Hotel Acquisitions and Dispositions (Tables)

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Line Items]

Purchase Price Allocation Among Assets Acquired and Liabilities Assumed

The purchase price allocation among the assets acquired is as follows (in thousands, except for estimated useful lives):

	Amount		Estimated Useful Life
Land and site improvements	$	1,397	3-20 years
Building and improvements	10,488		4-49 years
Furniture, fixtures and equipment	1,115		2-10 years
Total purchase price	$	13,000

Summary of Total Revenues and Expenses

None of the above dispositions are reported as discontinued operations. The table below summarizes the hotel dispositions described above (in thousands, except number of hotels and number of rooms):

Year	Brand	Location	Month Sold	Number of Hotels	Number of Rooms	Net Proceeds		Gain (Loss) Recognized				Franchised/Managed (3)
2018	Extended Stay America	Various	September	16	1,680	$	60,710	$	6,614		(1)	Yes
2018	Extended Stay America	Various	September	16	1,776	$	58,144	$	(2,840	)	(1)	Yes
2018	Extended Stay America	Various	February	25	2,430	$	111,156	$	6,768		(1)	Yes
2018	Extended Stay America	Texas	March	1	101	$	44,090	$	31,058			Yes
2017	Extended Stay America	Colorado	December	1	160	$	15,985	$	11,870			Yes
2017	Extended Stay Canada	Canada	May	3	500	$	43,551	$	(1,894	)	(2)	No
2017	Other	Massachusetts	May	1	103	$	5,092	$	(2	)	(1)	No

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(1) Net of impairment charges of approximately $24.3 million, $6.3 million, $2.1 million and $1.7 million, respectively, recorded prior to sale.

(2) Due to the fact that the Company's Canadian subsidiaries liquidated substantially all of their assets, approximately $14.5 million of accumulated foreign currency translation loss was recognized at the time of sale. An impairment charge of approximately $12.4 million was recorded prior to sale.

(3) As of September 30, 2018.

During the three and nine months ended September 30, 2018 and 2017, the disposed hotel properties contributed total room and other hotel revenues, total operating expenses and income before income tax expense as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018				2017
Total room and other hotel revenues	$	10,900	$	22,834	$	37,922			$	66,851
Total operating expenses	8,845		17,516		51,113			(1)	69,940			(2)
Income (loss) before income tax expense	2,055		5,632		(13,191		)	(1)	(2,462		)	(2)

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(1) Includes impairment charge of approximately $20.6 million related to certain hotels sold in September 2018.

(2) Includes impairment charge of approximately $15.7 million related to

ESH REIT

Property, Plant and Equipment [Line Items]

Purchase Price Allocation Among Assets Acquired and Liabilities Assumed

The purchase price allocation among the assets acquired is as follows (in thousands, except for estimated useful lives):

	Amount		Estimated Useful Life
Land and site improvements	$	1,397	3-20 years
Building and improvements	10,488		4-49 years
Furniture, fixtures and equipment	1,115		2-10 years
Total purchase price	$	13,000

Summary of Total Revenues and Expenses

None of the above dispositions were reported as discontinued operations. The table below summarizes the hotel dispositions described above (in thousands, except number of hotels and number of rooms):

Year	Brand	Location	Month Sold	Number of Hotels	Number of Rooms	Net Proceeds		(Loss) Gain Recognized
2018	Extended Stay America	Various	September	16	1,680	$	60,710	$	(16,704	)
2018	Extended Stay America	Various	September	16	1,776	$	58,144	$	(8,760	)
2018	Extended Stay America	Various	February	25	2,430	$	111,156	$	4,227
2018	Extended Stay America	Texas	March	1	101	$	44,090	$	30,992
2017	Extended Stay America	Colorado	December	1	160	$	15,985	$	11,836
2017	Extended Stay Canada	Canada	May	3	500	$	43,551	$	(1,507	)	(1)
2017	Other	Massachusetts	May	1	103	$	5,092	$	(1,767	)

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(1) Due to the fact that ESH REIT's Canadian subsidiary liquidated substantially all of its assets, approximately $12.5 million of accumulated foreign currency translation loss was recognized at the time of sale. An impairment charge of approximately $15.0 million was recorded prior to sale.

During the three and nine months ended September 30, 2018 and 2017, the disposed hotel properties contributed rental revenues, total operating expenses and income (loss) before income tax expense as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Rental revenues from Extended Stay America, Inc.	$	8,140	$	10,063	$	19,294	$	28,165
Total operating expenses	2,697		6,627		10,320		35,792			(1)
Income (loss) before income tax expense	5,443		3,750		8,974		(7,000		)	(1)

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(1) Includes impairment charge of approximately $15.0 million related to three Canadian hotels.