Real Estate Properties

3 Months Ended

Mar. 31, 2016

Note 7. Real Estate Properties

At March 31, 2016, we owned 305 hotels and 194 travel centers which are operated under 14 agreements.

During the three months ended March 31, 2016, we funded $33,157 for improvements to certain of our properties which, pursuant to the terms of our management and lease agreements with our hotel managers and tenants, resulted in increases in our contractual annual minimum returns and rents of $2,547. See Notes 10 and 11 for further information about our management and lease agreements and our fundings of improvements to certain of our properties.

During the three months ended March 31, 2016, we acquired three hotels and one travel center. Our allocation of the purchase price of these acquisitions based on the estimated fair value of the acquired assets is presented in the table below. The allocations of purchase prices are based on preliminary estimates and may change upon completion of third party appraisals.


Acquisition Date	Location		Purchase Price (1)		Land		Land Improvements		Building and Improvements		Furniture, Fixtures and Equipment
2/1/2016	Various (2) (3)	$	12,000	$	2,416	$	643	$	7,722	$	1,219
3/16/2016	Portland, OR (2) (4)		114,000		5,751		3		102,198		6,048
3/31/2016	Hillsboro, TX (5)		19,683		7,784		855		11,044		-
		$	145,683	$	15,951	$	1,501	$	120,964	$	7,267

(1)

Excludes acquisition related costs.

(2)

We accounted for these transactions as business combinations. The pro forma impact of including the results of operations of these acquisitions from the beginning of the year is not material to our condensed consolidated financial statements.

(3)

On February 1, 2016, we acquired two extended stay hotels with 262 suites in Cleveland and Westlake, OH for an aggregate purchase price of $12,000, excluding acquisition related costs. We converted these hotels to the Sonesta ES Suites® brand and entered management agreements for these hotels with Sonesta International Hotels Corporation, or Sonesta. See Notes 10 and 11 for further information regarding our Sonesta agreements.

(4)

On March 16, 2016, we acquired the Kimpton Hotel Monaco, a full service lifestyle hotel with 221 rooms located in Portland, OR, for a purchase price of $114,000, excluding acquisition related costs. We added this hotel to our agreement with InterContinental Hotels Group, plc, or InterContinental. See Note 11 for further information regarding our InterContinental agreement.

(5)

On March 31, 2016, we acquired a newly developed travel center in Hillsboro, TX for $19,683. We added this TA branded travel center to our TA No. 4 lease. See Notes 10 and 11 for further information regarding this transaction and our TA leases. We accounted for this transaction as an asset acquisition.