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Acquisition of Hotel Properties
 6 Months Ended
Jun. 30, 2013
Business Combinations [Abstract]  
ACQUISITION OF HOTEL PROPERTIES
Acquisition of Hotel Properties
On January 29, 2013, the Company acquired the 337-suite Embassy Suites San Diego Bay-Downtown located in San Diego, California for $112.5 million. The acquisition was funded with $45.8 million of available cash and the assumption of a $66.7 million first mortgage loan. The fixed rate mortgage loan that was assumed was determined to have an interest rate that is above the current market interest rate. The Company recorded a $4.8 million mortgage loan premium for the above market interest that is amortized as a reduction in interest expense through the maturity of the loan.
The allocation of fair value to the acquired assets and liabilities is as follows (in thousands).
 
Embassy Suites San Diego Bay-Downtown
Land
$
20,103

Buildings and improvements
90,162

Furniture, fixtures and equipment
6,881

Above market rate contracts
(4,751
)
Mortgage debt
(66,732
)
In place lease assets
66

Net working capital
39

Net assets acquired
$
45,768


The following unaudited pro forma financial information presents the results of operations of the Company for the three and six months ended June 30, 2013 and 2012 as if the hotels acquired in 2013 and 2012 were acquired on January 1, 2012 and 2011, respectively. The following hotels' pro forma results are included in the pro forma table below: Hotel Zetta (formerly Hotel Milano), Hotel Vintage Park Seattle, Hotel Vintage Plaza Portland, W Los Angeles - Westwood, Hotel Palomar San Francisco and Embassy Suites San Diego Bay-Downtown. The pro forma results below excluded acquisition costs of zero and $0.6 million for the three months ended June 30, 2013 and 2012, respectively, and $1.2 million and $0.8 million for the six months ended June 30, 2013 and 2012, 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, 2012 and 2011 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,
 
2013
 
2012
 
2013
 
2012
 
(Unaudited)
 
(Unaudited)
Total revenues
$
126,301

 
$
118,032

 
$
232,850

 
$
218,486

Operating income (loss)
18,728

 
16,021

 
24,074

 
19,747

Net income (loss) attributable to common shareholders
8,730

 
8,754

 
2,966

 
3,203

Net income (loss) per share available to common shareholders — basic and diluted
$
0.14

 
$
0.14

 
$
0.05

 
$
0.05


For the three and six months ended June 30, 2013, the Company's consolidated statements of operations included $5.2 million and $9.4 million of revenues, respectively and $3.1 million and $5.2 million of hotel operating expenses, respectively, related to the operations of the Embassy Suites San Diego Bay - Downtown hotel acquired in 2013.