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Equity
 12 Months Ended
Dec. 31, 2012
Equity
NOTE 14 - EQUITY

Common Stock
On February 14, 2011, we completed our IPO of 26,000,000 shares of common stock and our concurrent private placement of 1,274,000 shares of common stock. Net proceeds received from the IPO and the concurrent private placement were $240.8 million, after underwriting discounts of $17.7 million and offering-related expenses of $7.3 million. We contributed the net proceeds to the Operating Partnership in exchange for Common Units, representing limited and general partnership interests. The Operating Partnership primarily used the proceeds to pay down debt.

On October 3, 2012, we completed our first follow-on offering and issued 13,800,000 shares common stock for net proceeds of $106.4 million, after the underwriting discount and offering-related expenses of $6.1 million. We contributed the net proceeds to the Operating Partnership in exchange for Common Units. The Operating Partnership used the proceeds to fund the cash portion of acquisitions of 10 hotels that were under contract to purchase and pay down the principal balance of our senior secured revolving credit facility.

In 2012, we issued 4,873,625 shares of common stock to limited partners of the Operating Partnership upon redemption of their Common Units. In addition, we issued 208,027 shares of common stock to our independent directors and executive officers pursuant to our 2011 Equity Incentive Plan.

Preferred Stock
On October 28, 2011, we completed a public offering of 2,000,000 shares of 9.25% Series A Cumulative Redeemable Preferred Stock for net proceeds of $47.9 million, after the underwriting discount and offering-related expenses of $2.1 million. We contributed the net proceeds of this offering to the Operating Partnership in exchange for Preferred Units. The Operating Partnership used the proceeds to pay down the principal balance of our senior secured revolving credit facility.

On December 11, 2012, we completed a public offering of 3,000,000 shares of 7.875% Series B Cumulative Redeemable Preferred Stock for net proceeds of $72.5 million, after the underwriting discount and offering-related expenses of $2.5 million. We contributed the net proceeds of this offering to the Operating Partnership in exchange for Preferred Units. The Operating Partnership used the proceeds to pay down the principal balance of our senior secured revolving credit facility.

Both our Series A and Series B preferred stock have a $25 per share liquidation preference and pay dividends at an annual rate of $2.3125 per share of Series A and $1.96875 per share of Series B preferred stock. Dividend payments are made quarterly in arrears on or about the last day of February, May, August and November of each year.

Noncontrolling Interests
At December 31, 2012 and 2011, unaffiliated third parties owned 5,226,375 and 10,100,000 Common Units of the Operating Partnership representing 10% and 27% limited partnership interest in the Operating Partnership, respectively.

Pursuant to the limited partnership agreement, beginning February 14, 2012, the unaffiliated third parties have the right to cause us to redeem their Common Units in exchange for cash based upon the fair value of an equivalent number of our shares of common stock at the time of redemption, or at our option, shares of our common stock on a one-for-one basis. The number of shares of our common stock issuable upon redemption of Common Units may be adjusted upon the occurrence of certain events such as share dividends, share subdivisions or combinations.
 
In 2012, we redeemed 4,873,625 Common Units for 4,873,625 shares of our common stock.

We classify outstanding Common Units held by unaffiliated third parties as noncontrolling interests, a component of equity in the Company’s consolidated balance sheets. The portion of net income (loss) allocated to these Common Units is reported on the Company’s consolidated statement of operations for the year ended December 31, 2012 and the period February 14, 2011 through December 31, 2011 as net income (loss) attributable to noncontrolling interests.