Discontinued Operations

9 Months Ended

Sep. 30, 2014

Discontinued Operations

Discontinued Operations

Note 14 — Discontinued Operations

We have adjusted our consolidated statement of operations for the three and nine months ended September 30, 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.

· Hampton Inn in Fort Smith, AR - sold on September 9, 2014.

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

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014		2013
Revenues	$	847		$	4,874		$	3,128	$	17,129
Hotel operating expenses	746			3,653			2,304		12,915
Depreciation and amortization	4			555			13		1,990
Loss on impairment of assets	—			5,785			400		7,285
Operating income (loss)	97			(5,119		)	411		(5,061		)
Interest expense	—			24			—		174
Other expense (income)	188			783			171		(877		)
Income (loss) before taxes	(91		)	(5,926		)	240		(4,358		)
Income tax benefit	32			2,516			38		1,850
Income (loss) from discontinued operations	$	(59	)	$	(3,410	)	$	278	$	(2,508	)
Income (loss) from discontinued operations attributable to non-controlling interest	$	(1	)	$	(152	)	$	3	$	(110	)
Income (loss) from discontinued operations attributable to common stockholders	$	(58	)	$	(3,258	)	$	275	$	(2,398	)

As discussed above, we have elected to early adopt ASU No. 2014-08 which changes the criteria for discontinued operations to include only disposals that represent a strategic shift in operations with a major effect on operations and results.  While we have elected early adoption for our consolidated financial statements and footnote disclosures, hotels that were classified as held for sale in prior periods will continue to be reported in discontinued operations.  Under this ASU, the Company anticipates that the majority of future property sales will not be classified as discontinued operations.