2018 Q2 Form 10-Q Financial Statement

#000123258218000049 Filed on August 09, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $389.2M $390.7M
YoY Change -0.39% -4.87%
Cost Of Revenue $235.0M $254.1M
YoY Change -7.52% -4.62%
Gross Profit $154.2M $136.5M
YoY Change 12.94% -5.41%
Gross Profit Margin 39.62% 34.94%
Selling, General & Admin $24.30M $17.50M
YoY Change 38.86% 17.45%
% of Gross Profit 15.76% 12.82%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $64.60M $60.50M
YoY Change 6.78% 0.83%
% of Gross Profit 41.9% 44.32%
Operating Expenses $90.90M $78.10M
YoY Change 16.39% 4.13%
Operating Profit $43.45M $72.58M
YoY Change -40.14% 4.48%
Interest Expense -$58.30M -$58.80M
YoY Change -0.85% 18.07%
% of Operating Profit -134.19% -81.02%
Other Income/Expense, Net $206.0K -$146.0K
YoY Change -241.1% -95.27%
Pretax Income -$20.38M $12.03M
YoY Change -269.34% -66.33%
Income Tax $2.973M $1.606M
% Of Pretax Income 13.35%
Net Earnings -$18.31M $10.18M
YoY Change -279.75% -66.88%
Net Earnings / Revenue -4.7% 2.61%
Basic Earnings Per Share -$0.30 -$0.01
Diluted Earnings Per Share -$0.30 -$0.01
COMMON SHARES
Basic Shares Outstanding 98.64M shares 95.32M shares
Diluted Shares Outstanding 96.89M shares 95.32M shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $417.4M $404.4M
YoY Change 3.21% 54.47%
Cash & Equivalents $417.4M $404.4M
Short-Term Investments
Other Short-Term Assets $23.10M $24.10M
YoY Change -4.15% 0.0%
Inventory $4.277M $4.413M
Prepaid Expenses
Receivables $78.70M $76.00M
Other Receivables $0.00 $0.00
Total Short-Term Assets $523.5M $508.9M
YoY Change 2.87% 39.01%
LONG-TERM ASSETS
Property, Plant & Equipment $4.110B $4.069B
YoY Change 1.0% -3.94%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $4.204M $5.586M
YoY Change -24.74% -90.8%
Other Assets $138.2M $153.4M
YoY Change -9.91% -21.37%
Total Long-Term Assets $4.308B $4.272B
YoY Change 0.85% -5.8%
TOTAL ASSETS
Total Short-Term Assets $523.5M $508.9M
Total Long-Term Assets $4.308B $4.272B
Total Assets $4.832B $4.781B
YoY Change 1.06% -2.45%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $20.60M $17.90M
YoY Change 15.08% 73.79%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $47.80M $173.9M
YoY Change -72.51% 385.75%
LONG-TERM LIABILITIES
Long-Term Debt $3.948B $3.698B
YoY Change 6.75% -1.61%
Other Long-Term Liabilities $35.40M $34.50M
YoY Change 2.61% -40.0%
Total Long-Term Liabilities $3.983B $3.733B
YoY Change 6.71% -2.19%
TOTAL LIABILITIES
Total Short-Term Liabilities $47.80M $173.9M
Total Long-Term Liabilities $3.983B $3.733B
Total Liabilities $4.173B $3.925B
YoY Change 6.33% -1.66%
SHAREHOLDERS EQUITY
Retained Earnings -$1.284B -$1.019B
YoY Change 25.93% 27.42%
Common Stock $986.0K $974.0K
YoY Change 1.23% 1.25%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $511.6M $747.6M
YoY Change
Total Liabilities & Shareholders Equity $4.832B $4.781B
YoY Change 1.06% -2.45%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income -$18.31M $10.18M
YoY Change -279.75% -66.88%
Depreciation, Depletion And Amortization $64.60M $60.50M
YoY Change 6.78% 0.83%
Cash From Operating Activities $82.30M $95.70M
YoY Change -14.0% 31.82%
INVESTING ACTIVITIES
Capital Expenditures -$165.4M -$53.40M
YoY Change 209.74% 12.42%
Acquisitions
YoY Change
Other Investing Activities $30.40M $92.30M
YoY Change -67.06% -34.35%
Cash From Investing Activities -$135.0M $39.00M
YoY Change -446.15% -58.06%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 190.4M -51.60M
YoY Change -468.99% -60.15%
NET CHANGE
Cash From Operating Activities 82.30M 95.70M
Cash From Investing Activities -135.0M 39.00M
Cash From Financing Activities 190.4M -51.60M
Net Change In Cash 137.7M 83.10M
YoY Change 65.7% 130.19%
FREE CASH FLOW
Cash From Operating Activities $82.30M $95.70M
Capital Expenditures -$165.4M -$53.40M
Free Cash Flow $247.7M $149.1M
YoY Change 66.13% 24.15%

Facts In Submission

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us-gaap Comprehensive Income Net Of Tax
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us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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us-gaap Costs And Expenses
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us-gaap Costs And Expenses
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us-gaap Deferred Income Taxes And Tax Credits
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us-gaap Depreciation And Amortization
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us-gaap Depreciation And Amortization
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us-gaap Depreciation Depletion And Amortization
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125245000 USD
us-gaap Depreciation Depletion And Amortization
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235381000 USD
us-gaap Direct Costs Of Hotels
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461983000 USD
CY2018Q2 us-gaap Direct Costs Of Hotels
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us-gaap Direct Costs Of Hotels
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451666000 USD
CY2016Q4 us-gaap Disposal Group Including Discontinued Operation Cash And Cash Equivalents
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CY2017Q4 us-gaap Disposal Group Including Discontinued Operation Cash And Cash Equivalents
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78000 USD
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27240000 USD
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us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
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CY2017 us-gaap Environmental Costs Recognized Recovery Credited To Expense
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CY2017Q2 us-gaap Equity Method Investment Other Than Temporary Impairment
EquityMethodInvestmentOtherThanTemporaryImpairment
