Note 3: Acquisitions

During the year ended December 31, 2015, we used proceeds from the sale of the Waldorf Astoria New York (refer to Note 4: “Assets Held for Sale and Disposals”) to acquire, as part of a tax deferred like-kind exchange of real property, the following properties for a total purchase price of $1.87 billion:

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the resort complex consisting of the Waldorf Astoria Orlando and the Hilton Orlando Bonnet Creek in Orlando, Florida (“Bonnet Creek Resort”);

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the Casa Marina, A Waldorf Astoria Resort in Key West, Florida;

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the Reach, a Waldorf Astoria Resort in Key West, Florida;

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the Parc 55 San Francisco – a Hilton Hotel in San Francisco, California; and

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the Juniper Hotel Cupertino, Curio Collection in Cupertino, California.

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These properties, except for the Juniper Hotel Cupertino, Curio Collection, were acquired from sellers affiliated with Blackstone, a related party at the time of the transaction, for a total purchase price of $1.76 billion.

We incurred transaction costs of $26 million, which are included in Corporate and other expense in our consolidated statement of comprehensive income, for the year ended December 31, 2015.

As of the acquisition dates, the fair values of the assets acquired and liabilities assumed were:

	(in millions)
Property and equipment	$	1,868
Intangibles		4
Cash and cash equivalents		16
Restricted cash		8
Prepaid expenses		3
Other assets		2
Accounts payable and accrued expenses		(25	)
Debt		(450	)
Net assets acquired	$	1,426

Refer to Note 9: “Fair Value Measurements” for additional information on the fair value techniques and inputs used for the measurement of the assets and liabilities.

The results of operations from these properties included in the consolidated statement of comprehensive income for the year ended December 31, 2015 were:

	(in millions)
Total revenues	$	316
Income before income taxes		58