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Acquisition of Hotel Properties (Tables)
 12 Months Ended
Dec. 31, 2018
Schedule of Purchase Price Allocation

During the year ended December 31, 2018, the Company acquired two 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

 

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 

 

$

16,459 

 

$

1,729 

 

$

190 

 

$

19,813 

 

$

19,813 

 

$

 -

 

$

 -

Austin, TX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home2 Suites

 

02/21/2018

 

 

998 

 

 

13,485 

 

 

1,854 

 

 

53 

 

 

16,390 

 

 

14,818 

 

 

50 

 

 

1,522 

Summerville, SC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

$

2,433 

 

$

29,944 

 

$

3,583 

 

$

243 

 

$

36,203 

 

$

34,631 

 

$

50 

 

$

1,522 





(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 year ended December 31, 2017, the Company acquired seven wholly owned hotel properties.  The allocation of the purchase price based on fair value was as follows:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home 2 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fairfield Inn & Suites

 

08/31/2017

 

 

1,014 

 

 

14,297 

 

 

1,089 

 

 

 -

 

 

 -

 

 

16,400 

 

 

16,336 

 

 

64 

 

 

 -

EL Paso, TX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residence Inn

 

08/31/2017

 

 

1,495 

 

 

19,630 

 

 

1,275 

 

 

 -

 

 

 -

 

 

22,400 

 

 

22,314 

 

 

86 

 

 

 -

Austin, TX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

$

8,531 

 

$

113,929 

 

$

9,397 

 

$

98 

 

$

(155)

 

$

131,800 

 

$

121,513 

 

$

435 

 

$

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 with the incremental amount paid over the estimated fair value included in acquisition and terminated transactions expenses.

(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. This loan remains outstanding at December 31, 2018. All other debt was drawn from the credit facility at acquisition.

(3)

Total issuance of 1,940,451 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



 

 

 

 

 



Year ended December 31,



2018

 

2017

Total revenue

$

 65,700 

 

$

 71,729 

Operating income

$

 8,500 

 

$

 7,829 

Net earnings (loss) attributable to common shareholders

$

 5,002 

 

$

 (7,943)

Net earnings (loss) per share - Basic

$

 0.42 

 

$

 (0.85)

Net earnings (loss) per share - Diluted

$

 0.41 

 

$

 (0.85)



Leawood, Kansas [Member] | Aloft Hotel [Member]  
Schedule of Purchase Price Allocation







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel

 

Date of acquisition

 

Land

 

Buildings, improvements, and vehicles

 

Furniture and equipment

 

Total purchase price

 

Debt at acquisition (1)

 

Issuance of common units (2)

 

Net cash paid

Aloft

 

12/14/2016

 

$

3,339 

 

$

18,046 

 

$

1,115 

 

$

22,500 

 

$

15,925 

 

$

50 

 

$

6,525 

Leawood, KS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



(1)

The acquisition was funded with the proceeds of two mortgage loans provided by Great Western Bank totaling $15,925.  These loans remain outstanding at December 31, 2018.

(2)

Total issuance of 213,904 common units.  Common units may be redeemed at a rate of one common share for 52 common units (see Note 11).