0 USD
us-gaap Equity Method Investment Other Than Temporary Impairment
EquityMethodInvestmentOtherThanTemporaryImpairment
0 USD
CY2018Q2 us-gaap Equity Method Investment Other Than Temporary Impairment
EquityMethodInvestmentOtherThanTemporaryImpairment
0 USD
us-gaap Equity Method Investment Other Than Temporary Impairment
EquityMethodInvestmentOtherThanTemporaryImpairment
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us-gaap Food And Beverage Cost Of Sales
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us-gaap Food And Beverage Cost Of Sales
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us-gaap Food And Beverage Revenue
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126692000 USD
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us-gaap Food And Beverage Revenue
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115473000 USD
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489880000 USD
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1242000 USD
us-gaap Gain Loss On Derivative Instruments Held For Trading Purposes Net
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us-gaap Gain Loss On Sale Of Properties
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us-gaap Gain Loss On Sale Of Properties
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403000 USD
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612000 USD
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0 USD
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401000 USD
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us-gaap General And Administrative Expense
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3231000 USD
us-gaap General And Administrative Expense
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5360000 USD
CY2017 us-gaap Impairment Of Real Estate
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us-gaap Income Loss From Continuing Operations
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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-20749000 USD
us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
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12034000 USD
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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-2138000 USD
us-gaap Income Loss From Equity Method Investments
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IncomeLossFromEquityMethodInvestments
1170000 USD
us-gaap Income Loss From Equity Method Investments
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582000 USD
CY2017Q2 us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
760000 USD
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
2087000 USD
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1455000 USD
us-gaap Income Taxes Paid Net
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1154000 USD
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17387000 USD
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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11248000 USD
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830000 USD
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1547000 USD
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1698000 USD
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6816000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Interest Expense Debt
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us-gaap Investment Income Interest
InvestmentIncomeInterest
754000 USD
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InvestmentIncomeInterest
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us-gaap Investment Income Interest
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24072000 USD
CY2017Q4 us-gaap Land
Land
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Land
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us-gaap Marketable Securities Gain Loss
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us-gaap Marketable Securities Unrealized Gain Loss
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0 USD
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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135180000 USD
us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Net Income Loss
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CY2017Q2 us-gaap Net Income Loss Attributable To Noncontrolling Interest
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us-gaap Net Income Loss Attributable To Noncontrolling Interest
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us-gaap Net Income Loss Attributable To Noncontrolling Interest
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CY2017Q2 us-gaap Net Income Loss Available To Common Stockholders Basic
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us-gaap Net Income Loss Available To Common Stockholders Basic
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us-gaap Net Income Loss Available To Common Stockholders Basic
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13000 USD
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20000 USD
us-gaap Noncontrolling Interest In Net Income Loss Joint Venture Partners Nonredeemable
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231000 USD
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us-gaap Occupancy Costs
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us-gaap Occupancy Costs
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us-gaap Occupancy Revenue
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us-gaap Occupancy Revenue
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us-gaap Other Asset Impairment Charges
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0 USD
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0 USD
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18558000 USD
us-gaap Other Hotel Operating Revenue
