Elkhart County, Indiana, Superior Court No. 1. In June 2012, the receiver, pursuant to the Order, took control of the property for the benefit of the lender of the mortgage loan. As of March 31, 2013, the principal balance outstanding was $5.5 million for the Courtyard Goshen loan. In February 2013, the lender filed suit against the Company claiming amounts due from the Company in its capacity as a guarantor of certain borrower obligations. The Company disputes the lender’s claim and intends to defend itself against the claim.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Financial Instruments: Derivatives and Hedging

3 Months Ended

Mar. 31, 2013

Financial Instruments: Derivatives and Hedging

Financial Instruments: Derivatives and Hedging

6. Financial Instruments: Derivatives and Hedging

The Company employs interest rate swaps and caps to hedge against interest rate fluctuations. For derivative instruments designated as cash flow hedges, unrealized gains and losses on the effective portion are reported in accumulated other comprehensive loss, a component of shareholders’ equity. Unrealized gains and losses on the ineffective portion of all designated hedges are recognized in earnings in the current period. For derivative instruments not designated as hedging instruments, unrealized gains or losses are recognized in earnings in the current period.

As of March 31, 2013 and December 31, 2012, the Company had entered into the following interest rate swaps and caps (in thousands):

	Notional value at				Hedge			Fair value at
Hedge type	March 31, 2013		December 31, 2012		interest rate		Maturity	March 31, 2013			December 31, 2012
Swap-cash flow (1)	$	40,000	$	40,000	1.00	%	10/6/2013	$	(191	)	$	(265	)
Swap-cash flow (1)	31,000		31,000		1.00	%	10/6/2013	(148		)	(205		)
Interest rate cap (1)	60,000		60,000		1.00	%	6/29/2013	—			—
Swap-cash flow (2)	275,000		—		1.12	%	11/20/2017	(477		)	—
	$	406,000	$	131,000				$	(816	)	$	(470	)

(1) Undesignated as a cash flow hedge

(2) Designated as a cash flow hedge

As of March 31, 2013 and December 31, 2012, there was approximately $0.5 million and zero, respectively, in unrealized losses included in accumulated other comprehensive loss related to interest rate hedges that are effective in offsetting the variable cash flows. There was no ineffectiveness recorded on designated hedges during either the three months ended March 31, 2013 or 2012.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
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-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value

3 Months Ended

Mar. 31, 2013

Fair Value

Fair Value

7. Fair Value

Fair Value of Financial Instruments

The estimated fair values of financial instruments have been determined by the Company using available market information and appropriate valuation methods. Considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methods may have a material effect on the estimated fair value amounts. The Company used the following market assumptions and/or estimation methods:

· Cash and cash equivalents, hotel receivables, accounts payable and accrued expenses - The carrying amounts reported in the combined consolidated balance sheet for these financial instruments approximate fair value because of their short maturities.

· Investment in collateralized loans - Fair value is determined by discounting the future contractual cash flows to the present value using a current market interest rate. The market rate is determined by giving consideration to one or both of the following criteria, as appropriate: (1) interest rates for loans of comparable quality and maturity, and (2) the value of the underlying collateral. The fair values of the Company’s investment in collateralized loans are generally classified within Level 3 of the valuation hierarchy. The fair value estimated at both March 31, 2013 and December 31, 2012 was $23.0 million.

· Variable rate mortgage notes payable and borrowings under the credit facility - The carrying amounts reported in the combined consolidated balance sheets for these financial instruments approximate fair value. The Company estimates the fair value of its variable rate debt by using quoted market rates for similar loans with similar terms and loan to value ratios, which is a Level 3 input. As a result, the Company determined that its variable rate mortgage notes payable in their entirety are classified in Level 3 of the fair value hierarchy.

· Fixed rate mortgage notes payable - The fair value estimated at March 31, 2013 and December 31, 2012 of $741.4 million and $745.3 million, respectively, is calculated based on the net present value of payments over the term of the loans using estimated market rates for similar mortgage loans with similar terms and loan to value ratios, which is a Level 3 input. As a result, the Company determined that its fixed rate mortgage notes payable in their entirety are classified in Level 3 of the fair value hierarchy. The carrying value of fixed rate mortgage notes payable at March 31, 2013 and December 31, 2012 was $767.1 million and $770.7 million, respectively.

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The fair value hierarchy has three levels of inputs, both observable and unobservable:

· Level 1 — Inputs include quoted market prices in an active market for identical assets or liabilities.

· Level 2 — Inputs are market data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data.

· Level 3 — Inputs are unobservable and corroborated by little or no market data.

Recurring Fair Value Measurements

The following table presents the Company’s fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2013 (in thousands):

	Fair Value at March 31, 2013
	Level 1		Level 2			Level 3		Total
Interest rate swap and cap liability	$	—	$	(816	)	$	—	$	(816	)
Total	$	—	$	(816	)	$	—	$	(816	)

The fair values of the derivative financial instruments are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. The Company determined that the significant inputs, such as interest yield curves and discount rates, used to value its derivatives fall within Level 2 of the fair value hierarchy and that the credit valuation adjustments associated with the Company’s counterparties and its own credit risk utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of March 31, 2013, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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-Publisher FASB
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-Name Statement of Financial Accounting Standard (FAS)
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2013
Income Taxes
Income Taxes	8. Income Taxes The Company elected to be taxed as a real estate investment trust under Sections 856 through 860 of the Internal Revenue Code when it filed its U.S. federal tax return for its short taxable year ended December 31, 2011. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it distribute at least 90% of its adjusted taxable income to its shareholders, subject to certain adjustments and excluding any net capital gain. The Company’s intention is to adhere to these requirements and maintain the qualification for taxation as a REIT. As a REIT, the Company is not subject to federal corporate income tax on that portion of net income that is currently distributed to its shareholders. However, the Company’s taxable REIT subsidiaries (“TRS”) will generally be subject to federal, state, and local income taxes. The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. The Company had no accruals for tax uncertainties as of March 31, 2013 and December 31, 2012.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
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-Name Statement of Financial Accounting Standard (FAS)
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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+ Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2013
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies The Company is obligated to maintain reserve funds for capital expenditures at the hotels (including the periodic replacement or refurbishment of FF&E) as determined pursuant to the management agreements, franchise agreements and/or mortgage loan documents. The management agreements, franchise agreements and/or mortgage loan documents require the Company to reserve restricted cash ranging from 1.0% to 5.0% of the individual hotel’s revenues and maintain the reserves in restricted cash reserve escrows. Amounts will be capitalized as incurred. Any unexpended amounts will remain the property of the Company upon termination of the management agreements, franchise agreements or mortgage loan documents. Additionally, some loan agreements require the Company to reserve restricted cash for the periodic payment of real estate taxes and insurance. As of March 31, 2013 and December 31, 2012, approximately $64.0 million and $64.8 million, respectively, was available in restricted cash reserves for future capital expenditures, real estate taxes and insurance. Litigation Neither the Company nor any of its subsidiaries are currently involved in any regulatory or legal proceedings that management believes will have a material adverse effect on the financial position, operations or liquidity of the Company.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Name FASB Interpretation (FIN)
-Number 14
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Equity Incentive Plan

3 Months Ended

Mar. 31, 2013

Equity Incentive Plan

Equity Incentive Plan

10. Equity Incentive Plan

The Company may issue equity-based awards to officers, employees, non-employee trustees and other eligible persons under the 2011 Plan. The 2011 Plan provides for a maximum of 5,000,000 common shares of beneficial interest to be issued in the form of share options, share appreciation rights, restricted share awards, unrestricted share awards, share units, dividend equivalent rights, long-term incentive units, other equity-based awards and cash bonus awards.

