Acquisition of Hotel and Other Properties (Tables)

9 Months Ended

Sep. 30, 2013

Business Combinations [Abstract]

Schedule of properties acquired through wholly-owned subsidiaries, which were funded by capital contributions

During the nine months ended September 30, 2013, the Company acquired the following properties:

Property	Location	Acquisition Date	Management Company	Rooms	Purchase Price (in millions)		% Interest
Courtyard Houston Downtown	Houston, TX	March 19, 2013	White Lodging Services	191	$	34.3	100	%
Residence Inn Houston Downtown	Houston, TX	March 19, 2013	White Lodging Services	171	29.4		100	%
Humble Tower Apartments (1)	Houston, TX	March 19, 2013	The Sterling Group	82	15.6		100	%
Courtyard Waikiki Beach	Honolulu, HI	June 17, 2013	Highgate Hotels	399	75.3		100	%
Vantaggio Suites Cosmo (2)	San Francisco, CA	June 21, 2013	n/a	150	29.4		100	%
Residence Inn Atlanta Midtown/Historic (3)	Atlanta, GA	August 6, 2013	n/a	78	4.7		100	%
				1,071	$	188.7

1. Conversion to a 166-room SpringHill Suites expected to be complete by mid-2015.

2. The property is not currently open for operations. Conversion to a 150-room Courtyard expected to be complete by late 2014.

3. The Company was the successful bidder at a foreclosure sale of the property collateralizing a non-performing loan (see Note 6).

The property was operating at the time of the acquisition and was subsequently closed for a major renovation, which is expected to be complete in the third quarter of 2014.

During the nine months ended September 30, 2012, the Company acquired the following properties:

Hotel	Location	Acquisition Date	Management Company	Rooms	Purchase Price (in millions)		% Interest
Residence Inn Bethesda	Bethesda, MD	May 29, 2012	Marriott International	187	$	64.5	100	%
Courtyard New York Manhattan/Upper East Side	New York, NY	May 30, 2012	Highgate Hotels	226	82.0		100	%
Hilton Garden Inn San Francisco/Oakland Bay Bridge	Emeryville, CA	June 11, 2012	Davidson Hotels & Resorts	278	36.2		100	%
				691	$	182.7

Schedule of allocation of purchase price for the properties acquired

The allocation of purchase price for the properties acquired was as follows (in thousands):

	For the three months ended September 30,
	2013			2012
Land and land improvements	$	24,132		$	40,711
Buildings and improvements	169,070			135,727
Furniture, fixtures and equipment	3,151			6,220
Lease intangibles	342			—
Management agreement intangibles	(3,695		)	—
	193,000			182,658
Bargain purchase gain	(4,269		)	—
Total Purchase Price	$	188,731		$	182,658

Schedule of total revenues and net loss from the properties acquired

For the properties acquired during the nine months ended September 30, 2013 and 2012, respectively, total revenues and net income (loss) from the date of acquisition through September 30, 2013 and 2012, respectively, are included in the accompanying combined consolidated statements of operations as follows (in thousands):

	2013 acquisitions
	For the three months ended September 30, 2013		For the nine months ended September 30, 2013
Revenue	$	11,179	$	17,741
Net income	$	2,056	$	1,488

	2012 acquisitions
	For the three months ended September 30, 2012		For the nine months ended September 30, 2012
Revenue	$	11,279	$	14,301
Net income (loss)	$	2,005	$	(408	)

Schedule of unaudited condensed pro forma financial information

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

	For the three months ended September 30,				For the nine months ended September 30,
	2013		2012		2013		2012
Revenue	$	252,679	$	238,788	$	745,618	$	687,496
Net income	$	33,607	$	20,228	$	85,906	$	42,137
Net income per share attributable to common shareholders - basic	$	0.28	$	0.19	$	0.74	$	0.40
Net income per share attributable to common shareholders - diluted	$	0.27	$	0.19	$	0.73	$	0.40
Weighted average number of shares outstanding - basic	121,594,219		105,453,978		116,697,417		105,392,071
Weighted average number of shares outstanding - diluted	122,750,121		105,509,104		117,797,670		105,446,211