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Based upon that evaluation, our President and Chief Executive Officer and our Chief Financial Officer and Treasurer concluded that our disclosure controls and procedures are effective.
−Removed: There have been no changes in our internal control over financial reporting during the quarter ended March 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
+Added: There have been no changes in our internal control over financial reporting during the quarter ended June 30, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Warning Concerning Forward-Looking Statements
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The duration and severity of the economic downturn resulting from the COVID-19 pandemic and its impact on us and our operators and tenants,
+Added: The implications of IHG’s payment defaults and the actions we may take if IHG does not cure these defaults or if we do not reach agreement with IHG,
Our expectations about our ability and the ability of our operators and tenants to operate throughout the COVID-19 pandemic and withstand the resulting economic downturn,
29 unchanged sentences
We may be unable to pay our debt obligations or to increase or maintain our current rate of distributions on our common shares and future distributions may be reduced or eliminated,
−Removed: Certain of our aggregate annual minimum returns and rents are or were secured by guarantees or security deposits from our managers and tenants.
−Removed: This may imply that these minimum returns and rents will be paid.
−Removed: In fact, certain of these guarantees and security deposits are or were limited in amount and duration and all the guarantees are subject to the guarantors’ abilities and willingness to pay.
−Removed: We cannot be sure of the future financial performance of our properties and whether such performance will cover our minimum returns and rents, whether the guarantees or security deposits will be adequate to cover future shortfalls in the minimum returns or rents due to us which they guarantee or secure, or regarding our managers’, tenants’ or guarantors’ future actions if and when the guarantees and security deposits expire or are depleted or their abilities or willingness to pay minimum returns and rents owed to us.
−Removed: Based on our current estimates, we project that we will exhaust all of the security deposits and most of the guarantees our hotel operators have provided to us by as early as the second quarter of 2020.
−Removed: Moreover, the security deposits we hold are not segregated from our other assets and, although the application of security deposits to cover payment shortfalls will result in us recording income, it will not result in us receiving additional cash.
−Removed: Because we do not receive any additional cash payment as we apply security deposits to cover payment shortfalls, the failure of our managers or tenants to pay minimum returns or rents due to us may reduce our cash flows and our ability to pay distributions to shareholders,
−Removed: We have no guarantees or security deposits for the minimum returns due to us from our Sonesta agreement or under our Wyndham agreement.
−Removed: Accordingly, we may receive amounts that are less than the contractual minimum returns stated in these agreements, or we may be requested to fund losses,
+Added: We fully utilized the security deposit we held from IHG and IHG has defaulted on its payments to us.
+Added: There is no assurance IHG will cure these defaults or that we will successfully be able to negotiate modifications to our existing agreements on terms we are willing to accept.
+Added: Further, if we do not come to an agreement with IHG, we expect to rebrand all 103 hotels under the IHG agreement and the terms of our arrangements with any successor operator may not be as favorable as our existing arrangement with IHG.
+Added: Transitioning hotels to another operator is disruptive to their operations and requires significant capital investments,
+Added: We fully utilized the security deposit we held and exhausted the $30.0 million limited guarantee to cover shortfalls in hotel cash flows available to pay the minimum returns due to us under the Marriott agreement.
+Added: Under the Marriott agreement, if the security deposit and guaranty have been depleted, Marriott is required to fund shortfalls up to 80% of the minimum returns due to us to avoid termination.
+Added: There can be no assurance that Marriott will pay any shortfalls,
+Added: We cannot be sure of the future financial performance of our properties and whether such performance will cover our minimum returns and rents, or regarding our managers’, tenants’ or guarantors’ future actions or their abilities or willingness to pay minimum returns and rents owed to us.
+Added: If other operators do not honor their obligations, we may seek to terminate our arrangements with them or other actions to enforce our rights.
+Added: We have no guarantees or security deposits under our Sonesta or Wyndham agreements.
+Added: Accordingly, we may receive amounts from Sonesta that are less than the contractual minimum returns stated in the Sonesta agreement, or we may be requested to fund losses for our Sonesta or Wyndham hotels,
+Added: Statements about improving trends experienced during the course of the 2020 second quarter in the level of requests for rent deferments or other relief and improving hotel occupancies may imply that the positive trend may continue.
+Added: However, COVID-19 infections have recently increased in large parts of the United States and the U.S.
+Added: economy is experiencing continued challenges.
+Added: These positive trends could reverse and further deteriorate as a result.
We have recently renovated certain hotels and are currently renovating additional hotels.
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Also, we may sell assets at prices that are less than we expect and less than their carrying values and we may incur losses on these sales or with respect to these assets, or may not ultimately use any proceeds we may receive to reduce debt leverage,
−Removed: At March 31, 2020 , we had $55.2 million of cash and cash equivalents, $543.0 million available under our $1.0 billion revolving credit facility and security deposits and guarantees covering some of our minimum returns and rents.
+Added: At June 30, 2020 , we had $20,206 of cash and cash equivalents, $966,873 available under our $1,000,000 revolving credit facility and security deposits and guarantees covering some of our minimum returns and rents.
These statements may imply that we have sufficient working capital and liquidity.
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However, we may not succeed in this regard and we may not have reasonable access to capital, including due to the COVID-19 pandemic and the resulting economic downturn.
−Removed: However, if challenging market conditions, including due to the COVID-19 pandemic and the resulting economic downturn, last for a long period or worsen, our operators and tenants may experience liquidity constraints and as a result may be unable or unwilling to pay returns or rents to us and our ability to operate our business effectively may be challenged.
−Removed: If our operating results and financial condition are significantly negatively impacted by the current economic conditions or otherwise, we may fail to satisfy those covenants and conditions,
+Added: If challenging market conditions, including due to the COVID-19 pandemic and the resulting economic downturn, last for a long period or worsen, our operators and tenants may experience liquidity constraints and as a result may be unable or unwilling to pay returns or rents to us and our ability to operate our business effectively may be challenged,
Continued availability of borrowings under our revolving credit facility is subject to our satisfying certain financial covenants and other credit facility conditions, which we may be unable to satisfy, despite the receipt of the limited waiver we received.
+Added: If our operating results and financial condition are significantly negatively impacted by the current economic conditions or otherwise, we may fail to satisfy covenants and conditions under our credit agreement or fail to satisfy our public debt covenants,
Actual costs under our revolving credit facility or other floating rate debt will be higher than LIBOR plus a premium because of fees and expenses associated with such debt,
−Removed: The maximum borrowing availability under our revolving credit facility and term loan may be increased to up to $2.3 billion on a combined basis;
+Added: The maximum borrowing availability under our revolving credit facility and term loan may be increased to up to $2,300,000 on a combined basis;
however, the feature pursuant to which such maximum borrowing availability may be increased may not be utilized during the Waiver Period,
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.