HOTEL PROPERTY ACQUISITIONS

6 Months Ended

Jun. 30, 2014

HOTEL PROPERTY ACQUISITIONS

HOTEL PROPERTY ACQUISITIONS

NOTE 3 - HOTEL PROPERTY ACQUISITIONS

Hotel property acquisitions in the six months ended June 30, 2014 and 2013 include (in thousands):

Date Acquired	Franchise/Brand	Location	Purchase Price		Debt Assumed
First Six Months 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	San Francisco, CA	21,250		—
March 14	DoubleTree by Hilton	San Francisco, CA	39,060		13,289
Total Six Months Ended June 30, 2014		4 hotel properties	$	125,710	$	43,172
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	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		—
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 Six Months Ended June 30, 2013		16 hotel properties	$	412,209	$	33,532

(1) This hotel property was acquired by a joint venture in which we owned an 81% controlling interest. On June 30, 2014, we acquired the remaining non-controlling interest in the joint venture for $8.2 million. As a result, this hotel property became wholly-owned by us.

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

	For the Six Months Ended June 30,
	2014			2013
Land	$	8,600		$	57,276
Hotel buildings and improvements	114,713			341,903
Furniture, fixtures and equipment	3,389			14,996
Land held for development	—			2,800
Other assets	11,542			9,308
Total assets acquired	138,244			426,283
Less debt assumed	(43,172		)	(33,532		)
Less lease liability assumed	(992		)	—
Less other liabilities	(1,402		)	(1,495		)
Net assets acquired	$	92,678		$	391,256

Total revenues and net income for hotel properties acquired in the three and six months ended June 30, 2014 and 2013, which are included in our consolidated statements of operations follows (in thousands):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014 Acquisitions		2013 Acquisitions				2014 Acquisitions		2013 Acquisitions
	2014		2014		2013		2014		2014		2013
Revenues	$	8,552	$	29,044	$	20,634	$	13,450	$	53,444	$	27,413
Net income	$	869	$	7,261	$	4,585	$	1,102	$	10,457	$	5,721

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 the first six months of 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 and six months ended June 30, 2014 and 2013 follows (in thousands, except per share amounts):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2014		2013		2014		2013
Revenues	$	105,525	$	94,607	$	197,184	$	179,950
Net income	$	9,160	$	8,527	$	12,006	$	12,304
Net income per share attributable to common stockholders - basic and diluted	$	0.06	$	0.07	$	0.04	$	0.09