Discontinued Operations and Assets Held for Sale

12 Months Ended

Jan. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Assets Held for Sale

25. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

On August 1, 2015, the Trust finalized and committed to a plan to sell all of its hotel properties. Except for the Yuma hotel property, the Trust listed each of the properties with a local successful real estate hotel broker and Management believes that the assets are being marketed at a price that is reasonable in relation to its current fair value. The Trust believes that the plan to sell these assets will not likely be withdrawn and is probable to be consummated by July 31, 2016. On October 14, 2015, the Trust sold its Tucson St Mary’s hotel to an unrelated third party.

Except for the Yuma hotel property, the Trust has recognized the sale of the Tucson St. Mary’s hotel and the reclassification of three of its hotels into discontinued operations and assets held for sale in accordance with ASC No. 205-20, Discontinued Operations. As such, the historical results of these hotels have been adjusted for comparability purposes and exclude any corporate general and administrative expenses.

Discontinued operations for the fiscal years ended January 31, 2016 and January 31, 2015 primarily consists of all hotels operational revenues and expenses except our Yuma hotel property and does not include the sale proceeds and profit from the sale of our Tucson St Mary’s hotel.

The following financial information presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations for the fiscal years ended January 31, 2016 and January 31, 2015 as well as the consolidated statements of operations for the fiscal years ended January 31, 2016 and January 31, 2015.

	JANUARY 31, 2016		JANUARY 31, 2015
ASSETS
Current Assets:
Cash and Cash Equivalents	$	162,021	$	360,002
Accounts Receivable		208,807		354,447
Prepaid Expenses and Other Current Assets		108,279		121,901
Total Current Assets of Discontinued Operations and Assets Held for Sale		479,107		836,350
Noncurrent assets of Discontinued Operations and Assets Held for Sale		14,382,785		20,716,731
TOTAL ASSETS OF DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE	$	14,861,892	$	21,553,081
LIABILITIES
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Expenses	$	1,295,228	$	1,956,488
Current Portion of Mortgage Notes Payable		355,951		5,202,978
Current Portion of Notes Payable to Banks		-		658,835
Line of Credit - Related Party		-		279,051
Total Current Liabilities of Discontinued Operations and Assets Held for Sale		1,651,179		8,097,352
Noncurrent Liabilities of Discontinued Operations and Assets Held for Sale		8,343,647		8,701,557
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE	$	9,994,826	$	16,798,909

	YEARS ENDED
	JANUARY 31,
	2016			2015
REVENUE
Room	$	9,944,716		$	10,758,583
Food and Beverage		810,812			915,638
Other		92,244			153,530
TOTAL REVENUE		10,847,772			11,827,751
OPERATING EXPENSES
Room		3,450,953			3,138,311
Food and Beverage		793,987			822,199
Telecommunications		6,028			9,912
General and Administrative		1,288,718			1,369,948
Sales and Marketing		787,993			791,493
Repairs and Maintenance		977,553			958,017
Hospitality		760,202			731,206
Utilities		1,028,512			1,129,453
Hotel Property Depreciation		673,445			1,285,143
Real Estate and Personal Property Taxes, Insurance and Ground Rent		669,866			831,054
Other		27,240			25,985
TOTAL OPERATING EXPENSES		10,464,497			11,092,721
OPERATING INCOME		383,275			735,030
Interest Income on Advances to Affiliates - Related Party		-			2,512
TOTAL OTHER INCOME		-			2,512
Interest on Mortgage Notes Payable		514,592			484,053
Interest on Notes Payable to Banks		83,701			51,840
TOTAL INTEREST EXPENSE		598,293			535,893
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE, NET OF NON-CONTROLLING INTEREST		(215,018	)		201,649
Gain on Disposal of Discontinued Operations		2,351,817			-
CONSOLIDATED NET INCOME FROM DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE	$	2,136,799		$	201,649
NET INCOME PER SHARE FROM DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE – BASIC AND DILUTED	$	0.26		$	0.02

	YEARS ENDED
	JANUARY 31,
	2016		2015
NET CASH PROVIDED BY OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE	$	339,182	$	2,174,626
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE	$	2,971,335	$	(3,422,911	)