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Acquisition of Hotel Properties (Tables)
 6 Months Ended
Jun. 30, 2018
Acquisition of Hotel Properties [Abstract]  
Schedule of Purchase Price Allocation



During the six months ended June 30, 2018, the Company acquired two wholly owned hotel properties, all of which were acquired in the first quarter of 2018.  The allocation of the purchase price based on fair value was as follows:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Date of acquisition

 

Land

 

Buildings, improvements, and vehicle

 

Furniture and equipment

 

Intangible asset

 

Total purchase price & acquisition costs (1)

 

Debt at acquisition (2)

 

Issuance of  common units (3)

 

Net cash paid

TownePlace Suites

01/18/2018

 

$

1,435 

 

$

16,453 

 

$

1,728 

 

$

190 

 

$

19,806 

 

$

19,806 

 

$

 -

 

$

 -

Austin, TX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home2 Suites

02/21/2018

 

 

997 

 

 

13,474 

 

 

1,853 

 

 

53 

 

 

16,377 

 

 

14,818 

 

 

50 

 

 

1,509 

Summerville, SC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

$

2,432 

 

$

29,927 

 

$

3,581 

 

$

243 

 

$

36,183 

 

$

34,624 

 

$

50 

 

$

1,509 



(1)

Contractual purchase price of $19,750 and $16,325 for Austin TownePlace Suites and Summerville Home2 Suites, respectively.

(2)

All debt was drawn from the $150,000 secured revolving credit facility (the “credit facility”) at acquisition.

(3)

Total issuance of 259,685 common units.  Common units may be redeemed at a rate of one common share for 52 common units (see Note 11).



During the six months ended June 30, 2017, the Company acquired five wholly owned hotel properties.  The allocation of the purchase price based on fair value was as follows:









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Date of acquisition

 

Land

 

Buildings, improvements, and vehicle

 

Furniture and equipment

 

Intangible asset

 

Estimated earn out (1)

 

Total purchase price

 

Debt at acquisition (2)

 

Issuance of common units (3)

 

Net cash paid

Home2 Suites

03/24/2017

 

$

905 

 

$

14,204 

 

$

1,351 

 

$

40 

 

$

 -

 

$

16,500 

 

$

16,455 

 

$

45 

 

$

 -

Lexington, KY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home2 Suites

03/24/2017

 

 

1,087 

 

 

14,345 

 

 

1,285 

 

 

33 

 

 

 -

 

 

16,750 

 

 

16,705 

 

 

45 

 

 

 -

Round Rock, TX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home2 Suites

03/24/2017

 

 

1,519 

 

 

18,229 

 

 

1,727 

 

 

25 

 

 

 -

 

 

21,500 

 

 

21,442 

 

 

58 

 

 

 -

Tallahassee, FL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home2 Suites

04/14/2017

 

 

1,311 

 

 

16,792 

 

 

897 

 

 

 -

 

 

 -

 

 

19,000 

 

 

9,096 

 

 

52 

 

 

9,852 

Southaven, MS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hampton Inn & Suites

06/19/2017

 

 

1,200 

 

 

16,432 

 

 

1,773 

 

 

 -

 

 

(155)

 

 

19,250 

 

 

19,165 

 

 

85 

 

 

 -

Lake Mary, FL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

$

6,022 

 

$

80,002 

 

$

7,033 

 

$

98 

 

$

(155)

 

$

93,000 

 

$

82,863 

 

$

285 

 

$

9,852 



(1)

The Lake Mary purchase price was subject to a post-closing adjustment of up to $250 to be paid to the seller if the hotel achieved a stipulated hotel net operating income level in 2017.  This contingent consideration was included in the purchase price allocation at its estimated fair value on the date of the acquisition.  The full amount of $250 was paid to the seller in December of 2017.

(2)

Debt of $9,096 with Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18 was assumed related to the Home2 Suites Southaven, MS acquisition. All other debt was drawn from the credit facility at acquisition.

(3)

Total issuance of 1,211,648 common units.  Common units may be redeemed at a rate of one common share for 52 common units (see Note 11).
Schedule of Pro Forma Results



 

 

 

 

 

 

 

 

 

 

 

 



 

Three months ended June 30,

 

Six months ended June 30,



 

2018

 

2017

 

2018

 

2017

Total revenue

 

$

 17,834 

 

$

 18,291 

 

$

 35,156 

 

$

 36,317 

Operating income

 

$

 3,029 

 

$

 2,500 

 

$

 5,309 

 

$

 4,278 

Net earnings (loss) attributable to common shareholders

 

$

 2,811 

 

$

 4,848 

 

$

 3,482 

 

$

 (8,165)

Net earnings (loss) per share - Basic

 

$

 0.24 

 

$

 0.42 

 

$

 0.29 

 

$

 (1.13)

Net earnings (loss) per share - Diluted

 

$

 0.24 

 

$

 0.38 

 

$

 0.29 

 

$

 (1.13)