Investment in Hotel Properties

6 Months Ended

Jun. 30, 2011

Investment in Hotel Properties [Abstract]

NOTE 2 – INVESTMENT IN HOTEL PROPERTIES

Investment in Hotel Properties consists of the following at June 30, 2011 and December 31, 2010:

	June 30, 2011			December 31, 2010

Land	$	262,784		$	233,869
Buildings and Improvements		1,132,366			1,057,344
Furniture, Fixtures and Equipment		166,284			150,723
Construction in Progress		16,848			15,301
		1,578,282			1,457,237

Less Accumulated Depreciation		(231,368	)		(211,386	)

Total Investment in Hotel Properties	$	1,346,914		$	1,245,851

Acquisitions

During the six months ended June 30, 2011, we acquired the following wholly owned hotel properties:

Hotel	Acquisition Date	Land		Buildings and Improvements		Furniture Fixtures and Equipment		Franchise Fees, Loan Costs, and Leasehold Intangible		Total Purchase Price		Fair Value of Assumed Debt
Holiday Inn Express, Water Street, New York, NY	3/25/2011	$	7,341	$	28,591	$	2,704	$	28	$	38,664	$	-
Capitol Hill Suites, Washington, DC	4/15/2011	$	8,095	$	35,141	$	4,264	$	254	$	47,754	$	32,500
Courtyard by Marriot, Westside, Los Angeles, CA	5/19/2011	$	13,489	$	27,025	$	6,486	$	148	$	47,148	$	-

Total		$	28,925	$	90,757	$	13,454	$	430	$	133,566	$	32,500

Included in the consolidated statements of operations for the three and six months ended June 30, 2011 are total revenues of $4,702 and $4,809, respectively, and total net loss of $442 and $1,126, respectively, which represents the results of operations of the Holiday Inn Express Water Street, New York, NY, Capitol Hill Suites, Washington, DC and the Courtyard by Marriot, Westside, Los Angeles, CA since the date of acquisition of our 100% interest in the hotels, described above.

	Three Months Ended June 30, 2011					Six Months Ended June 30, 2011
Hotel	Revenue		Net Income (Loss)			Revenue		Net (Loss) Income
Holiday Inn Express, Water Street, New York, NY	$	1,665	$	348		$	1,772	$	(336	)
Capitol Hill Suites, Washington, DC		1,770		(971	)		1,770		(971	)
Courtyard by Marriot, Westside, Los Angeles, CA		1,267		181			1,267		181
Total	$	4,702	$	(442	)	$	4,809	$	(1,126	)

Pro Forma Results (Unaudited)

The following condensed pro forma financial data is presented as if all acquisitions completed since January 1, 2010 had been completed on January 1, 2010. Properties acquired without any operating history are excluded from the condensed pro forma operating results. The condensed pro forma information is not necessarily indicative of what actual results of operations of the Company would have been assuming the acquisitions had been consummated on January 1, 2010 at the beginning of the year presented, nor does it purport to represent the results of operations for future periods.

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2011			2010			2011			2010

Pro Forma Total Revenues	$	92,026		$	84,634		$	155,025		$	144,867
Pro Forma Income (Loss) from Continuing Operations	$	9,726		$	6,698		$	(3,972	)	$	(7,247	)
Income (Loss) from Discontinued Operations		41			213			(17	)		63
Pro Forma Net Income (Loss)		9,767			6,911			(3,989	)		(7,184	)
(Loss) Income allocated to Noncontrolling Interest		(476	)		(1,208	)		573			311
Preferred Distributions		(2,299	)		(1,200	)		(3,499	)		(2,400	)
Pro Forma Net Income (Loss) applicable to Common Shareholders	$	6,992		$	4,503		$	(6,915	)	$	(9,273	)

Pro Forma Income (Loss) applicable to Common Shareholders per Common Share
Basic	$	0.04		$	0.03		$	(0.04	)	$	(0.08	)
Diluted	$	0.04		$	0.03		$	(0.04	)	$	(0.08	)

Weighted Average Common Shares Outstanding
Basic		168,672,936			137,200,796			168,504,893			118,360,826
Diluted		173,687,233			140,284,117			168,504,893			118,360,826

Renovation

On December 28, 2010, we closed on the acquisition of a parcel of land, which includes a multi-story vacant building from an unrelated third party in New Castle, DE. The total purchase price for the parcel of land and the improvements was $15,301, which was paid in cash. We have begun the process of converting this building into a Sheraton branded hotel. As of June 30, 2011 we have spent $1,547 in conversion cost.

Hotel Closing

Effective March 31, 2011, we ceased operations at the Comfort Inn, located in North Dartmouth, MA and are in the process of conveying the asset to the lender. The closure of the property coincided with the expiration of its franchise agreement. The property has a carrying value of $1,980, as of June 30, 2011, which approximates its fair value. See “Note 6 – Debt” for additional discussion regarding the closure of this property.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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