Non-vested Restricted Share Awards

From time to time, the Company may award non-vested shares under the 2011 Plan, as compensation to officers, employees and non-employee trustees. The shares issued to officers and employees vest over a period of time as determined by the Board of Trustees at the date of grant. The Company recognizes compensation expense for non-vested shares on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of issuance, adjusted for forfeitures.

A summary of the non-vested shares as of March 31, 2013 is as follows:

	2013
	Number of Shares		Weighted Average Grant Date Fair Value
Unvested at January 1,	1,013,673		$	17.80
Granted	330,640		21.39
Vested	(97,480	)	17.87
Unvested at March 31,	1,246,833		$	18.75

For the three months ended March 31, 2013 and 2012, the Company recognized approximately $1.9 million and $1.5 million, respectively, of share-based compensation expense related to these restricted share awards. As of March 31, 2013, there was $22.4 million of total unrecognized compensation costs related to non-vested share awards and these costs were expected to be primarily recognized over a weighted-average period of 2.9 years. The total fair value of shares vested (calculated as number of shares multiplied by vesting date share price) during the three months ended March 31, 2013 and 2012 was approximately $2.1 million and $1.3 million, respectively.

Performance Units

The Company awarded performance units to certain employees under the 2011 Plan. The performance units vest over a four-year period, including three years of performance-based vesting (“measurement period”) plus an additional one year of time-based vesting.

As of March 31, 2013, there were 1.0 million unvested performance units outstanding with a weighted average grant date fair value of $15.36 per performance unit.

For the three months ended March 31, 2013, the Company recognized $1.1 million of share-based compensation expense related to performance unit awards. There was no share-based compensation expense during the three months ended March 31, 2012 related to the performance units as they were granted in the third quarter of 2012. As of March 31, 2013, there was $12.3 million of total unrecognized compensation cost related to the performance units and these costs are expected to be recognized over a weighted-average period of 2.8 years.

As of March 31, 2013, there were 3,123,666 common shares available for future grant under the 2011 Plan. Any performance units that convert into restricted shares will reduce the number of common shares available for future grant under the 2011 Plan.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
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-Name Accounting Standards Codification
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-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
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-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Earnings per Common Share

3 Months Ended

Mar. 31, 2013

Earnings per Common Share

Earnings per Common Share

11. Earnings per Common Share

Basic earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period excluding the weighted average number of unvested restricted shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period, plus any shares that could potentially be outstanding during the period. Potential shares consist of unvested restricted share grants and unvested performance units, calculated using the treasury stock method. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation.

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating shares and are considered in the computation of earnings per share pursuant to the two-class method. If there were any undistributed earnings allocable to participating shares, they would be deducted from net income attributable to common shareholders utilized in the basic and diluted earnings per share calculations.

For the three months ended March 31, 2013, no earnings representing undistributed earnings were allocated to participating shares because the Company paid dividends in excess of net income. For the three months ended March 31, 2012, diluted weighted average common shares did not include the impact of unvested compensation-related shares because the effect of these items on diluted earnings per share would be anti-dilutive.

The limited partners’ outstanding limited partnership units in the Operating Partnership (which may be redeemed for common shares of beneficial interest under certain circumstances) have been excluded from the diluted earnings per share calculation as there was no effect on the amounts for the three months ended March 31, 2013 and 2012, since the limited partners’ share of income would also be added back to net income attributable to common shareholders.

The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share data):

	For the three months ended,
	March 31, 2013			March 31, 2012
Numerator:
Net income (loss) attributable to common shareholders	$	8,493		$	(6,513	)
Less: Dividends paid on unvested restricted shares	(256		)	(212		)
Net income (loss) attributable to common shareholders excluding amounts attributable to unvested restricted shares	$	8,237		$	(6,725	)
Denominator:
Weighted-average number of common shares - basic	106,815,375			105,332,812
Unvested restricted shares	188,630			—
Unvested performance units	419,190			—
Weighted-average number of common shares - diluted	107,423,195			105,332,812

Net income (loss) per share attributable to common shareholders - basic	$	0.08		$	(0.06	)

Net income (loss) per share attributable to common shareholders - diluted	$	0.08		$	(0.06	)

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2013
Related Party Transactions
Related Party Transactions	12. Related Party Transactions RLJ Companies LLC and its affiliates, a related party, periodically provide or receive services or pay or collect certain amounts to or from the Company. At March 31, 2013 and December 31, 2012, there was approximately $59,000 and $45,000, respectively, due from RLJ Companies, LLC which was included in other assets.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph b
-Article 3A

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
-Article 4

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Supplemental Information to Statements of Cash Flows

3 Months Ended

Mar. 31, 2013

Supplemental Information to Statements of Cash Flows

Supplemental Information to Statements of Cash Flows (in thousands)

13. Supplemental Information to Statements of Cash Flows (in thousands)

	For the three months ended March 31,
	2013			2012

Interest paid	$	16,126		$	19,010

Income taxes paid	$	15		$	265

Supplemental investing and financing transactions:
In conjunction with the acquisitions, the Company assumed the following assets and liabilities:
Purchase of real estate	$	82,970		$	—
Accounts receivable	177			—
Other assets	260			—
Advance deposits	(16		)	—
Accounts payable and accrued expenses	(3,870		)	—
Acquisition of hotel and other properties	$	79,521		$	—

Supplemental non-cash transactions:
Change in fair market value of designated interest rate swaps	$	(477	)	$	(6	)

Accrued capital expenditures	$	49		$	1,775

Distributions payable	$	25,917		$	17,744

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2013
Subsequent Events
Subsequent Events	14. Subsequent Events On April 15, 2013, the Company paid a dividend of $0.205 per common share to shareholders of record at March 28, 2013. On May 2, 2013, the Company granted 47,190 restricted common shares of beneficial interest to certain employees and members of the Board of Trustees.

