NOTE 4 – OTHER ASSETS

Other Assets

Other Assets consisted of the following at June 30, 2016 and December 31, 2015:



	June 30, 2016		December 31, 2015

Investment in Statutory Trusts		1,548		1,548
Prepaid Expenses		9,096		14,434
Deferred Tax Asset, Net of Valuation Allowance of $804		17,660		14,590
Other		9,078		9,386
	$	37,382	$	39,958

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 $17,660 of net deferred tax assets as of June 30, 2016. 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 $17,660 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. We completed the acquisition of this property on January 28, 2016 (See “Note 2 – Investment in Hotel Properties” for more information). As of June 30, 2016, we had no deposits on hotel acquisitions.