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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2013	Oct. 31, 2013
Document and Entity Information
Entity Registrant Name	RLJ Lodging Trust
Entity Central Index Key	0001511337
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		122,687,139
Entity Current Reporting Status	Yes

Combined Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Assets
Investment in hotel and other properties, net	$ 3,212,289	$ 3,073,483
Investment in loans	7,592	12,426
Cash and cash equivalents	343,526	115,861
Restricted cash reserves	53,802	64,787
Hotel and other receivables, net of allowance of $233 and $194, respectively	32,629	22,738
Deferred financing costs, net	12,283	11,131
Deferred income tax asset	2,488	2,206
Purchase deposits	7,996	9,910
Prepaid expense and other assets	33,050	33,843
Total assets	3,705,655	3,346,385
Liabilities and Equity
Borrowings under revolving credit facility	0	16,000
Mortgage loans	561,256	997,651
Term loans	850,000	400,000
Accounts payable and accrued expense	108,201	87,575
Deferred income tax liability	4,030	4,064
Advance deposits and deferred revenue	12,542	8,508
Accrued interest	2,514	2,284
Distributions payable	26,308	22,392
Total liabilities	1,564,851	1,538,474
Commitments and Contingencies (Note 11)
Shareholders’ equity:
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized; zero shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively.	0	0
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 122,687,633 and 106,565,516 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively.	1,227	1,066
Additional paid-in-capital	2,175,749	1,841,449
Accumulated other comprehensive loss	(11,429)	0
Distributions in excess of net earnings	(43,291)	(52,681)
Total shareholders’ equity	2,122,256	1,789,834
Noncontrolling interest
Noncontrolling interest in joint venture	7,087	6,766
Noncontrolling interest in Operating Partnership	11,461	11,311
Total noncontrolling interest	18,548	18,077
Total equity	2,140,804	1,807,911
Total liabilities and equity	$ 3,705,655	$ 3,346,385

Combined Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Hotel and other receivables, allowance (in dollars)	$ 233	$ 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	122,687,633	106,565,516
Common shares of beneficial interest, shares outstanding	122,687,633	106,565,516

Combined Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Operating revenue
Room revenue	$ 221,597	$ 196,642	$ 635,975	$ 548,539
Food and beverage revenue	22,907	21,345	71,206	63,231
Other operating department revenue	7,891	6,263	21,450	17,360
Total revenue	252,395	224,250	728,631	629,130
Operating expense
Room expense	49,497	43,299	139,858	120,755
Food and beverage expense	16,629	15,135	50,406	45,045
Management fee expense	8,783	7,877	25,554	21,760
Other operating expense	74,631	67,098	214,330	190,091
Total property operating expense	149,540	133,409	430,148	377,651
Depreciation and amortization	31,575	30,737	94,819	95,681
Impairment loss	0	896	0	896
Property tax, insurance and other	16,651	14,175	47,929	39,180
General and administrative	8,969	8,101	26,861	22,809
Transaction and pursuit costs	478	326	2,822	3,140
Total operating expense	207,213	187,644	602,579	539,357
Operating income	45,182	36,606	126,052	89,773
Other income	164	68	334	258
Interest income	241	416	777	1,253
Interest expense	(16,511)	(20,723)	(50,171)	(61,029)
Loss on disposal	0	0	0	(634)
Gain on foreclosure	4,831	0	4,831	0
Income from continuing operations before income tax expense	33,907	16,367	81,823	29,621
Income tax expense	(181)	(339)	(752)	(1,214)
Income from continuing operations	33,726	16,028	81,071	28,407
Income (loss) from discontinued operations	3,202	(727)	5,426	(1,008)
Net income	36,928	15,301	86,497	27,399
Net (income) loss attributable to non-controlling interests
Noncontrolling interest in consolidated joint venture	(166)	44	(321)	452
Noncontrolling interest in common units of Operating Partnership	(293)	(149)	(700)	(283)
Net income attributable to common shareholders	$ 36,469	$ 15,196	$ 85,476	$ 27,568
Basic per common share data:
Net income per share attributable to common shareholders before discontinued operations (in dollars per share)	$ 0.27	$ 0.15	$ 0.68	$ 0.27
Discontinued operations (in dollars per share)	0.03	(0.01)	0.05	(0.01)
Net income per share attributable to common shareholders (in dollars per share)	$ 0.30	$ 0.14	$ 0.73	$ 0.26
Weighted-average number of common shares (in shares)	121,594,219	105,453,978	116,697,417	105,392,071
Diluted per common share data:
Net income per share attributable to common shareholders before discontinued operations (in dollars per share)	$ 0.27	$ 0.15	$ 0.67	$ 0.27
Discontinued operations (in dollars per share)	0.03	(0.01)	0.05	(0.01)
Net income per share attributable to common shareholders (in dollars per share)	$ 0.30	$ 0.14	$ 0.72	$ 0.26
Weighted-average number of common shares (in shares)	122,750,121	105,509,104	117,797,670	105,446,211
Amounts attributable to the Company’s common shareholders:
Income from continuing operations	$ 33,290	$ 15,917	$ 80,089	$ 28,568
Income (loss) from discontinued operations	3,179	(721)	5,387	(1,000)
Net income attributable to common shareholders	36,469	15,196	85,476	27,568
Comprehensive income
Unrealized (loss) gain on interest rate derivatives	(15,956)	389	(11,429)	764
Comprehensive income attributable to the Company	$ 20,513	$ 15,585	$ 74,047	$ 28,332

Combined Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in-Capital	Distributions in excess of net earnings	Accumulated Other Comprehensive Income	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	27,399			27,568		(169)	283	(452)
Unrealized loss on interest rate derivative	764
Issuance of restricted stock		$ 4	(4)
Issuance of restricted stock (in shares)		436,646
Amortization of share based compensation	5,763		5,763
Share grants to trustees	120		120
Share grants to trustees (in shares)		6,466
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock	(1,695)		(1,695)
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares)		(94,918)
Forfeiture of restricted stock (in shares)		(26,878)
Distributions on common shares and units	(53,386)			(52,944)		(442)	(442)
Balance at Sep. 30, 2012	1,812,953	$ 1,067	1,839,195	(44,336)	(1,018)	18,045	11,327	6,718
Balance (in shares) at Sep. 30, 2012		106,600,365
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	86,497			85,476		1,021	700	321
Unrealized loss on interest rate derivative	(11,429)				(11,429)
Proceeds from sale of common stock, net	327,545	$ 159	327,386
Proceeds from sale of common stock, net (in shares)		15,870,000
Issuance of restricted stock		$ 3	(3)
Issuance of restricted stock (in shares)		377,830
Amortization of share based compensation	9,691		9,691
Share grants to trustees	96		96
Share grants to trustees (in shares)		4,202
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock	(2,871)	$ (1)	(2,870)
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares)		(125,698)
Forfeiture of restricted stock (in shares)		(4,217)
Distributions on common shares and units	(76,636)			(76,086)		(550)	(550)
Balance at Sep. 30, 2013	$ 2,140,804	$ 1,227	$ 2,175,749	$ (43,291)	$ (11,429)	$ 18,548	$ 11,461	$ 7,087
Balance (in shares) at Sep. 30, 2013		122,687,633

Combined Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income	$ 86,497	$ 27,399
Adjustments to reconcile net income to cash flow provided by operating activities:
Gain on extinguishment of indebtedness	(5,702)	0
Gain on foreclosure	4,831	0
Depreciation and amortization	94,940	95,962
Amortization of deferred financing costs	3,487	3,167
Amortization of deferred management fees	882	750
Impairment loss	0	896
Loss on disposal	0	634
Share grants to trustees	96	120
Amortization of share based compensation	9,691	5,763
Deferred income taxes	(316)	(346)
Changes in assets and liabilities:
Hotel and other receivables, net	(9,183)	(9,172)
Prepaid expense and other assets	(273)	(436)
Accounts payable and accrued expense	5,978	(6,721)
Advance deposits and deferred revenue	3,721	5,376
Accrued interest	230	282
Net cash flow provided by operating activities	185,217	123,674
Cash flows from investing activities:
Acquisition of hotel and other properties, net of cash acquired	(184,165)	(182,690)
Purchase deposits	1,914	0
Proceeds from principal payments on investment in loans	103	153
Improvements and additions to hotel and other properties	(41,717)	(98,236)
Additions to property and equipment	(137)	(257)
Releases from restricted cash reserves, net	10,985	19,013
Net cash flow used in investing activities	(213,017)	(262,017)
Cash flows from financing activities:
Borrowings under revolving credit facility	205,500	85,000
Repayments under revolving credit facility	(221,500)	0
Borrowings on term loans	450,000	0
Proceeds from mortgage loans	150,000	85,000
Payment of mortgage principal	(575,850)	(94,768)
Repurchase of common shares	(2,871)	(1,695)
Distributions on common shares	(72,170)	(51,132)
Distributions on Operating Partnership units	(550)	(428)
Payment of deferred financing costs	(4,639)	(1,763)
Proceeds from issuance of common shares	327,545	0
Net cash flow provided by financing activities	255,465	20,214
Net change in cash and cash equivalents	227,665	(118,129)
Cash and cash equivalents, beginning of period	115,861	310,231
Cash and cash equivalents, end of period	$ 343,526	$ 192,102

