NOTE 4 – OTHER ASSETS AND DEPOSITS ON HOTEL ACQUISITIONS

Other Assets

Other Assets consisted of the following at December 31, 2015 and December 31, 2014:



	December 31, 2015		December 31, 2014

Investment in Statutory Trusts		1,548		1,548
Prepaid Expenses		14,434		7,883
Deferred Tax Asset, Net of Valuation Allowance of $804		14,590		11,448
Other		7,538		7,547
	$	38,110	$	28,426

Investment in Statutory Trusts - We have an investment in the common stock of Hersha Statutory Trust I and Hersha Statutory Trust II. Our investment is accounted for under the equity method.

Prepaid Expenses - Prepaid expenses include amounts paid for property tax, insurance and other expenditures that will be expensed in the next twelve months.

Deferred Tax Asset - We have approximately $14,590 of net deferred tax assets as of December 31, 2015. We have considered various factors, including future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies in determining a valuation allowance for our deferred tax assets, and we believe that it is more likely than not that we will be able to realize the $14,590 of net deferred tax assets in the future.

Deposits on Hotel Acquisitions

As of December 31, 2015, we had $5,000 in interest bearing deposits related to the future acquisition of the Sanctuary Beach Resort, located in Marina, California (See “Note 2 – Investment in Hotel Properties” for more information). As of December 31, 2014, we had no deposits on hotel acquisitions.