Hotel Dispositions

12 Months Ended

Dec. 31, 2016

HOTEL DISPOSITIONS

On December 8, 2015, the Company sold 53 hotel properties, 47 of which operated under the Crossland Economy Studios brand and six of which operated under the Extended Stay America brand, and certain intellectual property of Crossland Economy Studios (the "Portfolio Sale"), for gross proceeds of $285.0 million. The carrying value of the portfolio, including net working capital and allocable goodwill, was approximately $145.4 million, resulting in a gain, net of closing costs and adjustments, of approximately $130.9 million, which was reported in gain on sale of hotel properties in the accompanying consolidated statement of operations for the year ended December 31, 2015. The disposition was not reported as a discontinued operation.

During the period from January 1, 2015 through December 7, 2015 and during the year ended December 31, 2014, the portfolio contributed total room and other hotel revenues, total operating expenses and income before income tax expense as follows (in thousands):



	Period from January 1, 2015 through December 7, 2015		Year Ended December 31, 2014
Total room and other hotel revenues	$	67,399	$	66,023
Total operating expenses	44,516		46,403
Income before income tax expense ⁽¹⁾	18,857		15,768

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(1)	Interest expense relates to approximately $86.1 million of ESH REIT's 2012 Mortgage Loan (as defined in Note 7) repaid in conjunction with the Portfolio Sale.

In July 2014, the Company sold its two Hometown Inn-branded hotel properties, with a carrying value of approximately $2.2 million, for proceeds of $3.5 million. Net of closing costs and adjustments, the Company recognized a gain on sale of approximately $0.9 million. The disposition was not reported as a discontinued operation.

ESH REIT [Member]

Entity Information [Line Items]

Hotel Dispositions

HOTEL DISPOSITIONS

On December 8, 2015, ESH REIT sold 53 hotel properties, 47 of which operated under the Crossland Economy Studios brand and six of which operated under the Extended Stay America brand, for gross proceeds of $273.0 million. ESH REIT’s carrying value of the portfolio, including net working capital and approximately $2.1 million of allocable goodwill, was approximately $148.4 million, resulting in a gain, net of closing costs and adjustments, of approximately $116.6 million, which was reported in gain on sale of hotel properties in the accompanying consolidated statement of operations for the year ended December 31, 2015. The disposition was not reported as a discontinued operation.

During the period from January 1, 2015 through December 7, 2015 and during the year ended December 31, 2014, these hotels contributed rental revenues, total operating expenses and income before income tax expense as follows (in thousands):



	Period from January 1, 2015 through December 7, 2015		Year Ended December 31, 2014
Rental revenues from Extended Stay America, Inc.	$	42,403	$	41,749
Total operating expenses	12,514		13,464
Income before income tax expense ⁽¹⁾	25,863		24,433

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(1)	Interest expense relates to approximately $86.1 million of ESH REIT's 2012 Mortgage Loan (as defined in Note 6) repaid in conjunction with the sale.

In July 2014, ESH REIT sold its two Hometown Inn-branded hotel properties, with a carrying value of approximately $2.2 million, for proceeds of $3.5 million. Net of closing costs and adjustments, ESH REIT recognized a gain on sale of approximately $0.9 million. The disposition was not reported as a discontinued operation.