Organization	9 Months Ended
Organization	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	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. 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 September 30, 2013, there were 123,581,633 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 September 30, 2013, the Company owned 149 properties, comprised of 147 hotels with approximately 22,300 rooms and two planned hotel conversions, located in 22 states and the District of Columbia, interests in land parcels located adjacent to certain hotels and an interest in one mortgage loan secured by a hotel. 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.

- 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	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2013
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited 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 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 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, statements of changes in equity and statements of cash flows for the periods presented. The unaudited 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 and nine months ended September 30, 2013 are not necessarily indicative of actual operating results for the entire year. The unaudited combined consolidated financial statements include the accounts of the Company, the Operating Partnership and its wholly-owned subsidiaries, including a consolidated joint venture. All significant intercompany balances have been eliminated in consolidation. Reporting Periods As of September 30, 2013, the Company owned five hotels that were managed by affiliates of Marriott International (“Marriott”). Beginning January 1, 2013, the Company’s hotels managed by Marriott were 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 and nine months ended September 30, 2012 include the results of operations for the Company’s Marriott-managed hotels for the 36-week period ended September 7, 2012. Reclassifications Certain prior year amounts in these financial statements have been reclassified to conform to the current year presentation with no impact to net income, shareholders’ equity or cash flows. 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 expenses. The allowances are calculated as a percentage of aged accounts receivable. 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 is being recognized over the remaining term of the franchise agreement. As of September 30, 2013, there was approximately $3.8 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 intangibles related to in-place leases, management agreements and 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. Transaction costs are expensed for acquisitions that are considered business combinations and capitalized for asset acquisitions. 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. Intangibles 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 property, 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 its 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, as an impairment charge. 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 expected use of the underlying properties. The assumptions and estimates about future cash flows and capitalization rates are complex and subjective. Changes in economic and operating conditions that occur subsequent to a current impairment analysis and the Company’s ultimate use of the property could impact these assumptions and result in future impairment charges of the properties. Franchise Agreements As of September 30, 2013, 142 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 2.0% and 3.0% of food and beverage revenues. Franchise fees are included in other hotel operating expenses in the accompanying 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 12). 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. The Company recognizes, for time-based awards, 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. The Company recognizes, for performance-based awards, 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

9 Months Ended

Sep. 30, 2013

Business Combinations [Abstract]

Acquisition of Hotel and Other Properties

During the nine months ended September 30, 2013, the Company acquired the following properties:



Property	Location	Acquisition Date	Management Company	Rooms	Purchase Price (in millions)		% Interest
Courtyard Houston Downtown	Houston, TX	March 19, 2013	White Lodging Services	191	$	34.3	100	%
Residence Inn Houston Downtown	Houston, TX	March 19, 2013	White Lodging Services	171	29.4		100	%
Humble Tower Apartments (1)	Houston, TX	March 19, 2013	The Sterling Group	82	15.6		100	%
Courtyard Waikiki Beach	Honolulu, HI	June 17, 2013	Highgate Hotels	399	75.3		100	%
Vantaggio Suites Cosmo (2)	San Francisco, CA	June 21, 2013	n/a	150	29.4		100	%
Residence Inn Atlanta Midtown/Historic (3)	Atlanta, GA	August 6, 2013	n/a	78	4.7		100	%
				1,071	$	188.7


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


2.	The property is not currently open for operations. Conversion to a 150-room Courtyard expected to be complete by late 2014.


3.	The Company was the successful bidder at a foreclosure sale of the property collateralizing a non-performing loan (see Note 6).

The property was operating at the time of the acquisition and was subsequently closed for a major renovation, which is expected to be complete in the third quarter of 2014.

During the nine months ended September 30, 2012, the Company acquired the following properties:



Hotel	Location	Acquisition Date	Management Company	Rooms	Purchase Price (in millions)		% Interest
Residence Inn Bethesda	Bethesda, MD	May 29, 2012	Marriott International	187	$	64.5	100	%
Courtyard New York Manhattan/Upper East Side	New York, NY	May 30, 2012	Highgate Hotels	226	82.0		100	%
Hilton Garden Inn San Francisco/Oakland Bay Bridge	Emeryville, CA	June 11, 2012	Davidson Hotels & Resorts	278	36.2		100	%
				691	$	182.7

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



	For the three months ended September 30,
	2013			2012
Land and land improvements	$	24,132		$	40,711
Buildings and improvements	169,070			135,727
Furniture, fixtures and equipment	3,151			6,220
Lease intangibles	342			—
Management agreement intangibles	(3,695		)	—
	193,000			182,658
Bargain purchase gain	(4,269		)	—
Total Purchase Price	$	188,731		$	182,658

The allocation of the purchase price for the Courtyard Waikiki Beach is preliminary due to certain market information not yet being available. See Note 15 for detail of other assets acquired and liabilities assumed in conjunction with the Company’s acquisitions.

For the properties acquired during the nine months ended September 30, 2013 and 2012, respectively, total revenues and net income (loss) from the date of acquisition through September 30, 2013 and 2012, respectively, are included in the accompanying combined consolidated statements of operations as follows (in thousands):



	2013 acquisitions
	For the three months ended September 30, 2013		For the nine months ended September 30, 2013
Revenue	$	11,179	$	17,741
Net income	$	2,056	$	1,488



	2012 acquisitions
	For the three months ended September 30, 2012		For the nine months ended September 30, 2012
Revenue	$	11,279	$	14,301
Net income (loss)	$	2,005	$	(408	)

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, respectively, nor does it purport to represent the results of operations for future periods. Operating results for the Vantaggio Suites Cosmo have not been included in the following unaudited condensed pro forma financial information as the acquisition was an asset purchase, not a business combination. The unaudited condensed pro forma financial information is as follows (in thousands, except share and per share data):



	For the three months ended September 30,				For the nine months ended September 30,
	2013		2012		2013		2012
Revenue	$	252,679	$	238,788	$	745,618	$	687,496
Net income	$	33,607	$	20,228	$	85,906	$	42,137
Net income per share attributable to common shareholders - basic	$	0.28	$	0.19	$	0.74	$	0.40
Net income per share attributable to common shareholders - diluted	$	0.27	$	0.19	$	0.73	$	0.40
Weighted average number of shares outstanding - basic	121,594,219		105,453,978		116,697,417		105,392,071
Weighted average number of shares outstanding - diluted	122,750,121		105,509,104		117,797,670		105,446,211

- 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

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Reference 17: 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 18: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 51, 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 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
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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

Discontinued Operations

9 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

In November 2011, the Company elected to cease the subsidization of debt service on the mortgage loan secured by the SpringHill Suites Southfield, Michigan. In January 2012, the Company received notice of an event of default for failure to

make the required monthly payments. Under the terms of the mortgage loan, the lender received 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. On May 30, 2013, the Company transferred title to the hotel to the lenders pursuant to the deed in lieu of foreclosure arrangement. The Company removed the hotel’s net assets and liabilities in its combined consolidated balance sheet in May 2013 and recorded a gain on extinguishment of indebtedness of approximately $2.4 million to discontinued operations at that time.

