Acquisition of Hotel Properties

3 Months Ended

Mar. 31, 2019

Business Combinations And Or Asset Acquisitions [Abstract]

3. Acquisition of Hotel Properties

Hyatt Centric Arlington. On March 1, 2018, we acquired the Hyatt Centric Arlington hotel, for a total fair value of consideration transferred including inventory and other assets of approximately $79.7 million (after amendment of the initial purchase price of $81.0 million). We considered this acquisition to be an asset acquisition as opposed to a business combination, applying the screen test, as discussed in the Accounting Standards Update 2017-01 – Business Combinations – Clarifying the Definition of a Business (Topic 805).

The results of operations of the hotels are included in our consolidated financial statements from the date of acquisition. The total revenue and net income related to the Hyatt Centric Arlington acquisition for the period March 1, 2018 to March 31, 2018 were approximately $2.1 million and $0.5 million, respectively. The total revenue and net loss related to the Hyatt Centric Arlington acquisition for the period January 1, 2019 to March 31, 2019 were approximately $4.5 million and $0.6 million, respectively.

The allocations of the respective purchase price are based on their fair value as follows:

	Hyatt Centric Arlington
Land and land improvements	$	190,916
Buildings and improvements		70,369,046
Furniture, fixtures and equipment		6,229,888
Favorable lease and other intangible assets		3,054,812
Investment in hotel properties		79,844,662
Accrued liabilities and other costs		(111,946	)
Prepaid expenses, inventory and other assets		—
Net cash	$	79,732,716