Real Estate Properties

3 Months Ended

Mar. 31, 2013

Real Estate Properties

Real Estate Properties

Note 7.  Real Estate Properties

At March 31, 2013, we owned 473 properties consisting of 288 hotels and 185 travel centers that were operated under eleven management agreements or leases and leased one hotel, which is operated under a separate management agreement.

During the three months ended March 31, 2013, we funded $64,475 of improvements to certain of our properties that pursuant to the terms of our management agreements and leases with our hotel managers and tenants resulted in increases in our contractual annual minimum returns and rents of $5,287.

In January 2013, we entered an agreement to acquire a 426 room full service hotel located in the Atlanta, GA metropolitan market for a contract purchase price of $29,700, excluding closing costs. We plan to convert this hotel as the Sonesta Gwinnett Place and add it to our Sonesta No. 1 agreement (see Notes 11 and 12 for more information regarding the Sonesta No. 1 agreement). We currently expect to acquire this hotel on or about May 17, 2013; however, this acquisition is subject to customary closing conditions and we can provide no assurance that we will acquire this property on that date or at all.

On February 27, 2013, we announced that we had entered a letter of intent with NH Hoteles, S.A., or NH Hoteles, under which we would loan NH Hoteles 170 million euros secured by four hotels located in Europe, acquire for $70,000 five hotels located in Latin America and form a joint venture with NH Hoteles to acquire and renovate a hotel in New York City with an aggregate investment of up to $80,000.  On April 24, 2013, NH Hoteles notified us that it was unable to obtain the necessary bank approvals to allow it to complete the transaction as outlined in the letter of intent.  We have entered into discussions with NH Hoteles about possible modifications or alternatives to the proposed transaction originally announced, but at this time, the outcome of any such discussions is uncertain and no transaction may occur.