Investment in Hotel Properties (Tables)

9 Months Ended

Sep. 30, 2014

Investment in Hotel Properties

Schedule of investment in hotel properties

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

	September 30,		December 31,
	2014		2013
	(unaudited)
Land	$	570,011	$	439,304
Buildings and improvements		3,216,923		2,977,458
Furniture, fixtures and equipment		447,712		414,192
Intangibles		176,797		171,889
Franchise fees		1,167		1,346
Construction in process		58,775		34,643
		4,471,385		4,038,832
Accumulated depreciation and amortization		(924,857)		(807,450)
	$	3,546,528	$	3,231,382

Schedule of fair values of assets acquired, liabilities assumed and adjustments recorded in hotel acquisitions

The fair values of the assets acquired and liabilities assumed at the Marriott Wailea’s acquisition date were allocated based on an independent third-party analysis. The following table summarizes the fair values of assets acquired, liabilities assumed and equity issued in this acquisition (in thousands):

Assets:
Investment in hotel properties	$	327,035
Accounts receivable		3,122
Inventory		75
Prepaid expenses		238
Other assets		150
Total assets acquired		330,620
Liabilities:
Accounts payable		3,534
Accrued payroll and employee benefits		142
Other current liabilities		1,371
Other liabilities		15
Total liabilities assumed		5,062
Total equity issued directly to seller		60,000
Total cash paid for acquisition	$	265,558

Schedule of intangible assets included in investment in hotel properties

Details of the intangibles acquired are as follows (in thousands):

	Value at
	Acquisition		Expected Life
	(unaudited)
Value at acquisition:
Advanced bookings	$	4,207	48 months
Above/(Below) market lease agreements, net		15	18 to 102 months
In-place lease agreements		686	18 to 102 months
Total intangibles related to the 2014 acquisition		4,908
Accumulated amortization		(242)
Net book value of intangibles related to 2014 acquisition	$	4,666

Schedule of amortization expense related to acquisitions

During the three and nine months ended September 30, 2014, the Company recorded amortization expense related to its Marriott Wailea intangibles as follows (in thousands):

Effects of acquisitions on results of operations

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		Nine Months Ended		Nine Months Ended
	September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues	$	310,268	$	286,641	$	885,487	$	825,753
Income available to common stockholders from continuing operations	$	30,177	$	16,610	$	63,004	$	13,030
Income per diluted share available to common stockholders from continuing operations	$	0.15	$	0.10	$	0.33	$	0.08