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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2014

Total basic management fees incurred by the Company during the three months ended March 31, 2014 and 2013 were included in the Company’s consolidated statements of operations and comprehensive income (loss) as follows (in thousands):



	Three Months Ended		Three Months Ended
	March 31, 2014		March 31, 2013
	(unaudited)		(unaudited)
Continuing operations — property general and administrative expense, and corporate overhead expense	$	6,713	$	5,355
Discontinued operations		—		65
	$	6,713	$	5,420

Schedule of incentive management fees

Total incentive management fees incurred by the Company during the three months ended March 31, 2014 and 2013 were included in the Company’s consolidated statements of operations and comprehensive income (loss) as follows (in thousands):

Schedule of license and franchise costs

Total license and franchise costs incurred by the Company during the three months ended March 31, 2014 and 2013 were included in the Company’s consolidated statements of operations and comprehensive income (loss) as follows (in thousands):



	Three Months Ended		Three Months Ended
	March 31, 2014		March 31, 2013
	(unaudited)		(unaudited)
Continuing operations — franchise costs	$	8,077	$	6,478
Discontinued operations		—		73
	$	8,077	$	6,551

Schedule of assets under capital lease

Assets under capital lease were included in investment in hotel properties, net on the Company’s consolidated balance sheets as follows (in thousands):



	March 31,		December 31,
	2014		2013
	(unaudited)
Buildings and improvements	$	58,799	$	58,799
Furniture, fixtures and equipment		104		104
		58,903		58,903
Accumulated depreciation		(2,627)		(2,356)
	$	56,276	$	56,547

Schedule of future minimum lease payments under capital leases

Future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of March 31, 2014 are as follows (in thousands):



2014	$	1,437
2015		1,403
2016		1,403
2017		1,403
2018		1,403
Thereafter		110,465
Total minimum lease payments (1)		117,514
Less: Amount representing interest (2)		(101,902)
Present value of net minimum lease payments (3)	$	15,612

(1)Minimum lease payments do not include percentage rent which may be paid under the Hyatt Chicago Magnificent Mile building lease on the basis of 4.0% of the hotel’s gross room revenues over a certain threshold. No percentage rent was due for the three months ended March 31, 2014 and 2013.

(2)Interest includes the amount necessary to reduce net minimum lease payments to present value calculated at the Company’s incremental borrowing rate at lease inception.

(3)The present value of net minimum lease payments are presented on the Company’s consolidated balance sheets as current obligations of $35,000 and as long term obligations of $15.6 million as of both March 31, 2014 and December 31, 2013. The current obligations are included in accounts payable and accrued expenses, and the long-term obligations are included in capital lease obligations, less current portion.

Schedule of ground, building and air lease rent

Total rent expense incurred pursuant to ground, building and air lease agreements for the three months ended March 31, 2014 and 2013 was included in the Company’s consolidated statements of operations and comprehensive income (loss) as follows (in thousands):

Schedule of hotel geographic concentration of risk



									Greater
									Washington DC
	California		New York		Illinois		Massachusetts		Area
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Number of hotels	9		3		3		3		3
Percentage of total rooms	32	%	9	%	8	%	14	%	13	%
Percentage of total revenue for the three months ended March 31, 2014	36	%	12	%	4	%	11	%	13	%

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

+ References+ Details

Three Months Ended

Three Months Ended

March 31, 2014

March 31, 2013

(unaudited)

(unaudited)

Continuing operations — property general and administrative expense