Net Gains (Losses) On Sales Of Properties And Discontinued Operations

12 Months Ended

Dec. 31, 2011

Net Gains (Losses) On Sales Of Properties And Discontinued Operations [Abstract]

Net Gains (Losses) On Sales Of Properties And Discontinued Operations

Note 5. Net Gains (Losses) on Sales of Properties and Discontinued Operations

In accordance with FASB ASC 205-20 Presentation of Financial Statements – Discontinued Operations, gains, losses and impairment losses on hotel properties sold or classified as held for sale are presented in discontinued operations. Gains, losses and impairment losses for both continuing and discontinued operations are summarized as follows:

	2011			2010			2009
Continuing Operations
Sale of office building	$	1,129		$	—		$	—
Impairment losses		(8,545	)		(2,147	)		(7,399	)
Loss on sale of assets		—			(66	)		(109	)
		(7,416	)		(2,213	)		(7,508	)
Discontinued Operations
Sales of properties	$	376		$	1,414		$	2,520
Impairment losses		(5,763	)		(6,051	)		(16,749	)
Loss on sale of assets		(53	)		(72	)		(147	)
		(5,440	)		(4,709	)		(14,376	)
Total	$	(12,856	)	$	(6,922	)	$	(21,884	)

As of December 31, 2011, the Company has 24 properties classified as held for sale. In 2011, 2010 and 2009, the Company sold six hotels, nine hotels and eight hotels, respectively, resulting in gains of $376, $1,414 and $2,520, respectively. In 2011, 2010, and 2009, the Company recognized net losses and impairment on the disposition of assets of approximately $5,440, $4,775, and $14,485.

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 Company allocated $3,717, $3,330, and $4,204 to discontinued operations for the years ended December 31, 2011, 2010, and 2009, respectively.

The operating results of hotel properties included in discontinued operations are summarized as follows:

	2011			2010			2009
Revenues	$	22,080		$	27,080		$	33,001
Hotel and property operations expenses		(19,504	)		(23,488	)		(27,881	)
Interest expense		(3,717	)		(3,330	)		(4,204	)
Depreciation and amortization expense		(1,171	)		(1,738	)		(3,814	)
General and administrative expense		(50	)		(71	)		—
Net gain on dispositions of assets		323			1,342			2,373
Impairment loss		(5,763	)		(6,051	)		(16,749	)
Income tax benefit		1,266			1,285			1,352
	$	(6,536	)	$	(4,971	)	$	(15,922	)

As of December 31, 2011, the Company had 24 hotels classified as held for sale. At the beginning of 2011 the Company had 18 hotels held for sale and during the year classified an additional nineteen hotels as held for sale. Six of these hotels were sold during 2011, and seven of the hotels were reclassified as held for use due to changes in the property's market condition. Since our previously filed financial statements on Form 10-Q as of September 30, 2011, in addition to the six hotels reclassified as held for use, eleven hotels were reclassified as held for sale. The impact of these changes was to increase losses from continuing operations by $0.2 million and $0.6 million for the years ended 2010 and 2009, respectively, compared to the previously filed financial statements in the 2010 Form 10-K.