Acquisition and Disposition of Hotel Properties

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Acquisitions

Acquisition and Disposition of Hotel Properties

Acquisitions

The Company had no hotel acquisitions during the three and nine months endedSeptember 30, 2016. The following unaudited pro forma financial information presents the results of the Company for the three and nine months endedSeptember 30, 2016 and 2015 as if the hotels acquired in 2015 had been acquired on January 1, 2015. The following hotels' pro forma results are included in the pro forma table below: LaPlaya Beach Resort and LaPlaya Beach Club; and The Tuscan Fisherman's Wharf, a Best Western Plus Hotel. The pro forma results below exclude acquisition costs of zero and $4.5 million for the three and nine months endedSeptember 30, 2015, 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 or the future results of operations (in thousands, except per-share data).

	For the three months ended September 30,					For the nine months ended September 30,
	2016			2015		2016		2015
	(Unaudited)
Total revenues	$	208,963		$	216,321	$	617,480	$	608,741
Operating income (loss)	35,343			47,763		110,675		112,763
Net income (loss) attributable to common shareholders	(43,897		)	31,631		32,618		63,584
Net income (loss) per share available to common shareholders — basic	$	(0.61	)	$	0.44	$	0.45	$	0.88
Net income (loss) per share available to common shareholders — diluted	$	(0.61	)	$	0.43	$	0.45	$	0.87

Dispositions

Dispositions

The Company will report a disposed or held for sale hotel property or group of hotel properties in discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results. All other disposed hotel properties will have their operating results reflected within continuing operations on the Company's consolidated statements of operations for all periods presented.

On May 5, 2016, the Company sold an excess land parcel adjacent to the Revere Hotel Boston Common for $6.0 million. The Company recognized a gain of $3.3 million related to the sale of this land.

On June 1, 2016, the Company sold the Viceroy Miami for $64.5 million. The Company recognized a gain of $30.5 million related to the sale of this hotel property.

On June 1, 2016, the Company sold the The Redbury Hollywood for $40.9 million. The Company recognized a gain of $6.5 million related to the sale of this hotel property.

For the three and nine months endedSeptember 30, 2016, the Company's consolidated statements of operations included operating income of zero and $4.1 million, respectively, related to the hotel properties sold. For the three and nine months endedSeptember 30, 2015, the Company's consolidated statements of operations included operating income of $1.0 million and $5.5 million, respectively, related to the hotel properties sold.

As of September 30, 2016, the Company entered into an agreement to sell the DoubleTree by Hilton Hotel Bethesda -Washington DC for $50.1 million and designated this hotel property as held for sale as it met all of the Company's held for sale criteria. Accordingly, the Company classified all of the assets and liabilities related to this hotel as assets and liabilities held for sale in the accompanying balance sheets and ceased depreciating the assets. Additionally, the Company recognized an impairment loss of $12.1 million related to this hotel as a result of the fair value less costs to sell being lower than the carrying value of the hotel. The impairment loss was determined using level 2 inputs (third-party offer price less estimated costs to sell) under authoritative guidance for fair value measurements. The Company expects the sale to be completed during the fourth quarter of 2016.

For the three and nine months endedSeptember 30, 2016, the Company's consolidated statements of operations included operating income of $1.0 million and $3.8 million, respectively, related to the DoubleTree by Hilton Hotel Bethesda -Washington DC. For the three and nine months endedSeptember 30, 2015, the Company's consolidated statements of operations included operating income of $1.0 million and $3.8 million, respectively, related to this hotel.

The sales of land and hotel properties described above did not represent a strategic shift that had a major effect in the Company’s operations and financial results, and therefore, did not qualify as discontinued operations.