Disposals and Discontinued Operations

12 Months Ended

Dec. 31, 2019

Disposal Group, Including Discontinued Operations

Disposals

4. Disposals and Discontinued Operations

Disposals - 2019

The Company sold the Courtyard by Marriott Los Angeles, located in California, in October 2019, for net proceeds of $49.5 million, recording a net gain of $42.9 million on the sale. The sale did not represent a strategic shift that had a major impact on the Company’s business plan or its primary markets; therefore, the hotel did not qualify as a discontinued operation.

Disposals - 2018

The Company sold the Marriott Philadelphia and the Marriott Quincy, located in Pennsylvania and Massachusetts, respectively, in January 2018, the Hyatt Regency Newport Beach, located in California, in July 2018, the Marriott Houston and the Hilton North Houston (the “Houston hotels”), located in Texas, in October 2018 and the Marriott Tysons Corner, located in Virginia, in December 2018. None of these sales represented a strategic shift that had a major impact on the Company’s business plan or its primary markets; therefore, none of these hotels qualified as a discontinued operation.

The details of the sales were as follows (in thousands):

	Net Proceeds		Net Gain
Marriott Philadelphia and Marriott Quincy	$	136,983	$	15,659
Hyatt Regency Newport Beach		94,043		53,128
Houston hotels		32,421		336
Marriott Tysons Corner		84,526		47,838
	$	347,973	$	116,961

Disposals - 2017

The Company sold the Fairmont Newport Beach, located in California, in February 2017, and the Marriott Park City, located in Utah, in June 2017. Neither sale represented a strategic shift that had a major impact on the Company’s business plan or its primarily markets; therefore, neither of these hotels qualified as a discontinued operation.

The details of the sales were as follows (in thousands):

	Net Proceeds		Net Gain
Fairmont Newport Beach	$	122,832	$	44,285
Marriott Park City		27,026		1,189
	$	149,858	$	45,474

The following table provides summary results of operations for the hotels sold in 2019, 2018 and 2017, which are included in continuing operations for their respective ownership periods (in thousands):

	2019		2018		2017
Total revenues	$	10,422	$	79,627	$	168,375
Income before income taxes and discontinued operations (1)	$	2,044	$	11,190	$	19,811
Gain on sale of assets	$	42,935	$	116,961	$	45,474

(1) Income before income taxes and discontinued operations does not include the gain recognized on the hotel sales.

Discontinued Operations

In 2017, the Company recognized an additional $7.0 million gain related to its 2013 sale of four hotels and a laundry facility located in Rochester, Minnesota.