In November 2011, the Company elected to cease the subsidization of debt service on the mortgage loan secured by the Courtyard Goshen, Indiana. In December 2011, the Company received notice of an event of default for failure to make the required monthly payments. In May 2012, a receiver took control of the property for the benefit of the lender of the mortgage loan. On August 28, 2013, the property was sold at a foreclosure auction and was purchased by an affiliate of the lender. The Company removed the hotel’s net assets and liabilities in its combined consolidated balance sheet in August 2013 and recorded a gain on extinguishment of indebtedness of approximately $3.3 million to discontinued operations at that time.

In February 2013, the Goshen lender filed suit against the Company claiming amounts due from the Company in its capacity as a guarantor of certain borrower obligations and has continued to pursue this claim following the sale of the property. The Company disputes that any amounts are owed to the lender under the guaranty and is defending itself against this claim.

Operating results of discontinued operations were as follows (in thousands):



	For the three months ended September 30,						For the nine months ended September 30,
	2013			2012			2013			2012
Operating revenue	$	398		$	967		$	1,978		$	2,537
Operating expense	(442		)	(797		)	(1,882		)	(2,399		)
Operating (loss) income	(44		)	170			96			138
Interest expense	(31		)	(897		)	(372		)	(1,146		)
Loss from discontinued operations before gain on sale	(75		)	(727		)	(276		)	(1,008		)
Gain on extinguishment of indebtedness	3,277			—			5,702			—
Net income (loss) from discontinued operations	$	3,202		$	(727	)	$	5,426		$	(1,008	)

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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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

Investment in Hotel and Other Properties

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Investment in Hotel and Other Properties

Investment in hotel and other properties as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands):



	September 30, 2013			December 31, 2012
Land and land improvements	$	587,348		$	563,524
Buildings and improvements	2,834,524			2,655,086
Furniture, fixtures and equipment	465,070			438,807
Intangibles	2,199			1,857
	3,889,141			3,659,274
Accumulated depreciation and amortization	(676,852		)	(585,791		)
Investment in hotel and other properties, net	$	3,212,289		$	3,073,483

For the three and nine months ended September 30, 2013, depreciation and amortization expense related to investment in hotel and other properties was approximately $31.5 million and $94.5 million (excluding discontinued operations), respectively. For the three and nine months ended September 30, 2012, depreciation and amortization expense related to investment in hotel and other properties was approximately $30.7 million and $95.4 million (excluding discontinued operations), respectively.

Impairment

The Company determined that there was no impairment of any assets for the three and nine months ended September 30, 2013.

During the quarter ended September 30, 2012, the Company recorded an impairment loss of $0.9 million related to the Fairfield Inn Memphis. The Company evaluated the recoverability of the hotel’s carrying value given deteriorating operating results for the period ending September 30, 2012. Based on an analysis of estimated undiscounted net cash flow, the Company concluded that the carrying value of the hotel was not recoverable. The Company estimated the fair value of the hotel using a discounted cash flow analysis. In the analysis, the Company estimated the future net cash flows from the hotel, the expected useful life and holding period, and applicable capitalization and discount rates.

- 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

Investment in Loans	9 Months Ended
Investment in Loans	Sep. 30, 2013
Investments, Debt and Equity Securities [Abstract]
Investment in Loans	Investment in Loans On November 3, 2009, the Company purchased a mortgage loan collateralized by the Residence Inn Atlanta Midtown/Historic for a total purchase price of $5.0 million. The acquired loan was of deteriorated credit quality at the date of the Company's acquisition of the loan, and therefore the amounts paid for the loan reflected the Company's determination that it was probable the Company would be unable to collect all amounts due pursuant to the loan's contractual terms. The borrower defaulted on the loan in February 2013. On August 6, 2013, the Company was a successful bidder at a foreclosure sale of the property collateralizing the non-performing loan for a purchase price of $4.7 million, which was equal to the Company's basis in the mortgage loan. The Company recorded a gain of $4.3 million related to the property acquired and a gain of $0.5 million related to other assets acquired and liabilities assumed for a total gain on foreclosure of $4.8 million.

Debt

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

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 “2012 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”). On August 27, 2013, the Company amended the Seven-Year Term Loan to increase the borrowings on the Seven-Year Term Loan to $225.0 million.

The Company also entered into an unsecured $350.0 million term loan on August 27, 2013 with a scheduled maturity date of August 27, 2018 (the "2013 Five-Year Term Loan", and collectively with the 2012 Five-Year Term Loan and the Seven-Year Term Loan, the "Term Loans").

The credit agreements for these loans require that a group of no less than 20 of the Company’s hotel properties remain unencumbered by outstanding indebtedness. The credit agreements contain 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 September 30, 2013, the Company was in compliance with all financial covenants.

The Company incurred $8.0 million in fees related to the Revolver and Term Loans that were deferred and are being amortized over their respective terms.

Borrowings under the Revolver and Term Loans bear interest at variable rates equal to the London InterBank Offered Rate (“LIBOR”) plus an applicable margin. The margin ranges from 1.65% 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. The unused facility fee for the three and nine months ended September 30, 2013 was $0.3 million and $0.8 million, respectively.

Under the terms of the credit agreement for the Revolver, 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 September 30, 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 September 30, 2013.

As of and for the three and nine months ended September 30, 2013, details of the Revolver and Term Loans are as follows (in thousands):



	Outstanding borrowings at		Interest rate at	Interest expense for the
	September 30, 2013		September 30, 2013 (1)	three months ended September 30, 2013		nine months ended September 30, 2013
Revolver (2)	$	—	n/a	$	268	$	885
2012 Five-Year Term Loan	275,000		1.88%	1,329		4,137
Seven-Year Term Loan (3)	225,000		4.04%	1,073		2,596
2013 Five-Year Term Loan (4)	350,000		3.25%	914		914
Total	$	850,000		$	3,584	$	8,532


1.	Interest rate at September 30, 2013 gives effect to interest rate hedges and LIBOR floors, as applicable.


2.	Includes the unused facility fee of $0.3 million and $0.8 million for the three and nine months ended September 30, 2013, respectively.


3.	Includes interest expense related to an interest rate hedge of $0.2 million for both the three and nine months ended September 30, 2013.


4.	Includes interest expense related to an interest rate hedge of $0.3 million for both the three and nine months ended September 30, 2013.

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 September 30, 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 2012 Five-Year Term Loan as discussed above.

The Company incurred $3.0 million in fees related to the credit facility that were deferred and were being 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 incurred interest expense on the credit facility for the three and nine months ended September 30, 2012 of approximately $0.6 million and $1.2 million, respectively. For the three and nine months ended September 30, 2012, the Company incurred an unused commitment fee of approximately $0.2 million and $0.7 million, respectively.

Mortgage Loans

As of September 30, 2013 and December 31, 2012, the Company was subject to the following mortgage loans (in thousands):



