Acquisitions (Tables)

9 Months Ended

Sep. 07, 2012

Business Combinations [Abstract]

Schedule of Base Management Fee and Incentive Management Fee

The following table sets forth the management agreement terms for each of the four hotels acquired.

Property	Expiration		Base Management Fee(1)			Incentive Management Fee
Hilton Boston Downtown	12/31/2012	(2)	2	%		None
Westin Washington D.C. City Center	12/3/2015	(3)	1	%	(4)	10	%	(5)
Westin San Diego	12/3/2015	(3)	1	%	(4)	10	%	(5)
Hilton Burlington	12/3/2015	(3)	1	%	(4)	10	%	(5)

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(1) As a percentage of gross revenues.

(2) May be terminated at any time prior to the expiration date with 30 days written notice.

(3) Term may be extended on a month-to-month basis following the expiration date.

(4) The base management fee will increase to 1.5% of gross revenues beginning on July 12, 2014. Total management fees are capped at 3.5% of gross revenues.

(5) Calculated as a percentage of operating profits in excess of 8% of our invested capital until July 12, 2014 and 10% of our invested capital thereafter.

Schedule of the Terms of the Hotel Franchise Agreements

The following table sets forth the franchise agreement terms for each of the four hotels acquired.

Property	Expiration	Franchise Fee
Hilton Boston Downtown	7/31/2022	5% of gross room sales and 3% of gross food and beverage sales; program fee of 4% of gross room sales
Westin Washington D.C. City Center	12/22/2030	7% of gross room sales and 3% of gross food and beverage sales
Westin San Diego	12/22/2030	7% of gross room sales and 3% of gross food and beverage sales
Hilton Burlington	7/31/2022	5% of gross room sales and 3% of gross food and beverage sales; program fee of 4% of gross room sales

Schedule of Preliminary Estimated Fair Value of the Assets Acquired and Liabilities Assumed in Acquisitions

The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed in our acquisitions (in thousands):

	Hilton Boston Downtown			Westin Washington D.C. City Center			Westin San Diego			Hilton Burlington
Land	$	22,000		$	19,800		$	17,700		$	7,100
Building	133,975			132,505			103,721			46,182
Furnitures, fixtures and equipment	2,700			2,000			2,200			1,600
Total fixed assets	158,675			154,305			123,621			54,882
Net other assets and liabilities	(288		)	(725		)	(62		)	(220		)
Total	$	158,387		$	153,580		$	123,559		$	54,662

Schedule of Pro Forma Results of Operations

The following unaudited pro forma results of operations (in thousands, except per share data) reflect these transactions as if each had occurred on January 1, 2011. We believe all material adjustments necessary to reflect the effects of acquisitions have been made; however, the amounts recorded are based on a preliminary estimate of the fair value of the assets acquired and the liabilities assumed. We will finalize the recorded amounts upon the completion of our valuation analysis of the assets acquired, liabilities assumed and the share consideration paid. The pro forma information is not necessarily indicative of the results that actually would have occurred nor does it indicate future operating results.

	Fiscal Quarter Ended					Period from
	September 7, 2012			September 9, 2011		January 1, 2012 to September 7, 2012			January 1, 2011 to September 9, 2011
Revenues	$	195,496		$	183,882	$	530,595		$	493,992
(Loss) income from continuing operations	(27,996		)	4,740		(24,806		)	(3,286		)
Net (loss) income	(42,086		)	4,492		(25,711		)	(3,485		)
Basic and diluted (loss) earnings per share:
Continuing operations	$	(0.14	)	$	0.02	$	(0.13	)	$	(0.02	)
Net (loss) income	$	(0.22	)	$	0.02	$	(0.13	)	$	(0.02	)

For the fiscal quarter ended September 7, 2012 and the period from January 1, 2012 to September 7, 2012, our condensed consolidated statements of operations include $14.2 million of revenues and $2.8 million of net income related to the operations of the four hotels acquired in 2012.