Item 2. Properties
Item 2. Properties.
We lease our headquarters located at 4747 Bethesda Avenue, Suite 1100, Bethesda, Maryland 20814. We lease office space that was formerly used as our headquarters at 7550 Wisconsin Avenue, 10th Floor, Bethesda, Maryland 20814.
At December 31, 2020, we owned 53 hotels with a total of 13,236 guest rooms.
The following table sets forth certain information about the hotels we owned as of December 31, 2020, all of which are consolidated in our financial statements.
Property Date Acquired Location Number of Guest Rooms
1. L'Auberge Del Mar November 30, 2018 Del Mar, CA 121
2. Hotel Palomar Los Angeles Beverly Hills (1) November 20, 2014 Los Angeles, CA 264
3. W Los Angeles - West Beverly Hills August 23, 2012 Los Angeles, CA 297
4. Chamberlain West Hollywood Hotel November 30, 2018 West Hollywood, CA 115
5. Grafton on Sunset November 30, 2018 West Hollywood, CA 108
6. Le Parc Suite Hotel November 30, 2018 West Hollywood, CA 154
7. Mondrian Los Angeles May 3, 2011 West Hollywood, CA 236
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8. Montrose West Hollywood November 30, 2018 West Hollywood, CA 133
9. Le Meridien Delfina Santa Monica November 19, 2010 Santa Monica, CA 310
10. Viceroy Santa Monica Hotel (1) November 30, 2018 Santa Monica, CA 169
11. Embassy Suites San Diego Bay - Downtown January 29, 2013 San Diego, CA 341
12. Hilton San Diego Gaslamp Quarter November 30, 2018 San Diego, CA 286
13. Paradise Point Resort & Spa (1) November 30, 2018 San Diego, CA 462
14. San Diego Mission Bay Resort (formerly Hilton San Diego Mission Bay Resort) (1) November 30, 2018 San Diego, CA 357
15. Solamar Hotel November 30, 2018 San Diego, CA 235
16. The Westin San Diego Gaslamp Quarter April 6, 2011 San Diego, CA 450
17. Argonaut Hotel (1) February 16, 2011 San Francisco, CA 252
18. Harbor Court Hotel San Francisco (1) November 30, 2018 San Francisco, CA 131
19. Hotel Spero November 30, 2018 San Francisco, CA 236
20. Hotel Vitale (1) November 30, 2018 San Francisco, CA 200
21. Hotel Zelos San Francisco (1) October 25, 2012 San Francisco, CA 202
22. Hotel Zephyr Fisherman's Wharf (1) December 9, 2013 San Francisco, CA 361
23. Hotel Zeppelin San Francisco (1) May 22, 2014 San Francisco, CA 196
24. Hotel Zetta San Francisco April 4, 2012 San Francisco, CA 116
25. Hotel Zoe Fisherman's Wharf June 11, 2015 San Francisco, CA 221
26. Sir Francis Drake June 22, 2010 San Francisco, CA 416
27. The Marker San Francisco November 30, 2018 San Francisco, CA 208
28. Villa Florence San Francisco on Union Square November 30, 2018 San Francisco, CA 189
29. Chaminade Resort & Spa November 30, 2018 Santa Cruz, CA 156
30. Hotel Zena Washington DC (formerly Donovan Hotel) November 30, 2018 Washington, DC 191
31. George Hotel November 30, 2018 Washington, DC 139
32. Hotel Monaco Washington DC (1) September 9, 2010 Washington, DC 184
33. Viceroy Washington DC (formerly Mason & Rook Hotel) November 30, 2018 Washington, DC 178
34. Southernmost Beach Resort (2) November 30, 2018 Key West, FL 262
35. The Marker Key West Harbor Resort November 30, 2018 Key West, FL 96
36. Hotel Colonnade Coral Gables, Autograph Collection November 12, 2014 Miami, FL 157
37. LaPlaya Beach Resort and Club May 21, 2015 Naples, FL 189
38. Hotel Chicago Downtown, Autograph Collection November 30, 2018 Chicago, IL 354
39. The Westin Michigan Avenue Chicago November 30, 2018 Chicago, IL 752
40. Hyatt Regency Boston Harbor (1) November 30, 2018 Boston, MA 270
41. Revere Hotel Boston Common December 18, 2014 Boston, MA 356
42. The Liberty, A Luxury Collection Hotel, Boston (1) (3)
November 30, 2018 Boston, MA 298
43. The Westin Copley Place, Boston (1) November 30, 2018 Boston, MA 803
44. W Boston June 8, 2011 Boston, MA 238
45. The Roger New York (1) November 30, 2018 New York, NY 194
46. Hotel Vintage Portland July 9, 2012 Portland, OR 117
47. The Heathman Hotel November 30, 2018 Portland, OR 151
48. The Hotel Zags August 28, 2013 Portland, OR 174
49. The Nines, a Luxury Collection Hotel, Portland July 17, 2014 Portland, OR 331
50. Sofitel Philadelphia at Rittenhouse Square December 3, 2010 Philadelphia, PA 306
51. Hotel Monaco Seattle April 7, 2011 Seattle, WA 189
52. Hotel Vintage Seattle July 9, 2012 Seattle, WA 125
53. Skamania Lodge November 3, 2010 Stevenson, WA 260
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Total number of guest rooms 13,236
(1) This property is subject to a long-term ground, air rights or hotel lease.