						Principal balance at,
Lender	Number of assets encumbered	Interest rate at September 30, 2013 (1)		Maturity Date		September 30, 2013		December 31, 2012
Wells Fargo	1	4.60%	(2)	Oct 2014	(3)	$	68,500	$	68,500
Wells Fargo	1	3.78%	(2)	Oct 2014	(3)	17,500		17,500
Wells Fargo	1	3.78%	(2)	Oct 2014	(3)	21,000		21,000
Wells Fargo	1	3.78%	(2)	Oct 2014	(3)	11,000		11,000
Wells Fargo	1	3.78%	(2)	Oct 2014	(3)	24,000		24,000
Capmark Financial Group	1	6.12%		April 2015		4,102		4,202
Capmark Financial Group	1	5.55%		May 2015		11,013		11,298
Capmark Financial Group	1	5.55%		June 2015		4,777		4,901
Barclay's Bank	1	5.55%		June 2015		2,497		2,561
Barclay's Bank	1	5.55%		June 2015		4,098		4,203
Barclay's Bank	1	5.55%		June 2015		9,552		9,798
Barclay's Bank	1	5.55%		June 2015		8,526		8,745
Barclay's Bank	1	5.55%		June 2015		7,644		7,839
Barclay's Bank	1	5.60%		June 2015		5,301		5,434
Barclay's Bank	1	5.60%		June 2015		8,212		8,422
Barclay's Bank	1	5.55%		June 2015		5,006		5,134
Barclay's Bank	1	5.55%		June 2015		33,189		34,042
Barclay's Bank	1	5.60%		June 2015		6,305		6,466
Barclay's Bank	1	5.55%		June 2015		5,617		5,762
Barclay's Bank	1	5.55%		June 2015		6,455		6,621
Barclay's Bank	1	5.60%		June 2015		8,226		8,437
Barclay's Bank	1	5.55%		June 2015		6,450		6,614
Barclay's Bank	1	5.55%		June 2015		7,099		7,280
Barclay's Bank	1	5.55%		June 2015		6,455		6,621
Barclay's Bank	1	5.55%		June 2015		7,368		7,558
Barclay's Bank	1	5.55%		June 2015		9,247		9,484
Capmark Financial Group	1	5.50%		July 2015		6,506		6,673
Barclay's Bank	1	5.44%		Sept 2015		10,611		10,883
PNC Bank (4)	7	2.53%	(2)	May 2016	(5)	85,000		85,000
Wells Fargo (6)	2	4.19%	(2)	Sept 2016	(7)	82,000		—
Wells Fargo	1	4.19%	(2)	Sept 2016	(7)	33,000		—
Wells Fargo	1	4.19%	(2)	Sept 2016	(7)	35,000		—
Merrill Lynch				July 2016	(8)	—		9,180
Merrill Lynch				July 2016	(8)	—		7,684
Merrill Lynch				July 2016	(8)	—		9,194
Wachovia Securities				July 2016	(8)	—		487,296
Wachovia Securities				July 2016	(8)	—		6,582
Wells Fargo / Morgan Stanley				July 2016	(8)	—		34,823
Wells Fargo / Morgan Stanley				July 2016	(8)	—		6,753
Wells Fargo / Morgan Stanley				July 2016	(8)	—		9,616
Merrill Lynch				July 2016	(9)	—		5,531
VFC Partners 20 LLC				Sept 2016	(10)	—		5,014
	39					$	561,256	$	997,651


1.	Interest rate at September 30, 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.


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.


6.	The two hotels encumbered by the Wells Fargo loan are cross-collateralized.


7.	Maturity date may be extended for four one-year terms at the Company’s option.


8.	The loans were paid off in August 2013 in conjunction with the amendment to the Company's Seven-Year Term Loan and entering into the 2013 Five-Year Term Loan.


9.	Loan was extinguished in August 2013 in conjunction with the foreclosure of the collateral.


10.	Loan was extinguished in May 2013 in conjunction with the transfer of title pursuant to a deed in lieu of foreclosure arrangement.

Some mortgage agreements are subject to customary financial covenants. The Company was in compliance with these

covenants at September 30, 2013 and December 31, 2012.

- 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

Derivatives and Hedging

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 income (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.

At September 30, 2013, the fair value of interest rate swap assets of $2.8 million was included in prepaid expenses and other assets in the accompanying combined consolidated balance sheets. At September 30, 2013 and December 31, 2012, the aggregate fair value of interest rate swap liabilities of $14.2 million and $0.5 million, respectively, was included in accounts payable and accrued expenses in the accompanying combined consolidated balance sheets.

As of September 30, 2013 and December 31, 2012, the Company had entered into the following interest rate swaps and caps (in thousands):



	Notional value at						Fair value at
Hedge type	September 30, 2013		December 31, 2012		Hedge interest rate	Maturity	September 30, 2013			December 31, 2012
Swap-cash flow (1)	$	40,000	$	40,000	1.00%	10/6/2013	$	(31	)	$	(265	)
Swap-cash flow (1)	31,000		31,000		1.00%	10/6/2013	(24		)	(205		)
Interest rate cap (1)	—		60,000		1.00%	6/29/2013	—			—
Swap-cash flow (2)	275,000		—		1.12%	11/20/2017	2,765			—
Swap-cash flow (2)	175,000		—		1.56%	3/6/2018	(2,792		)	—
Swap-cash flow (2)	175,000		—		1.64%	3/6/2018	(3,362		)	—
Swap-cash flow (2)	16,500		—		1.83%	9/15/2018	(354		)	—
Swap-cash flow (2)	16,500		—		1.75%	9/15/2018	(294		)	—
Swap-cash flow (2)	40,500		—		1.83%	9/15/2018	(869		)	—
Swap-cash flow (2)	41,500		—		1.75%	9/15/2018	(740		)	—
Swap-cash flow (2)	18,000		—		1.83%	9/15/2018	(386		)	—
Swap-cash flow (2)	17,000		—		1.75%	9/15/2018	(303		)	—
Swap-cash flow (2)	125,000		—		2.02%	3/6/2019	(3,054		)	—
Swap-cash flow (2)	100,000		—		1.94%	3/6/2019	(2,040		)	—
	$	1,071,000	$	131,000			$	(11,484	)	$	(470	)


1.	Not designated as a cash flow hedge


2.	Designated as a cash flow hedge

As of September 30, 2013 and December 31, 2012, there was approximately $11.4 million and zero, respectively, in unrealized losses included in accumulated other comprehensive income related to interest rate hedges that are effective in offsetting the variable cash flows. There was no ineffectiveness recorded on designated hedges during the three and nine month periods ended September 30, 2013 and 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

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-Name Statement of Financial Accounting Standard (FAS)
-Number 133
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+ Details

Fair Value

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value

Fair Value Measurement

Fair value is defined as the price that would be received upon the sale of 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.

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 and other 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 obtaining a third-party appraisal or 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 at September 30, 2013 and December 31, 2012 was $13.1 million and $23.0 million, respectively.

•

Variable rate mortgage notes payable and borrowings under the Revolver and Term Loans - 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 estimated 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 September 30, 2013 and December 31, 2012 of $178.9 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 September 30, 2013 and December 31, 2012 was $184.3 million and $770.7 million, respectively.

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 September 30, 2013 (in thousands):



	Fair Value at September 30, 2013
	Level 1		Level 2			Level 3		Total
Interest rate swap asset	$	—	$	2,765		$	—	$	2,765
Interest rate swap liability	$	—	$	(14,249	)	$	—	$	(14,249	)
Total	$	—	$	(11,484	)	$	—	$	(11,484	)

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 September 30, 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company elected to be taxed as a REIT 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 September 30, 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
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-Name Accounting Standards Codification
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+ Details

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Ground Leases In conjunction with the acquisition of the Courtyard Waikiki Beach, the Company entered into a ground lease with a term extending to 2112. The annual ground rent is $3.5 million through 2016, after which the annual rent shall increase by the increase, if any, in the Consumer Price Index (“CPI”) from the immediately preceding calendar year. The increase is limited to 5.0% per annum for the first 10 years in which the annual rent is subject to increase, and 6.0% per annum during the seven subsequent years in which the annual rent is subject to increase. Thereafter, there is no cap on the increase in the CPI. For the three and nine months ended September 30, 2013, respectively, $0.9 million and $1.0 million of ground rent was incurred. There was no ground rent expense in 2012 as this property was acquired in 2013. Restricted Cash Reserves 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. 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 September 30, 2013 and December 31, 2012, approximately $53.8 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-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 Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-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

Equity Incentive Plan

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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.

Share Awards

From time to time, the Company may award non-vested restricted 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.

The Company may also award unrestricted shares under the 2011 Plan as compensation to non-employee trustees that would otherwise be paid in cash for their services. The shares issued to trustees are unrestricted and include no vesting conditions. The Company recognizes compensation expense for the unrestricted shares issued in lieu of cash compensation on the date of issuance based upon the fair market value of the shares on that date.

A summary of the non-vested shares as of September 30, 2013 is as follows:



	2013
	Number of Shares		Weighted Average Grant Date Fair Value
Unvested at January 1,	1,013,673		$	17.80
Granted (1)	382,032		21.31
Vested (1)	(338,777	)	18.15
Forfeited	(4,217	)	19.82
Unvested at September 30,	1,052,711		$	18.96


1.	Includes 4,202 unrestricted shares issued in lieu of cash compensation to non-employee trustees at a weighted average grant date fair value of $22.89.

For the three and nine months ended September 30, 2013, the Company recognized approximately $2.2 million and $6.3 million, respectively, of share-based compensation expense related to restricted share awards. For the three and nine months ended September 30, 2012, the Company recognized approximately $1.7 million and $5.0 million, respectively, of share-based compensation expense related to restricted share awards. As of September 30, 2013, there was $19.0 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 2.43 years. The total fair value of shares vested (calculated as number of shares multiplied by vesting date share price) during the nine months ended September 30, 2013 was approximately $7.6 million.

