Item 2. Properties
Item 2. Properties.
We lease office space to use as our headquarters located at 4747 Bethesda Avenue, Suite 1100, Bethesda, Maryland 20814.
As of December 31, 2025, we owned interests in 44 hotels with a total of 11,052 guest rooms, all of which are consolidated in our financial statements. The following table sets forth certain information about our hotels.
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 November 30, 2018 West Hollywood, CA 115
5. Hotel Ziggy November 30, 2018 West Hollywood, CA 108
6. Le Parc at Melrose November 30, 2018 West Hollywood, CA 154
7. Mondrian Los Angeles May 3, 2011 West Hollywood, CA 236
8. Hyatt Centric Delfina Santa Monica November 19, 2010 Santa Monica, CA 315
9. Viceroy Santa Monica Hotel (1)
November 30, 2018 Santa Monica, CA 169
10. Embassy Suites San Diego Bay - Downtown January 29, 2013 San Diego, CA 341
11. Hilton San Diego Gaslamp Quarter November 30, 2018 San Diego, CA 286
12. Paradise Point Resort & Spa (1)
November 30, 2018 San Diego, CA 462
13. San Diego Mission Bay Resort (1)
November 30, 2018 San Diego, CA 357
14. Margaritaville Hotel San Diego Gaslamp Quarter November 30, 2018 San Diego, CA 235
15. The Westin San Diego Gaslamp Quarter April 6, 2011 San Diego, CA 450
16. Estancia La Jolla Hotel & Spa (1) (4)
December 1, 2021 La Jolla, CA 210
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. 1 Hotel San Francisco (1)
November 30, 2018 San Francisco, CA 200
20. Hotel Zelos San Francisco (1)
October 25, 2012 San Francisco, CA 202
21. Hotel Zephyr Fisherman's Wharf (1)
December 9, 2013 San Francisco, CA 361
22. Hotel Zeppelin San Francisco (5)
May 22, 2014 San Francisco, CA 196
23. Hotel Zetta San Francisco April 4, 2012 San Francisco, CA 116
24. Chaminade Resort & Spa November 30, 2018 Santa Cruz, CA 156
25. George Hotel November 30, 2018 Washington, DC 139
26. Hotel Monaco Washington DC (1)
September 9, 2010 Washington, DC 184
27. Hotel Zena Washington DC November 30, 2018 Washington, DC 191
28. Viceroy Washington DC November 30, 2018 Washington, DC 178
29. Southernmost Beach Resort (2)
November 30, 2018 Key West, FL 296
30. The Marker Key West Harbor Resort November 30, 2018 Key West, FL 96
31. Margaritaville Hollywood Beach Resort (1) (4)
September 23, 2021 Hollywood, FL 369
32. Inn on Fifth May 11, 2022 Naples, FL 119
33. LaPlaya Beach Resort & Club May 21, 2015 Naples, FL 193
34. Jekyll Island Club Resort (1)
July 22, 2021 Jekyll Island, GA 200
35. Hotel Chicago Downtown, Autograph Collection November 30, 2018 Chicago, IL 354
36. Hyatt Regency Boston Harbor (1)
November 30, 2018 Boston, MA 270
37. Revere Hotel Boston Common December 18, 2014 Boston, MA 356
38. The Liberty, a Luxury Collection Hotel, Boston (1) (3)
November 30, 2018 Boston, MA 298
39. The Westin Copley Place, Boston (1)
November 30, 2018 Boston, MA 803
40. W Boston June 8, 2011 Boston, MA 238
41. The Hotel Zags August 28, 2013 Portland, OR 174
42. The Nines, a Luxury Collection Hotel, Portland July 17, 2014 Portland, OR 331
43. Newport Harbor Island Resort June 23, 2022 Newport, RI 258
44. Skamania Lodge November 3, 2010 Stevenson, WA 271
Total number of guest rooms 11,052
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(1) This property is subject to a long-term ground, air rights or hotel lease.
(2) One of the restaurant facilities at this property is subject to a ground lease .
(3) We own a 99.99% controlling interest in this property.
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(4) This property is subject to mortgage debt. The Margaritaville Hollywood Beach Resort mortgage was paid off in February 2026.
(5) This property consists of a 116-guest room building which is owned fee simple and an adjoining building with 80 guest-rooms which is subject to a lease agreement.
Hotel Managers and Hotel Management Agreements
We are a party to hotel management agreements with Davidson Hospitality Group, HEI Hotels and Resorts, Highgate, Kimpton Hotels and Restaurants, Marriott International, Noble House Hotels & Resorts, Pyramid Global Hospitality, Sage Hospitality, sbe Hotel Group, SH Hotels & Resorts, 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 incentive fees are subject to a limit.
• Terms. The remaining terms of our management agreements are up to eight years, not including renewals, and up to 27 years, including renewals.
• Ability to Terminate. The majority of our management agreements are terminable at will by us. Some of our management agreements require the 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 three times the annual base management and incentive management fees, depending on the agreement and the reason for termination. The hotels with non-terminable management agreements and their respective expiration dates (assuming contracts with unilateral extension options of the management company are exercised) are as follows:
Property Expiration Date
The Westin Copley Place, Boston December 2028
Mondrian Los Angeles May 2041
The Westin San Diego Gaslamp Quarter April 2051
W Los Angeles - West Beverly Hills August 2052
• 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 executive 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 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 for our review and approval. 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 and 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 1% to 6% 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
Embassy Suites San Diego Bay - Downtown January 2028
Margaritaville Hollywood Beach Resort July 2028
Hotel Chicago Downtown, Autograph Collection February 2034
The Liberty, a Luxury Collection Hotel, Boston January 2036
Margaritaville Hotel San Diego Gaslamp Quarter August 2038
Hilton San Diego Gaslamp Quarter June 2041
Hyatt Regency Boston Harbor December 2042
The Nines, a Luxury Collection Hotel, Portland October 2043
Hyatt Centric Delfina Santa Monica September 2049
Paradise Point Resort & Spa 15th anniversary after hotel is re-branded as a Margaritaville