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2013
Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation	*Basis of Presentation and Principles of Consolidation* The accompanying unaudited interim combined consolidated financial statements and related notes have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with the rules and regulations of the SEC applicable to interim financial information. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. The accompanying unaudited interim financial statements include adjustments based on management’s estimates (consisting of normal recurring adjustments), which the Company considers necessary for the fair statement of the combined consolidated balance sheets, statements of operations and comprehensive income (loss), statements of changes in equity and statements of cash flows for the interim periods presented. The unaudited interim combined consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2012, included in our Annual Report on Form 10-K filed with the SEC on February 28, 2013. Operating results for the three months ended March 31, 2013 are not necessarily indicative of actual operating results for the entire year. The unaudited interim combined consolidated financial statements include the accounts of the Company, the Operating Partnership and its wholly-owned subsidiaries, including a joint venture. All significant intercompany balances have been eliminated in consolidation.
Reporting Periods	*Reporting Periods* As of March 31, 2013, the Company owned seven hotels that are managed by affiliates of Marriott International (“Marriott”). Beginning January 1, 2013, the Company’s hotels managed by Marriott are accounted for on a calendar year basis. Prior to January 1, 2013, the Company’s hotels managed by Marriott were accounted for on a fiscal year comprised of 52 or 53 weeks ending on the Friday closest to December 31. The Company’s results for the three months ended March 31, 2012 include the results of operations for the Company’s Marriott-managed hotels for the 12-week period ended March 23, 2012.
Use of Estimates	*Use of Estimates* The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the amounts of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition	*Revenue Recognition* The Company’s revenue comprises hotel operating revenue, such as room revenue, food and beverage revenue and revenue from other hotel operating departments (such as telephone, parking and business centers). These revenues are recorded net of any sales and occupancy taxes collected from guests. All rebates or discounts are recorded as a reduction in revenue, and there are no material contingent obligations with respect to rebates and discounts offered by the hotels. All revenues are recorded on an accrual basis as earned. Appropriate allowances are made for doubtful accounts and are recorded as bad debt expense. The allowances are calculated as a percentage of aged accounts receivable, based on individual hotel management company policy. Cash received prior to guest arrival is recorded as an advance from the guest and recognized as revenue at the time of occupancy. Incentive payments received pursuant to entry into management agreements are deferred and amortized into income over the life of the respective agreements. In May 2012, the Company received an incentive payment of $4.0 million related to purchasing a hotel and entering into a franchise agreement, which will be recognized over the remaining term of the franchise agreement. As of March 31, 2013, there were approximately $3.9 million remaining to be recognized.
Investment in Hotel and Other Properties	*Investment in Hotel and Other Properties* The Company’s acquisitions generally consist of land, land improvements, buildings, building improvements, furniture, fixtures and equipment (“FF&E”), and inventory. The Company may also acquire in-place leases or other intangible assets (e.g., management agreements or franchise agreements) when properties are acquired. The Company allocates the purchase price among the assets acquired and liabilities assumed based on their respective fair values. The Company’s investments in hotels and other properties are carried at cost and are depreciated using the straight-line method over estimated useful lives of 15 years for land improvements, 15 years for building improvements, 40 years for buildings and three to five years for FF&E. Intangible assets arising from acquisitions are amortized using the straight-line method over the non-cancelable portion of the term of the agreement. Maintenance and repairs are expensed and major renewals or improvements are capitalized. Upon the sale or disposition of a fixed asset, the asset and related accumulated depreciation are removed from the accounts and the related gain or loss is included in discontinued operations. The Company considers each individual property to be an identifiable component of the business. In accordance with the guidance on impairment or disposal of long-lived assets, the Company does not consider a property as “held for sale” until it is probable that the sale will be completed within one year and the other requisite criteria for such classification have been met. Once a property is designated as “held for sale” the operations for that property are included in discontinued operations. The Company does not depreciate properties so long as they are classified as “held for sale.” Upon designation of a property as being “held for sale” and quarterly thereafter, the Company reviews the realizability of the carrying value, less cost to sell, in accordance with the guidance. Any such adjustment in the carrying value of a property classified as “held for sale” is reflected in discontinued operations. The Company assesses the carrying values of each property whenever events or changes in circumstances indicate that the carrying amounts of these properties may not be fully recoverable. Recoverability of the property is measured by comparison of the carrying amount of the property to the estimated future undiscounted cash flows which take into account current market conditions and the Company’s intent with respect to holding or disposing of the property. If the Company’s analysis indicates that the carrying value of the property is not recoverable on an undiscounted cash flow basis, it recognizes an impairment charge for the amount by which the carrying value exceeds the fair value of the property. Fair value is determined through various valuation techniques, including internally developed discounted cash flow models, comparable market transactions and third party appraisals, where considered necessary. The use of projected future cash flows is based on assumptions that are consistent with a market participant’s future expectations for the travel industry and economy in general and the Company’s plans to manage the underlying properties. However, assumptions and estimates about future cash flows and capitalization rates are complex and subjective. Changes in economic and operating conditions and the Company’s ultimate investment intent that occur subsequent to a current impairment analysis could impact these assumptions and result in future impairment charges of the properties.
Franchise Agreements	*Franchise Agreements* As of March 31, 2013, 140 of the Company’s hotel properties were operated under franchise agreements with terms ranging from 10 to 30 years. The franchise agreements for these hotels allow the properties to operate under the respective brands. Pursuant to the franchise agreements, the Company pays a royalty fee, generally between 3.0% and 6.0% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs that amount to between 1.0% and 4.3% of room revenue. Certain hotels are also charged a royalty fee of between 1.0% and 3.0% of food and beverage revenues. Franchise fees are included in other hotel expenses in the accompanying unaudited interim combined consolidated financial statements.
Earnings Per Share	*Earnings Per Share* Basic earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period excluding the weighted average number of unvested restricted shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period, plus any shares that could potentially be outstanding during the period. Potential shares consist of unvested restricted share grants and unvested performance units, calculated using the treasury stock method. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation.
Share-based Compensation	*Share-based Compensation* From time to time, the Company may issue share-based awards under the 2011 Equity Incentive Plan (the “2011 Plan”), as compensation to officers, employees and non-employee trustees (see Note 10). The vesting of awards issued to officers and employees is based on either continued employment (time-based) or based on the relative total shareholder returns of the Company and continued employment (performance-based), as determined by the Board of Trustees at the date of grant. For time-based awards, the Company recognizes compensation expense for non-vested shares on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of grant, adjusted for forfeitures. For performance-based awards, the Company recognizes compensation expense over the requisite service period for each award, based on the fair market value of the shares on the date of grant, as determined using a Monte Carlo simulation, adjusted for forfeitures.