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 September 30, 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 and nine months ended September 30, 2013, the Company recognized $1.1 million and $3.4 million, respectively, of share-based compensation expense related to performance unit awards. For both the three and nine months ended September 30, 2012, the Company recognized $0.8 million of share-based compensation expense related to the performance units. As of September 30, 2013, there was $10.1 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 2.32 years.

As of September 30, 2013, there were 3,078,247 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
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-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
-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 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

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

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 and nine months ended September 30, 2013, approximately $0.1 million and $0.1 million, respectively, represented undistributed earnings that were allocable to participating shares. For the three and nine months ended September 30, 2012, no earnings representing undistributed earnings were allocated to participating shares because the Company paid dividends in excess of net income.

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 and nine months ended September 30, 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 September 30,						For the nine months ended September 30,
	2013			2012			2013			2012
Numerator:
Net income attributable to common shareholders before discontinued operations	$	33,290		$	15,917		$	80,089		$	28,568
Add: Income (loss) from discontinued operations	3,179			(721		)	5,387			(1,000		)
Net income attributable to common shareholders	36,469			15,196			85,476			27,568
Less: Dividends paid on unvested restricted shares	(216		)	(183		)	(712		)	(594		)
Less: Undistributed earnings attributable to unvested restricted shares	(97		)	—			(86		)	—
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares	$	36,156		$	15,013		$	84,678		$	26,974
Denominator:
Weighted-average number of common shares - basic	121,594,219			105,453,978			116,697,417			105,392,071
Unvested restricted shares	249,029			55,126			212,672			54,140
Unvested performance units	906,873			—			887,581			—
Weighted-average number of common shares - diluted	122,750,121			105,509,104			117,797,670			105,446,211

Net income per share attributable to common shareholders before discontinued operations - basic	$	0.27		$	0.15		$	0.68		$	0.27
Discontinued operations	0.03			(0.01		)	0.05			(0.01		)
Net income per share attributable to common shareholders - basic	$	0.30		$	0.14		$	0.73		$	0.26

Net income per share attributable to common shareholders before discontinued operations - diluted	$	0.27		$	0.15		$	0.67		$	0.27
Discontinued operations	0.03			(0.01		)	0.05			(0.01		)
Net income per share attributable to common shareholders - diluted	$	0.30		$	0.14		$	0.72		$	0.26

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2013
Related Party Transactions [Abstract]
Related Party Transactions	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 September 30, 2013 and December 31, 2012, there was approximately $63,000 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

Reference 5: 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))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

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

9 Months Ended

Sep. 30, 2013

Supplemental Cash Flow Elements [Abstract]

Supplemental Information to Statements of Cash Flows

Supplemental Information to Statements of Cash Flows (in thousands)



	For the nine months ended September 30,
	2013			2012
Interest paid	$	46,826		$	58,726

Income taxes paid	$	1,350		$	1,250

Supplemental investing and financing transactions:
In conjunction with the acquisitions, the Company recorded the following:
Purchase of real estate	$	196,695		$	182,658
Accounts receivable	708			71
Other assets	902			556
Advance deposits	(313		)	(163		)
Accounts payable and accrued expenses	(4,265		)	(432		)
Receipt of assets in full satisfaction	(4,731		)	—
Gain on foreclosure	(4,831		)	—
Acquisition of hotel and other properties	$	184,165		$	182,690

In conjunction with the dispositions, the Company recorded the following:
Sale of real estate	$	(5,056	)	$	—
Other assets	(909		)	—
Other liabilities	1,122			—
Gain on extinguishment of indebtedness	(5,702		)	—
Forgiveness of indebtedness	10,545			—
Disposition of hotel properties	$	—		$	—

Supplemental non-cash transactions:
Change in fair market value of designated interest rate swaps	$	(11,429	)	$	764

Accrued capital expenditures	$	76		$	461

Distributions payable	$	26,308		$	17,902

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2013
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 8, 2013, the Company purchased the 106-room SpringHill Suites Portland Hillsboro located in Hillsboro, Oregon for a purchase price of $24.0 million. As a result of this acquisition, the Company owned 150 properties, comprised of 148 hotels with approximately 22,400 rooms and two planned hotel conversions, located in 23 states and the District of Columbia. On October 15, 2013, the Company paid a dividend of $0.205 per common share to shareholders of record at September 30, 2013.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2013
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited 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 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 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, statements of changes in equity and statements of cash flows for the periods presented. The unaudited 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 and nine months ended September 30, 2013 are not necessarily indicative of actual operating results for the entire year. The unaudited combined consolidated financial statements include the accounts of the Company, the Operating Partnership and its wholly-owned subsidiaries, including a consolidated joint venture. All significant intercompany balances have been eliminated in consolidation.
Reporting Periods	Reporting Periods As of September 30, 2013, the Company owned five hotels that were managed by affiliates of Marriott International (“Marriott”). Beginning January 1, 2013, the Company’s hotels managed by Marriott were 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 and nine months ended September 30, 2012 include the results of operations for the Company’s Marriott-managed hotels for the 36-week period ended September 7, 2012.
Reclassifications	Reclassifications Certain prior year amounts in these financial statements have been reclassified to conform to the current year presentation with no impact to net income, shareholders’ equity or cash flows.
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 expenses. The allowances are calculated as a percentage of aged accounts receivable. 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 is being recognized over the remaining term of the franchise agreement. As of September 30, 2013, there was approximately $3.8 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 intangibles related to in-place leases, management agreements and 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. Transaction costs are expensed for acquisitions that are considered business combinations and capitalized for asset acquisitions. 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. Intangibles 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 property, 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 its 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, as an impairment charge. 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 expected use of the underlying properties. The assumptions and estimates about future cash flows and capitalization rates are complex and subjective. Changes in economic and operating conditions that occur subsequent to a current impairment analysis and the Company’s ultimate use of the property could impact these assumptions and result in future impairment charges of the properties.
Franchise Agreements	Franchise Agreements As of September 30, 2013, 142 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 2.0% and 3.0% of food and beverage revenues. Franchise fees are included in other hotel operating expenses in the accompanying 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 12). 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. The Company recognizes, for time-based awards, 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. The Company recognizes, for performance-based awards, 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 (Tables)

9 Months Ended

Sep. 30, 2013

Business Combinations [Abstract]

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

During the nine months ended September 30, 2013, the Company acquired the following properties:



Property	Location	Acquisition Date	Management Company	Rooms	Purchase Price (in millions)		% Interest
Courtyard Houston Downtown	Houston, TX	March 19, 2013	White Lodging Services	191	$	34.3	100	%
Residence Inn Houston Downtown	Houston, TX	March 19, 2013	White Lodging Services	171	29.4		100	%
Humble Tower Apartments (1)	Houston, TX	March 19, 2013	The Sterling Group	82	15.6		100	%
Courtyard Waikiki Beach	Honolulu, HI	June 17, 2013	Highgate Hotels	399	75.3		100	%
Vantaggio Suites Cosmo (2)	San Francisco, CA	June 21, 2013	n/a	150	29.4		100	%
Residence Inn Atlanta Midtown/Historic (3)	Atlanta, GA	August 6, 2013	n/a	78	4.7		100	%
				1,071	$	188.7


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


2.	The property is not currently open for operations. Conversion to a 150-room Courtyard expected to be complete by late 2014.


3.	The Company was the successful bidder at a foreclosure sale of the property collateralizing a non-performing loan (see Note 6).

The property was operating at the time of the acquisition and was subsequently closed for a major renovation, which is expected to be complete in the third quarter of 2014.

