Dispositions Of Hotel Properties And Discontinued Operations

9 Months Ended

Sep. 30, 2017

Dispositions Of Hotel Properties And Discontinued Operations [Abstract]

Dispositions Of Hotel Properties And Discontinued Operations

NOTE 5.DISPOSITIONS OF HOTEL PROPERTIES AND DISCONTINUED OPERATIONS

As of September 30, 2017, the Company had four hotels classified as held for sale.  At June 30, 2017, the Company had two hotels held for sale and during the three months ended September 30, 2017 sold two properties and classified an additional four properties as held for sale.  At December 31, 2016, the Company had seven hotels held for sale and during the nine months ended September 30, 2017sold seven properties and classified an additional four properties 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 (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 September 30, 2017 and 2016, the Company sold two and four hotels, respectively, resulting in total gains of $0 and $3,632,  respectively, all of which was included in continuing operations.  In the nine months ended September 30, 2017 and 2016, the Company sold seven and 15 hotels, respectively, resulting in total gains of $5,031 and $16,577,  respectively, of which $5,031 and $15,896, respectively, was included in continuing operations.

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 nine months ended September 30, 2016, all of which was recognized in the first quarter of 2016:  

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