(2) The restaurant facility at this property is subject to a ground lease.
(3) We own a 99.99% controlling interest in this property.
Hotel Managers and Hotel Management Agreements
We are a party to hotel management agreements with Access Hotels and Resorts, AccorHotels, Benchmark Hotels and Resorts, CoralTree Hospitality Group, Davidson Hotels and Resorts, HEI Hotels and Resorts, Highgate, Hyatt, JRK Property Holdings, Kimpton Hotels and Restaurants, Marriott International, Noble House Hotels & Resorts, Provenance Hotels, Sage Hospitality, sbe Hotel Group, Schulte Hospitality Group, Springboard Hospitality and Viceroy Hotel Group.
Our management agreements generally have the terms described below:
• Base Management Fees. Our management agreements generally provide for the payment of base management fees between 1% and 4% of the applicable hotel's revenues or a fixed amount, as determined in the agreements.
• Incentive Management and Other Fees. Some of our management agreements provide for the payment of incentive management fees. Generally, incentive management fees are 10% to 20% of net operating income above a specified return on project costs or as a percentage of net operating income above various net operating income thresholds. Some of our management agreements provide for an incentive fee of the lesser of 1% of revenues or the amount by which net operating income exceeds a threshold. Some of our management agreements have a maximum incentive fee of 2.5% of revenue.
• Terms. The terms of our management agreements range from 1 year to 22 years not including renewals, and 1 year to 52 years including renewals.
• Ability to Terminate. The majority of our management agreements are terminable at will by us upon payment of a termination fee and some are terminable upon sale of the property. Most of the agreements also provide us the ability to terminate based on failure to achieve defined operating performance thresholds. Termination fees range from zero to up to seven times the annual base management and incentive management fees, depending on the agreement and the reason for termination.
• Operational Services. Each manager has exclusive authority to supervise, direct and control the day-to-day hotel operation and management including establishing all room rates, processing reservations, procuring inventories, supplies and services, hiring and firing employees and independent contractors and preparing public relations, publicity and marketing plans for the hotel.
• Executive Supervision and Management Services. Each manager supervises all managerial and other hotel employees, reviews hotel operation and maintenance, prepares reports, budgets and projections, and provides other administrative and accounting support services for the hotel. Under certain management agreements, we have approval rights over the hiring of certain key management personnel at the hotel.
• Chain Services. Our management agreements with major hotel franchisors require the managers to furnish chain services that are generally made available to other hotels managed by such operators. Such services may, for example, include: the development and operation of computer systems and reservation services; management and administrative services; marketing and sales services; human resources training services; and additional services as may from time to time be more efficiently performed on a national, regional or group level.
• Working Capital. Our management agreements typically require us to maintain working capital for a hotel and to fund the cost of supplies such as linens and other similar items. We are also responsible for providing funds to meet the cash needs for the hotel operations if at any time the funds available from the hotel operations are insufficient to meet the financial requirements of the hotel.
• Furniture, Fixtures and Equipment Replacements. We are required to invest in the hotels and to provide all the necessary furniture, fixtures and equipment for the operation of the hotels (including funding any required furniture, fixture and equipment replacements). Our management agreements generally provide that once a year the managers will prepare a list of furniture, fixtures and equipment to be acquired and certain routine capital repairs to be performed in the following year and an estimate of funds that are necessary for our review and approval. To fund the furniture, fixtures and equipment replacements, a specified percentage of the gross revenues of each hotel (typically 4.0%) is either deposited by the manager with our funds or out of the property's cash flow in an escrow account or held by us, as owner.
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• Building Alterations, Improvements and Renewals. Our management agreements generally require the managers to prepare an annual estimate of the expenditures necessary for major capital repairs, alterations, improvements, renewals and replacements to the structural, mechanical, electrical, heating, ventilating, air conditioning, plumbing and vertical transportation elements of the hotels. In addition to the foregoing, the management agreements generally provide that the managers may propose such changes, alterations and improvements to the hotels as are required by reason of laws or regulations or, in the manager's reasonable judgment, to keep the hotels in a safe, competitive and efficient operating condition.
• Sale of a Hotel. Certain of our management agreements limit our ability to sell, lease or otherwise transfer a hotel, unless the transferee assumes the related management agreement and meets other specified conditions.
Franchise and Sub-License Agreements
We have franchise or sub-license agreements for certain of our hotels. Pursuant to these agreements, we pay franchise or sub-license fees based on a percentage of gross room revenues, as well as certain other fees for marketing and reservations services. Franchise or sub-license fees for room revenues are approximately one to five percent of gross room revenues. Some of these agreements provide us with termination rights. The agreements for the respective hotels expire as follows:
Property Expiration Date
Le Meridien Delfina Santa Monica September 2033
Embassy Suites San Diego Bay - Downtown January 2028
The Nines, a Luxury Collection Hotel, Portland October 2033
Hotel Colonnade Coral Gables, Autograph Collection April 2039
The Liberty, A Luxury Collection Hotel, Boston January 2036
Hilton San Diego Gaslamp Quarter April 2021
Hotel Chicago Downtown, Autograph Collection February 2034
Paradise Point Resort & Spa 15th anniversary after hotel is re-branded as a Margaritaville
Solamar Hotel 15th anniversary after hotel is re-branded as a Margaritaville
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.