During the nine months ended September 30, 2012, the Company acquired the following properties:



Hotel	Location	Acquisition Date	Management Company	Rooms	Purchase Price (in millions)		% Interest
Residence Inn Bethesda	Bethesda, MD	May 29, 2012	Marriott International	187	$	64.5	100	%
Courtyard New York Manhattan/Upper East Side	New York, NY	May 30, 2012	Highgate Hotels	226	82.0		100	%
Hilton Garden Inn San Francisco/Oakland Bay Bridge	Emeryville, CA	June 11, 2012	Davidson Hotels & Resorts	278	36.2		100	%
				691	$	182.7

Schedule of allocation of purchase price for the properties acquired

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



	For the three months ended September 30,
	2013			2012
Land and land improvements	$	24,132		$	40,711
Buildings and improvements	169,070			135,727
Furniture, fixtures and equipment	3,151			6,220
Lease intangibles	342			—
Management agreement intangibles	(3,695		)	—
	193,000			182,658
Bargain purchase gain	(4,269		)	—
Total Purchase Price	$	188,731		$	182,658

Schedule of total revenues and net loss from the properties acquired



	2013 acquisitions
	For the three months ended September 30, 2013		For the nine months ended September 30, 2013
Revenue	$	11,179	$	17,741
Net income	$	2,056	$	1,488



	2012 acquisitions
	For the three months ended September 30, 2012		For the nine months ended September 30, 2012
Revenue	$	11,279	$	14,301
Net income (loss)	$	2,005	$	(408	)

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 September 30,				For the nine months ended September 30,
	2013		2012		2013		2012
Revenue	$	252,679	$	238,788	$	745,618	$	687,496
Net income	$	33,607	$	20,228	$	85,906	$	42,137
Net income per share attributable to common shareholders - basic	$	0.28	$	0.19	$	0.74	$	0.40
Net income per share attributable to common shareholders - diluted	$	0.27	$	0.19	$	0.73	$	0.40
Weighted average number of shares outstanding - basic	121,594,219		105,453,978		116,697,417		105,392,071
Weighted average number of shares outstanding - diluted	122,750,121		105,509,104		117,797,670		105,446,211

- 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

Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Schedule of operating results of discontinued operations

Operating results of discontinued operations were as follows (in thousands):



	For the three months ended September 30,						For the nine months ended September 30,
	2013			2012			2013			2012
Operating revenue	$	398		$	967		$	1,978		$	2,537
Operating expense	(442		)	(797		)	(1,882		)	(2,399		)
Operating (loss) income	(44		)	170			96			138
Interest expense	(31		)	(897		)	(372		)	(1,146		)
Loss from discontinued operations before gain on sale	(75		)	(727		)	(276		)	(1,008		)
Gain on extinguishment of indebtedness	3,277			—			5,702			—
Net income (loss) from discontinued operations	$	3,202		$	(727	)	$	5,426		$	(1,008	)

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Investment in Hotel and Other Properties (Tables)

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Schedule of investment in hotel and other properties

Investment in hotel and other properties as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands):



	September 30, 2013			December 31, 2012
Land and land improvements	$	587,348		$	563,524
Buildings and improvements	2,834,524			2,655,086
Furniture, fixtures and equipment	465,070			438,807
Intangibles	2,199			1,857
	3,889,141			3,659,274
Accumulated depreciation and amortization	(676,852		)	(585,791		)
Investment in hotel and other properties, net	$	3,212,289		$	3,073,483

Debt (Tables)

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Schedule of Revolver and Term Loans

As of and for the three and nine months ended September 30, 2013, details of the Revolver and Term Loans are as follows (in thousands):



	Outstanding borrowings at		Interest rate at	Interest expense for the
	September 30, 2013		September 30, 2013 (1)	three months ended September 30, 2013		nine months ended September 30, 2013
Revolver (2)	$	—	n/a	$	268	$	885
2012 Five-Year Term Loan	275,000		1.88%	1,329		4,137
Seven-Year Term Loan (3)	225,000		4.04%	1,073		2,596
2013 Five-Year Term Loan (4)	350,000		3.25%	914		914
Total	$	850,000		$	3,584	$	8,532


1.	Interest rate at September 30, 2013 gives effect to interest rate hedges and LIBOR floors, as applicable.


2.	Includes the unused facility fee of $0.3 million and $0.8 million for the three and nine months ended September 30, 2013, respectively.


3.	Includes interest expense related to an interest rate hedge of $0.2 million for both the three and nine months ended September 30, 2013.


4.	Includes interest expense related to an interest rate hedge of $0.3 million for both the three and nine months ended September 30, 2013.

Schedule of mortgage loans

As of September 30, 2013 and December 31, 2012, the Company was subject to the following mortgage loans (in thousands):



						Principal balance at,
Lender	Number of assets encumbered	Interest rate at September 30, 2013 (1)		Maturity Date		September 30, 2013		December 31, 2012
Wells Fargo	1	4.60%	(2)	Oct 2014	(3)	$	68,500	$	68,500
Wells Fargo	1	3.78%	(2)	Oct 2014	(3)	17,500		17,500
Wells Fargo	1	3.78%	(2)	Oct 2014	(3)	21,000		21,000
Wells Fargo	1	3.78%	(2)	Oct 2014	(3)	11,000		11,000
Wells Fargo	1	3.78%	(2)	Oct 2014	(3)	24,000		24,000
Capmark Financial Group	1	6.12%		April 2015		4,102		4,202
Capmark Financial Group	1	5.55%		May 2015		11,013		11,298
Capmark Financial Group	1	5.55%		June 2015		4,777		4,901
Barclay's Bank	1	5.55%		June 2015		2,497		2,561
Barclay's Bank	1	5.55%		June 2015		4,098		4,203
Barclay's Bank	1	5.55%		June 2015		9,552		9,798
Barclay's Bank	1	5.55%		June 2015		8,526		8,745
Barclay's Bank	1	5.55%		June 2015		7,644		7,839
Barclay's Bank	1	5.60%		June 2015		5,301		5,434
Barclay's Bank	1	5.60%		June 2015		8,212		8,422
Barclay's Bank	1	5.55%		June 2015		5,006		5,134
Barclay's Bank	1	5.55%		June 2015		33,189		34,042
Barclay's Bank	1	5.60%		June 2015		6,305		6,466
Barclay's Bank	1	5.55%		June 2015		5,617		5,762
Barclay's Bank	1	5.55%		June 2015		6,455		6,621
Barclay's Bank	1	5.60%		June 2015		8,226		8,437
Barclay's Bank	1	5.55%		June 2015		6,450		6,614
Barclay's Bank	1	5.55%		June 2015		7,099		7,280
Barclay's Bank	1	5.55%		June 2015		6,455		6,621
Barclay's Bank	1	5.55%		June 2015		7,368		7,558
Barclay's Bank	1	5.55%		June 2015		9,247		9,484
Capmark Financial Group	1	5.50%		July 2015		6,506		6,673
Barclay's Bank	1	5.44%		Sept 2015		10,611		10,883
PNC Bank (4)	7	2.53%	(2)	May 2016	(5)	85,000		85,000
Wells Fargo (6)	2	4.19%	(2)	Sept 2016	(7)	82,000		—
Wells Fargo	1	4.19%	(2)	Sept 2016	(7)	33,000		—
Wells Fargo	1	4.19%	(2)	Sept 2016	(7)	35,000		—
Merrill Lynch				July 2016	(8)	—		9,180
Merrill Lynch				July 2016	(8)	—		7,684
Merrill Lynch				July 2016	(8)	—		9,194
Wachovia Securities				July 2016	(8)	—		487,296
Wachovia Securities				July 2016	(8)	—		6,582
Wells Fargo / Morgan Stanley				July 2016	(8)	—		34,823
Wells Fargo / Morgan Stanley				July 2016	(8)	—		6,753
Wells Fargo / Morgan Stanley				July 2016	(8)	—		9,616
Merrill Lynch				July 2016	(9)	—		5,531
VFC Partners 20 LLC				Sept 2016	(10)	—		5,014
	39					$	561,256	$	997,651


1.	Interest rate at September 30, 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.


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.


6.	The two hotels encumbered by the Wells Fargo loan are cross-collateralized.


7.	Maturity date may be extended for four one-year terms at the Company’s option.


8.	The loans were paid off in August 2013 in conjunction with the amendment to the Company's Seven-Year Term Loan and entering into the 2013 Five-Year Term Loan.


9.	Loan was extinguished in August 2013 in conjunction with the foreclosure of the collateral.


10.	Loan was extinguished in May 2013 in conjunction with the transfer of title pursuant to a deed in lieu of foreclosure arrangement.

