Subsequent Events

3 Months Ended

Mar. 31, 2015

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On April 1, 2015, the Company sold two Savannah Suites hotels. The hotel in Chamblee, Georgia (120 rooms) sold for $4.4 million, and the hotel in Augusta, Georgia (172 rooms) sold for $3.4 million. Partial proceeds of $4.1 million were applied to the associated debt with GE, with the remainder going to cash.

On April 13, 2015, the Company entered into an agreement to sell two hotels located in Alexandria, Virginia for a purchase price of $19.0 million. The properties are subject to associated debt of $8.3 million. The sale is subject to the completion of an inspection period without termination by the purchaser (which may be with or without reason during the inspection period) and customary closing conditions. The inspection period ends May 8, 2015, but may be extended by purchaser, upon payment of $100,000, for an additional 30 days. On May 1, 2015, the Company amended the agreement to extend the inspection period to May 18, 2015. The amendment also changed the right to extend the Inspection Period by 30 days to 20 days.

On April 30, 2015, the Company sold a Super 8 in Batesville, Arkansas (49 rooms) for $1.5 million. $1.3 million of the proceeds were applied to the revolving credit facility with Great Western Bank, reducing the outstanding revolver balance by $1.3 million and the revolver limit from $12.5 million to $11.2 million. The remainder of the proceeds went to cash.