Hotel Acquisitions and Dispositions (Tables)

12 Months Ended

Dec. 31, 2018

Entity Information [Line Items]

Schedule of Purchase Price Allocation

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 hotel dispositions for the years ended December 31, 2018 and 2017 (in thousands, except number of hotels and number of rooms). No hotels were sold during the year ended December 31, 2016.

Year	Brand	Location	Month Sold	Number of Hotels	Number of Rooms	Net Proceeds		Gain (Loss) on Sale				Franchised/Managed (1)
2018	Extended Stay America	Various	November	14	1,369	$	34,855	$	1,331		(2)	Yes
2018	Extended Stay America	Various	September	16	1,680	$	60,710	$	6,293		(2)	Yes
2018	Extended Stay America	Various	September	16	1,776	$	58,144	$	(3,014	)	(2)	Yes
2018	Extended Stay America	Various	February	25	2,430	$	111,156	$	6,810		(2)	Yes
2018	Extended Stay America	Texas	March	1	101	$	44,090	$	31,058			Yes	(3)
2017	Extended Stay America	Colorado	December	1	160	$	15,985	$	11,870			Yes	(3)
2017	Extended Stay Canada	Canada	May	3	500	$	43,551	$	(1,894	)	(4)	No
2017	Other	Massachusetts	May	1	103	$	5,092	$	(2	)	(2)	No

____________________

(1) As of December 31, 2018.

(2) Net of impairment charge of $16.8 million, $24.3 million, $6.3 million, $2.1 million and $1.7 million, respectively, recognized prior to sale.

(3) Remaining term of franchise or management agreement is less than one year.

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

During the years ended December 31, 2018, 2017 and 2016, disposed hotel properties contributed total room and other hotel revenues, total operating expenses and (loss) income before income tax expense as follows (in thousands):

	Year Ended December 31, 2018			Year Ended December 31, 2017			Year Ended December 31, 2016
Total room and other hotel revenues	$	53,494		$	102,593		$	111,015
Total operating expenses	83,336			104,511			96,222
(Loss) income before income tax expense (1)	(29,842		)	(1,605		)	15,127

_____________________

(1) Includes impairment charges of $37.4 million, $19.2 million and $7.1 million for the years ended December 31, 2018, 2017 and 2016, respectively.

ESH REIT

Entity Information [Line Items]

Summary of Total Revenues and Expenses

None of the above dispositions were reported as discontinued operations. The table below summarizes hotel dispositions for the years ended December 31, 2018 and 2017 (in thousands, except number of hotels and number of rooms). No hotels were sold during the year ended December 31, 2016.

Year	Location	Month Sold	Number of Hotels	Number of Rooms	Net Proceeds		Gain (Loss) on Sale
2018	Various	November	14	1,369	$	34,855	$	(14,930	)
2018	Various	September	16	1,680	$	60,710	$	(17,025	)
2018	Various	September	16	1,776	$	58,144	$	(8,934	)
2018	Various	February	25	2,430	$	111,156	$	4,269
2018	Texas	March	1	101	$	44,090	$	30,992
2017	Colorado	December	1	160	$	15,985	$	11,836
2017	Canada	May	3	500	$	43,551	$	(1,507	)	(1)
2017	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, $12.5 million of accumulated foreign currency translation loss was recognized at the time of sale. Additionally, an impairment charge of $15.0 million was recognized prior to sale.

During the years ended December 31, 2018, 2017 and 2016, disposed hotel properties contributed rental revenues, total operating expenses and income (loss) before income tax expense as follows (in thousands):

	Year Ended December 31, 2018		Year Ended December 31, 2017			Year Ended December 31, 2016
Rental revenues from Extended Stay America, Inc.	$	22,346	$	54,097		$	59,865
Total operating expenses	15,917		48,858			32,138
Income (loss) before income tax expense	6,429		5,552		(1)	28,062

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(1) Includes impairment charge of $15.0 million.