Investment in Unconsolidated Entities

On April 17, 2013, the Company acquired a 5.0% interest in the Torrance JV with Cerberus for $1,649. The Torrance JV acquired the 248-room (unaudited) Residence Inn by Marriott in Torrance, CA for $31,000. The Company accounts for this investment under the equity method. During the years ended December 31, 2015 and 2014, the Company received cash distributions from the Torrance JV as follows (in thousands):



	For the year ended
	December 31,
	2015		2014
Cash generated from other activities and excess cash	$	185	$	100
Total	$	185	$	100

On December 30, 2015, the Torrance JV completed the sale of the 248-room (unaudited) Residence Inn by Marriott in Torrance, CA for $51,750 to BRE Torrance Holdco LLC ("BRE"). The gain from the Company's promote interest in the Torrance JV was approximately $3,576.

The Company owned a 10.3% interest in the Innkeepers JV, which owned 51 hotels comprising an aggregate of 6,845 rooms until June 9, 2014. The Company accounted for this investment under the equity method. During the years ended December 31, 2015 and 2014, the Company received cash distributions from the Innkeepers JV as follows (in thousands):



	For the year ended
	December 31,
	2015		2014
Cash generated from other activities and excess cash	$	—	$	411
Total	$	—	$	411

On June 9, 2014, the Innkeepers JV completed the sale of 47 of the 51-hotels owned by the Innkeepers JV to the NewINK JV NorthStar owns an 89.7% interest and the Company owns a 10.3% interest in the NewINK JV. The remaining four hotels that were part of the 51-hotel Innkeeper's JV portfolio, each of which is a Residence Inn hotel located in Silicon Valley, CA ("Silicon Valley Hotels"), were purchased by the Company (see note 3). The Company accounts for its investment in the NewINK JV under the equity method. The remeasurement gain of the Company's interest in the four Silicon Valley Hotels as a result of the step acquisition was approximately $18,800 and the net gain from the Company's promote interest in the Innkeepers JV was approximately $47,000 (which was credited toward the purchase of the Silicon Valley Hotels), resulting in a total gain of $65,750 from the transaction. For tax purposes, the Company's gain resulting from this transaction was rolled tax deferred between the basis of the Company's investment in the NewINK JV and the Company's basis in the four Silicon Valley Hotels. As of December 31, 2015 and December 31, 2014, the Company's share of partners' capital in the NewINK JV is approximately $14,015 and $19,012, respectively, and the total difference between the carrying amount of the investment and the Company's share of partners' capital is approximately $16,718 and $17,319 (for which the basis difference related to amortizing assets is being recognized over the life of the related assets as a basis difference adjustment).

During the years ended December 31, 2015 and 2014, the Company received cash distributions from the NewINK JV as follows (in thousands):



	For the year ended
	December 31,
	2015		2014
Cash generated from other activities and excess cash	$	5,884	$	1,542
Total	$	5,884	$	1,542

On November 17, 2014, the Company acquired a 10.0% interest in Inland JV. NorthStar owns a 90.0% interest in the Inland JV. The Company accounts for this investment under the equity method. During the years ended December 31, 2015 and 2014, the Company received cash distributions from the Inland JV as follows (in thousands):



	For the year ended
	December 31,
	2015		2014
Cash generated from other activities and excess cash	$	2,845	$	—
Total	$	2,845	$	—

The Company’s ownership interests in the JVs are subject to change in the event that either the Company or NorthStar calls for additional capital contributions to the respective JVs necessary for the conduct of business, including contributions to fund costs and expenses related to capital expenditures. The Company could be required under its unconditional guaranty to repay portions of the debt of the JV's. The Company manages the JVs and will receive a promote interest in each applicable JV if it meets certain return thresholds for such JV. NorthStar may also approve certain actions by the JVs without the Company’s consent, including certain property dispositions conducted at arm’s length, certain actions related to the restructuring of the applicable JV and removal of the Company as managing member in the event the Company fails to fulfill its material obligations under the applicable joint venture agreement.

The Company's investments in the NewInk JV, the Inland JV and the Torrance JV are $(2,703), $23,618 and $0, respectively, at December 31, 2015. The following tables sets forth the total assets, liabilities, equity and components of net income (loss), including the Company’s share, related to all JVs for the years ended December 31, 2015, 2014 and 2013 (in thousands):



Balance Sheet
	December 31, 2015		December 31, 2014		December 31, 2013
Assets
Investment in hotel properties, net	$	1,857,497	$	1,907,928	$	874,058
Other assets	206,894		261,311		114,034
Total Assets	$	2,064,391	$	2,169,239	$	988,092

Liabilities
Mortgages and notes payable	$	1,657,000	$	1,677,159	$	969,023
Other Liabilities	35,807		34,929		19,211
Total Liabilities	1,692,807		1,712,088		988,234

Equity
Chatham Lodging Trust	37,633		45,470		(802		)
Joint Venture Partner	333,951		411,681		660
Total Equity	371,584		457,151		(142		)
Total Liabilities and Equity	$	2,064,391	$	2,169,239	$	988,092



	For the year ended
Statement of Operations	December 31,
	2015		2014			2013
Revenue	$	497,698	$	290,419		$	271,224
Total hotel operating expenses	290,123		166,849			151,823
Operating income	$	207,575	$	123,570		$	119,401
Net income (loss) from continuing operations	$	19,241	$	(40,018	)	$	(14,376	)
Loss on sale of hotels	$	—	$	(5	)	$	(2,730	)
Net income (loss)	$	19,241	$	(40,023	)	$	(17,106	)

Income (loss) allocable to the Company	$	1,811	$	(4,165	)	$	(1,874	)
Basis difference adjustment	$	600	$	335		$	—
Total income (loss) from unconsolidated real estate entities attributable to Chatham	$	2,411	$	(3,830	)	$	(1,874	)