Disposition Of Hotel Properties And Discontinued Operations

6 Months Ended

Jun. 30, 2017

Disposition Of Hotel Properties And Discontinued Operations [Abstract]

Disposition Of Hotel Properties And Discontinued Operations

NOTE 5.DISPOSITIONS OF HOTEL PROPERTIES AND DISCONTINUED OPERATIONS

As of June 30, 2017, the Company had two hotels classified as held for sale. At the beginning of 2017, the Company had seven hotels held for sale and during the three and six months ended June 30, 2017sold three and five properties, respectively.  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 (excluding those subsequently reclassified as held for use),  the last of which was sold in January 2016, are included in discontinued operations with all other hotels, including those subsequently sold or classified as held for sale, reported in continuing operations.

In the three months ended June 30, 2017 and 2016, the Company sold three and seven hotels, respectively, resulting in total gains of $5,031 and $8,886,  respectively, all of which was included in continuing operations.  In the six months ended June 30, 2017 and 2016, the Company sold five and 11 hotels, respectively, resulting in total gains of $5,031 and $12,945,  respectively, of which $5,031 and $12,264, respectively, was included in continuing operations.  The hotels sold during the three months ended March 31, 2017 had been previously impaired and recoveries of impairment totaling $80 were recognized upon their sale.

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 six months ended June 30, 2016, all of which was recognized in the first quarter of 2016:  

	Six months ended June 30, 2016
Revenue	$	6
Hotel and property operations expense		(4)
Net gain (loss) on disposition of assets		681
Interest expense		(5)
Gain from discontinued operations, net of tax	$	678
Capital expenditures	$	-