INVESTMENT IN HOTEL PROPERTIES (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of investment in hotel properties, net

Investment in hotel properties, net at December 31, 2015 and 2014 are as follows (in thousands):

	2015		2014
Land	$	149,996	$	164,570
Hotel buildings and improvements	1,222,017		1,202,451
Construction in progress	6,555		15,609
Furniture, fixtures and equipment	123,332		136,456
	1,501,900		1,519,086
Less accumulated depreciation	168,493		179,671
	$	1,333,407	$	1,339,415

Schedule of hotel property acquisitions

Hotel property acquisitions in 2015 and 2014 were as follows (in thousands):

Date Acquired	Franchise/Brand	Location	Purchase Price			Debt Assumed
2015:
April 13	Hampton Inn & Suites	Minneapolis, MN	$	38,951		$	—
June 18	Hampton Inn	Boston (Norwood), MA	24,000			—
June 30	Hotel Indigo	Asheville, NC	35,000			—
July 24	Residence Inn	Branchburg, NJ	25,700			—
July 24	Residence Inn	Baltimore (Hunt Valley), MD	31,100			—
October 19	Hyatt House	Miami, FL	39,000			—
October 20	Courtyard by Marriott	Atlanta (Decatur), GA	44,000		(1)	—
Total 2015			$	237,751		$	—
2014:
January 9	Hilton Garden Inn	Houston, TX	$	37,500		$	17,846
January 10	Hampton Inn	Santa Barbara (Goleta), CA	27,900		(2)	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
August 15	Hilton Garden Inn	Houston (Energy Corridor), TX	36,000			—
September 9	Hampton Inn & Suites	Austin, TX	53,000			—
Total 2014			$	214,710		$	43,172

(1) This hotel was a Parked Asset at December 31, 2015 pending the completion of a reverse 1031 Exchange related to the sale of certain properties to ARCH. See “Note 2 — Summary of Significant Accounting Policies — Variable Interest Entities” and “Note 4 — Supplemental Balance Sheet Information” to these Consolidated Financial Statements.  As such, the legal title to this Parked Asset was held by a Qualified Intermediary engaged to execute the 1031 Exchange until the ARCH Sale was consummated on February 11, 2016 and the 1031 Exchange was completed.  We retained essentially all of the legal and economic benefits and obligations related to the Parked Asset.  As such, the Parked Asset was included in our Consolidated Balance Sheet at December 31, 2015 and Consolidated Statement of Operations for the year then ended as a VIE until legal title was transferred to us upon completion of the 1031 Exchange.

(2) The purchase price for this hotel included the issuance by the Operating Partnership of 412,174 Common Units valued at the time of issuance at $3.7 million. As of December 31, 2015, 141,140 of the Common Units issued had been tendered for redemption and were redeemed for an equivalent number of shares of our common stock.

Schedule of allocation of aggregate purchase prices to fair value of assets and liabilities acquired

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

	2015			2014
Land	$	18,947		$	11,400
Hotel buildings and improvements	208,864			199,573
Furniture, fixtures and equipment	6,803			5,489
Other assets	7,072			11,625
Total assets acquired	241,686			228,087
Less debt assumed	—			(43,172		)
Less lease liability assumed	(3,250		)	(1,752		)
Less other liabilities	(577		)	(2,671		)
Net assets acquired	$	237,859		$	180,492

Schedule of total revenues and net income for hotel properties acquired

Total revenues and net income for hotel properties acquired in 2015 and 2014, which are included in our Consolidated Statements of Operations for the years ended December 31, 2015 and 2014, are as follows (in thousands):

	2015 Acquisitions		2014 Acquisitions
	2015		2015		2014
Revenues	$	22,811	$	53,876	$	37,655
Net income	$	3,317	$	7,927	$	4,977

Schedule of unaudited condensed pro forma financial information

The unaudited condensed pro forma financial information for 2015 and 2014 is as follows (in thousands, except per share):

	2015		2014
	(unaudited)
Revenues	$	461,454	$	424,553
Net income (1)	$	58,268	$	35,345
Net income attributable to common stockholders, net of amount allocated to participating securities (1)	$	41,248	$	18,442
Net income per share attributable to common stockholders (1):
Basic	$	0.48	$	0.22
Diluted	$	0.47	$	0.22

(1) The pro forma amounts exclude the $66.6 million gain on the sale of hotel properties during the year ended December 31, 2015.

Assets held for sale | Hotel properties and land parcels

Schedule of assets held for sale

Assets held for sale at December 31, 2015 and 2014 include (in thousands):

	2015		2014
Land	$	24,250	$	300
Hotel building and improvements	97,249		—
Furniture, fixtures and equipment	10,906		—
Construction in progress	42		—
Franchise fees	691		—
	$	133,138	$	300

Assets held for sale | Portfolio of Hotels, ARCH Agreements

Schedule of assets held for sale

The remaining 16 hotel properties are recorded as Assets Held for Sale at December 31, 2015 as follows:

Hotel	Location	Guestrooms
Fairfield Inn & Suites	Denver, CO	160	(1)
Fairfield Inn & Suites	Bellevue, WA	144	(1)
SpringHill Suites	Denver, CO	124	(1)
Hilton Garden Inn	Fort Collins, CO	120	(1)
Fairfield Inn & Suites	Spokane, WA	84	(1)
Hampton Inn	Fort Collins, CO	75	(1)
		707
Aloft	Jacksonville, FL	136	(2)
Holiday Inn Express	Vernon Hills, IL	119	(2)
Courtyard	Jackson, MS	117	(2)
Residence Inn	Jackson, MS	100	(2)
Courtyard	Germantown, TN	93	(2)
Staybridge Suites	Ridgeland, MS	92	(2)
Homewood Suites	Ridgeland, MS	91	(2)
Courtyard	El Paso, TX	90	(2)
Fairfield Inn & Suites	Germantown, TN	80	(2)
Residence Inn	Germantown, TN	78	(2)
		996
		1,703

(1) These hotel properties were sold on February 11, 2016. See “Note 17 – Subsequent Events” to these Consolidated Financial Statements.

(2) These hotel properties are currently under contract to be sold. See “Note 17 – Subsequent Events” to these Consolidated Financial Statements.