Investment in Real Estate

6 Months Ended

Jun. 30, 2016

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

3.  Investment in Real Estate

The Company’s investment in real estate consisted of the following (in thousands):

	June 30,			December 31,
	2016			2015
Land	$	561,630		$	561,630
Building and Improvements		3,216,474			3,200,918
Furniture, Fixtures and Equipment		306,619			293,444
Franchise Fees		8,832			8,832
		4,093,555			4,064,824
Less Accumulated Depreciation		(489,860	)		(423,057	)
Investment in Real Estate, net	$	3,603,695		$	3,641,767

As of June 30, 2016, the Company owned 179 hotels with an aggregate of 22,961 rooms located in 32 states.  There were no acquisitions during the six month period ended June 30, 2016.  During the six month period ended June 30, 2015, the Company acquired two hotels.  The following table sets forth the location, brand, manager, date acquired, number of rooms and gross purchase price for each hotel acquired during the six months ended June 30, 2015.  All dollar amounts are in thousands.

City	State	Brand	Manager	Date Acquired	Rooms		Gross Purchase Price (1)
Fort Lauderdale	FL	Hampton Inn	LBA	6/23/2015		156	$	23,000
Cypress	CA	Hampton Inn	Dimension	6/29/2015		110		19,800
						266	$	42,800

⁽¹⁾    At the date of purchase, the purchase price for each of these properties was funded through the Company's credit facility with availability provided primarily from the proceeds from the sale of properties discussed in Note 4. No goodwill was recorded in connection with any of the acquisitions.

The Company leases all of its hotels to its wholly-owned taxable REIT subsidiary (or a subsidiary thereof) under master hotel lease agreements.

As of June 30, 2016, the Company had outstanding contracts for the potential purchase of four additional hotels for a total purchase price of $81.1 million.  The newly constructed Atlanta Home2 Suites was acquired on July 1, 2016, the same day the hotel opened for business.  The remaining three hotels are under construction and are expected to be completed and opened for business over the next 12 months from June 30, 2016, at which time closing on these hotels is expected to occur.  Although the Company is working towards acquiring these three hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on these hotels will occur under the outstanding purchase contracts.  The following table summarizes the location, brand, date of purchase contract, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) contract deposits paid, and gross purchase price for each of the contracts outstanding at June 30, 2016.  All dollar amounts are in thousands.

Location	Brand	Date of Purchase Contract	Rooms		Refundable Deposits		Gross Purchase Price
Atlanta, GA (a)	Home2 Suites	5/5/2015		128	$	300	$	24,600
Birmingham, AL (b)(c)	Home2 Suites	8/28/2015		105		3		19,219
Birmingham, AL (b)(c)	Hilton Garden Inn	8/28/2015		105		2		19,219
Fort Worth, TX (b)	Courtyard	8/28/2015		124		5		18,034
				462	$	310	$	81,072

(a)  Newly constructed property was acquired on July 1, 2016, the same day the hotel opened for business.

(b)  As of June 30, 2016, these hotels were under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise brands. Assuming all conditions to closing are met, the purchases of these hotels are expected to close over the next 12 months from June 30, 2016. If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing.

(c)  The Home2 Suites and Hilton Garden Inn hotels in Birmingham, AL are part of an adjoining two-hotel complex located on the same site.

As there can be no assurance that all conditions to closing will be satisfied, the Company includes deposits paid for hotels under contract in other assets, net in the Company’s consolidated balance sheets, and in deposits and other disbursements for potential acquisitions in the Company’s consolidated statements of cash flows.  The purchase price for the Atlanta Home2 Suites was funded through borrowings under the Company’s $540 million revolving credit facility and it is anticipated that the purchase price for the remaining outstanding contracts will be funded similarly if a closing occurs.