Assets Held for Sale and Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations And Disposal Groups [Abstract]

Assets Held for Sale and Discontinued Operations

NOTE 3. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Assets Held for Sale

During the third quarter of 2015, 24 of our hotels and one additional restaurant parcel were classified as assets held for sale. The sale of these assets does not represent a major strategic shift and does not qualify for discontinued operations reporting.  During the fourth quarter of 2015, 11 of the hotels were sold for $34.1 million, net of transaction costs.  The current terms of the definitive purchase and sale agreement provides that the sale of the remaining 13 hotels that are held for sale to close by the end of the first quarter of 2016.

As of December 31, 2015, the carrying amounts of the major classes of assets for the assets held for sale were as follows:

	December 31, 2015
	(in thousands)
Current assets	$	221
Property and equipment, net		34,982
Other non-current assets		320
Total assets held for sale	$	35,523

Discontinued Operations

During the second quarter of 2013, 44 of our hotels were classified as assets held for sale, and the results of their operations, in accordance with accounting rules in place at that time, have been presented within discontinued operations for all affected periods presented in the accompanying condensed consolidated statements of operations.

During the third and fourth quarters of 2013, 40 of these hotels were sold. On February 6, 2014, the four remaining hotels were sold. In accordance with the terms of our loan agreements existing at the time of such sales, all proceeds associated with the sale of these hotels were used to make principal payments on our long-term debt.

The following table summarizes the results of the discontinued operations:

	For the years ended December 31,
	2014			2013
	(in thousands)
Hotel revenues	$	361		$	41,477
Direct lodging expenses		651			25,780
Other lodging and operating expenses		62			4,317
Operating income		(352	)		11,380
Depreciation and amortization		—			(5,056	)
Impairment charge (see note 10)		(151	)		(19,533	)
Gain on sale from discontinued operations		—			10,714
Loss on discontinued operations	$	(503	)	$	(2,495	)