HOTEL PROPERTY ACQUISITIONS

3 Months Ended

Mar. 31, 2014

HOTEL PROPERTY ACQUISITIONS

HOTEL PROPERTY ACQUISITIONS

NOTE 3 - HOTEL PROPERTY ACQUISITIONS

Hotel property acquisitions in the three months ended March 31, 2014 and 2013 include (in thousands):

Date Acquired	Franchise/Brand	Location	Purchase Price		Debt Assumed
First Quarter 2014
January 9	Hilton Garden Inn	Houston, TX	$	37,500	$	17,846
January 10	Hampton Inn	Santa Barbara (Goleta), CA	27,900		12,037
January 24	Four Points by Sheraton	South San Francisco, CA	21,250		—
March 14	DoubleTree by Hilton	San Francisco, CA	39,060		13,289
Total Three Months Ended March 31, 2014		4 hotel properties	$	125,710	$	43,172
First Quarter 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	Holiday Inn Express & Suites (1)	San Francisco, CA	60,500		23,423
March 11	SpringHill Suites by Marriott	New Orleans, LA	33,095		—
March 11	Courtyard by Marriott	New Orleans (Convention), LA	30,827		—
March 11	Courtyard by Marriott	New Orleans (French Quarter), LA	25,683		—
March 11	Courtyard by Marriott	New Orleans (Metairie), LA	23,539		—
March 11	Residence Inn by Marriott	New Orleans (Metairie), LA	19,890		—
Total Three Months Ended March 31, 2013		9 hotel properties	$	226,859	$	23,423

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

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

	March 31,
	2014			2013
Land	$	8,600		$	33,476
Hotel buildings and improvements	114,713			187,754
Furniture, fixtures and equipment	3,389			5,629
Other assets	11,542			7,443
Total assets acquired	138,244			234,302
Less debt assumed	(43,172		)	(23,423		)
Less other liabilities	(1,402		)	(545		)
Net assets acquired	$	93,670		$	210,334

The allocations for certain of the acquisitions for the three months ended March 31, 2014 are based on preliminary information and are, therefore, subject to change.

Total revenues and net income  for hotel properties acquired for the three months ended March 31, 2014 and 2013, which are included in our consolidated statements of operations follows (in thousands):

	For the Three Months Ended March 31,
	2014 Acquisitions		2013 Acquisitions
	2014		2014		2013
Revenues	$	4,898	$	15,741	$	6,779
Net income	$	233	$	2,076	$	1,136

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 2013 and first quarter 2014 had taken place on January 1, 2013. 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, 2013. This information does not purport to represent results of operations for future periods.

The unaudited condensed pro forma financial information for the three months ended March 31, 2014 and 2013 follows (in thousands, except per share amounts):

	For the Three Months Ended March 31,
	2014			2013
Revenues	$	91,659		$	85,342
Net income	$	2,990		$	3,794
Net income (loss) per share attributable to common stockholders - basic and diluted	$	(0.01	)	$	0.02