Disposition Of Hotel Properties And Discontinued Operations

3 Months Ended

Mar. 31, 2016

Disposition Of Hotel Properties And Discontinued Operations [Abstract]

Disposition Of Hotel Properties And Discontinued Operations

NOTE 3: DISPOSITIONS OF HOTEL PROPERTIES AND DISCONTINUED OPERATIONS

As of March 31, 2016, the Company had 13 hotels classified as held for sale. At the beginning of 2016, the Company had 16 hotels held for sale and during the three months ended March 31, 2016 sold four of these properties and classified one additional hotel as held for sale. None of the hotels reclassified as held for sale since the Company’s adoption of ASU 2014-08 on October 1, 2014 represent a strategic shift that has (or will have) a major effect on the entity’s operations and financial results.  As a result, only hotels classified as held for sale prior to October 1, 2014, one of which remains unsold at March 31, 2016, are included in discontinued operations with all other hotels, including those subsequently sold or classified as held for sale, reported in continuing operations. For the three months ended March 31, 2016, the results of 40 hotels were included in continuing operations and the results of two hotels were included in discontinued operations.  For the three months ended March 31, 2015, the results of 46 hotels were included in continuing operations and the results of ten hotels were included in discontinued operations

In the three months ended March 31, 2016 and 2015, the Company sold four hotels in each period, resulting in total gains of $4,059 and $939, respectively, of which $3,378 and $0, respectively, was included in continuing operations.

Two hotels in Alexandria, Virginia, which represent a significant disposition for which results are included in continuing operations, were sold on July 13, 2015.  For the quarter ended March 31, 2015, the Alexandria Comfort Inn and Days Inn hotels had a combined net loss of $1,101 and loss attributable to noncontrolling interest of $121. These amounts include impairment expense of $862 that was recognized following the hotels classification as held for sale in the first quarter of 2015.

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 disposal transactions. The following table sets forth the components of discontinued operations for the three months ended March 31, 2016 and 2015:

	Three months ended March 31,
	2016		2015
Revenue	$	334	$	1,752
Hotel and property operations expense		(310)		(1,252)
Net gain on disposition of assets		680		937
Interest expense		(25)		(145)
Impairment (loss) recovery		-		45
Gain from discontinued operations, net of tax	$	679	$	1,337
Capital expenditures	$	2	$	27