Investment in Unconsolidated Entities

On April 17, 2013, the Company acquired a 5.0% interest in the Torrance JV for $1,649. The Torrance JV acquired the 248-room Residence Inn by Marriott in Torrance, CA for $31,000. The Company accounts for this investment under the equity method. During the three months ended March 31, 2016 and 2015, the Company received cash distributions from the Torrance JV as follows (in thousands):



	For the three months ended
	March 31,
	2016		2015
Cash generated from other activities and excess cash	$	—	$	45
Total	$	—	$	45

On December 30, 2015, the Torrance JV completed the sale of the 248-room 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.

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, a joint venture between affiliates of NorthStar and the Operating Partnership. NorthStar owns an 89.7% interest and the Company owns a 10.3% interest in the NewINK JV and its 47-hotel portfolio. The remaining four hotels that were part of the 51-hotel portfolio owned by the Innkeepers JV, each of which is a Residence Inn hotel located in Silicon Valley, CA (the "Silicon Valley Hotels"), were purchased by the Company. 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 $18,750 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 March 31, 2016 and 2015, the Company’s share of partners’ capital in the NewINK JV is approximately $12,901 and $20,400, respectively and the total difference between the carrying amount of investment and the Company’s share of partners’ capital is approximately $16,568 and $19,700 (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 three months ended March 31, 2016 and 2015, the Company received cash distributions from the NewINK JV as follows (in thousands):



	For the three months ended
	March 31,
	2016		2015
Cash generated from other activities and excess cash	$	822	$	822
Total	$	822	$	822

On November 17, 2014, the Company acquired a 10.0% interest in the Inland JV, a joint venture between affiliates of NorthStar and the Operating Partnership. NorthStar owns a 90.0% interest in the Inland JV and the Company owns a 10.0% interest. The Company serves as managing member of the Inland JV. The Company accounts for this investment under the equity method. During the three months ended March 31, 2016 and 2015, the Company received cash distributions from the Inland JV as follows (in thousands):



	For the three months ended
	March 31,
	2016		2015
Cash generated from other activities and excess cash	$	—	$	425
Total	$	—	$	425

The Company’s ownership interest 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 investment in the NewINK JV, the Inland JV and Torrance JV are $(3,667), $23,113, and $0, respectively, at March 31, 2016 and $(2,703), $23,618 and $0, respectively, at December 31, 2015. The following table sets forth the combined components of net income (loss), including the Company’s share, related to the NewINK JV and Inland JV (the Torrance JV is not material) for the three months ended March 31, 2016 and 2015 (in thousands):



	For the three months ended
	March 31,
	2016			2015
Revenue	$	108,429		$	150,637
Total hotel operating expenses	67,848			67,255
Operating income	$	40,581		$	83,382
Net income (loss) from continuing operations	$	(7,890	)	$	(4,180	)
Loss on sale of hotels	$	—		$	—
Net income (loss)	$	(7,890	)	$	(4,180	)

Income (loss) allocable to the Company	$	(797	)	$	(427	)
Basis difference adjustment	150			150
Total income (loss) from unconsolidated real estate entities attributable to the Company	$	(647	)	$	(277	)