| Acquisition of Hotel and Other Properties |
Acquisition of Hotel and Other Properties During the nine months ended September 30, 2013, the Company acquired the following properties: | | | | | | | | | | | | | | | | | | Property | | Location | | Acquisition Date | | Management Company | | Rooms | | Purchase Price (in millions) | | %
Interest | Courtyard Houston Downtown | | Houston, TX | | March 19, 2013 | | White Lodging Services | | 191 |
| | $ | 34.3 |
| | 100 | % | Residence Inn Houston Downtown | | Houston, TX | | March 19, 2013 | | White Lodging Services | | 171 |
| | 29.4 |
| | 100 | % | Humble Tower Apartments (1) | | Houston, TX | | March 19, 2013 | | The Sterling Group | | 82 |
| | 15.6 |
| | 100 | % | Courtyard Waikiki Beach | | Honolulu, HI | | June 17, 2013 | | Highgate Hotels | | 399 |
| | 75.3 |
| | 100 | % | Vantaggio Suites Cosmo (2) | | San Francisco, CA | | June 21, 2013 | | n/a | | 150 |
| | 29.4 |
| | 100 | % | Residence Inn Atlanta Midtown/Historic (3) | | Atlanta, GA | | August 6, 2013 | | n/a | | 78 |
| | 4.7 |
| | 100 | % | | | | | | | | | 1,071 |
| | $ | 188.7 |
| | |
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| | 1. | Conversion to a 166-room SpringHill Suites expected to be complete by mid-2015. |
| | 2. | The property is not currently open for operations. Conversion to a 150-room Courtyard expected to be complete by late 2014. |
| | 3. | The Company was the successful bidder at a foreclosure sale of the property collateralizing a non-performing loan (see Note 6). |
The property was operating at the time of the acquisition and was subsequently closed for a major renovation, which is expected to be complete in the third quarter of 2014.
During the nine months ended September 30, 2012, the Company acquired the following properties: | | | | | | | | | | | | | | | | | | Hotel | | Location | | Acquisition Date | | Management Company | | Rooms | | Purchase Price (in millions) | | %
Interest | Residence Inn Bethesda | | Bethesda, MD | | May 29, 2012 | | Marriott International | | 187 |
| | $ | 64.5 |
| | 100 | % | Courtyard New York Manhattan/Upper East Side | | New York, NY | | May 30, 2012 | | Highgate Hotels | | 226 |
| | 82.0 |
| | 100 | % | Hilton Garden Inn San Francisco/Oakland Bay Bridge | | Emeryville, CA | | June 11, 2012 | | Davidson Hotels & Resorts | | 278 |
| | 36.2 |
| | 100 | % | | | | | | | | | 691 |
| | $ | 182.7 |
| | |
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The allocation of purchase price for the properties acquired was as follows (in thousands): | | | | | | | | | | For the three months ended September 30, | | 2013 | | 2012 | Land and land improvements | $ | 24,132 |
| | $ | 40,711 |
| Buildings and improvements | 169,070 |
| | 135,727 |
| Furniture, fixtures and equipment | 3,151 |
| | 6,220 |
| Lease intangibles | 342 |
| | — |
| Management agreement intangibles | (3,695 | ) | | — |
| | 193,000 |
| | 182,658 |
| Bargain purchase gain | (4,269 | ) | | — |
| Total Purchase Price | $ | 188,731 |
| | $ | 182,658 |
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The allocation of the purchase price for the Courtyard Waikiki Beach is preliminary due to certain market information not yet being available. See Note 15 for detail of other assets acquired and liabilities assumed in conjunction with the Company’s acquisitions.
For the properties acquired during the nine months ended September 30, 2013 and 2012, respectively, total revenues and net income (loss) from the date of acquisition through September 30, 2013 and 2012, respectively, are included in the accompanying combined consolidated statements of operations as follows (in thousands): | | | | | | | | | | 2013 acquisitions | | For the three months ended September 30, 2013 | | For the nine months ended September 30, 2013 | Revenue | $ | 11,179 |
| | $ | 17,741 |
| Net income | $ | 2,056 |
| | $ | 1,488 |
|
| | | | | | | | | | 2012 acquisitions | | For the three months ended September 30, 2012 | | For the nine months ended September 30, 2012 | Revenue | $ | 11,279 |
| | $ | 14,301 |
| Net income (loss) | $ | 2,005 |
| | $ | (408 | ) |
The following unaudited condensed pro forma financial information presents the results of operations as if the 2013 acquisitions had taken place on January 1, 2012 and the 2012 acquisitions had taken place on January 1, 2011. The unaudited condensed pro forma financial information is not necessarily indicative of what actual results of operations of the Company would have been assuming the 2013 and 2012 acquisitions had taken place on January 1, 2012 and 2011, respectively, nor does it purport to represent the results of operations for future periods. Operating results for the Vantaggio Suites Cosmo have not been included in the following unaudited condensed pro forma financial information as the acquisition was an asset purchase, not a business combination. The unaudited condensed pro forma financial information is as follows (in thousands, except share and per share data): | | | | | | | | | | | | | | | | | | For the three months ended September 30, | | For the nine months ended September 30, | | 2013 | | 2012 | | 2013 | | 2012 | Revenue | $ | 252,679 |
| | $ | 238,788 |
| | $ | 745,618 |
| | $ | 687,496 |
| Net income | $ | 33,607 |
| | $ | 20,228 |
| | $ | 85,906 |
| | $ | 42,137 |
| Net income per share attributable to common shareholders - basic | $ | 0.28 |
| | $ | 0.19 |
| | $ | 0.74 |
| | $ | 0.40 |
| Net income per share attributable to common shareholders - diluted | $ | 0.27 |
| | $ | 0.19 |
| | $ | 0.73 |
| | $ | 0.40 |
| Weighted average number of shares outstanding - basic | 121,594,219 |
| | 105,453,978 |
| | 116,697,417 |
| | 105,392,071 |
| Weighted average number of shares outstanding - diluted | 122,750,121 |
| | 105,509,104 |
| | 117,797,670 |
| | 105,446,211 |
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