DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2014

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 14 - DISCONTINUED OPERATIONS

We have adjusted our consolidated statement of operations for the three months ended March 31, 2014 and 2013 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:

· 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;

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

· Fairfield Inn in Emporia, KS — sold October 2013;

· SpringHill Suites in Little Rock, AR — sold November 2013;

· Fairfield Inn and AmericInn in Salina, KS — sold November 2013;

· Hampton Inn and Fairfield Inn & Suites in Boise, ID — sold November 2013;

· Holiday Inn Express in Emporia, KS — sold December 2013; and

· AmericInn and Aspen Hotel & Suites in Fort Smith, AR - sold on January 17, 2014.

In addition, discontinued operations also include the following hotel property that is classified as held for sale at March 31, 2014:

· Hampton Inn in Fort Smith, AR.

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

	For the Three Months Ended March 31,
	2014			2013
REVENUE	$	1,088		$	6,292
Hotel operating expenses	770			4,863
Depreciation and amortization	4			839
Loss on impairment of assets	—			1,500
INCOME (LOSS) FROM HOTEL OPERATIONS	314			(910		)
Interest expense	—			103
Gain on disposal of assets	(63		)	(1,634		)
INCOME BEFORE TAXES	377			621
INCOME TAX BENEFIT (EXPENSE)	1			(264		)
INCOME FROM DISCONTINUED OPERATIONS	$	378		$	357
INCOME FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO NONCONTROLLING INTEREST	$	5		$	18
INCOME FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	373		$	339