Related Party Transactions

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Mr. Fisher owns 90% of IHM. As of June 30, 2013, the Company had hotel management agreements with IHM to manage 19 of its hotels. As of June 30, 2013 all 52 hotels owned by the Innkeepers JV, are managed by IHM. Hotel and revenue management and accounting fees paid to IHM for the three months ended June 30, 2013 and 2012 were $0.7 million and $0.6 million, respectively and for the six months ended June 30, 2013 and 2012 were $1.4 million and $1.0 million, respectively. At June 30, 2013 and December 31, 2012, the amounts due to IHM were $0.4 million and $0.4 million, respectively.

Cost reimbursements from unconsolidated real estate entities revenue represents reimbursements of costs incurred on behalf of the Innkeepers JV. These costs relate primarily to payroll costs at the Innkeepers JV where the Company is the employer. As the Company records cost reimbursements based upon costs incurred with no added markup, the revenue and related expense has no impact on the Company’s operating income or net income. Cost reimbursements from our joint venture are recorded based upon the occurrence of a reimbursed activity.

During 2012, Mr. Fisher entered into a participation agreement with Cerberus by which Mr. Fisher acquired a less than 1% non-voting interest in the Cerberus percentage ownership of the Innkeepers JV.