|
3. Acquisition of Hotel Properties
The Company did not acquire any hotels during the three months ended June 30, 2011. During the six months ended June 30, 2011, the Company, through wholly-owned subsidiaries, acquired the following hotels, which were funded by capital contributions:
|
Hotel |
|
Location |
|
Acquisition Date |
|
Management Company |
|
Rooms |
|
Purchase Price |
|
%
Interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Embassy Suites Columbus |
|
Columbus, OH |
|
January 11, 2011 |
|
Crescent Hotels and Resorts |
|
221 |
|
$ |
9.5 |
million |
|
100 |
% |
|
Renaissance Pittsburgh Hotel |
|
Pittsburgh, PA |
|
January 12, 2011 |
|
Sage Hospitality |
|
300 |
|
47.1 |
million |
|
100 |
% |
|
Courtyard Atlanta Buckhead |
|
Atlanta, GA |
|
January 18, 2011 |
|
Noble Management Group |
|
181 |
|
27.0 |
million |
|
100 |
% |
|
Doubletree Hotel Columbia |
|
Columbia, MD |
|
January 18, 2011 |
|
Urgo Hotels |
|
152 |
|
10.5 |
million |
|
100 |
% |
|
Denver Airport Marriott at Gateway Park |
|
Denver, CO |
|
January 18, 2011 |
|
Sage Hospitality |
|
238 |
|
46.0 |
million |
|
100 |
% |
|
Crowne Plaza Hotel West Palm Beach |
|
West Palm Beach, FL |
|
January 18, 2011 |
|
Windsor Capital Group |
|
219 |
|
16.0 |
million |
|
100 |
% |
|
Wyndham Raleigh Durham-Research Triangle Park |
|
Durham, NC |
|
January 24, 2011 |
|
Noble Management Group |
|
175 |
|
7.0 |
million |
|
100 |
% |
|
Wyndham Pittsburgh |
|
Pittsburgh, PA |
|
January 24, 2011 |
|
Urgo Hotels |
|
198 |
|
21.2 |
million |
|
100 |
% |
|
Hampton Inn Houston-Near the Galleria |
|
Houston, TX |
|
March 14, 2011 |
|
Interstate Management Company |
|
176 |
|
20.3 |
million |
|
100 |
% |
|
|
|
|
|
|
|
|
|
1,860 |
|
$ |
204.6 |
million |
|
|
|
During the six months ended June 30, 2010, the Company, through wholly-owned subsidiaries, acquired the following hotels, which were funded by capital contributions:
|
Hotel |
|
Location |
|
Acquisition Date |
|
Management Company |
|
Rooms |
|
Purchase Price |
|
%
Interest |
|
|
Embassy Suites Tampa |
|
Tampa, FL |
|
April 15, 2010 |
|
Hilton Hotels Corporation |
|
360 |
|
$ |
76.9 |
million |
|
100 |
% |
|
Fairfield Inn and Suites Washington, DC |
|
Washington, DC |
|
June 1, 2010 |
|
Urgo Hotels |
|
198 |
|
40.0 |
million |
|
100 |
% |
|
Embassy Suites Ft Myers/Estero |
|
Ft Myers, FL |
|
June 23, 2010 |
|
Hilton Hotels Corporation |
|
150 |
|
13.2 |
million |
|
100 |
% |
|
|
|
|
|
|
|
|
|
708 |
|
$ |
130.1 |
million |
|
|
|
The allocation of purchase price for the hotel properties acquired was as follows (in thousands):
|
|
|
June 30, |
|
|
|
|
2011 |
|
2010 |
|
|
Land and land improvements |
|
$ |
29,131 |
|
$ |
21,199 |
|
|
Buildings and improvements |
|
153,557 |
|
101,407 |
|
|
Furniture, fixtures and equipment |
|
21,900 |
|
7,503 |
|
|
Total Purchase Price |
|
$ |
204,588 |
|
$ |
130,109 |
|
There were no contingent consideration arrangements associated with these acquisitions nor was any goodwill recognized. See Note 16 for detail of non-cash prorations assumed at acquisition dates.
Total revenues and net income (loss) from the hotels acquired during the six months ended June 30, 2011 and 2010, which are included in the accompanying unaudited combined consolidated statements of operations for the three and six months ended June 30, 2011 and 2010, respectively, are as follows (in thousands):
|
|
|
2011 acquisitions |
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
|
|
June 30, 2011 |
|
June 30, 2010 |
|
June 30, 2011 |
|
June 30, 2010 |
|
|
Revenue |
|
$ |
19,539 |
|
$ |
— |
|
$ |
33,574 |
|
$ |
— |
|
|
Net income (loss) |
|
$ |
2,571 |
|
$ |
— |
|
$ |
(65 |
) |
$ |
— |
|
|
|
|
2010 acquisitions |
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
|
|
June 30, 2011 |
|
June 30, 2010 |
|
June 30, 2011 |
|
June 30, 2010 |
|
|
Revenue |
|
$ |
8,105 |
|
$ |
4,136 |
|
$ |
16,029 |
|
$ |
4,136 |
|
|
Net income (loss) |
|
$ |
353 |
|
$ |
(992 |
) |
$ |
650 |
|
$ |
(992 |
) |
The following unaudited condensed pro forma financial information (in thousands) presents the results of operations as if the 2011 and 2010 acquisitions had taken place on the latter of January 1, 2010 or the opening date of the hotel. The Hilton New York / Fashion District did not open until April 2010. The Garden District Hotel acquired on October 26, 2010 has been closed since 2008 and accordingly has no operating history and is excluded from the condensed pro forma financial information. The condensed pro forma financial information is not necessarily indicative of what actual results of operations of the Company would have been assuming the acquisitions had taken place on January 1, 2010, nor does it purport to represent the results of operations for future periods.
|
|
|
For the three months ended |
|
For the six months ended |
|
|
|
|
June 30, 2011 |
|
June 30, 2010 |
|
June 30, 2011 |
|
June 30, 2010 |
|
|
Revenue |
|
$ |
211,530 |
|
$ |
194,403 |
|
$ |
389,008 |
|
$ |
358,594 |
|
|
Net loss |
|
$ |
(2,388 |
) |
$ |
(678 |
) |
$ |
(15,278 |
) |
$ |
(20,639 |
) |
|
Net loss per share attributable to common shareholders - basic and diluted |
|
$ |
(0.03 |
) |
|
|
$ |
(0.19 |
) |
|
|
|
Weighted average number of shares outstanding - basic and diluted |
|
88,767,570 |
|
|
|
81,228,975 | |