DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2013

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 13 - DISCONTINUED OPERATIONS

We have adjusted our consolidated statements of operations for the first nine months of 2013 and 2012 to reflect the operations of hotel properties sold or classified as held for sale in discontinued operations. Discontinued operations include the following hotel properties that have been sold:

· Hampton Inn, Holiday Inn Express, and AmericInn in Twin Falls, ID — sold May 2012;

· AmericInn in Missoula, MT — sold August 2012;

· Courtyard by Marriott in Missoula, MT — sold December 2012;

· AmericInn & Suites in Golden, CO — sold January 2013;

· Hampton Inn in Denver, CO — sold February 2013;

· Holiday Inn and Holiday Inn Express in Boise, ID — sold May 2013;

· Courtyard by Marriott in Memphis, TN — sold May 2013;

· SpringHill Suites in Lithia Springs, GA — sold August 2013;

· Fairfield Inn in Lewisville, TX — sold August 2013; and

· Fairfield Inn in Lakewood, CO — sold September 2013.

In addition, discontinued operations also include the following hotel properties that were classified as held for sale at September 30, 2013:

· Hampton Inn and Fairfield Inn & Suites in Boise, ID;

· Hampton Inn, AmericInn and Aspen Hotel & Suites in Fort Smith. AR;

· SpringHill Suites in Little Rock, AR;

· Fairfield Inn and Holiday Inn Express in Emporia, KS; and

· Fairfield Inn and AmericInn in Salina, KS.

Condensed results of operations for the hotel properties included in discontinued operations follow (in thousands):

	Third Quarter						First Nine Months
	2013			2012			2013			2012
REVENUE	$	4,874		$	9,107		$	17,129		$	26,199
Hotel operating expenses	3,653			6,315			12,913			19,143
Depreciation and amortization	406			857			1,617			3,067
Loss on impairment of assets	5,785			—			7,285			2,098
Income (loss) from hotel operations	(4,970		)	1,935			(4,686		)	1,891
Interest expense	24			111			175			729
(Gain) loss on disposal of assets	783			—			(877		)	—
Income (loss) before taxes	(5,777		)	1,824			(3,984		)	1,162
Income tax (expense) benefit	4,080			(295		)	(313		)	(81		)
Income (loss) from discontinued operations	$	(1,697	)	$	1,529		$	(4,297	)	$	1,081
Income (loss) from discontinued operations attributable to noncontrolling interest	$	(66	)	$	248		$	(188	)	$	221
Income (loss) from discontinued operations attributable to common stockholders	$	(1,631	)	$	1,281		$	(4,109	)	$	860