Investment in Hotel Properties

6 Months Ended

Jun. 30, 2014

3. Investment in Hotel Properties

Investment in hotel properties, net consisted of the following (in thousands):



	June 30,		December 31,
	2014		2013
	(unaudited)
Land	$	450,304	$	439,304
Buildings and improvements		3,013,911		2,977,458
Furniture, fixtures and equipment		432,572		414,192
Intangibles		171,889		171,889
Franchise fees		1,167		1,346
Construction in process		45,244		34,643
		4,115,087		4,038,832
Accumulated depreciation and amortization		(884,192)		(807,450)
	$	3,230,895	$	3,231,382

In June 2014, the Company acquired approximately seven acres of land underlying the Fairmont Newport Beach for $11.0 million, using net proceeds from the March 2014 issuance of its common stock in connection with its Equity Distribution Agreements, combined with cash on hand. Prior to the Company’s acquisition, the land was leased to the Company by a third party.

The Company acquired three hotels in 2013: the Hilton New Orleans St. Charles in May 2013; the Boston Park Plaza in July 2013; and the Hyatt Regency San Francisco in December 2013. Acquired properties are included in the Company’s results of operations and comprehensive income from the date of acquisition. The following unaudited pro forma results of operations reflect the Company’s results as if the acquisitions of the Hilton New Orleans St. Charles, the Boston Park Plaza, and the Hyatt Regency San Francisco during 2013, as well as the acquisition of the land underlying the Fairmont Newport Beach during 2014, had occurred on January 1, 2013. In the Company’s opinion, all significant adjustments necessary to reflect the effects of the acquisitions have been made (in thousands, except per share data):



	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues	$	300,852	$	281,393	$	544,335	$	509,319
Income available (loss attributable) to common stockholders from continuing operations	$	34,179	$	23,844	$	26,334	$	(10,314)
Income (loss) per diluted share available (attributable) to common stockholders from continuing operations	$	0.19	$	0.15	$	0.14	$	(0.07)

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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