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 40
-Section 45
-URI http://asc.fasb.org/section&trid=2197723

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2196966

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 325
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=2197087

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.3A-02)
-URI http://asc.fasb.org/extlink&oid=6959686&loc=d3e355033-122828

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=16385135&loc=d3e33801-111570

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 5, 6, 16-19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 96-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 20
-Subparagraph a(2)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 97-2
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph k
-Article 1

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02, 03
-Article 3A

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Disclosure of accounting policy for computing basic and diluted earnings or loss per share for each class of common stock and participating security. Addresses all significant policy factors, including any antidilutive items that have been excluded from the computation and takes into account stock dividends, splits and reverse splits that occur after the balance sheet date of the latest reporting period but before the issuance of the financial statements.

+ References + Details

- Definition

Disclosure of accounting policy for determining an entity's fiscal year or other fiscal period. This disclosure may include identification of the fiscal period end-date, the length of the fiscal period, any reporting period lag between the entity and its subsidiaries, or equity investees. If a reporting lag exists, the closing date of the entity having a different period end is generally noted, along with an explanation of the necessity for using different closing dates. Any intervening events that materially affect the entity's financial position or results of operations are generally also disclosed.

+ References + Details

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

- Definition

Disclosure of accounting policy for stock option and stock incentive plans. This disclosure may include (1) the types of stock option or incentive plans sponsored by the entity (2) the groups that participate in (or are covered by) each plan (3) significant plan provisions and (4) how stock compensation is measured, and the methodologies and significant assumptions used to determine that measurement.

+ References + Details

Acquisition of Hotel and Other Properties (Tables)

3 Months Ended

Mar. 31, 2013

Acquisition of Hotel and Other Properties

Schedule of properties acquired through wholly-owned subsidiaries, which were funded by capital contributions

Property

Location

Acquisition Date

Management Company

Rooms

Purchase Price

%
Interest

Courtyard Houston Downtown

Houston, TX

March 19, 2013

Marriott International

191

34.3 million

100

Residence Inn Houston Downtown

Houston, TX

March 19, 2013

Marriott International

171

29.4 million

100

Humble Tower Apartments (1)

Houston, TX

March 19, 2013

The Sterling Group

15.6 million

100

444

79.3 million

(1) Conversion to a 166-room SpringHill Suites expected to be complete by mid-2015

Schedule of allocation of purchase price for the properties acquired

The allocation of purchase price for the properties acquired was as follows (in thousands):

	March 31,
	2013
Land and land improvements	$	12,855
Buildings and improvements	66,622
Furniture, fixtures and equipment	3,151
Lease intangibles	342
Management agreement intangibles	(3,695		)
Total Purchase Price	$	79,275

Schedule of total revenues and net loss from the properties acquired

	For the three months ended March 31,
	2013			2012
Revenue	$	693		$	—
Net loss	$	(887	)	$	—

Schedule of unaudited condensed pro forma financial information

The unaudited condensed pro forma financial information is as follows (in thousands, except share and per share data):

	For the three months ended March 31,
	2013		2012
Revenue	$	220,197	$	198,584
Net income (loss)	$	10,913	$	(4,649	)
Net income (loss) per share attributable to common shareholders - basic	$	0.10	$	(0.04	)
Net income (loss) per share attributable to common shareholders - diluted	$	0.10	$	(0.04	)

Weighted average number of shares outstanding - basic	106,815,375		105,332,812
Weighted average number of shares outstanding - diluted	107,423,195		105,332,812

- 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 + Details

- 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=7659399&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=7659399&loc=d3e1392-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Investment in Hotel and Other Properties (Tables)

3 Months Ended

Mar. 31, 2013

Investment in Hotel and Other Properties

Schedule of investment in hotel and other properties

Investment in hotel and other properties as of March 31, 2013 and December 31, 2012 consisted of the following (in thousands):

	March 31,			December 31,
	2013			2012
Land and land improvements	$	576,561		$	563,524
Buildings and improvements	2,729,998			2,655,086
Furniture, fixtures and equipment	444,942			438,807
Intangibles	2,199			1,857
	3,753,700			3,659,274
Accumulated depreciation and amortization	(617,103		)	(585,791		)
Investment in hotel and other properties, net	$	3,136,597		$	3,073,483

Debt (Tables)

3 Months Ended

Mar. 31, 2013

Debt

Schedule of mortgage loans

As of March 31, 2013 and December 31, 2012, the Company was subject to the following mortgage loans (in thousands):

	Number	Interest rate at
	of Assets	March 31,		Maturity		Principal balance at,
Lender	Encumbered	2013 (1)		Date		March 31, 2013		December 31, 2012
Wells Fargo	1	4.60	%(2)	Oct 2014	(3)	$	68,500	$	68,500
Wells Fargo	1	3.80	%(2)	Oct 2014	(3)	17,500		17,500
Wells Fargo	1	3.80	%(2)	Oct 2014	(3)	21,000		21,000
Wells Fargo	1	3.80	%(2)	Oct 2014	(3)	11,000		11,000
Wells Fargo	1	3.80	%(2)	Oct 2014	(3)	24,000		24,000
Capmark Financial Group	1	6.12	%	April 2015		4,168		4,202
Capmark Financial Group	1	5.55	%	May 2015		11,202		11,298
VFC Partners 20 LLC	1	5.50	%	June 2015		5,014		5,014
Capmark Financial Group	1	5.55	%	June 2015		4,860		4,901
Barclay’s Bank	1	5.55	%	June 2015		2,539		2,561
Barclay’s Bank	1	5.55	%	June 2015		4,168		4,203
Barclay’s Bank	1	5.55	%	June 2015		9,716		9,798
Barclay’s Bank	1	5.55	%	June 2015		8,671		8,745
Barclay’s Bank	1	5.55	%	June 2015		7,773		7,839
Barclay’s Bank	1	5.60	%	June 2015		5,389		5,434
Barclay’s Bank	1	5.60	%	June 2015		8,352		8,422
Barclay’s Bank	1	5.55	%	June 2015		5,091		5,134
Barclay’s Bank	1	5.55	%	June 2015		33,756		34,042
Barclay’s Bank	1	5.60	%	June 2015		6,412		6,466
Barclay’s Bank	1	5.55	%	June 2015		5,713		5,762
Barclay’s Bank	1	5.55	%	June 2015		6,565		6,621
Barclay’s Bank	1	5.60	%	June 2015		8,366		8,437
Barclay’s Bank	1	5.55	%	June 2015		6,559		6,614
Barclay’s Bank	1	5.55	%	June 2015		7,219		7,280
Barclay’s Bank	1	5.55	%	June 2015		6,565		6,621
Barclay’s Bank	1	5.55	%	June 2015		7,495		7,558
Barclay’s Bank	1	5.55	%	June 2015		9,405		9,484
Capmark Financial Group	1	5.50	%	July 2015		6,617		6,673
Barclay’s Bank	1	5.44	%	Sept 2015		10,792		10,883
PNC Bank (4)	7	2.55	%(2)	May 2016	(5)	85,000		85,000
Merrill Lynch	1	6.29	%	July 2016		9,148		9,180
Merrill Lynch	1	6.29	%	July 2016		5,531		5,531
Merrill Lynch	1	6.29	%	July 2016		7,657		7,684
Merrill Lynch	1	6.29	%	July 2016		9,162		9,194
Wachovia Securities (6)	43	6.29	%	July 2016		485,596		487,296
Wachovia Securities	1	6.29	%	July 2016		6,559		6,582
Wells Fargo / Morgan Stanley	2	6.29	%	July 2016		34,702		34,823
Wells Fargo / Morgan Stanley	1	6.29	%	July 2016		6,729		6,753
Wells Fargo / Morgan Stanley	1	6.29	%	July 2016		9,582		9,616
	88					$	994,073	$	997,651

(1) Interest rate at March 31, 2013 gives effect to interest rate hedges and LIBOR floors, as applicable.