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34049000 USD
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206000 USD
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282000 USD
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675000 USD
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1063000 USD
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796000 USD
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1775000 USD
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us-gaap Owned Property Management Costs
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27073000 USD
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14371000 USD
us-gaap Owned Property Management Costs
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27108000 USD
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us-gaap Payments For Capital Improvements
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117744000 USD
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34776000 USD
us-gaap Payments For Purchase Of Securities Operating Activities
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11161000 USD
us-gaap Payments For Repurchase Of Preferred Stock And Preference Stock
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0 USD
us-gaap Payments For Repurchase Of Preferred Stock And Preference Stock
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52000 USD
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5790000 USD
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49122000 USD
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111777000 USD
CY2018Q2 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
10644000 USD
CY2017Q2 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
10956000 USD
us-gaap Preferred Stock Dividends Income Statement Impact
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21912000 USD
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110000 USD
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650000 USD
us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
21288000 USD
CY2017Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
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PreferredStockParOrStatedValuePerShare
0.01
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40938000 USD
us-gaap Proceeds From Sale Of Securities Operating Activities
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64688000 USD
us-gaap Proceeds From Sale Of Securities Operating Activities
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13338000 USD
CY2017Q2 us-gaap Profit Loss
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10428000 USD
us-gaap Profit Loss
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CY2018Q2 us-gaap Preferred Stock Shares Authorized
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50000000 shares
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19269000 USD
CY2018Q2 us-gaap Prepaid Expense Current And Noncurrent
PrepaidExpenseCurrentAndNoncurrent
23052000 USD
us-gaap Proceeds From Insurance Settlement Investing Activities
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2192000 USD
us-gaap Proceeds From Insurance Settlement Investing Activities
ProceedsFromInsuranceSettlementInvestingActivities
651000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
180800000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
2733201000 USD
us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
94000 USD
us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
53000 USD
us-gaap Proceeds From Repurchase Of Equity
ProceedsFromRepurchaseOfEquity
-1274000 USD
us-gaap Proceeds From Repurchase Of Equity
ProceedsFromRepurchaseOfEquity
-1598000 USD
CY2018Q2 us-gaap Profit Loss
ProfitLoss
-23351000 USD
us-gaap Profit Loss
ProfitLoss
-56000000 USD
CY2017Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
5064294000 USD
CY2018Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
5216194000 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
4035915000 USD
CY2018Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
4109720000 USD
CY2017Q4 us-gaap Property Subject To Or Available For Operating Lease Gross
PropertySubjectToOrAvailableForOperatingLeaseGross
12196000 USD
CY2018Q2 us-gaap Property Subject To Or Available For Operating Lease Gross
PropertySubjectToOrAvailableForOperatingLeaseGross
12173000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
681000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
909000 USD
us-gaap Recognition Of Deferred Revenue
RecognitionOfDeferredRevenue
317000 USD
us-gaap Recognition Of Deferred Revenue
RecognitionOfDeferredRevenue
288000 USD
CY2017Q4 us-gaap Recorded Third Party Environmental Recoveries Net
RecordedThirdPartyEnvironmentalRecoveriesNet
267000 USD
CY2017Q4 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
RedeemableNoncontrollingInterestEquityCarryingAmount
116122000 USD
CY2018Q2 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
RedeemableNoncontrollingInterestEquityCarryingAmount
146249000 USD
CY2017Q4 us-gaap Related Party Transaction Due From To Related Party
RelatedPartyTransactionDueFromToRelatedParty
-15146000 USD
CY2018Q2 us-gaap Related Party Transaction Due From To Related Party
RelatedPartyTransactionDueFromToRelatedParty
-17748000 USD
us-gaap Repayments Of Debt And Capital Lease Obligations
RepaymentsOfDebtAndCapitalLeaseObligations
244233000 USD
us-gaap Repayments Of Debt And Capital Lease Obligations
RepaymentsOfDebtAndCapitalLeaseObligations
2455813000 USD
CY2016Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
144014000 USD
CY2017Q2 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
150502000 USD
CY2017Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
116787000 USD
CY2018Q2 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
135419000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-1153697000 USD
