Net Gains (Losses) on Sales of Properties and Discontinued Operations

12 Months Ended

Dec. 31, 2013

Net Gains (Losses) on Sales of Properties and Discontinued Operations [Abstract]

Net Gains (Losses) on Sales of Properties and Discontinued Operations

Note5.  Net Gains (Losses) on Sales of Properties and Discontinued Operations

In accordance with FASB ASC 205-20 Presentation of Financial Statements – Discontinued Operations, gains, losses and impairment losses on hotel properties sold or classified as held for sale are presented indiscontinued operations.  Gains, losses and impairment losses for both continuing and discontinued operations are summarized as follows:

	2013		2012		2011
Continuing operations
Gain from sale of office building	$	0	$	0	$	1,129
Impairment losses		(2,666)		(2,833)		(4,523)
Gain (loss) on sale of assets		(47)		3		4
	(2,713)		(2,830)		(3,390)
Discontinued operations
Gains from sales of properties		1,892		7,872		376
Impairment losses		(4,420)		(7,339)		(9,785)
Loss on sale of assets		(39)		(42)		(57)
		(2,567)		491		(9,466)
Total	$	(5,280)	$	(2,339)	$	(12,856)

As of December 31, 2013, the Company has 19 properties classified as held for sale.  In 2013, 2012 and 2011, the Company sold 17 hotels, 15 hotels and six hotels, respectively, resulting in gains of $1,892,  $7,872 and  $376, respectively.  In 2013, 2012, and 2011, the Company recognized net gains (losses) and impairment on the disposition of assets of approximately $(2,614), $494 and $(9,462).

The Company allocates interest expense to discontinued operations for debt that is to be assumed or that is required to be repaid as a result of the disposal transaction.  The Company allocated $3,020, $4,231, and $6,472 to discontinued operations for the years ended December 31, 2013, 2012, and 2011, respectively.

The operating results of hotel properties included in discontinued operations are summarized as follows:

	2013		2012		2011
Revenues	$	22,847	$	37,145	$	42,780
Hotel and property operations expenses		(18,568)		(31,109)		(36,117)
Interest expense		(2,314)		(4,178)		(5,511)
Loss on debt extinguishment		(706)		(53)		(961)
Depreciation and amortization expense		(777)		(2,196)		(3,397)
General and administrative expense		0		0		(50)
Net gain on dispositions of assets		1,853		7,830		319
Impairment loss		(4,420)		(7,339)		(9,785)
Income tax benefit		0		827		1,744
	$	(2,085)	$	927	$	(10,978)

As of December 31, 2013, the Company had 19 hotels classified as held for sale. At the beginning of 2013 the Company had 22 hotels held for sale and during the year classified an additional fifteen hotels as held for sale.  Seventeen of these hotels were sold during 2012, and one of the hotels was reclassified as held for usedue to changes in the property’s market condition.