(2) Requires payments of interest only until the commencement of the extension period(s).

(4) The seven hotels encumbered by the PNC Bank loan are cross-collateralized.

(6) The 43 hotels encumbered by the Wachovia Securities loans are cross-collateralized.

Financial Instruments: Derivatives and Hedging (Tables)

3 Months Ended

Mar. 31, 2013

Financial Instruments: Derivatives and Hedging

Schedule of interest rate swaps and caps

As of March 31, 2013 and December 31, 2012, the Company had entered into the following interest rate swaps and caps (in thousands):

	Notional value at				Hedge			Fair value at
Hedge type	March 31, 2013		December 31, 2012		interest rate		Maturity	March 31, 2013			December 31, 2012
Swap-cash flow (1)	$	40,000	$	40,000	1.00	%	10/6/2013	$	(191	)	$	(265	)
Swap-cash flow (1)	31,000		31,000		1.00	%	10/6/2013	(148		)	(205		)
Interest rate cap (1)	60,000		60,000		1.00	%	6/29/2013	—			—
Swap-cash flow (2)	275,000		—		1.12	%	11/20/2017	(477		)	—
	$	406,000	$	131,000				$	(816	)	$	(470	)

(1) Undesignated as a cash flow hedge

(2) Designated as a cash flow hedge

Fair Value (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value

Schedule of fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2013 (in thousands):

	Fair Value at March 31, 2013
	Level 1		Level 2			Level 3		Total
Interest rate swap and cap liability	$	—	$	(816	)	$	—	$	(816	)
Total	$	—	$	(816	)	$	—	$	(816	)

Equity Incentive Plan (Tables)

3 Months Ended

Mar. 31, 2013

Restricted share awards

Equity Incentive Plan

Summary of the non-vested shares

	2013
	Number of Shares		Weighted Average Grant Date Fair Value
Unvested at January 1,	1,013,673		$	17.80
Granted	330,640		21.39
Vested	(97,480	)	17.87
Unvested at March 31,	1,246,833		$	18.75

Earnings per Common Share (Tables)

3 Months Ended

Mar. 31, 2013

Earnings per Common Share

Schedule of computation of basic and diluted earnings per common share

The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share data):

	For the three months ended,
	March 31, 2013			March 31, 2012
Numerator:
Net income (loss) attributable to common shareholders	$	8,493		$	(6,513	)
Less: Dividends paid on unvested restricted shares	(256		)	(212		)
Net income (loss) attributable to common shareholders excluding amounts attributable to unvested restricted shares	$	8,237		$	(6,725	)
Denominator:
Weighted-average number of common shares - basic	106,815,375			105,332,812
Unvested restricted shares	188,630			—
Unvested performance units	419,190			—
Weighted-average number of common shares - diluted	107,423,195			105,332,812

Net income (loss) per share attributable to common shareholders - basic	$	0.08		$	(0.06	)

Net income (loss) per share attributable to common shareholders - diluted	$	0.08		$	(0.06	)

Supplemental Information to Statements of Cash Flows (Tables)

3 Months Ended

Mar. 31, 2013

Supplemental Information to Statements of Cash Flows

Schedule of supplemental information to statements of cash flows (in thousands)

	For the three months ended March 31,
	2013			2012

Interest paid	$	16,126		$	19,010

Income taxes paid	$	15		$	265

Supplemental investing and financing transactions:
In conjunction with the acquisitions, the Company assumed the following assets and liabilities:
Purchase of real estate	$	82,970		$	—
Accounts receivable	177			—
Other assets	260			—
Advance deposits	(16		)	—
Accounts payable and accrued expenses	(3,870		)	—
Acquisition of hotel and other properties	$	79,521		$	—

Supplemental non-cash transactions:
Change in fair market value of designated interest rate swaps	$	(477	)	$	(6	)

Accrued capital expenditures	$	49		$	1,775

Distributions payable	$	25,917		$	17,744

Organization (Details) $ / shares in Units, $ in Thousands			3 Months Ended
Organization (Details) $ / shares in Units, $ in Thousands	Mar. 25, 2013 USD ($) shares	May 16, 2011 USD ($) $ / shares shares	Mar. 31, 2013 USD ($) hotel room state item $ / shares shares
Sale of Stock
Sale of common shares \| shares	15,870,000
Gross proceeds from sale of common shares	$ 342,800		$ 327,743
Aggregate proceeds, net of underwriter's discounts and other offering costs	$ 327,700
OP units outstanding (in units) \| shares			123,627,573
Ownership interest in OP units through a combination of direct and indirect interests (as a percent)			99.30%
Number of hotels owned \| hotel			148
Number of hotel rooms owned \| room			22,000
Number of hotels planned for conversion \| hotel			1
Number of states in which hotels owned by the entity are located \| state			21
Number of mortgage loans owned \| item			2
Ownership interest in assets (as a percent)			100.00%
Dividend declared on common shares (in dollars per share) \| $ / shares			$ 0.205
Hotels
Sale of Stock
Number of hotels owned \| hotel			147
Doubletree Metropolitan Hotel New York City
Sale of Stock
Ownership interest in assets (as a percent)			95.00%
IPO
Sale of Stock
Sale of common shares \| shares		31,595,000
Price per share of common shares (in dollars per share) \| $ / shares		$ 18.00
Gross proceeds from sale of common shares		$ 568,700
Aggregate proceeds, net of underwriter's discounts and other offering costs		$ 533,200

