HOTEL PROPERTY ACQUISITIONS

3 Months Ended

Mar. 31, 2015

HOTEL PROPERTY ACQUISITIONS

HOTEL PROPERTY ACQUISITIONS

NOTE 3 - HOTEL PROPERTY ACQUISITIONS

The Company did not acquire any hotel properties during the three months ended March 31, 2015.  Hotel property acquisitions in the three months ended March 31, 2014 are as follows (in thousands):

Date Acquired	Franchise/Brand	Location	Purchase Price			Debt Assumed
January 9, 2014	Hilton Garden Inn	Houston, TX	$	37,500		$	17,846
January 10, 2014	Hampton Inn	Santa Barbara (Goleta), CA	27,900		(1)	12,037
January 24, 2014	Four Points by Sheraton	San Francisco, CA	21,250			—
March 14, 2014	DoubleTree by Hilton	San Francisco, CA	39,060			13,289
Total		4 hotel properties	$	125,710		$	43,172

(1) The purchase price for this hotel included the issuance of 412,174 Common Units in our Operating Partnership valued at the time of issuance at $3.7 million.

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

	March 31, 2014
Land	$	8,600
Hotel buildings and improvements	114,713
Furniture, fixtures and equipment	3,389
Other assets (1)	11,542
Total assets acquired	138,244
Less debt assumed	(43,172		)
Less lease liability assumed	(992		)
Less other liabilities (1)	(1,402		)
Net assets acquired	$	92,678

(1) In addition to the total purchase price, the Company also paid additional consideration at closing of $10.1 million for net assets acquired at settlement, including restricted cash escrow balances and other working capital items.

For the three months ended March 31, 2015 and 2014, total revenues and net income for hotel properties acquired during the three months ended March 31, 2014, which are included in our consolidated statements of operations, are as follows (in thousands):

	For the Three Months Ended March 31,
	2015		2014
Revenues	$	7,241	$	4,898
Net income	$	536	$	233

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 2014 had taken place on January 1, 2014. The unaudited condensed pro forma information excludes discontinued operations and disposed properties which were not classified as discontinued operations after the adoption of ASU 2014-08. The unaudited condensed pro forma financial information is for comparative purposes only and is not necessarily indicative of what actual results of operations would have been had the hotel acquisitions taken place on January 1, 2014. 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, 2015 and 2014 are as follows (in thousands, except per share):

	For the Three Months Ended March 31,
	2015		2014
	(unaudited)
Revenues	$	107,648	$	97,152
Net income	$	10,591	$	4,298
Net income attributable to common stockholders, net of amount allocated to participating securities	$	6,366	$	134
Net income per share attributable to common stockholders - basic and diluted	$	0.07	$	—