HOTEL PROPERTY ACQUISITIONS

6 Months Ended

Jun. 30, 2013

HOTEL PROPERTY ACQUISITIONS

HOTEL PROPERTY ACQUISITIONS

NOTE 3 -      HOTEL PROPERTY ACQUISITIONS

Hotel property acquisitions in first six months 2013 and 2012 include (in thousands):

Date Acquired	Franchise/Brand	Location	Purchase Price		Debt Assumed
First Six Months 2013
January 22	Hyatt Place	Chicago (Hoffman Estates), IL	$	9,230	$	—
January 22	Hyatt Place	Orlando (Convention), FL	12,252		—
January 22	Hyatt Place	Orlando (Universal), FL	11,843		—
February 11	IHG / Holiday Inn Express & Suites (1)	San Francisco, CA	60,500		23,423
March 11	SpringHill Suites by Marriott	New Orleans, LA	33,500		—
March 11	Courtyard by Marriott	New Orleans (Convention), LA	31,500		—
March 11	Courtyard by Marriott	New Orleans (French Quarter), LA	26,000		—
March 11	Courtyard by Marriott	New Orleans (Metairie), LA	24,000		—
March 11	Residence Inn by Marriott	New Orleans (Metairie), LA	20,000		—
April 30	Hilton Garden Inn	Greenville, SC	15,250		—
May 21	IHG / Holiday Inn Express & Suites	Minneapolis (Minnetonka), MN	6,900		3,724
May 21	Hilton Garden Inn	Minneapolis (Eden Prairie), MN	10,200		6,385
May 23	Fairfield Inn & Suites by Marriott	Louisville, KY	25,023		—
May 23	SpringHill Suites by Marriott	Louisville, KY	39,138		—
May 23	Courtyard by Marriott	Indianapolis, IN	58,634		—
May 23	SpringHill Suites by Marriott	Indianapolis, IN	30,205		—
Total First Six Months 2013		16 hotel properties	$	414,175	$	33,532
First Six Months 2012
January 12	Courtyard by Marriott (2)	Atlanta, GA	$	28,900	$	19,011
February 28	Hilton Garden Inn	Birmingham (Liberty Park), AL	11,500		—
February 28	Hilton Garden Inn	Birmingham (Lakeshore), AL	8,625		—
May 16	Courtyard by Marriott	Dallas (Arlington), TX	15,000		—
May 16	Hilton Garden Inn	Nashville (Smyrna), TN	11,500		8,708
June 21	Hilton / Hampton Inn & Suites	Nashville (Smyrna), TN	8,000		5,384
Total First Six Months 2012		6 hotel properties	$	83,525	$	33,103

(1) This hotel property was acquired by a joint venture in which we own an 80% controlling interest.

(2) We acquired a 90% controlling interest in this hotel property and we are obligated to acquire the remaining ownership in 2016 for $0.4 million. The $0.4 million has been accrued as a liability and is included in the purchase price above.

In connection with the January 22, 2013 Hyatt Place acquisitions, we acquired a land parcel in Orlando, FL valued at $2.8 million that is classified as land held for development.

The allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired for the above acquisitions follows (in thousands):

	First Six Months
	2013		2012
Land	$	57,276	$	8,197
Hotel buildings and improvements	341,903		71,603
Furniture, fixtures and equipment	14,996		3,725
Land held for development	2,800		—
Other assets	9,308		338
Total assets acquired	426,283		83,863
Debt assumed	33,532		33,103
Other liabilities	1,495		235
Net assets acquired	$	391,256	$	50,525

The allocations for certain of the acquisitions are based on preliminary information and are, therefore, subject to change.

Total revenues and net income (loss) for hotel properties acquired in first six months 2013 and 2012, which are included in our consolidated statements of operations follow (in thousands):

	Second Quarter						First Six Months
	2013 Acquisitions		2012 Acquisitions				2013 Acquisitions		2012 Acquisitions
	2013		2013		2012		2013		2013		2012
Revenues	$	20,634	$	5,936	$	3,982	$	27,413	$	11,375	$	5,780
Net income (loss)	$	4,585	$	624	$	476	$	5,721	$	923	$	607

The results of operations of acquired hotel properties are included in the consolidated statements of operations beginning on their respective acquisition dates. The following unaudited condensed pro forma financial information presents the results of operations as if all acquisitions in 2012 and first six months 2013 had taken place on January 1, 2012. The unaudited condensed pro forma information excludes discontinued operations, is for comparative purposes only, and is not necessarily indicative of what actual results of operations would have been had the hotel property acquisitions taken place on January 1, 2012. This information does not purport to represent results of operations for future periods.

The unaudited condensed pro forma financial information for 2013 and 2012 follows (in thousands, except per share):

	Second Quarter				First Six Months
	2013		2012		2013		2012
Revenues	$	89,246	$	84,062	$	170,246	$	160,828
Net income (loss)	$	9,317	$	11,474	$	18,123	$	17,498
Net income (loss) per share attributable to common stockholders - basic and diluted	$	0.08	$	0.27	$	0.17	$	0.40