Summary of Significant Accounting Policies (Details) $ in Millions	1 Months Ended	3 Months Ended		12 Months Ended
	May 31, 2012 USD ($)	Mar. 31, 2013 USD ($) hotel	Mar. 31, 2012	Dec. 31, 2012
Reporting Periods
Number of hotels owned		148
Revenue Recognition
Incentive payment received \| $	$ 4.0
Revenue to be recognized \| $		$ 3.9
Franchise Agreements
Number of hotel properties operated under franchise agreements		140
Marriott
Reporting Periods
Number of hotels owned		7
Number of days of results of operations for Marriott-managed hotels included in the period			84 days
Land improvements
Investment in Hotel and Other Properties
Estimated useful lives		15 years
Buildings improvements
Investment in Hotel and Other Properties
Estimated useful lives		15 years
Buildings
Investment in Hotel and Other Properties
Estimated useful lives		40 years
Minimum
Franchise Agreements
Term of franchise agreements		10 years
Royalty fee as a percentage of room revenue		3.00%
Additional fees for marketing, central reservation systems and other franchisor costs as a percentage of room revenue		1.00%
Royalty fee as a percentage of food and beverage revenues		1.00%
Minimum \| Marriott
Reporting Periods
Number of days of results of operations for Marriott-managed hotels included in the period				364 days
Minimum \| Furniture, fixtures and equipment
Investment in Hotel and Other Properties
Estimated useful lives		3 years
Maximum
Franchise Agreements
Term of franchise agreements		30 years
Royalty fee as a percentage of room revenue		6.00%
Additional fees for marketing, central reservation systems and other franchisor costs as a percentage of room revenue		4.30%
Royalty fee as a percentage of food and beverage revenues		3.00%
Maximum \| Marriott
Reporting Periods
Number of days of results of operations for Marriott-managed hotels included in the period				371 days
Maximum \| Furniture, fixtures and equipment
Investment in Hotel and Other Properties
Estimated useful lives		5 years

Acquisition of Hotel and Other Properties (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended
	Mar. 19, 2013 USD ($) room	Mar. 31, 2013 USD ($) room	Mar. 31, 2013 USD ($) room $ / shares shares	Mar. 31, 2012 USD ($) $ / shares shares
Acquisition of Hotel Properties
Rooms \| room		22,000	22,000
% Interest			100.00%
Total revenues and net income (loss) from hotels acquired
Revenue			$ 215,887	$ 183,193
Net loss			8,584	(6,921)
Unaudited condensed pro forma financial information
Revenue			220,197	198,584
Net income (loss)			$ 10,913	$ (4,649)
Net income (loss) per share attributable to common shareholders - basic (in dollars per share) \| $ / shares			$ 0.10	$ (0.04)
Net income (loss) per share attributable to common shareholders - diluted (in dollars per share) \| $ / shares			$ 0.10	$ (0.04)
Weighted average number of shares outstanding - basic \| shares			106,815,375	105,332,812
Weighted average number of shares outstanding - diluted \| shares			107,423,195	105,332,812
2013 acquisitions
Acquisition of Hotel Properties
Rooms \| room		444	444
Purchase Price		$ 79,300	$ 79,300
Allocation of purchase price for the hotel properties acquired and liabilities assumed
Land and land improvements		12,855	12,855
Buildings and improvements		66,622	66,622
Furniture, fixtures and equipment		3,151	3,151
Total Purchase Price		79,275	79,275
Total revenues and net income (loss) from hotels acquired
Revenue			693
Net loss			(887)
2013 acquisitions \| Lease intangibles
Allocation of purchase price for the hotel properties acquired and liabilities assumed
Intangibles		342	342
2013 acquisitions \| Management agreement intangibles
Allocation of purchase price for the hotel properties acquired and liabilities assumed
Intangibles		$ (3,695)	$ (3,695)
Courtyard Houston Downtown
Acquisition of Hotel Properties
Rooms \| room	191
Purchase Price	$ 34,300
% Interest		100.00%
Residence Inn Houston Downtown
Acquisition of Hotel Properties
Rooms \| room	171
Purchase Price	$ 29,400
% Interest		100.00%
Humble Tower Apartments
Acquisition of Hotel Properties
Rooms \| room	82
Purchase Price	$ 15,600
% Interest		100.00%
Number of rooms in a Spring Hill Suites branded hotel into which property will be converted \| room	166

Investment in Hotel and Other Properties (Details) - USD ($)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Investment in Hotel and Other Properties
Land and land improvements	$ 576,561,000		$ 563,524,000
Buildings and improvements	2,729,998,000		2,655,086,000
Furniture, fixtures and equipment	444,942,000		438,807,000
Intangibles	2,199,000		1,857,000
Investment in hotel properties, gross	3,753,700,000		3,659,274,000
Accumulated depreciation and amortization	(617,103,000)		(585,791,000)
Investment in hotel and other properties, net	3,136,597,000		$ 3,073,483,000
Depreciation and amortization expense related to investment in hotel and other properties	31,300,000	$ 33,600,000
Impairment	$ 0	$ 0