Derivatives and Hedging (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of interest rate swaps and caps

As of September 30, 2013 and December 31, 2012, the Company had entered into the following interest rate swaps and caps (in thousands):



	Notional value at						Fair value at
Hedge type	September 30, 2013		December 31, 2012		Hedge interest rate	Maturity	September 30, 2013			December 31, 2012
Swap-cash flow (1)	$	40,000	$	40,000	1.00%	10/6/2013	$	(31	)	$	(265	)
Swap-cash flow (1)	31,000		31,000		1.00%	10/6/2013	(24		)	(205		)
Interest rate cap (1)	—		60,000		1.00%	6/29/2013	—			—
Swap-cash flow (2)	275,000		—		1.12%	11/20/2017	2,765			—
Swap-cash flow (2)	175,000		—		1.56%	3/6/2018	(2,792		)	—
Swap-cash flow (2)	175,000		—		1.64%	3/6/2018	(3,362		)	—
Swap-cash flow (2)	16,500		—		1.83%	9/15/2018	(354		)	—
Swap-cash flow (2)	16,500		—		1.75%	9/15/2018	(294		)	—
Swap-cash flow (2)	40,500		—		1.83%	9/15/2018	(869		)	—
Swap-cash flow (2)	41,500		—		1.75%	9/15/2018	(740		)	—
Swap-cash flow (2)	18,000		—		1.83%	9/15/2018	(386		)	—
Swap-cash flow (2)	17,000		—		1.75%	9/15/2018	(303		)	—
Swap-cash flow (2)	125,000		—		2.02%	3/6/2019	(3,054		)	—
Swap-cash flow (2)	100,000		—		1.94%	3/6/2019	(2,040		)	—
	$	1,071,000	$	131,000			$	(11,484	)	$	(470	)

Fair Value (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

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 September 30, 2013 (in thousands):



	Fair Value at September 30, 2013
	Level 1		Level 2			Level 3		Total
Interest rate swap asset	$	—	$	2,765		$	—	$	2,765
Interest rate swap liability	$	—	$	(14,249	)	$	—	$	(14,249	)
Total	$	—	$	(11,484	)	$	—	$	(11,484	)

Equity Incentive Plan (Tables)

9 Months Ended

Sep. 30, 2013

Restricted share awards

Equity Incentive Plan

Summary of the non-vested shares

A summary of the non-vested shares as of September 30, 2013 is as follows:



	2013
	Number of Shares		Weighted Average Grant Date Fair Value
Unvested at January 1,	1,013,673		$	17.80
Granted (1)	382,032		21.31
Vested (1)	(338,777	)	18.15
Forfeited	(4,217	)	19.82
Unvested at September 30,	1,052,711		$	18.96

Earnings per Common Share (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

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 September 30,						For the nine months ended September 30,
	2013			2012			2013			2012
Numerator:
Net income attributable to common shareholders before discontinued operations	$	33,290		$	15,917		$	80,089		$	28,568
Add: Income (loss) from discontinued operations	3,179			(721		)	5,387			(1,000		)
Net income attributable to common shareholders	36,469			15,196			85,476			27,568
Less: Dividends paid on unvested restricted shares	(216		)	(183		)	(712		)	(594		)
Less: Undistributed earnings attributable to unvested restricted shares	(97		)	—			(86		)	—
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares	$	36,156		$	15,013		$	84,678		$	26,974
Denominator:
Weighted-average number of common shares - basic	121,594,219			105,453,978			116,697,417			105,392,071
Unvested restricted shares	249,029			55,126			212,672			54,140
Unvested performance units	906,873			—			887,581			—
Weighted-average number of common shares - diluted	122,750,121			105,509,104			117,797,670			105,446,211

Net income per share attributable to common shareholders before discontinued operations - basic	$	0.27		$	0.15		$	0.68		$	0.27
Discontinued operations	0.03			(0.01		)	0.05			(0.01		)
Net income per share attributable to common shareholders - basic	$	0.30		$	0.14		$	0.73		$	0.26

Net income per share attributable to common shareholders before discontinued operations - diluted	$	0.27		$	0.15		$	0.67		$	0.27
Discontinued operations	0.03			(0.01		)	0.05			(0.01		)
Net income per share attributable to common shareholders - diluted	$	0.30		$	0.14		$	0.72		$	0.26

Supplemental Information to Statements of Cash Flows (Tables)

9 Months Ended

Sep. 30, 2013

Supplemental Cash Flow Elements [Abstract]

Schedule of supplemental information to statements of cash flows



	For the nine months ended September 30,
	2013			2012
Interest paid	$	46,826		$	58,726

Income taxes paid	$	1,350		$	1,250

Supplemental investing and financing transactions:
In conjunction with the acquisitions, the Company recorded the following:
Purchase of real estate	$	196,695		$	182,658
Accounts receivable	708			71
Other assets	902			556
Advance deposits	(313		)	(163		)
Accounts payable and accrued expenses	(4,265		)	(432		)
Receipt of assets in full satisfaction	(4,731		)	—
Gain on foreclosure	(4,831		)	—
Acquisition of hotel and other properties	$	184,165		$	182,690

In conjunction with the dispositions, the Company recorded the following:
Sale of real estate	$	(5,056	)	$	—
Other assets	(909		)	—
Other liabilities	1,122			—
Gain on extinguishment of indebtedness	(5,702		)	—
Forgiveness of indebtedness	10,545			—
Disposition of hotel properties	$	—		$	—

Supplemental non-cash transactions:
Change in fair market value of designated interest rate swaps	$	(11,429	)	$	764

Accrued capital expenditures	$	76		$	461

Distributions payable	$	26,308		$	17,902

Organization (Details)	9 Months Ended
Organization (Details)	Sep. 30, 2013 state hotel loan property room shares
Sale of Stock
OP units outstanding (in units) \| shares	123,581,633
Ownership interest in OP units through a combination of direct and indirect interests (as a percent)	99.30%
Number of properties owned \| property	149
Number of hotel rooms owned \| room	22,281
Number of hotels planned for conversion	2
Number of states in which hotels owned by the entity are located \| state	22
Number of mortgage loans owned \| loan	1
Ownership interest in assets (as a percent)	100.00%
Hotels
Sale of Stock
Number of hotels owned	147
Doubletree Metropolitan Hotel New York City
Sale of Stock
Ownership interest in assets (as a percent)	95.00%

Summary of Significant Accounting Policies (Details) $ in Millions	1 Months Ended	9 Months Ended		12 Months Ended
	May 31, 2012 USD ($)	Sep. 30, 2013 USD ($) hotel property	Sep. 30, 2012	Dec. 31, 2012
Reporting Periods
Number of properties owned \| property		149
Revenue Recognition
Incentive payment received \| $	$ 4.0
Revenue to be recognized \| $		$ 3.8
Franchise Agreements
Number of hotel properties operated under franchise agreements \| hotel		142
Marriott
Reporting Periods
Number of properties owned \| hotel		5
Number of days of results of operations for Marriott-managed hotels included in the period			273 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		2.00%
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

9 Months Ended

Aug. 06, 2013

USD ($)

room

Jun. 21, 2013

USD ($)

room

Jun. 17, 2013

USD ($)

room

Mar. 19, 2013

USD ($)

room

Mar. 31, 2013

Jun. 30, 2012

May 31, 2012

Sep. 30, 2013

USD ($)

room

$ / shares

Sep. 30, 2012

USD ($)

room

$ / shares

Sep. 30, 2013

USD ($)

room

$ / shares

Sep. 30, 2012

USD ($)

room

$ / shares

Jun. 11, 2012

USD ($)

room

May 30, 2012

USD ($)

room

May 29, 2012

USD ($)

room

Acquisition of Hotel Properties

Rooms | room

22,281

% Interest

100.00%

Total revenues and net income (loss) from hotels acquired

Revenue

$ 252,395

$ 224,250

$ 728,631

$ 629,130

Net income

36,928

15,301

86,497

27,399

Unaudited condensed pro forma financial information

Revenue

252,679

238,788

745,618

687,496

Net income

$ 33,607

$ 20,228

$ 85,906

$ 42,137

Net income per share attributable to common shareholders - basic (in dollars per share) | $ / shares

$ 0.28

$ 0.19

$ 0.74

$ 0.40

Net income per share attributable to common shareholders - diluted (in dollars per share) | $ / shares