CY2018Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-1283516000 USD
CY2017Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
390670000 USD
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
744379000 USD
CY2018Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
389164000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
16803000 USD
CY2017Q4 us-gaap Short Term Investments
ShortTermInvestments
26926000 USD
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
731371000 USD
CY2017Q2 us-gaap Revenue From Leased And Owned Hotels
RevenueFromLeasedAndOwnedHotels
389995000 USD
us-gaap Revenue From Leased And Owned Hotels
RevenueFromLeasedAndOwnedHotels
743316000 USD
CY2018Q2 us-gaap Revenue From Leased And Owned Hotels
RevenueFromLeasedAndOwnedHotels
388368000 USD
us-gaap Revenue From Leased And Owned Hotels
RevenueFromLeasedAndOwnedHotels
729596000 USD
CY2017Q2 us-gaap Revenues
Revenues
390670000 USD
us-gaap Revenues
Revenues
744379000 USD
CY2018Q2 us-gaap Revenues
Revenues
389164000 USD
us-gaap Revenues
Revenues
731371000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
4138000 USD
CY2018Q2 us-gaap Short Term Investments
ShortTermInvestments
24072000 USD
us-gaap Stock Issued During Period Value Restricted Stock Award Forfeitures
StockIssuedDuringPeriodValueRestrictedStockAwardForfeitures
0 USD
us-gaap Stock Issued During Period Value Restricted Stock Award Gross
StockIssuedDuringPeriodValueRestrictedStockAwardGross
123000 USD
us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
1598000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
632500000 USD
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
511565000 USD
CY2017Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
633146000 USD
CY2018Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
512193000 USD
CY2017Q2 us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
-1743000 USD
us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
-325000 USD
CY2018Q2 us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
-1916000 USD
us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
-1587000 USD
CY2017Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
95320000 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
95086000 shares
CY2018Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
96889000 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
96137000 shares
CY2017Q2 us-gaap Write Off Of Deferred Debt Issuance Cost
WriteOffOfDeferredDebtIssuanceCost
1575000 USD
us-gaap Write Off Of Deferred Debt Issuance Cost
WriteOffOfDeferredDebtIssuanceCost
1629000 USD
CY2018Q2 us-gaap Write Off Of Deferred Debt Issuance Cost
WriteOffOfDeferredDebtIssuanceCost
5694000 USD
us-gaap Write Off Of Deferred Debt Issuance Cost
WriteOffOfDeferredDebtIssuanceCost
7744000 USD
us-gaap Revenue Recognition Sales Of Services
RevenueRecognitionSalesOfServices
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Rooms revenue represents revenue from the occupancy of our hotel rooms and is driven by the occupancy and average daily rate charged.&#160;Rooms revenue includes revenue for guest no-shows, day use,&#160;and early/late departure fees. The contracts for room stays with customers are generally short in duration and revenues are recognized&#160;as services are provided&#160;over the course of the hotel stay.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Food &amp; Beverage (&#8220;F&amp;B&#8221;) revenue consists of&#160;revenue&#160;from the restaurants and lounges at our hotel properties, In-room dining and mini-bars revenue,&#160;and banquet/catering&#160;revenue from group&#160;and social functions.&#160;Other F&amp;B&#160;revenue may include revenue from&#160;audio-visual equipment/services, rental of function rooms, and other F&amp;B related revenue.&#160;Revenue is recognized as the services or products are provided. Our hotel properties may employ third parties to provide certain services at the property, for example, audio visual services. We evaluate each of these contracts to determine if the hotel is the principal or the agent in the transaction, and record the revenue as appropriate (i.e. gross vs. net).</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other revenue consists of ancillary revenue at the property, including attrition and cancellation fees, resort and destination fees, spas,&#160;parking,&#160;entertainment and other guest services, as well as rental revenue; primarily consisting of leased retail outlets at our hotel properties. Attrition and cancellation fees are recognized for non-cancellable deposits when the customer provides notification of cancellation within&#160;established management policy time frames. For the </font><font style="font-family:inherit;font-size:10pt;">three and six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">, we recorded </font><font style="font-family:inherit;font-size:10pt;">$1.9 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$2.5 million</font><font style="font-family:inherit;font-size:10pt;"> of business interruption income for the St. Petersburg Hilton and Key West Crowne Plaza related to a settlement for lost profits from the BP Deepwater Horizon oil spill in the Gulf of Mexico in 2010.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Taxes collected from customers and submitted to taxing authorities are not recorded in revenue. Interest income is recognized when earned. We discontinue recording interest and amortizing discounts/premiums when the contractual payment of interest and/or principal is not received when contractually due.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:underline;">Use of Estimates</font><font style="font-family:inherit;font-size:10pt;">&#8212;The preparation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.</font></div></div>

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