Debt (Details)	1 Months Ended	3 Months Ended
Debt (Details)	Jun. 30, 2011	Mar. 31, 2013 USD ($) hotel instrument asset term	Mar. 31, 2012 USD ($)	Dec. 31, 2012 USD ($)	Nov. 20, 2012 USD ($)	Jun. 20, 2011 USD ($) hotel
Debt
Outstanding borrowings on the unsecured debt		$ 400,000,000		$ 400,000,000
Mortgage loans		994,073,000		997,651,000
Revolver
Debt
Maximum borrowings		$ 300,000,000
Variable interest rate basis		LIBOR
Unused commitment fee		$ 200,000
Outstanding borrowings on the Revolver		0
Interest expense		$ 100,000
Additional maturity term		1 year
Revolver \| Minimum
Debt
Spread over variable interest rate basis (as a percent)		1.70%
Unused facility fee (as a percent)		0.25%
Revolver \| Maximum
Debt
Spread over variable interest rate basis (as a percent)		3.00%
Unused facility fee (as a percent)		0.35%
Standby letters of credit
Debt
Fee on debt (as a percent)		0.125%
Outstanding borrowings on the Revolver		$ 0
Standby letters of credit \| Minimum
Debt
Number of standby letters of credit that may be issued \| instrument		1
Standby letters of credit \| Maximum
Debt
Maximum borrowings		$ 30,000,000
Swingline loans
Debt
Maximum borrowings		40,000,000
Outstanding borrowings on the Revolver		0
Revolving Credit Facility and Term Loans
Debt
Fees incurred		$ 5,200,000
Variable interest rate basis		LIBOR
Revolving Credit Facility and Term Loans \| Minimum
Debt
Number of hotel properties required to remain unencumbered by outstanding indebtedness \| hotel		20
Spread over variable interest rate basis (as a percent)		1.70%
Revolving Credit Facility and Term Loans \| Maximum
Debt
Spread over variable interest rate basis (as a percent)		3.00%
Five-Year Term Loan
Debt
Unsecured term loan		$ 275,000,000
Variable interest rate basis		LIBOR
Outstanding borrowings on the unsecured debt		$ 275,000,000
Interest expense		$ 1,400,000
Five-Year Term Loan \| Minimum
Debt
Spread over variable interest rate basis (as a percent)		1.70%
Five-Year Term Loan \| Maximum
Debt
Spread over variable interest rate basis (as a percent)		3.00%
Seven-Year Term Loan
Debt
Unsecured term loan		$ 125,000,000
Variable interest rate basis		LIBOR
Outstanding borrowings on the unsecured debt		$ 125,000,000
Interest expense		$ 800,000
Seven-Year Term Loan \| Minimum
Debt
Spread over variable interest rate basis (as a percent)		1.70%
Seven-Year Term Loan \| Maximum
Debt
Spread over variable interest rate basis (as a percent)		3.00%
Prior Credit Facility
Debt
Maximum borrowings						$ 300,000,000
Fees incurred						$ 3,000,000
Unamortized fee amount					$ 1,700,000
Variable interest rate basis	LIBOR
Unused commitment fee			$ 300,000
Outstanding borrowings on the Revolver			$ 0
Prior Credit Facility \| Minimum
Debt
Number of hotel properties required to remain unencumbered by outstanding indebtedness \| hotel						15
Spread over variable interest rate basis (as a percent)						2.25%
Unused facility fee (as a percent)	0.30%
Prior Credit Facility \| Maximum
Debt
Spread over variable interest rate basis (as a percent)						3.25%
Unused facility fee (as a percent)	0.40%
Mortgage Loans
Debt
Number of Assets Encumbered \| asset		88
Mortgage loans		$ 994,073,000		997,651,000
Mortgage Loans \| Wells Fargo, lender 1
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		4.60%
Mortgage loans		$ 68,500,000		68,500,000
Number of additional maturity terms \| term		2
Additional maturity term		1 year
Mortgage Loans \| Wells Fargo, lender 2
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		3.80%
Mortgage loans		$ 17,500,000		17,500,000
Number of additional maturity terms \| term		2
Additional maturity term		1 year
Mortgage Loans \| Wells Fargo, lender 3
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		3.80%
Mortgage loans		$ 21,000,000		21,000,000
Number of additional maturity terms \| term		2
Additional maturity term		1 year
Mortgage Loans \| Wells Fargo, lender 4
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		3.80%
Mortgage loans		$ 11,000,000		11,000,000
Number of additional maturity terms \| term		2
Additional maturity term		1 year
Mortgage Loans \| Wells Fargo, lender 5
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		3.80%
Mortgage loans		$ 24,000,000		24,000,000
Number of additional maturity terms \| term		2
Additional maturity term		1 year
Mortgage Loans \| Capmark Financial Group, lender 1
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		6.12%
Mortgage loans		$ 4,168,000		4,202,000
Mortgage Loans \| Capmark Financial Group, lender 2
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 11,202,000		11,298,000
Mortgage Loans \| VFC Partners 20 LLC
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.50%
Mortgage loans		$ 5,014,000		5,014,000
Mortgage Loans \| Capmark Financial Group, lender 3
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 4,860,000		4,901,000
Mortgage Loans \| Barclay's Bank, lender 1
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 2,539,000		2,561,000
Mortgage Loans \| Barclay's Bank, lender 2
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 4,168,000		4,203,000
Mortgage Loans \| Barclay's Bank, lender 3
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 9,716,000		9,798,000
Mortgage Loans \| Barclay's Bank, lender 4
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 8,671,000		8,745,000
Mortgage Loans \| Barclay's Bank, lender 5
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 7,773,000		7,839,000
Mortgage Loans \| Barclay's Bank, lender 6
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.60%
Mortgage loans		$ 5,389,000		5,434,000
Mortgage Loans \| Barclay's Bank, lender 7
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.60%
Mortgage loans		$ 8,352,000		8,422,000
Mortgage Loans \| Barclay's Bank, lender 8
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 5,091,000		5,134,000
Mortgage Loans \| Barclay's Bank, lender 9
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 33,756,000		34,042,000
Mortgage Loans \| Barclay's Bank, lender 10
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.60%
Mortgage loans		$ 6,412,000		6,466,000
Mortgage Loans \| Barclay's Bank, lender 11
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 5,713,000		5,762,000
Mortgage Loans \| Barclay's Bank, lender 12
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 6,565,000		6,621,000
Mortgage Loans \| Barclay's Bank, lender 13
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.60%
Mortgage loans		$ 8,366,000		8,437,000
Mortgage Loans \| Barclay's Bank, lender 14
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 6,559,000		6,614,000
Mortgage Loans \| Barclay's Bank, lender 15
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 7,219,000		7,280,000
Mortgage Loans \| Barclay's Bank, lender 16
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 6,565,000		6,621,000
Mortgage Loans \| Barclay's Bank, lender 17
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 7,495,000		7,558,000
Mortgage Loans \| Barclay's Bank, lender 18
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.55%
Mortgage loans		$ 9,405,000		9,484,000
Mortgage Loans \| Capmark Financial Group, lender 4
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.50%
Mortgage loans		$ 6,617,000		6,673,000
Mortgage Loans \| Barclay's Bank, Lender 19
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		5.44%
Mortgage loans		$ 10,792,000		10,883,000
Mortgage Loans \| PNC Bank
Debt
Number of Assets Encumbered \| asset		7
Interest rate (as a percent)		2.55%
Mortgage loans		$ 85,000,000		85,000,000
Number of additional maturity terms \| term		1
Additional maturity term		1 year
Number of hotels encumbered by loans that are cross-collateralized \| hotel		7
Mortgage Loans \| Merrill Lynch, lender 1
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		6.29%
Mortgage loans		$ 9,148,000		9,180,000
Mortgage Loans \| Merrill Lynch, lender 2
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		6.29%
Mortgage loans		$ 5,531,000		5,531,000
Mortgage Loans \| Merrill Lynch, lender 3
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		6.29%
Mortgage loans		$ 7,657,000		7,684,000
Mortgage Loans \| Merrill Lynch, lender 4
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		6.29%
Mortgage loans		$ 9,162,000		9,194,000
Mortgage Loans \| Wachovia Securities, lender 1
Debt
Number of Assets Encumbered \| asset		43
Interest rate (as a percent)		6.29%
Mortgage loans		$ 485,596,000		487,296,000
Number of hotels encumbered by loans that are cross-collateralized \| hotel		43
Mortgage Loans \| Wachovia Securities, lender 2
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		6.29%
Mortgage loans		$ 6,559,000		6,582,000
Mortgage Loans \| Wells Fargo/Morgan Stanley, lender 1
Debt
Number of Assets Encumbered \| asset		2
Interest rate (as a percent)		6.29%
Mortgage loans		$ 34,702,000		34,823,000
Mortgage Loans \| Wells Fargo/Morgan Stanley, lender 2
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		6.29%
Mortgage loans		$ 6,729,000		6,753,000
Mortgage Loans \| Wells Fargo/Morgan Stanley, lender 3
Debt
Number of Assets Encumbered \| asset		1
Interest rate (as a percent)		6.29%
Mortgage loans		$ 9,582,000		$ 9,616,000
Mortgage loan secured by SpringHill Suites Southfield
Debt
Mortgage loans		5,000,000
Mortgage loan secured by Courtyard Goshen
Debt
Mortgage loans		$ 5,500,000