$ 0.27

$ 0.19

$ 0.73

$ 0.40

Weighted average number of shares outstanding - basic (in shares) | shares

121,594,219

105,453,978

116,697,417

105,392,071

Weighted average number of shares outstanding - diluted (in shares) | shares

122,750,121

105,509,104

117,797,670

105,446,211

2013 acquisitions

Acquisition of Hotel Properties

Rooms | room

1,071

Purchase Price

$ 188,700

Allocation of purchase price for the hotel properties acquired and liabilities assumed

Land and land improvements

24,132

Buildings and improvements

169,070

Furniture, fixtures and equipment

3,151

Total Purchase Price

188,731

Total revenues and net income (loss) from hotels acquired

Revenue

11,179

17,741

Net income

2,056

1,488

2013 acquisitions | Lease intangibles

Allocation of purchase price for the hotel properties acquired and liabilities assumed

Intangibles

342

2013 acquisitions | Management agreement intangibles

Allocation of purchase price for the hotel properties acquired and liabilities assumed

Intangibles

(3,695)

Total

$ 193,000

193,000

Bargain purchase gain

$ (4,269)

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

^[1]

Purchase Price

^[1]

$ 15,600

% Interest

^[1]

100.00%

Number of rooms in a Spring Hill Suites branded hotel into which property will be converted | room

166

Courtyard Waikiki Beach

Acquisition of Hotel Properties

Rooms | room

399

Purchase Price

$ 75,300

% Interest

100.00%

Vantaggio Suites Cosmo

Acquisition of Hotel Properties

Rooms | room

^[2]

150

Purchase Price

^[2]

$ 29,400

% Interest

^[2]

100.00%

Residence Inn Atlanta Midtown

Acquisition of Hotel Properties

Rooms | room

^[3]

Noncash or Part Noncash Acquisition, Value of Assets Acquired

^[3]

$ 4,700

% Interest

^[3]

100.00%

2012 acquisitions

Acquisition of Hotel Properties

Rooms | room

691

Purchase Price

$ 182,700

Allocation of purchase price for the hotel properties acquired and liabilities assumed

Land and land improvements

40,711

Buildings and improvements

135,727

Furniture, fixtures and equipment

6,220

Total Purchase Price

182,658

Total revenues and net income (loss) from hotels acquired

Revenue

11,279

14,301

Net income

2,005

(408)

2012 acquisitions | Lease intangibles

Allocation of purchase price for the hotel properties acquired and liabilities assumed

Intangibles

2012 acquisitions | Management agreement intangibles

Allocation of purchase price for the hotel properties acquired and liabilities assumed

Intangibles

Total

$ 182,658

182,658

Bargain purchase gain

$ 0

Residence Inn Bethesda

Acquisition of Hotel Properties

Rooms | room

187

Purchase Price

$ 64,500

% Interest

100.00%

Courtyard New York Manhattan/Upper East Side

Acquisition of Hotel Properties

Rooms | room

226

Purchase Price

$ 82,000

% Interest

100.00%

Hilton Garden Inn San Francisco/Oakland Bay Bridge

Acquisition of Hotel Properties

Rooms | room

278

Purchase Price

$ 36,200

% Interest

100.00%

[1]	Conversion to a 166-room SpringHill Suites expected to be complete by mid-2015.
[2]	The property is not currently open for operations. Conversion to a 150-room Courtyard expected to be complete by late 2014.
[3]	The Company was the successful bidder at a foreclosure sale of the property collateralizing a non-performing loan (see Note 6).The property was operating at the time of the acquisition and was subsequently closed for a major renovation, which is expected to be complete in the third quarter of 2014.

Discontinued Operations (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
Discontinued Operations (Details) - USD ($) $ in Thousands	Aug. 30, 2013	May 31, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Operating results of discontinued operations
Gain on extinguishment of indebtedness					$ 5,702	$ 0
Net income (loss) from discontinued operations			$ 3,202	$ (727)	5,426	(1,008)
SpringHill Suites Southfield
Operating results of discontinued operations
Operating revenue			398	967	1,978	2,537
Operating expense			(442)	(797)	(1,882)	(2,399)
Operating (loss) income			(44)	170	96	138
Interest expense			(31)	(897)	(372)	(1,146)
Loss from discontinued operations before gain on sale			(75)	(727)	(276)	(1,008)
Gain on extinguishment of indebtedness	$ 3,277	$ 2,400	3,277	0	5,702	0
Net income (loss) from discontinued operations			$ 3,202	$ (727)	$ 5,426	$ (1,008)

- Definition

Amount of income (loss) from a disposal group, net of income tax before extraordinary items allocable to noncontrolling interests. Includes, net of tax, income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.12)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.14)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 13
-Article 7

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-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 Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43
-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 FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 47
-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 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 15
-Article 5

+ Details

Investment in Hotel and Other Properties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Property, Plant and Equipment [Abstract]
Land and land improvements	$ 587,348		$ 587,348		$ 563,524
Buildings and improvements	2,834,524		2,834,524		2,655,086
Furniture, fixtures and equipment	465,070		465,070		438,807
Intangibles	2,199		2,199		1,857
Total	3,889,141		3,889,141		3,659,274
Accumulated depreciation and amortization	(676,852)		(676,852)		(585,791)
Investment in hotel and other properties, net	3,212,289		3,212,289		$ 3,073,483
Depreciation and amortization expense related to investment in hotel and other properties, excluding discontinued operations	31,500	$ 30,700	94,500	$ 95,400
Impairment loss	$ 0	$ 896	$ 0	$ 896

Investment in Loans (Details) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended
Investment in Loans (Details) - USD ($) $ in Thousands	Aug. 06, 2013	Nov. 03, 2009	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Mortgage Loans on Real Estate [Line Items]
Gain on foreclosure for property acquired	$ 4,300
Gain on foreclosure for other assets acquired and liabilties assumed	500
Gain on foreclosure	$ 4,831		$ 4,831	$ 0	$ 4,831	$ 0
Fund III
Mortgage Loans on Real Estate [Line Items]
Purchase price of mortgage loan collateralized		$ 5,000

Debt (Details)

1 Months Ended

3 Months Ended

9 Months Ended

Jun. 30, 2011

Sep. 30, 2013

USD ($)

asset

hotel

Sep. 30, 2012

USD ($)

Sep. 30, 2013

USD ($)

instrument

asset

hotel

term

Sep. 30, 2012

USD ($)

Aug. 27, 2013

USD ($)

Dec. 31, 2012

USD ($)

Nov. 20, 2012

USD ($)

Jun. 20, 2011

USD ($)

hotel

Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Fair Value
Total	$ (11,484)	$ (470)
Interest rate swap
Fair Value
Interest rate swap asset	2,765
Interest rate swap liability	(14,200)	(500)
Level 3
Fair Value
Investment in collateralized loans	13,100	23,000
Fixed rate mortgage notes payable	178,900	745,300
Carrying value of fixed rate mortgage notes payable	184,300	$ 770,700
Recurring \| Level 2 \| Interest rate swap
Fair Value
Interest rate swap asset	2,765
Interest rate swap liability	(14,249)
Total	(11,484)
Recurring \| Total \| Interest rate swap
Fair Value
Interest rate swap asset	2,765
Interest rate swap liability	(14,249)
Total	$ (11,484)

Income Taxes (Details) - USD ($)	9 Months Ended
Income Taxes (Details) - USD ($)	Sep. 30, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
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

Related Party Transactions (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
RLJ Companies LLC
Related Party Transactions
Due from related party	$ 63	$ 45

Subsequent Events (Details) $ / shares in Units, $ in Millions	Oct. 15, 2013 $ / shares	Oct. 08, 2013 USD ($) state conversion hotel room	Sep. 30, 2013 state hotel property room
Subsequent Events
Number of hotels planned for conversion \| hotel			2
Number of states in which hotels owned by the entity are located \| state			22
Number of properties owned \| property			149
Number of hotel rooms owned			22,281
Subsequent event
Subsequent Events
Number of rooms		22,400
Number of hotels planned for conversion \| conversion		2
Number of states in which hotels owned by the entity are located \| state		23
Number of properties owned		150
Number of hotels \| hotel		148
Subsequent event \| SpringHill Suites Portland Hillsboro
Subsequent Events
Number of rooms		106
Purchase price \| $		$ 24.0
Subsequent event \| Dividend paid
Subsequent Events
Dividend paid (in dollars per share) \| $ / shares	$ 0.205