Acquisition of Hotel Properties

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

ACQUISITION OF HOTEL PROPERTIES

Acquisition of Hotel Properties

On April 4, 2012, the Company acquired the 108-room Hotel Milano for $29.8 million. The Company selected Viceroy Hotel Group as manager for the hotel.

The allocation of fair value to the acquired assets and liabilities is as follows (in thousands):

Land	$	7,294
Building and improvements	22,166
Furniture, fixtures, and equipment	290
Net working capital	7
Net assets acquired	$	29,757

The following unaudited pro forma financial information presents the results of operations of the Company for the three and six months endedJune 30, 2012 and 2011 as if the hotels and the interest in the joint venture acquired in 2012 and 2011 were acquired on January 1, 2010 and 2011. The following hotels' proforma results are included in the proforma table below: Argonaut Hotel, Westin Gaslamp Quarter, Hotel Monaco Seattle, Mondrian Los Angeles, Viceroy Miami, W Boston, and Hotel Milano. The pro forma results below excluded acquisition costs of $0.5 million and $1.7 million for the three months endedJune 30, 2012 and 2011, respectively, and $0.8 million and $3.4 million for the six months endedJune 30, 2012 and 2011, respectively. The unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of either the results of operations that would have actually occurred had these transactions occurred on January 1, 2010 or the future results of operations (in thousands, except per-share data).

	For the three months ended June 30,				For the six months ended June 30,
	2012		2011		2012			2011
	(Unaudited)				(Unaudited)
Total revenues	$	94,167	$	85,734	$	172,402		$	159,689
Operating income (loss)	12,559		10,707		13,963			11,958
Net income (loss) attributable to common shareholders	5,911		4,737		(1,394		)	(1,288		)
Net income (loss) per share available to common shareholders — basic and diluted	$	0.11	$	0.09	$	(0.03	)	$	(0.03	)