Financial Instruments: Derivatives and Hedging (Details) - USD ($)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Financial Instruments: Derivatives and Hedging
Notional value	$ 406,000,000		$ 131,000,000
Fair value	(816,000)		(470,000)
Unrealized losses included in accumulated other comprehensive loss	500,000		0
Amount of ineffective hedges	0	$ 0
Swap-cash flow, hedge type one
Financial Instruments: Derivatives and Hedging
Notional value	$ 40,000,000		$ 40,000,000
Hedge interest rate (as a percent)	1.00%		1.00%
Fair value	$ (191,000)		$ (265,000)
Swap-cash flow, hedge type two
Financial Instruments: Derivatives and Hedging
Notional value	$ 31,000,000		$ 31,000,000
Hedge interest rate (as a percent)	1.00%		1.00%
Fair value	$ (148,000)		$ (205,000)
Interest rate cap, hedge type one
Financial Instruments: Derivatives and Hedging
Notional value	$ 60,000,000		$ 60,000,000
Hedge interest rate (as a percent)	1.00%		1.00%
Swap-cash flow, hedge type three
Financial Instruments: Derivatives and Hedging
Notional value	$ 275,000,000
Hedge interest rate (as a percent)	1.12%
Fair value	$ (477,000)

Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Fair Value
Interest rate swap and cap liability	$ (816)	$ (470)
Level 3
Fair Value
Investment in collateralized loans	23,000	23,000
Fixed rate mortgage notes payable	741,400	745,300
Carrying value of fixed rate mortgage notes payable	767,100	$ 770,700
Recurring \| Level 2
Fair Value
Interest rate swap and cap liability	(816)
Total	(816)
Recurring \| Total
Fair Value
Interest rate swap and cap liability	(816)
Total	$ (816)

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Mar. 31, 2013	Dec. 31, 2012
Income Taxes
Minimum percentage of adjusted taxable income to be currently distributed to owners to qualify as a REIT	90.00%
Accruals for tax uncertainties	$ 0	$ 0

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Commitments and Contingencies
Minimum restricted cash reserve escrows to be maintained as a percentage of the hotel's revenue	1.00%
Maximum restricted cash reserve escrows to be maintained as percentage of hotel's revenue	5.00%
Restricted cash reserves for future capital expenditures, real estate taxes and insurance	$ 64,008	$ 64,787

Equity Incentive Plan (Details) - USD ($)	3 Months Ended
Equity Incentive Plan (Details) - USD ($)	Mar. 31, 2013	Mar. 31, 2012
Equity Incentive Plan
Maximum number of common shares of beneficial interest to be issued	5,000,000
Other Disclosures
Share-based compensation expense	$ 40,000	$ 40,000
Common shares available for future grant	3,123,666
Restricted share awards
Summary of non-vested shares/units
Unvested at the beginning of the period (in shares)	1,013,673
Granted (in shares)	330,640
Vested (in shares)	(97,480)
Unvested at the end of the period (in shares)	1,246,833
Weighted Average Grant Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 17.80
Granted (in dollars per share)	21.39
Vested (in dollars per share)	17.87
Unvested at the end of the period (in dollars per share)	$ 18.75
Other Disclosures
Share-based compensation expense	$ 1,900,000	1,500,000
Total unrecognized compensation costs	$ 22,400,000
Weighted-average period of recognition of unrecognized share-based compensation expense	2 years 10 months 24 days
Total fair value of shares vested	$ 2,100,000	1,300,000
Performance Units
Summary of non-vested shares/units
Unvested at the end of the period (in shares)	1,000,000
Weighted Average Grant Date Fair Value
Unvested at the end of the period (in dollars per share)	$ 15.36
Other Disclosures
Share-based compensation expense	$ 1,100,000	$ 0
Total unrecognized compensation costs	$ 12,300,000
Weighted-average period of recognition of unrecognized share-based compensation expense	2 years 9 months 18 days
Vesting period	4 years
Measurement period	3 years
Time-based vesting period	1 year

Earnings per Common Share (Details) - USD ($)	3 Months Ended
Earnings per Common Share (Details) - USD ($)	Mar. 31, 2013	Mar. 31, 2012
Numerator:
Undistributed earnings allocated to participating shares	$ 0
Net income (loss) attributable to common shareholders	8,493,000	$ (6,513,000)
Less: Dividends paid on unvested restricted shares	(256,000)	(212,000)
Net income (loss) attributable to common shareholders excluding amounts attributable to unvested restricted shares	$ 8,237,000	$ (6,725,000)
Denominator:
Weighted-average number of common shares - basic (in shares)	106,815,375	105,332,812
Unvested restricted shares	188,630
Unvested performance units (in shares)	419,190
Weighted-average number of common shares - diluted	107,423,195	105,332,812
Net income (loss) per share attributable to common shareholders - basic (in dollars per share)	$ 0.08	$ (0.06)
Net income (loss) per share attributable to common shareholders - diluted (in dollars per share)	$ 0.08	$ (0.06)

Related Party Transactions (Details) - USD ($)	Mar. 31, 2013	Dec. 31, 2012
RLJ Companies LLC
Related Party Transactions
Due from related party	$ 59,000	$ 45,000

- Definition

For an unclassified balance sheet, amounts due from related parties including affiliates, employees, joint ventures, officers and stockholders, immediate families thereof, and pension funds.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.3)
-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k)(1))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.10(3))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 3
-Article 7

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 2
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 16, 17
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
-Subparagraph 1
-Article 4

+ Details

Supplemental Information to Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Supplemental Information to Statements of Cash Flows
Interest paid	$ 16,126	$ 19,010
Income taxes paid	15	265
In conjunction with the hotel acquisitions, the Company assumed the following assets and liabilities:
Purchase of real estate	82,970
Accounts receivable	177
Other assets	260
Advance deposits	(16)
Accounts payable and accrued expenses	(3,870)
Acquisition of hotel properties	79,521
Supplemental non-cash transactions:
Change in fair market value of designated interest rate swaps	(477)	(6)
Accrued capital expenditures	49	1,775
Distributions payable	$ 25,917	$ 17,744	$ 22,392

Subsequent Events (Details) - $ / shares			3 Months Ended
Subsequent Events (Details) - $ / shares	May 02, 2013	Apr. 15, 2013	Mar. 31, 2013
Restricted share awards
Subsequent Events
Number of shares of beneficial interest granted to certain employees and members of the Board of Trustees			330,640
Subsequent event \| Restricted share awards
Subsequent Events
Number of shares of beneficial interest granted to certain employees and members of the Board of Trustees	47,190
Subsequent event \| Dividend paid
Subsequent Events
Dividend paid (in dollars per share)		$ 0.205