Disposition of Hotel Properties and Discontinued Operations

12 Months Ended

Dec. 31, 2018

Disposition of Hotel Properties and Discontinued Operations [Abstract]

Disposition of Hotel Properties and Discontinued Operations

NOTE 4: DISPOSITION OF HOTEL PROPERTIES AND DISCONTINUED OPERATIONS

As of December 31, 2018, the Company had one hotel classified as held for sale. As of December 31, 2017, the Company had three hotels held for sale and during 2018 classified an additional two hotels as held for sale. Four of these hotels were sold during 2018.  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 subsequent 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 2018,  2017, and 2016, the Company sold four hotels, eight hotels, and 25 hotels, respectively, resulting in total gains of $5,707,  $7,049, and $24,256, respectively, of which $5,707,  $7,049, and $23,575, 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 the disposal transaction. The following table sets forth the components of discontinued operations for the year ended December 31, 2016:

	Year ended December 31, 2016
Revenue	$	6
Hotel and property operations expense		(4)
Net gain on dispositions of assets		681
Interest expense		(5)
	$	678
Capital expenditures	$	-